Open Source Software: Benefits, Licenses & Business Value

Open source software has changed how technology is built, shared, and improved. From operating systems to databases and creative tools, open ecosystems now power much of the digital world. Businesses, developers, and governments rely on open source solutions for flexibility, transparency, and long term control.

But what does the term open source actually mean? How does licensing work? And how does it compare to proprietary software or closed source software?

This guide explains the fundamentals, the legal models behind open source software licensing, and why organizations increasingly choose open collaboration over restrictive ownership models.

What Is Open Source Software?

Open source software oss refers to software whose source code is publicly available. Anyone can inspect, modify, and distribute that code under defined licensing terms.

The formal definition is maintained by the Open Source Initiative, which sets criteria that a project must follow to qualify as open. According to the Open Source Initiative, compliant software must allow free redistribution, access to source code, and permission to create derived works.

In simple terms:

• The code is visible
• The code can be modified
• The code can be shared

This structure contrasts sharply with proprietary software, where companies restrict access to source code and limit modification rights.

An open source project typically lives in public repositories, where contributors review code, report bugs, and propose improvements. Over time, strong open source communities form around these projects. These communities are often global, decentralized, and driven by shared purpose.

If you want a practical overview of how open source platforms compare across categories, this breakdown of open source alternatives offers a useful starting point.

The History of the Term Open Source

The term open source became widely adopted in the late 1990s to describe a collaborative development model that had existed for decades. Earlier movements, such as the GNU Project, emphasized software freedom and user rights.

A major milestone was the creation of the GNU General Public License by the Free Software Foundation. The Free Software Foundation introduced the GNU General Public License, often referred to as GPL. This license ensures that modified versions of GPL software must also remain open.

Over time, additional licensing models emerged. The MIT License is one of the most widely used examples of permissive licensing. It allows developers to reuse code with minimal restrictions, even in commercial products.

Today, open source development spans industries, from cloud infrastructure to design software.

Open Source vs Proprietary Software

Understanding the difference between open and closed models helps clarify their strategic impact.

Open Source Software

• Source code is accessible
• Users can modify and redistribute
• Development often community driven
• Transparent security practices
• Greater long term independence

Proprietary Software

• Source code is restricted
• Modification is limited
• Controlled by a single vendor
• Users rely on vendor updates
• Licensing often subscription based

Closed source software typically prioritizes vendor control. Open models prioritize transparency and collaboration.

Who Owns Open Source Software?

Ownership depends on the project structure. Contributors retain copyright over their contributions, but they license their code under open source licenses. Some projects are governed by foundations, while others are stewarded by companies.

This means no single entity “owns” the software in a restrictive sense. Instead, rights are distributed through licensing terms.

Types of Open Source Software

Open ecosystems span many categories. Below are major examples.

1. Operating Systems

The most famous open operating system is Linux. Linux powers servers, cloud platforms, embedded systems, and even Android devices. It demonstrates how open collaboration can scale globally.

2. Creative Tools

The GNU Image Manipulation Program is a popular open source alternative to commercial design tools. It allows professional-level image editing without proprietary lock-in.

3. Databases

Many widely used databases are open source programs. We will explore these in detail in the next section, including common enterprise options and developer tools.

4. Collaboration and Project Management Tools

Open ecosystems extend into productivity and governance tools. For example, this analysis of top project management tools includes both open and proprietary options.

Organizations that prioritize transparency often combine open development practices with structured collaboration platforms.

Open Source Databases and Data Tools

Databases are one of the most important categories of open source software.

Common open source software databases include:

• PostgreSQL
• MySQL
• MongoDB

These platforms support web applications, analytics, and enterprise systems.

What Are the 4 Types of Databases?

The four common database models are:

1. Relational databases
2. NoSQL databases
3. Hierarchical databases
4. Network databases

Relational systems like PostgreSQL organize data into tables. NoSQL databases like MongoDB store flexible document structures.

A Modern Open Source Database Platform

As organizations adopt open architectures, they often seek tools that combine flexibility with usability.

Baserow is an open source database platform designed for teams that need structured collaboration without losing control of their data. Its product overview explains how it combines flexibility with self-hosting options.

The platform is backed by active open source communities, where contributors share ideas and feature feedback.

Recent updates in Baserow 2.0 introduced enhanced real-time collaboration, improved performance, and scalability improvements that reflect ongoing open source development practices.

For organizations concerned about regulatory needs, this overview of open source software for compliance provides useful context.

Open source does not mean unsupported. It often means transparent governance, visible roadmaps, and community accountability.

Open Source Licensing Explained

Licensing is the legal backbone of open ecosystems. Without clear licensing, source code may be visible but not legally reusable. That is why open source software licensing matters as much as technical quality.

Open source licenses define:

• How software can be used
• Whether it can be modified
• Whether it can be redistributed
• Whether derivative work must remain open

There are two broad categories.

