Open source software (OSS) is everywhere, but a lot of people still have questions. What’s the big deal? Is it actually free? How do companies make money from it? And most importantly should you be using it? This guide breaks it all down so you can make sense of the open-source ecosystem without drowning in legalese.
What is Open Source?
Open source means the code is available for anyone to view, modify, and distribute. This could be anything from a Python package (NumPy) to a full-blown platform (Apache Spark).
Open doesn’t mean unregulated. OSS comes with licenses, and some are more restrictive than others (more on that later).
What Are the Benefits of Open Source Software?
Companies and developers love OSS for a few key reasons:
- Faster Innovation: No need to reinvent the wheel when there’s already a solid foundation.
- Cost Savings: Skip hefty licensing fees and per-user pricing models.
- Customization: Tweak the software to fit your exact needs.
- Security & Transparency: Public code means more eyeballs spotting (and fixing) vulnerabilities.
- No Vendor Lock-In: You’re not chained to one company’s roadmap or pricing structure.
Wait, Open Source Has Licenses?
Yep, and they matter. OSS licenses dictate what you can (and can’t) do with the code. They fall into two broad categories:
Copyleft Licenses (More Restrictions, More Sharing)
These licenses require that any modified versions of the software also remain open source. This ensures that improvements benefit the broader community but may impose restrictions on proprietary adaptations.
GPL (General Public License): If you modify and distribute the code, you have to keep it open-source.
AGPL (Affero GPL): Ensuring modifications remain open even in SaaS applications.
LGPL (Lesser GPL): Lets you link OSS with proprietary software under certain conditions.
Permissive Licenses (Fewer Restrictions, More Freedom)
These let you do pretty much whatever you want, including using the software in closed-source projects.
MIT License: Just give credit to the original authors, and you’re good.
Apache License: Like MIT but includes a built-in patent grant, protecting contributors and users from patent-related legal risks.
BSD License: Comes in multiple flavors (2-Clause, 3-Clause), but generally gives lots of freedom with minimal requirements.
Pick the wrong license, and you might find yourself legally obligated to share modifications that you intended to keep proprietary
Is Open Source Software Safe?
Security concerns often arise with OSS, but transparency in development can make it more secure than proprietary software. Key considerations:
- Vulnerabilities? Sure, all software has them. With OSS, issues get spotted and fixed faster thanks to a massive community of contributors.
Malware Risks? If you download from sketchy sources, yeah, that’s a risk. Stick to trusted repos like GitHub, PyPI, and npm.
Is Open Source Software Free?
By definition, the code is available and the software is technically free from licensing costs. For example, using an open source CRM avoids expensive per-user fees. However, there are still costs involved:
- Hosting and running the software on a server.
- Networking and security maintenance.
- In-house management vs. outsourcing to a managed service provider.
How Does Open Source Software Make Money?
1. Hosting and Managed Services
Companies offer fully managed versions of open-source software, removing the operational complexity for customers. These services often include automatic updates, scalability, security patches, and uptime guarantees.
- Examples:
- Red Hat – Provides enterprise-grade Linux distributions with managed support.
- Driftwave – Hosts and manages Lightdash and Metabase, offering businesses hassle-free analytics without per-user fees or infrastructure concerns.
- MongoDB Atlas – Offers a fully managed, cloud-based version of MongoDB.
2. Premium Support & Consulting
Many companies open-source their core software while providing paid support, training, and consulting services for enterprise customers who need custom integrations, performance tuning, or guaranteed SLAs.
- Examples:
- Elastic (Elasticsearch, Kibana, Logstash) – Offers paid enterprise features, security tools, and dedicated support while keeping the core ELK stack open.
- Confluent (Kafka) – Provides managed Kafka services and commercial add-ons.
- GitLab – Has a free open-source core but sells premium plans with security, compliance, and DevOps automation tools.
3. Open Core Model
Some companies offer a free, open-source version with limited features while selling an enterprise edition with proprietary enhancements, such as better security, scalability, or compliance tools.
- Examples:
- GitLab – Offers a free community edition and a paid version with extra security & CI/CD features.
- HashiCorp (Terraform, Vault, Consul) – Provides open-source tools but sells premium enterprise add-ons.
- Grafana Labs – Open-sourced Grafana for monitoring but offers paid cloud hosting and enterprise dashboards.
4. Sponsored Foundations & Grants
Some open-source projects receive funding through foundations, corporate sponsorships, and community donations. Foundations help maintain long-term development by distributing funds and resources to contributors.
- Example:
- Apache Foundation – Supports projects like Hadoop, Kafka, and Airflow through corporate sponsorships from companies like Google and Microsoft.
Does Open Source Software Have Copyright?
Yes, OSS is still protected by copyright. The original author or organization retains ownership of the code, and the license determines how it can be used, modified, and shared. Copyright laws apply to all software, including open source, to ensure that creators maintain certain rights over their work.
What Are the Drawbacks of Open Source Software?
While OSS has many benefits, there are some challenges to consider:
- Technical Expertise Required: Some OSS tools are DIY nightmares if you don’t have in-house knowledge.
- Limited Customer Support: Unlike proprietary software, which typically offers dedicated customer support, OSS relies on community forums and documentation for help.
- Compatibility Issues: Some open source tools may not integrate well with enterprise software solutions, requiring additional customization.
- Security and Compliance: Organizations must actively monitor and update OSS to patch vulnerabilities and comply with security regulations.
Should I Use Open Source Software?
Deciding whether to use OSS depends on your specific needs, technical capabilities, and long-term goals. Here are key factors to consider:
Go for it if:
- You want to save money on licensing fees.
- You need flexibility to customize your tools.
- You trust the OSS community to maintain security.
Stick to paid solutions if:
- You need dedicated customer support and SLAs.
- Compliance & security are a headache you don’t want to manage.
OSS is revolutionizing the way businesses approach technology, offering cost savings, flexibility, and a thriving community-driven ecosystem. Like any tool, it requires understanding the risks, knowing how to manage it, and choosing the right license for your needs.
Need help implementing open source analytics tools? Driftwave offers managed hosting, expert consulting, and seamless integration of tools like Lightdash and Metabase, so you can focus on insights.