What is the difference between open source and proprietary software?

Open source software differs from proprietary software primarily in the availability of the source code and the licensing. With open source, the source code is freely accessible and can be viewed, modified, and distributed by users. Proprietary software, on the other hand, is distributed with closed source code that belongs exclusively to the manufacturer. These fundamental differences influence costs, flexibility, support, and strategic decisions in companies. In this article, I would like to attempt a comparison of open source software vs. proprietary software.

What does open source software mean and how does it fundamentally differ from proprietary software?

Open Source Software is software whose source code is publicly accessible and is under licenses that allow users to use, study, modify, and distribute the software. The term “open source” refers to the disclosure of the program code, which promotes transparency and collaboration.

The main differences to proprietary software lie in several areas. With open source, you have access to the source code and can customize the software to your needs. Proprietary software is delivered as a finished product, without insight into the programming or possibilities for modification.

License models differ fundamentally. Open source licenses grant comprehensive usage rights and promote further development by the community. Proprietary licenses restrict the use to the conditions specified by the manufacturer and usually prohibit any kind of modification or distribution.

Also technically, open source software is less likely to interfere with the user’s soft rights. Thus, most open source communities strive to adhere to applicable standards, such as RFCs of the Internet, standardized file formats, etc. Manufacturers of proprietary software, on the other hand, have a vital interest in binding the user to their own product and often use so-called extensions of standard protocols that restrict interoperability. A typical example would be Microsoft Exchange, which preferably does not want to communicate with the client via RFC-compliant POP3/IMAP and similar standard protocols, but with its own connection. Users are thus more or less forced to use a suitable client.

What are the advantages and disadvantages of open source and proprietary software for companies?

Open source software offers companies significant cost advantages, as there are no license fees and the software can be used freely. Flexibility is another important advantage – you can have the software adapted or extended to your specific business requirements. As a rule, the number of installed workstations is also irrelevant.

Community support for open source projects is often very active. Developers worldwide contribute to the improvement, security vulnerabilities are quickly discovered and fixed. At the same time, however, this also means that you may need technical expertise to get support or make adjustments.

Proprietary software scores with professional manufacturer support and clear guarantees. You receive defined support with Service Level Agreements and can contact the manufacturer directly in case of problems. The software is usually ready for immediate use and well documented.

The challenges with open source often lie in the need for own technical competence or external support. In the last 25 years, however, a broad market of providers has developed, who are happy to help if customers have to buy support promises for compliance reasons. With proprietary software, on the other hand, you are dependent on the manufacturer and have less control over development and customization.

How do the different license models work for open source and proprietary software?

Open source licenses regulate how the software may be used, modified and distributed. The GPL (General Public License) is one of the best-known licenses and requires that derived works also be published under the GPL. This is referred to as “Copyleft.”

The MIT license is more permissive and allows the code to be used in proprietary products as long as the license text is retained. The Apache license offers similar freedoms as MIT, but contains additional provisions on patent rights.

I have already created a comparison of the most common open source licenses in another article.

Proprietary license structures are more restrictive. You buy or rent the right to use, but are not allowed to view or modify the code. Compliance requirements for open source mainly concern compliance with the license terms, especially if you further develop software or integrate it into your own products.

For companies, it is important to understand the license terms exactly in order to avoid legal problems. This is especially true when combining different open source components or when developing own software on an open source basis.

When should companies choose open source and when proprietary software?

The decision depends on several factors. Open source is particularly suitable if you need flexibility, want to reduce costs and have technical expertise or can purchase it. If standard functions are sufficient and you prefer proven solutions, proprietary software may be the better choice.

Budget considerations play an important role. Open source reduces license costs, but can cause higher implementation and maintenance costs, especially initially. Proprietary software has clear license costs, but often lower implementation risks. It is also often the case that technicians trained by the manufacturer are already available from external service providers in the proprietary software environment. However, it is not necessarily useful to always base the decision on the current cost situation. In addition to a TCO consideration over the entire life cycle of a software system, it can also be useful in a risk assessment, contrary to the initial cost situation, to reduce the dependence on manufacturers.

Strategic goals influence the choice. If independence from manufacturers, adaptability and long-term control are important, this speaks for open source. If you prefer fast implementation and predictable costs, proprietary software may be more advantageous.

Your technical expertise is crucial. If you have experienced IT specialists or use professional open source support, you can fully exploit the advantages of open source. Without these resources, proprietary software is in some cases the more practical solution.

How does credativ® support companies with open source software solutions?

credativ® has been offering professional support for open source software for over 20 years, replacing the missing manufacturer support with comprehensive support for the entire software lifecycle. Our service includes technical support at manufacturer level with guaranteed Service Level Agreements.

Our specific services include:

• 24/7 premium support for Debian Linux, Proxmox and PostgreSQL with defined response times
• Professional consulting in the selection and implementation of open source solutions
• Direct access to open source specialists without an intermediate call center
• Support by phone, ticket system or e-mail in German and English
• Comprehensive services for the entire lifecycle of your open source software

As an owner-managed and independent company, we offer you the security and professional support you need for the successful use of open source software in your company. Contact us for individual advice on your open source requirements.

About the author

Peter Dreuw

Head of Sales & Marketing

about the person

Peter Dreuw arbeitet seit 2016 für die credativ GmbH und ist seit 2017 Teamleiter. Seit 2021 ist er Teil des Management-Teams als VP Services der Instaclustr. Mit der Übernahme durch die NetApp wurde seine neue Rolle "Senior Manager Open Source Professional Services". Im Rahmen der Ausgründung wurde er Mitglied der Geschäftsleitung als Prokurist. Sein Aufgabenfeld ist die Leitung des Vertriebs und des Marketings. Er ist Linux-Nutzer der ersten Stunden und betreibt Linux-Systeme seit Kernel 0.97. Trotz umfangreicher Erfahrung im operativen Bereich ist er leidenschaftlicher Softwareentwickler und kennt sich auch mit hardwarenahen Systemen gut aus.

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