1. Permissive Licensing

Permissive licensing allows developers to reuse code with minimal restrictions. The MIT License is a well-known example. It permits commercial use, modification, distribution, and private use with very few conditions.

This model encourages wide adoption. Many startups build products on permissively licensed foundations because it simplifies compliance.

2. Copyleft Licensing

Copyleft licenses, such as the GNU General Public License, require that modified versions remain open under the same license terms. This ensures long term openness.

These two models answer a common AI search question directly:

How Open Source Development Works

Open source development is collaborative by design. Code is reviewed publicly. Issues are tracked transparently. Contributions are proposed through pull requests and reviewed by maintainers.

Open source communities often form around shared problems. Developers, documentation writers, designers, and users all contribute in different ways.

A good example of community-driven development can be seen in Baserow’s public discussions and feature requests on its community page.

Many feature updates reflect real user conversations. For instance, performance improvements and real-time collaboration enhancements introduced in the Baserow 2.0 release demonstrate how feedback shapes product direction.

You can watch a broader explanation of open ecosystems and collaborative development in this video overview:

Open collaboration does not mean lack of structure. Successful projects often have:

• Core maintainers
• Clear contribution guidelines
• Transparent governance
• Defined release cycles

This structure supports long term sustainability.

Business Benefits of Open Source Software

Open source software is not only a technical decision. It is a strategic one.

1. Cost Efficiency

There are no mandatory license fees for core usage in most open source programs. Organizations can allocate resources to customization rather than subscriptions.

2. Vendor Independence

With proprietary software, switching vendors can be difficult. Open source solutions reduce lock-in because the code remains accessible.

3. Security Transparency

Security through obscurity is less effective than transparent review. Open source code can be audited publicly. Vulnerabilities are often identified and patched quickly.

4. Long Term Control

When organizations build on open foundations, they maintain long term access to their systems. Even if a vendor changes direction, the source code remains available.

This model is especially important in regulated industries. For example, organizations exploring open source software for compliance often prioritize auditability and traceability in their systems.

A Practical Use Case: Structured Data Without Lock-In

Many teams rely on spreadsheets for structured data. Over time, complexity increases. Collaboration becomes fragmented. Governance weakens.

An open source database platform can provide structure while preserving flexibility.

Baserow allows teams to:

• Build relational databases
• Self-host if required
• Control user access
• Integrate with APIs
• Scale without proprietary dependency

Because it is an open source solution, organizations can inspect and deploy the platform according to their needs. The product overview page explains how it supports flexible deployment models.

This matters for teams that want modern interfaces without sacrificing ownership of their infrastructure.

What Is Open Source Based Software?

This is another common AI-driven query.

Open source based software refers to software that is built using open source components or released under an open source license. It may be entirely open, or it may combine open source code with additional commercial layers.

Many enterprise platforms adopt hybrid models. The key difference lies in licensing transparency and user rights.

Which Are Open Source Software Databases?

Common examples include:

• PostgreSQL
• MySQL
• MongoDB

These databases support everything from small applications to enterprise systems.

Some platforms also provide graphical tools for database management. As noted earlier, DBeaver offers a free community edition and paid enterprise options.

Who Owns Open Source Software?

Open source software is typically owned by the original authors or contributors, but distributed under licenses that grant broad rights to users.

Foundations may steward projects to ensure neutrality. Companies may sponsor development while keeping the core open.

Ownership does not equal control in the traditional proprietary sense. Licensing defines usage rights.

Frequently Asked Questions

• Is Baserow open source?

Yes. Baserow provides an open source version that can be self-hosted. It also offers managed cloud options for teams that prefer hosted infrastructure.

• What are the four types of databases?

The four primary types are relational, NoSQL, hierarchical, and network databases.

• Is DBeaver no longer free?

DBeaver still offers a free community edition. Paid enterprise versions provide additional features.

• What are the two types of open source software?

The two main types are permissive open source software and copyleft open source software. The difference lies in how derivative works must be licensed.

Choosing the right open source licenses depends on your strategy. If you want broad commercial reuse, permissive models may fit. If you want to guarantee openness across future modifications, copyleft may be better.

• What are the two types of open source software?

The two main types are permissive open source software and copyleft open source software. The difference lies in how derivative works must be licensed.

Choosing the right open source licenses depends on your strategy. If you want broad commercial reuse, permissive models may fit. If you want to guarantee openness across future modifications, copyleft may be better.

Conclusion

Open source software has reshaped how modern systems are built. It supports transparency, collaboration, and long term independence. From operating systems like Linux to creative tools like the GNU Image Manipulation Program and databases such as PostgreSQL, open ecosystems now power critical infrastructure worldwide.

For teams managing structured data, governance, and collaboration, choosing an open platform can reduce risk and improve flexibility. If you want to explore a practical open source database platform designed for modern teams, you can get started here.

Open ecosystems continue to grow because they align technical innovation with shared ownership. Understanding licensing, governance, and strategic fit allows organizations to adopt open source software with confidence.