E72: Open Source Usage-Based Billing with Lago

Transparency

Transparency in open source billing systems like Lago offers significant advantages. Anh-Tho Chuong highlights that open source allows stakeholders, such as CTOs, to audit the code, ensuring they understand how the billing system operates 1. This transparency is crucial for handling complex billing scenarios, as it allows for flexibility and customization to meet unique business needs. Chuong explains, "You know exactly how it works. So it's easier to contribute versus not knowing, not having to contribute to a black box" 2.

   

Community

The open source model of Lago fosters community involvement, enabling contributions that address specific regional needs and complex billing scenarios. Anh-Tho Chuong notes that regions like Northern Europe can contribute to specific tax and payment integrations, which might not be feasible for proprietary systems 2. This collaborative approach allows for diverse pricing models and integration solutions. Chuong shares, "We think every week on this, on all the feedback we had, and I think we score the users per fit with our product" 3.

   

Strategy

Strategically positioning Lago as an open-source alternative to proprietary systems differentiates it in the competitive billing market. Anh-Tho Chuong emphasizes the importance of clear messaging, focusing on open source metering and usage-based billing to resonate with users 4. This approach not only highlights Lago's flexibility but also its broader capabilities beyond just billing. Chuong reflects, "I think bidding, you can't get closer to the money than bidding in terms of software applications" 1.