Linux Insider asks Is E-Commerce Ready for Open Source?

Linux Insider magazine, Part of the ECT News Network published an article “Is E-Commerce Ready for Open Source?” By Jack M. Germain on Feb. 5, 2007

Read the Elastic Path-specific bits below or the whole thing at Tech World News and, heck might as well Digg it!

Still Under Construction

While open source applications are clearly making an impact in the e-commerce space, it is not yet fully integrated, leaving vendors to use proprietary products for some aspects of their business control. For example, Williams explained that open source commerce is rarely used on the high end. It is mostly used as an entry platform.

The choices a vendor makes are determined to a great extent on their companies’ business preferences, Jason Billingsley, vice president of marketing at Elastic Path Software, told LinuxInsider. His company develops Java e-commerce software platform for building online stores and shopping carts.

“Some complete applications are available for other business sets, but very few exist for e-commerce,” Billingsley said, adding, “I am starting to see lots of open source applications in use in enterprise.”

Eilon Reshef, vice president of product management and co-founder of WebCollage, agrees that open source programming still has a long way to go before being fully implemented in the e-commerce space. Open source tools range from content via Apache Server to a variety of back end applications, he noted.

“We are still not seeing the breadth of tools that other domains have available. E-commerce is still at the Web 1.0 level. It is still too new. Other Internet businesses are further along in Web 2.0 technology,” Reshef told LinuxInsider. Webcollage develops enhanced product marketing tools for online vendors.

Mixed Models

A trend is developing among applications developers in general to draw from open source programming and add proprietary code to develop a unique software product. This approach is becoming more popular with e-commerce.

Many companies are starting to use a mixed model, according to Billingsley, combining open source and proprietary code. Companies that use this developmental approach do not release the complete program code, as is the licensing requirement under the open source.

“That used to be done a few years ago but not so much now. Now commercial companies are starting to release code with licensing fees. We don’t need to protect our intellectual property openly because we integrate it with our platform. It is easier to license,” Billingsley explained.

Merging Methods

Genuitec is a good example of how software developers are combing open source with their own commercial efforts. Williams said his company chose PH-based tools to build his its Java-based e-commerce business applications, allowing the company to get up to speed fast.

Its products are not open source in the traditional sense. The company offers a fixed subscription price for one year to use the product and obtain support.

“We build on open source and add value. But we don’t offer a free version. By selling at a low price point, we opened up to a world market. We sell to 150 countries,” Williams declared.

Elastic Path’s Billingsley sees the best of both worlds in combining proprietary and open source application code.

“We’ve taken 90 percent of our platform and built services around it. We’ve taken database functionality and open source application servers — both proprietary and open source — and developed a product for cost savings,” he added. “In enterprise, applications can cost from (US)$30,000 to $100,000 for commercial product. We offer this function for free to leverage our product.”