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{{Use dmy dates|date=August 2022}}
[[Free software|Free]]/[[open-source software]] – the [[free software license|source availability model]] used by [[free and open-source software]] (FOSS) – and [[closed source]] are two approaches to the distribution of software.
== Background ==
Under the ''closed
The
A non-free license is used to limit what [[free software movement]] advocates consider to be the essential freedoms. A license, whether providing open-source code or not, that does not stipulate the "four software freedoms",<ref>[https://www.gnu.org/philosophy/free-sw.html The Free Software Definition – GNU Project – Free Software Foundation (FSF)<!-- Bot generated title -->]</ref> are not considered "free" by the free software movement. A closed source license is one that limits only the availability of the source code. By contrast a [[copyleft]] license claims to protect the "four software freedoms" by explicitly granting them and then explicitly prohibiting anyone to redistribute the package or reuse the code in it to make derivative works without including the same licensing clauses. Some licenses grant the four software freedoms but allow redistributors to remove them if they wish. Such licenses are sometimes called ''permissive software licenses''.<ref>[https://www.gnu.org/licenses/license-list.html Various Licenses and Comments about Them – GNU Project – Free Software Foundation (FSF)<!-- Bot generated title -->]</ref> An example of such a license is the [[FreeBSD License]] which allows derivative software to be distributed as non-free or closed source, as long as they give credit to the original designers.
A misconception that is often made by both proponents and detractors of FOSS is that it cannot be capitalized.<ref>{{cite news | first = Greg | last = Perkins | title = Open Source and Capitalism | date = 1999-08-24 | url = http://slashdot.org/articles/980824/0854256.shtml | work = [[Slashdot]] | access-date = 2014-02-13 | archive-url = https://web.archive.org/web/20000817054044/http://slashdot.org/articles/980824/0854256.shtml | archive-date = 2000-08-17}}</ref> FOSS can and has been commercialized by companies such as [[Red Hat]], [[Canonical Ltd.|Canonical]], [[Mozilla Corporation|Mozilla]], [[Google]], [[IBM]], [[Novell]], [[Sun Microsystems|Sun]]/[[Oracle Corporation|Oracle]], [[VMware]] and others.<ref name="Popp2">{{cite book | first = Dr. Karl Michael | last = Popp | title = Best Practices for commercial use of open source software | year = 2015 | publisher = Books on Demand | ___location = Norderstedt, Germany | isbn = 978-3738619096}}</ref>
== Commercialization ==
=== Closed-source software===
{{Main article|Proprietary software}}
The primary [[business model]] for closed-source software involves the use of constraints on what can be done with the software and the restriction of access to the original source code.<ref name="Popp2"/> This can result in a form of imposed [[artificial scarcity]] on a product that is otherwise very easy to copy and redistribute. The result is that an end-user is not actually purchasing software, but purchasing the right to use the software. To this end, the source code to closed-source software is considered a trade secret by its manufacturers.
=== FOSS ===
{{Main article|Business models for open-source software}}
FOSS methods, on the other hand, typically do not limit the use of software in this fashion. Instead, the revenue model is based mainly on support services. [[Red Hat Inc.]] and [[Canonical Ltd.]] are such companies that give its software away freely, but charge for support services. The [[source code]] of the software is usually given away, and pre-compiled binary software frequently accompanies it for convenience. As a result, the source code can be freely modified. However, there can be some license-based restrictions on re-distributing the software. Generally, software can be modified and re-distributed for free, as long as credit is given to the original manufacturer of the software. In addition, FOSS can generally be sold commercially, as long as the source-code is provided. There are a wide variety of [[free software license]]s that define how a program can be used, modified, and sold commercially (see [[GNU General Public License|GPL]], [[GNU Lesser General Public License|LGPL]], and [[BSD licenses|BSD-type licenses]]). FOSS may also be funded through donations.
