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Clifford Otieno
Clifford Otieno

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The Open Source Myth: Why "Free" Doesn't Always Mean Free

#discuss #management #opensource

Introduction: The Great Misconception

In the world of software development, "open source" is often misunderstood. Many developers, businesses, and everyday users assume that if software is open source, it is automatically free—free to use, free to modify, and free to distribute. That isn't always true.

The reality is that open source has different types, licenses, and business models. It also has hidden costs that can surprise many teams and individuals. Understanding these details is essential to deciding which open source projects to use (or create).

The Types of Open Source Models

1. Truly Free Open Source

Examples: Linux Kernel, WordPress, PostgreSQL, Apache HTTP Server

These projects are the most common type of open source. They typically use licenses like GPL, MIT, or Apache 2.0 that give users the most freedom.

Characteristics:

  • No licensing fees
  • Complete freedom to modify and distribute
  • Strong community governance
  • Often supported by a foundation (Apache Foundation, Linux Foundation)

How Creators Earn Money:

  • Donations & Sponsorships: GitHub Sponsors, Patreon, Open Collective.
  • Support & Consulting: Paid help for setting up or fixing issues.
  • Hosting: Charging for a managed version (e.g., WordPress.com vs. the free WordPress.org software).

The WordPress Success Story:
WordPress powers 43% of all websites on the internet. It shows how "truly free" open source can create broad ecosystems. While the foundational software is free, a large industry has grown around themes, plugins, hosting, and services.

2. Source-Available Licenses

Examples: MongoDB (SSPL), Redis (RSAL), CockroachDB (BSL)

These projects make their source code available but limit how companies can use it to make money. This targets cloud providers significantly.

How Creators Earn Money:

  • Licensing Fees: Utilizing a commercial license for enterprise use.
  • Enterprise Support: Providing dedicated help to paying companies.

The MongoDB Controversy:
In 2018, MongoDB moved to the Server Side Public License (SSPL). This change was made to stop big cloud companies like AWS from selling MongoDB as a service without paying or contributing back.

Key Restrictions:

  • Cannot offer the software as a service
  • Must open source any modifications used in production
  • Limits commercial use by third parties

3. Open Core Models

Examples: GitLab, Confluent (Kafka), TimescaleDB

These projects offer a free, open source core with paid enterprise features on top.

How Creators Earn Money:

  • Upselling: Offering a "Pro" or "Enterprise" version with extra features.
  • Cloud Hosting: Offering a hosted version of the software.

The GitLab Strategy:
GitLab keeps a strong open source core while selling extra features like advanced security and compliance tools. This helps them grow as a company while staying open source.

Pros:

  • Free version available for basic needs
  • Revenue pays for more development

Cons:

  • Different features can be confusing
  • Paid features may be needed for production use

4. Dual Licensing

Examples: MySQL (Oracle), Qt

These projects offer the software under two licenses: one open source and one commercial.

How Creators Earn Money:

  • Commercial Licenses: Selling the right to use the code in closed-source commercial products.

MySQL's Dual Approach:
MySQL uses a dual model. The software is available under GPL for open source projects. However, companies must buy a license if they want to include MySQL in their own paid software without sharing their code.

Hidden Costs of "Free" Open Source

1. Support and Maintenance

While the software itself may be free, enterprise-grade support often costs money.

Real-World Example: A large company using PostgreSQL might save millions on licensing fees compared to Oracle. However, they will likely pay for:

  • 24/7 enterprise support
  • Custom patches and security updates
  • Performance tuning

2. Integration and Customization

Connecting open source software to your existing systems often takes a lot of work.

Case Study: A company adopting Kubernetes might save on licensing but spend heavily on:

  • Connecting it with existing monitoring tools
  • Building internal tools and automation
  • Training operations teams

3. Training and Expertise

Open source software often requires skills that are hard to find.

The Kubernetes Learning Curve: While Kubernetes is free, the experts needed to run it are expensive. Companies often need to pay for training or hire expensive consultants.

4. Opportunity Costs

Time spent maintaining open source software is time not spent on your main products/goals.

The Maintenance Burden: A development team spending weeks customizing a CRM system is not building features that make their business special.

