In our shoestring operation we need to prototype algorithms in some higher-level language before committing to a C implementation on embedded hardware.

So far we have been using MATLAB to do that, but the licensing costs are beginning to hurt. We're considering porting our MATLAB code to Octave.

Is there any particular reason not to do that? Will we break any compatibility, especially if we have external partners who insist on using MATLAB? Are there any performance penalties we can expect?