A software philosophy that combines aspects of FOSS and proprietary software is [[open core]] software, or commercial open source software. Despite having received criticism from some proponents of FOSS,<ref name="Riehle">{{cite conference
| first = Dirk
| last = Riehle
| title = The Commercial Open Source Business Model
| book-title = Value Creation in e-Business Management
| pages = 18–30
| publisher = Springer Verlag
| year = 2009
| url = http://dirkriehle.com/publications/2009/the-commercial-open-source-business-model/
}}</ref> it has exhibited marginal success. Examples of open core software include [[MySQL]] and [[VirtualBox]]. The [[MINIX]] operating system used to follow this business model, but came under the full terms of the [[BSD license]] after the year 2000.
=== Handling competition ===
This model has proved somewhat successful, as witnessed in the [[Linux]] community. There are numerous [[Linux distribution]]s available, but a great many of them are simply modified versions of some previous version. For example, [[Fedora Linux]], [[Mandriva Linux]], and [[PCLinuxOS]] are all derivatives of an earlier product, [[Red Hat Linux]]. In fact, [[Red Hat Enterprise Linux]] is itself a derivative of Fedora Linux. This is an example of one vendor creating a product, allowing a third-party to modify the software, and then creating a tertiary product based on the modified version. All of the products listed above are currently produced by software service companies.
Operating systems built on the [[Linux kernel]] are available for a wider range of processor architectures than [[Microsoft Windows]], including [[PowerPC]] and [[SPARC]]. None of these can match the sheer popularity of the [[x86]] architecture, nevertheless they do have significant numbers of users; Windows remains unavailable for these alternative architectures, although there have been such ports of it in the past.
The most obvious complaint against FOSS revolves around the fact that making money through some traditional methods, such as the sale of the use of individual copies and patent [[Royalties|royalty]] payments, is much more difficult and sometimes impractical with FOSS. Moreover, FOSS has been considered damaging to the commercial software market, evidenced in documents released as part of the [[Microsoft Halloween documents leak]].<ref>"[...] the documents show that while Microsoft may be dismissive of open-source software in public, it considers it a serious competitor in private." – quote from the "[[Microsoft Halloween documents leak#Documents I and II|Documents_I_and_II]]" subsection of [[Microsoft Halloween documents leak]] article</ref><ref>The [http://www.catb.org/~esr/halloween/halloween6.html "Halloween VI" document] appears to give convincing evidence that Microsoft had their reasons for trying to argue against the popularity of Linux and other [[Free and open-source software]].</ref><ref>Bill Gates, in his [http://www.startupgallery.org/gallery/notesViewer.php?ii=76_4&p=5 reply] {{webarchive|url=https://web.archive.org/web/20101130115904/http://www.startupgallery.org/gallery/notesViewer.php?ii=76_4&p=5 |date=30 November 2010 }} after the public response to his own 1976 [[Open letter to hobbyists]], said "Unfortunately, some of the companies I have talked to about microcomputer software are reluctant to have it distributed to the hobbyist, some of whom will steal it, when [...]".</ref>
The cost of making a copy of a software program is essentially zero, so per-use fees are perhaps unreasonable for open-source software. At one time, open-source software development was almost entirely volunteer-driven, and although this is true for many small projects, many alternative funding streams have been identified and employed for FOSS:
* Give away the program and charge for installation and support (used by many [[Linux distributions]]).
* "[[Commoditizing the complement|Commoditize complements]]": make a product cheaper or free so that people are more likely to purchase a related product or service you do sell.
* Cost avoidance / cost sharing: many developers need a product, so it makes sense to share development costs (this is the genesis of the [[X Window System]] and the [[Apache HTTP Server|Apache]] web server).
