Technology
Jun 5, 2025
Advantages of Open Source Software: Turning it Into a Strategic Asset
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What’s really blocking transformation, why execs hesitate on open source and turning it into a strategy: Discover the strategic advantages of open source software (and how to unlock them).
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Enterprise leaders' dilemma is how to drive transformation without increasing risk. For Chief Digital Officers and Heads of Innovation, this usually means navigating legacy systems, avoiding vendor lock-in and delivering outcomes that make commercial sense.
And yet, we underutilise one of the most powerful tools available: open source software.
Despite powering the majority of the internet, open source is too often dismissed as “not enterprise-ready.” That assumption doesn’t just miss the mark, it could be costing you speed, flexibility, and long-term strategic control.
These are the key advantages of open source software, and how to turn them into a strategic asset:
Open source software (OSS) refers to software where the source code is publicly available for anyone to inspect, modify, and enhance. Unlike commercial or proprietary software, it’s built by distributed communities and often supported by leading technology companies.
And yet, many large organisations still view OSS with caution. Common concerns include:
These concerns aren’t new. In the 1990s, software giants like Microsoft and Oracle actively campaigned against OSS, positioning it as risky or amateurish. Ironically, today, Microsoft’s Azure runs on open source components, and Oracle owns Java, one of the most widely used open source programming languages globally.
The truth? If you’ve ever used the internet, made an online transaction, or searched on Google, you’ve already relied on open source. It’s an integral part of tech today, and for good reason.
Why should digital transformation leaders take open source seriously? Beyond cost savings, it offers structural advantages that align directly with your enterprise goals, including:
One of the most overlooked advantages of open source software is that it puts your business in control. You can adapt, extend or replace components without being tied to a single vendor. This makes it easier to evolve your systems as your organisation’s needs change, especially important in multi-year transformation roadmaps.
“You’re not locked into a specific vendor or pricing model,” notes Joe van der Walt, Kohde’s founding director. “That means more control and fewer blockers as priorities shift.”
Licensing fees for proprietary software often balloon as you scale. Open-source software eliminates or reduces this burden. But the real ROI comes from the ability to reuse and extend existing tools rather than starting from scratch with every new initiative.
“Every system we build at Kohde relies on open source,” Joe explains. “Without it, we simply couldn’t deliver enterprise-grade systems efficiently.”
Because open source tools are built and tested by global communities, they evolve rapidly. Enterprises that embrace OSS can ship new features, prototypes, or integrations far faster than those stuck in commercial software lifecycles.
“OSS gives us speed. If we need encryption or machine learning capabilities, chances are there’s an open source library ready to go,” says Donato Spadaccino, an engineer at Kohde.
There’s a persistent myth that open source software is less secure because “anyone can see the code.” In fact, the opposite is often true. The transparency of OSS allows more eyes to inspect code, catch vulnerabilities, and fix issues quickly. Tools like osv-scanner and long-term support (LTS) distributions help enterprise teams manage these risks responsibly.
“Security doesn’t come from secrecy,” says Donato. “It comes from good practices: managing keys, updating packages, and patching vulnerabilities. Open source supports all of that.”
Modern open-source projects offer commercial support, governance models, and frameworks tailored to large organisations. At Kohde, for instance, we use the ABP framework, a modular, open-source platform, to ensure maintainability, licensing compliance, and long-term scalability.
“The idea that open source means ‘unsupported’ is simply outdated,” Joe adds. “We implement OSS with the same rigour as any commercial stack – just with more agility.”
At Kohde, we’re a Microsoft Solutions Partner, and we don’t use open source because it’s trendy or cheap; we use it because it works. For enterprise clients like Netcare and Afgri (anonymised for confidentiality), OSS allowed us to build secure, scalable systems that integrated seamlessly with existing infrastructure.
What sets us apart from generalist dev shops is our approach:
If you’re leading transformation, and have been burned by shallow vendor proposals or locked-in platforms, open source isn’t a risk – it’s a way out.
Rejecting open source out of fear doesn’t just preserve the status quo. It puts your enterprise at a disadvantage:
Transformation leaders need tools that match the speed and complexity of the modern enterprise. The key advantages of open source software offer exactly that when it’s used well.
Open source isn’t a silver bullet, but it’s no longer a gamble either. In the right hands, it’s a proven, scalable foundation for enterprise growth.
At Kohde, we help organisations harness the advantages of open source software safely and strategically, from architecture to implementation.
To see what the advantages of open source software can unlock in your digital strategy, chat with Joe and the team.
