Open Source – Definition, Use Cases and Best Practices at a Glance
Software whose source code is publicly accessible and may be viewed, used, modified and redistributed by anyone.
What is Open Source? Definition, Licences & Business Models
Open source has fundamentally changed the software world. From Linux to WordPress to Kubernetes, many of the most successful technologies are open source. For companies it offers not only cost benefits but also transparency, flexibility and independence from single vendors. Strategic use requires understanding licences, community dynamics and support models.
This glossary entry for Open Source gives you a clear Definition, practical Use Cases and Best Practices at a glance – with examples, pros and cons, and FAQs.
What is Open Source?
- Open Source – Software whose source code is publicly accessible and may be viewed, used, modified and redistributed by anyone.
Open source means software whose source code is publicly visible and released under a licence that explicitly allows use, copying, modification and redistribution. The Open Source Initiative (OSI) defines ten criteria a licence must meet.
Important licence families are permissive (MIT, Apache 2.0, BSD), with few restrictions, and copyleft (GPL, AGPL), which require derivatives to stay open source. Open source is not the same as free of charge: many projects fund themselves via enterprise editions, support contracts and hosting.
How does Open Source work?
Open-source projects are developed on platforms like GitHub or GitLab. The community contributes via pull requests, reports bugs via issues and discusses features. Maintainers review and merge. Large projects have governance (e.g. foundations like Linux or Apache) that set direction.
Companies can use open-source software freely but must comply with the licence, especially when distributing modified code.
Practical Examples
Linux: The most widely used server OS. Android is based on the Linux kernel. Over 90% of cloud servers run Linux.
WordPress: Open-source CMS powering over 40% of websites. Free to use with a huge plugin ecosystem.
Kubernetes: Developed by Google and released as open source. Today the standard for container orchestration, managed by the CNCF.
Odoo: Open-source ERP suite with over 12 million users. Community Edition is free; Enterprise is paid.
PostgreSQL: A leading open-source database, increasingly replacing commercial alternatives like Oracle.
Typical Use Cases
Infrastructure: Linux, Docker, Kubernetes and Terraform as the base of modern IT
Business software: ERP (Odoo), CMS (WordPress), CRM (SuiteCRM) as cost-effective solutions
Development tools: Git, VS Code, Node.js and Python as standard tools
Databases: PostgreSQL, MySQL, MongoDB and Redis as powerful data solutions
Machine learning: TensorFlow, PyTorch and Hugging Face as the basis for AI projects
Advantages and Disadvantages
Advantages
- Transparency: Source can be inspected, audited and checked for security
- No vendor lock-in: Independence from a single software vendor
- Cost savings: No licence fees for the software itself
- Community and innovation: Thousands of developers worldwide contribute
- Flexibility: Code can be adapted to your needs
Disadvantages
- Support: No guaranteed support as with commercial software (unless you buy enterprise)
- Licence complexity: Different licences (MIT, GPL, AGPL) have different obligations
- Security: Known vulnerabilities in popular libraries can be exploited (e.g. Log4j)
- Maintenance: Community projects can be discontinued or poorly maintained
Frequently Asked Questions about Open Source
Is open source free?
The source code is free; running it is not. You still pay for hosting, configuration, customisation and possibly enterprise support. Many vendors offer open-core: free base version, paid advanced features and support (e.g. GitLab, Odoo, Redis).
Which open-source licence should I choose?
For maximum freedom and adoption: MIT or Apache 2.0 (permissive). If you want changes to stay open: GPL or AGPL (copyleft). For dual-licence business software: AGPL for open source, commercial licence for proprietary use.
Is open source secure?
In principle yes, because many people can review the code. But companies must manage dependencies, apply security updates and use tools like Snyk or Dependabot to find known vulnerabilities. Open-source transparency is a strength for security but not automatic.
Direct next steps
If you want to apply or evaluate Open Source in a real project, start with these transactional pages:
Open Source in the Context of Modern IT Projects
This page provides a concise definition of Open Source, practical use cases and best practices at a glance — everything you need to evaluate the technology for your next project. Open Source falls within the domain of Business and plays a significant role across a wide range of IT projects. When evaluating whether Open Source is the right fit, organizations should look beyond the technical merits and consider factors such as existing team expertise, current infrastructure, long-term maintainability, and total cost of ownership.
Drawing on our experience from over 250 software projects, we have found that correctly positioning a technology or methodology within the broader project context often matters more than its isolated strengths.
At Groenewold IT Solutions, we have worked with Open Source across multiple client engagements and understand both its advantages and the typical challenges that arise during adoption. If you are unsure whether Open Source suits your particular requirements, we are happy to provide an honest, no-obligation assessment. We analyze your specific situation and recommend the approach that delivers the most value — even if that means suggesting an alternative solution.
For more terms in the area of Business and related topics, see our IT Glossary. For concrete applications, costs, and processes we recommend our service pages and topic pages — there you will find many of the concepts explained here put into practice.
Related Terms
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