* [[Donation]]s
* [[Crowd funding]]
Increasingly, FOSS is developed by commercial organizations. In 2004, [[Andrew Morton (computer programmer)|Andrew Morton]] noted that 37,000 of the 38,000 recent patches in the [[Linux kernel]] were created by developers directly paid to develop the Linux kernel. Many projects, such as the X Window System and Apache, have had commercial development as a primary source of improvements since their inception. This trend has accelerated over time.{{Citation needed|date=November 2008}}
There are some{{Who|date=December 2011}} who counter that the commercialization of FOSS is a poorly devised business model because commercial FOSS companies answer to parties with opposite agendas. On one hand commercial FOSS companies answer to volunteers developers, who are difficult to keep on a schedule, and on the other hand they answer to shareholders, who are expecting a return on their investment. Often FOSS development is not on a schedule and therefore it may have an adverse effect on a commercial FOSS company releasing software on time.<ref>[http://www.packettrap.com/pdf/white_paper_open_source.pdf Integrating Open Source in Commercial Solutions<!-- Bot generated title -->]</ref>
== Innovation ==
[[Gary Hamel]] counters this claim by saying that quantifying who or what is innovative is impossible.<ref>{{Cite web|url=http://opensource.com/business/11/2/whos-really-innovative|title = Who's really innovative?}}</ref>
The implementation of compatible FOSS replacements for proprietary software is encouraged by the [[Free Software Foundation]] to make it possible for their users to use FOSS instead of proprietary software, for example they have listed [[GNU Octave]], an API-compatible replacement for [[MATLAB]], as one of their [[Free Software Foundation#High priority projects|high priority projects]]. In the past this list contained free binary compatible Java and CLI implementations, like [[GNU Classpath]] and [[DotGNU]]. Thus even "derivative" developments are important in the opinion of many people from FOSS. However, there is no quantitative analysis, if FOSS is less innovative than proprietary software, since there are derivative/re-implementing proprietary developments, too.
Some of the largest well-known FOSS projects are either legacy code (e.g., FreeBSD or Apache) developed a long time ago independently of the [[free software movement]], or by companies like [[Netscape]] (which open-sourced its code with the hope that they could compete better), or by companies like [[MySQL]] which use FOSS to lure customers for its more expensive licensed product. However, it is notable that most of these projects have seen [[Rewrite (programming)|major or even complete rewrites]] (in the case of the Mozilla and Apache 2 code, for example) and do not contain much of the original code.
Innovations have come, and continue to come, from the open-source world:
* [[Perl]], the pioneering open-source scripting language, made popular many features, like [[regular expressions]] and [[associative array]]s, that were unusual at the time. The newer [[Python (programming language)|Python]] language continues this innovation, with features like functional constructs and class-dictionary unification.
* [
* A number of laptop models are available with a particular emphasis on multimedia capabilities. While these invariably come preinstalled with a copy of Microsoft Windows, some of them<ref>{{Cite web |url=http://www.infoworld.com/article/04/07/22/HNqosmio_1.html |title=Toshiba launches multimedia Qosmio notebooks {{!}} InfoWorld {{!}} News {{!}} 2004-07-22 {{!}} By Martyn Williams, IDG News Service<!-- Bot generated title --> |access-date=23 February 2006 |archive-url=https://web.archive.org/web/20071225191034/http://www.infoworld.com/article/04/07/22/HNqosmio_1.html |archive-date=25 December 2007 |url-status=dead }}</ref><ref>{{Cite web |url=http://www.pcworld.com/news/article/0,aid,112577,00.asp |title=PC World – Acer Readies New Notebook, Tablet PC<!-- Bot generated title --> |access-date=23 February 2006 |archive-date=29 August 2008 |archive-url=https://web.archive.org/web/20080829223459/http://www.pcworld.com/news/article/0,aid,112577,00.asp |url-status=dead }}</ref> also offer an alternative "[[Instant-on|fast-boot]]" mode (such as [[HyperSpace (software)|Phoenix HyperSpace]]) based on Linux. This gets around the long time it can take to boot up Windows.
* [[VLC media player]], [[Songbird (software)|Songbird]], and [[Amarok (software)|Amarok]] are FOSS music players that integrate internet-based data sources to an unprecedented degree, taking song information from [[MusicBrainz]], related track information from [[last.fm]], album cover art from [[Amazon (company)|Amazon]] and displaying an artist's Wikipedia page within the player.
* While admittedly inspired by [[Mac OS X]]'s [[Quartz (graphics layer)|Quartz]] graphics layer, [[Compiz Fusion]] has pioneered the concept of "plug in" window decorators and animation effects. Users can develop their own creative and unique effects.
