Why open source ?

What is open source ?

Open-source, too often unknown to the general public, is a model of software development. Open-source appeared in 1985 with the creation of the “free software foundation”. An open-source software must abide to the 4 following rules:

• Freedom to run the program for all uses
• Freedom to study how the program works and therefore freedom of access to software source code
• Freedom to redistribute copies and sell them
• Freedom to improve the program and release the improvements

Why is open source interesting for MFIs?

1> It’s safer and more flexible

• Because it allows to adapt the product to the exact needs of the MFI from the source code
• Because there is a large community of users testing the software monthly, which reduces the risk of bugs
• Because there are frequent updates available

2> It’s cheaper than a proprietary sofware while the quality is the same or even higher

• Open source brings together a community of users, developers and supporters who help to develop the software, test it, document it, promote it… It’s a development accelerator, whose cost is normally borne by a commercial structure.
• There is no commercial license: you can deploy Octopus in as many branches as you want, install in on as many computers as you want… You do not need to pay a penny for it! You will not be hampered in your development through investment in licences as it is the case for every software under commercial license.
• You only pay for what you really need: when you need a function that does not exist in Octopus, you can pay it and we develop it for you. Moreover, you benefit from specific developments that we realize for other users.

3> You are more free

• You are not tied to a single local reseller for maintenance, you can choose the reseller you want.
• You are not tied to the software reseller: if you are not satisfied with our services, you can have your own developer trained to contribute to Octopus development.

If it is open-source, how can Octopus survive ?

Open-source does not mean free ! It means that the software is free to use, without commercial license. Open source is not an economic model, it’s a development model. So, what is Octopus model? Basically, a business model is based both on a cost structure and a revenue structure: we have stated above how we optimize costs thanks to the support of the open source community. Concerning revenues, our model is based on the sale of services associated with the software:

-          Direct services to MFIs (training, implementation, specific developments) – see services

-          Indirect services to local resellers (training, annual certification, specific developments)

Another important point is that Octopus is a project supported by ACTED, one of the most important European NGOs. Octopus is a social-business, a commercial company with limited profit: our goal is not to maximize profit but to be financially viable to achieve our ambition to increase efficiency, transparency and viability of MFIs. We contribute to the structuring of the sector by providing Octopus, a software made to be as robust and easy to use possible.