1. New business also for IT companies

New business also for IT companies

For logistics service providers, the advantages of open source are obvious: the collaborative development of software saves costs, the software increases the user-friendliness of physical logistics and improves efficiency. Logistics IT partners, on the other hand, often fear for their market. However, open source developments offer them numerous opportunities to expand their business, retain existing customers and acquire new ones.
© Open Logistics Foundation

“Today, open source and proprietary solutions can merge with, reinforce and inspire each other,” explains Dr. Michael Schmidt, Logistics & SCM Advisor of the Open Logistics Foundation. Ulrich Buhrmann, Executive Director at the technology and software company iteratec, a member of the Open Logistics Foundation, agrees: “We are convinced that our customers gain a competitive advantage when our work is based on open source. It also strengthens our relationship with our customers.”

Expand intelligently

One of the most important and best-known business models is the open-core model: companies can develop extensions or add-ons around the open core of open source software that are particularly valuable for their existing or potential new customers. These include, for example, use-case-specific functionalities or collaboration tools. They can offer then this new closed-source software to their customers as a commercial package with the open source solution, i.e. for a fee. Dr. Michael Schmidt: “The software can either run under two licences – the Open Logistics Foundation License for the open source part and a proprietary licence for the extensions – or can also be placed under a new licence as a package. The Open Logistics Foundation License explicitly allows this.” The open-core model also offers start-ups, in particular, the opportunity to position themselves on the market and scale more quickly.

Better advised

IT companies can also host open source applications for logistics service providers and combine this with software-as-a-service or infrastructure offerings. They can also offer logistics services for implementing open source software in their company and training or technical support during operation. “Logistics companies that want to integrate open source software into their IT landscape can make good use of support from specialised providers, “ says Dr. Michael Schmidt. Ulrich Buhrmann from iteratec sees clear added value for his company in participating in developing open source software in the Foundation from the outset: “We are pleased to be working with industry leaders on several projects to develop new standards that solve the most pressing challenges in logistics.”

This article was published in the fourth edition of the Open Logistics Magazine. You can read the full magazine and register for future editions here.

Show all news and stories from Open Logistics Foundation

Contact

Michael Schmidt

Logistics & SCM Advisor

Open Logistics Foundation

Also interesting

Stay up to date on the future of logistics and sign up for our “Get inspired” newsletter!