What is open source?

Open source: definition and importance

With open-source software, the source code is open. Anyone may read, use and adapt it and—depending on the license, under certain conditions—redistribute it. It is often maintained by communities of developers and companies. Many foundations of the internet run on open source, including the Linux operating system, web servers, databases and content management systems such as WordPress.

Open source is not the same as free of charge. The software itself often costs nothing, but setup, operations, updates and support certainly do. Many projects are funded through service providers, donations, corporate sponsorship or paid add-ons, such as hosted operation or premium features. The license is what counts, not the price.

How licenses work

The license defines what is permitted. Permissive licenses such as MIT, BSD or Apache 2.0 allow use even in your own closed products, usually with an obligation to credit the author. Copyleft licenses such as the GPL require that derived software be passed on under the same terms and that the source code be disclosed.

This is relevant in practice for companies: anyone who builds open-source components into a product they sell must know and comply with the license terms. An overview of all components used together with their licenses, a so-called software bill of materials, helps. More on this is in the glossary entry on open-source licenses.

Real-world example: document storage at a supplier

A supplier wants to share documents internally and with customers but does not want to store data with a provider outside the EU. It runs the open-source solution Nextcloud on a server in Germany and thereby keeps sovereignty over data and access.

The solution works only if someone looks after it: updates, security patches, backups and monitoring have to run. The operation is therefore handed to an IT service provider, with clearly defined responsibilities. Open source code reduces dependence on a single vendor but does not replace responsibility for operations.

Benefits, limits and common mistakes

Open source offers transparency, independence from individual vendors, a wide choice and often fast further development. Risks arise when projects are no longer maintained, security updates fail to appear or license obligations are overlooked. In addition, support depends on the community or a service provider, not on a vendor with a fixed contract. Typical mistakes:

• Building in components without checking the license and the project’s maintenance
• Postponing updates and security patches
• Not complying with license obligations such as attribution or disclosure
• Using critical components maintained by just one developer
• Assuming “free of charge” and not planning for the operating effort

What businesses should look out for

Before using a component, check the license, the project’s activity, its update cadence and its community, and keep an overview of all components in use. Nano Concepts works daily with open-source technologies such as Laravel, React and WordPress, pays attention to licenses and updates and, on request, takes over operations and maintenance.