IT term explained

Open-source software

Open-source software is software whose source code is available for people to inspect, modify, and redistribute under the terms of an open-source license. The source code is the human-readable set of instructions used to create the software.

Open source does not necessarily mean “free of charge.” Many open-source products can be downloaded and used without paying a license fee, but companies may charge for hosting, support, implementation, additional features, or managed versions of the software.

PostgreSQL, Linux, and the Firefox web browser are well-known examples of open-source software.

Why do businesses use open-source software?

For a small or midsize business, open-source software can:

  • reduce or eliminate software licensing fees;
  • provide more control over how a system is used and customized;
  • reduce dependence on a single vendor;
  • make it easier to find developers or service providers with relevant experience; and
  • benefit from improvements contributed by a larger community.

Open-source software is not automatically less expensive, more secure, or easier to maintain than commercial software. Someone still needs to configure it, install updates, protect its data, and resolve problems. A mature project with an active community and professional support options may present much less risk than a project maintained by only one person.

The license also matters. Some licenses allow open-source components to be used within proprietary software with relatively few requirements. Others may require related source code to be made available under particular circumstances. A business developing or distributing its own software should understand the licenses of the components it uses.

The practical question is not simply whether software is open source. It is whether the product, its support options, and the total cost of operating it are a good fit for the business.

Mentioned in

Choosing (and then re-choosing) a database for my work app