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Home Crypto News & Analysis Security & Scams

Open source promises benefits for business applications

by Sarah Williams
June 5, 2024
in Security & Scams
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Open source promises benefits for business applications
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When starting out, many organizations assume they need to invest in expensive software packages as a platform for their services. However, open source software can provide a cost-effective alternative.

The coordination of professional software packages and their associated licensing can be a complex and time-consuming issue that organizations must constantly manage in order to remain operational. Not only can this be expensive, but the license agreements can place unexpected restrictions on the permitted uses and customization of the software.

Often a license agreement between a software provider and the licensee will be limited to a certain number of active users working on a particular software package. However, if an organization is actively recruiting more staff or expanding operations into new regions, this may result in some services being unavailable due to the restrictive nature of license agreements.

Open source is different, as it is freely available and can be modified by users or other developers as they wish. Also, as the name suggests, the development of the software is often an open and transparent community-driven process.

What are the benefits of open source?

One of the primary advantages of open source software is that it is often freely distributed, making it an ideal solution for new organizations when they have limited capital to work with. It can also be a cost-effective solution to mitigate significant overhead if large numbers of employees require access to the software.

While proprietary software will have a closed development cycle, to protect intellectual property (IP), the transparent nature of the development cycle for open source software means that it will have significant oversight that can identify potential issues in the code during development. This can benefit the security and stability of open source software.

The transparent nature of open source development continues after distribution, meaning it can be used by anyone later. This allows developers to customize the software to meet their specific business needs, rather than adapting their processes to meet the limitations of the software they use. As a result, innovative companies may offer something different and unique.

Satoshi Takano, CEO of ReactForge, discusses his decision to go the open source route: “When we started looking, we didn’t know what platform we were going to use. We spoke to a developer who recommended Grafana in this particular scenario. It helps us to be open to other possibilities.”

Furthermore, as organizations grow and expand, they can adapt the open source software they use to meet new demands. This flexibility enables agility by eliminating the need to invest in new software or licensing arrangements to meet emerging market trends.

The free use of open source software means the issues around having sufficient licenses are no longer a concern. Open source software can be expanded and streamlined as needed, without the expensive problem of having too few or too many software licenses.

The transparent nature of open source software carries through to its deployment and use, with the output also being open and freely available. Proprietary software may use a specific file format that may limit the usefulness of data generated, as any exported data may lose specific functionality or formatting. However, open source software makes sharing data simple and easy as it tends to use generic or industry standard file formats. This flexibility allows data to be used in new ways, allowing users to freely explore different potential markets and data uses.

It also means that users are not tied to a specific provider or software provider, thus enabling them to maximize the use of data generated by exploiting optimal functions in a variety of software packages.

“I come from Cisco, where I was in the collaboration group, the same approach to what we do here; that we have to pull in from different sources and we don’t want to be locked in with licensing and all the complexities that come with it,” says Takano. “For what we’re trying to do, the open source path is the right one.”

Recruitment opportunities

As open source systems have become widely available, many more people are using them. Not only are more people familiar with using it, but developers are also familiar with coding it. This naturally makes recruiting easier.

There are many developers who are already familiar with open source software and coding as it is something they do in their spare time. This can be an indication of someone who genuinely enjoys working in coding and development, rather than just approaching it as a job. Such a person will be more invested and productive within their role.

“A lot of people are getting involved in open source, and without any payment,” says Peter Zaitsev, co-founder of Percona. “They do it because of the passion, and they become good because the core motivation was the love, not money. It changes a lot.”

While proprietary software vendors will often have a dedicated support package as part of their license agreement, open source is quite different. Open source has a thriving community of enthusiasts and followers online, who can offer help and advice. While they may not be as official as those offered by proprietary software, these people are often just as knowledgeable and approachable.

That said, there is also the risk that coders or developers may accidentally give away sensitive information when seeking help online. Therefore, a regular reminder of how staff should engage with external parties is important to protect confidential information and IP.

Despite the inherent benefits of using open source software, there are several issues that organizations should be aware of before committing to using open source software.

What are the license permissions?

The primary point to consider is that open source is not just a single type of software distribution, but an umbrella term for multiple ways software can be distributed and deployed. Currently, there are more than 80 different types of open source licenses, but they generally fall into one of two categories: copyleft and permissive.

Copyleft: This type of open source licensing means any software derived from the original open source code inherits the terms and conditions of the original license.

Permissive: This is a freer open source license, allowing greater flexibility of reusing, modifying and distributing the software.

However, these are generic terms for a variety of licenses and care is needed to ensure that the terms and conditions of the license are not breached, as this can have costly implications.

Since several different types of open source licenses can be used, maintaining control and oversight of the licenses can become an increasingly complex issue as new software is acquired, developed, and distributed. For this reason, software asset management (SAM) tools can be an important part of a business management suite, to ensure that the terms of the various software licenses are properly met.

There is also the problem that permissions in licenses for open source software can change and evolve over time. It may change the permitted uses of the software, including rules regarding profit making. Therefore, awareness should be maintained regarding any changes to license agreements.

“There is a lot of concern in open source right now, as the term is very funny. Everyone can call this stuff open source, but that’s not the specific Open Source Initiative-approved term,” says Zaitsev. “People need to understand what is open source in terms of governance and what is open source for convenience or for marketing purposes.”

Technically challenging

Another aspect to consider is that open source software can be technically challenging to implement. It can be difficult to operate, as the user experience can differ significantly from proprietary software, which in turn means it can be difficult to adopt. For example, Microsoft Office has become the de facto standard for office applications, so using a different software platform can be confusing for users, especially those who are not technically minded.

Compared to proprietary software, open source can also be challenging to install. Since open source is often distributed directly from the developer’s platform, there are no vendors to facilitate the distribution process. Therefore, the installer must ensure that they install the correct version and stay up to date with the latest fixes.

Open source should also come from a trusted source. For example, in 2020 malware was discovered in a set of repositories on the GitHub platform. This was discovered through the transparent nature of open source development, but it demonstrates the risk if caution is not maintained.

Despite the challenges, open source software remains a viable alternative to proprietary software. This can be particularly useful for new and emerging organizations that want to minimize capital expenditure while remaining flexible to adapt to changing market trends.

While the freedom of use can be an advantage for expanding organizations, care must be taken to ensure that the associated license agreements are adhered to.

Disclaimer for Uncirculars, with a Touch of Personality:

While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.

No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.

And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.

Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!

UnCirculars – Cutting through the noise, delivering unbiased crypto news

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Sarah Williams

Sarah Williams

With years of experience dissecting financial markets, Sarah brings clarity and insight to the ever-evolving crypto landscape. Her engaging prose cuts through the noise, keeping you informed about global trends and breaking news.

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