"It's almost too good to be true."
I hear some version of that in nearly every first meeting with a government. They've spent decades buying software with seven-figure licences attached. Then someone turns up with a national system that's free to use. Of course they're suspicious.
The short answer: the software is genuinely free. An open source digital public good has no licence fee and no vendor lock-in. But running a national system is never free. Governments still pay for implementation, integration, data migration, training, hosting, security testing and ongoing support. The difference is where the money goes: into people and local capacity, not into licence revenue.
Key facts:
So what exactly is free?
The code. That's it, and it's a big deal.
No licence fee, no per-user charge, no renewal that doubles when the vendor knows you're stuck. You can read the code, change it, and deploy it as many times as you like. If the implementation partner you hired disappoints you, you can hire a different one without starting again.
That last point is where most of the long-term saving comes from.
Where does the money go?
| Cost line | What it covers | One-off or ongoing |
|---|---|---|
| Configuration | Forms, workflows, certificates and languages set up for your country | One-off, then small changes |
| Integration | Connecting to ID, health, statistics and other systems | One-off, plus upkeep |
| Data migration | Digitising and loading historical records | One-off, often underestimated |
| Training | Registrars, admins, support staff | Ongoing, as staff change |
| Hosting | Government data centre or cloud | Ongoing |
| Security testing | Penetration tests on your deployment | Recurring |
| Support and AMCs | Fixes, upgrades, monitoring | Ongoing, for the life of the system |
None of those lines go away with proprietary software. You pay them all, plus the licence.
How do you compare total cost of ownership?
Compare over the life of the system, not the first contract. Ten years is a sensible horizon for national infrastructure.
For each option, add up:
- Implementation cost
- Licence fees over ten years, including likely increases
- Support and AMCs over ten years
- The cost of changing supplier if you need to
That fourth line is where open source wins, and where most comparisons forget to look. With proprietary software, switching often means rebuilding. With a DPG, it means hiring a different partner.
The Pix numbers make the point. Running costs run at roughly three and a half times the build cost, every year. Whatever you choose, the build is the small number. Pick the option where the big number stays under your control.
Why the "free" pitch backfires
My take: leading with "it's free" is a mistake, and the open source world makes it constantly.
It triggers exactly the suspicion you'd expect. "If it's free, who maintains it? Who do we call at 2am? Why is nobody making money from this?"
The better pitch: every dollar you spend goes into your country's own capacity. Your people get trained. Your local partners get the work. The system stays yours.
Who actually pays?
Often, not the ministry alone. Development funders like the World Bank and regional development banks frequently fund implementation, and they're usually big advocates of the DPG approach. I cover that in how DPI is funded.
What implementation budgets don't always cover is the long tail: support, hosting and upgrades after go-live. Plan for that from day one. It's the subject of what happens after go-live.
Frequently asked questions
Is open source software free for governments? The software licence is free. Implementation, hosting, training and support still cost money.
What are the hidden costs of open source? Mainly data migration, integration and long-term support. They're not really hidden. They just get left out of the first budget.
Is open source cheaper than proprietary over time? Usually, because there's no licence fee and you can change implementation partners without rebuilding the system.
Who maintains open source government software? The DPG's own team maintains the core product. Your deployment is supported by in-country staff, a local partner or a regional or global firm.
Sources
- We need an open conversation about the costs of DPI, Digital Impact Alliance
- How much does it cost to build DPI?, Centre for Digital Public Infrastructure
Comparing open source and proprietary options for a national system? Let's talk.
