Today Small Medium Enterprise (SME) in Indonesia increasingly growing, along with the growth of business done, of course must be offset by existing IT in the company, due to support the performance of the company. Who originally used it daily jobs done manually will be diverted to use software to help the work. But sometimes to develop the IT application, the obstacle typically encountered is about the budget for the investment of IT itself, therefore in this paper the authors compare the advantages and disadvantages between open source software and software Proprietary using VAL IT as a framework. For the result of the Open Source Software is low cost because the the code it is free but company should spend budget for the training and for the report the company need to learn to create the reporting. While for software Proprietary is high cost but support is conducted regularly for operational and for just ask the vendor to create report.