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Does anyone know of an open source web based SVG editor with Visio compatibility than can be embedded into applications?
Lucidcharts has promise but their subscription model isn't working out for business use in large organisations.

Lucidchart seems to target large accounts but their business model seems tuned for small businesses.

  Companies wants to centralize licensing and not add yet another vendor. Since you can't subscribe through normal licensing channels, the tool isn't widely adopted.
For personal use, I can't justify the subscription cost and I tend to avoid subscriptions for anything for better budget management.
I bet this became possible because of the recent progress in the past months with this great library: http://cgit.freedesktop.org/libreoffice/contrib/libvisio

Or they embed Libre Office directly in order to convert visio to svg. So far there seems to be no documentation at all about the binary Visio file format and that library is the only thing out there!

Actually Lucidchart has imported and exported Visio documents for a couple years, and we don't use the LibreOffice library at all.

We reverse engineered the binary format!