5. Costs for Individual Users & Developers

For hobbyists, freelancers, and students, the "cost" often isn't money—it's time and frustration.

  • Learning Curve: Spending weeks learning a complex tool (like Kubernetes) for a simple personal website.
  • Hosting Costs: Self-hosting "free" software often costs more in server fees than a cheap managed service.
  • Lack of Support: When things break, you don't have a support line to call; you rely on forums and your own debugging skills.

Case Studies: Lessons from the Front Lines

MongoDB vs. AWS: The Cloud Provider Dilemma

The Problem: AWS offered MongoDB as a service (DocumentDB) without contributing to MongoDB's development.

The Response: MongoDB changed their license to prevent cloud providers from using their work without paying.

The Impact: AWS created their own service, which split the community.

Lesson: Even "free" open source can lead to difficulty switching providers and community splits.

Redis and the RSAL License

The Change: In 2018, Redis Labs introduced a new license for some modules.

The Rationale: To stop cloud providers from selling Redis modules as services without contributing back.

The Controversy: This sparked a debate about what "open source" really means.

WordPress: The Ecosystem Model

The Success: WordPress shows how "truly free" open source can create a huge business ecosystem.

The Reality: While WordPress core is free, businesses spend billions on:

  • Premium themes and plugins
  • Professional hosting and support
  • Custom development

The Lesson: "Free" software can create huge value while staying open.

How to Evaluate Open Source Projects

1. License Analysis Checklist

Before using any open source project, check:

  • License Type: Is it "truly free" (GPL, MIT, Apache) or source-available?
  • Commercial Restrictions: Are there limits on making money?
  • Compatibility: Does the license work with your other software?
  • Future Changes: Can the license change later?

2. Total Cost of Ownership

Look at all costs, not just the license:

  • Direct Costs: Support, training, consulting
  • Indirect Costs: Dev time, maintenance
  • Opportunity Costs: What else could your team be doing?

3. Open Source Provider Dependency Assessment

Evaluate your risk:

  • Community Health: Is the project active?
  • Fork Viability: Could you maintain your own version if needed?
  • Alternative Options: Are there other choices?

4. Legal and Compliance Review

Ensure it fits your individual or organisational rules:

  • License Compatibility: Does it work with your tech stack?
  • Export Controls: Are there regulatory limits?
  • Security Requirements: Is it secure enough?
  • Personal Use vs. Commercial: (For Individuals) If you plan to sell your project later, make sure the libraries you used allow it.

Best Practices for Everyone

1. Establish Clear Guidelines

For Organizations:

  • Approval Process: Who says yes?
  • Risk Assessment: How do you judge projects?

For Individuals:

  • Project Limits: Decide how much time you are willing to spend "fixing" tools vs. building your project.
  • Licensing Check: Always check the license before you start coding.

2. Invest in Expertise

Don't assume "free" means "easy":

  • Training: Teach your team.
  • Community Engagement: Join the community.
  • Contributions: Give back to projects you need.

3. Plan for Long-term Maintenance

Open source projects can change or disappear:

  • Fork Strategy: Know when to make your own version.
  • Migration Planning: Have a plan to leave if needed.
  • Budget Allocation: Plan for maintenance costs.

4. Balance Innovation with Stability

Weigh the benefits:

  • Maturity Assessment: Use stable projects for important systems.
  • Innovation Sandbox: Use new projects in safe places.
  • Gradual Adoption: Move slowly.

The Future of Open Source Sustainability

The balance between open source ideals and business needs is changing. We are seeing new models like:

  • Fair Source: Limits use for big companies.
  • Ethical Licenses: Restricts use for certain bad things.
  • Time-Limited Open Source: Code becomes free after a while.

These changes show that open source is evolving to fit different business needs.

Conclusion: Navigating the Open Source Landscape

"Open source" is not one simple thing. It covers many different licenses, business models, and communities. Understanding these details is essential for making good choices.

When looking at open source software, look past the "free" price tag and consider:

  • Is the project sustainable?
  • What is the total cost?
  • What is your risk?
  • How important is the software?

By looking closely, one can get the benefits of open source without being surprised.

Remember: In the world of open source, as in life, there's no such thing as a free lunch. But with careful planning, one can find solutions that give great value and fit their business.

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