* Open-source telecommunication products, such as the [[Asterisk (PBX)|Asterisk PBX]], have revolutionized the [[ICT industry]].<ref>{{Cite web |url=http://www.ictinnovations.com/content/open-source-voice-applications |title=Open Source in ICT Industry |access-date=19 July 2011 |archive-url=https://web.archive.org/web/20160925081927/http://www.ictinnovations.com/content/open-source-voice-applications |archive-date=25 September 2016 |url-status=dead }}</ref>
* There are substantial efforts towards the implementation of a [[semantic desktop]] in FOSS communities.
* Today's desktop environments are innovating regarding their unique idea of a Social Desktop.
* Many academic research projects release their results as FOSS.
=== Code quality ===
In 2008, the Department of Management Science and Technology in the [[Athens University of Economics and Business]] published an analysis of the [[FreeBSD]], [[Linux]], [[Solaris (operating system)|Solaris]], and [[Microsoft Windows|Windows]] operating system kernels which looked for differences between code developed using open-source and proprietary processes. The study collected metrics in the areas of file organization, code structure, code style, the use of the C preprocessor, and data organization. The aggregate results indicated that they scored comparably to each other.<ref>{{cite conference
| first = Diomidis
| last = Spinellis
| author-link = Diomidis Spinellis
| title = A Tale of Four Kernels
| book-title = ICSE '08: Proceedings of the 30th International Conference on Software Engineering
| pages = 381–390
| publisher = Association for Computing Machinery
| date = May 2008
| ___location = Leipzig, Germany
| url = http://www.dmst.aueb.gr/dds/pubs/conf/2008-ICSE-4kernel/html/Spi08b.html
| doi = 10.1145/1368088.1368140
| url-access = subscription
}}</ref>
Another study conducted by [[Synopsys]] published in 2014 found open source code to be of better quality.<ref>{{cite web|url=http://www.coverity.com/press-releases/coverity-scan-report-finds-open-source-software-quality-outpaces-proprietary-code-for-the-first-time/|title=Coverity Scan Report Finds Open Source Software Quality Outpaces Proprietary Code for the First Time|access-date=10 August 2014}}</ref>
=== Security ===
A study done on seventeen open-source and closed-source software showed that the number of vulnerabilities existing in a piece of software is not affected by the source availability model that it uses. The study used a very simple metrics of comparing the number of vulnerabilities between the open-source and closed-source software.<ref>{{Cite journal|title = Is Open Source Security a Myth?|journal = Commun. ACM|date = 2011-05-01|issn = 0001-0782|pages = 130–140|volume = 54|issue = 5|doi = 10.1145/1941487.1941516|first = Guido|last = Schryen|s2cid = 16280410}}</ref> Another study was also done by a group of professors in [[Northern Kentucky University]] on fourteen open-source web applications written in [[PHP]]. The study measured the vulnerability density in the web applications and shown that some of them had increased vulnerability density, but some of them also had decreased vulnerability density.<ref>{{Cite book|date = 2009-10-01|pages = 545–553|doi = 10.1109/ESEM.2009.5314215|first1 = J.|last1 = Walden|first2 = M.|last2 = Doyle|first3 = G.A.|last3 = Welch|first4 = M.|last4 = Whelan| title=2009 3rd International Symposium on Empirical Software Engineering and Measurement | chapter=Security of open source web applications |isbn = 978-1-4244-4842-5| s2cid=2613367 }}</ref>
==Business models==
{{See also|Microsoft and open source}}
<!-- Feel free to split or merge this new section into other parts of the article. -->
In its 2008 Annual Report, Microsoft stated that FOSS business models challenge its license-based software model and that the firms who use these business models do not bear the cost for their software development{{Clarify|date=June 2009}}. The company also stated in the report:<ref>[https://www.sec.gov/Archives/edgar/data/789019/000119312508162768/d10k.htm Annual Report on Form 10-K]</ref><ref>[http://news.cnet.com/8301-13505_3-10005379-16.html?hhTest=1 Microsoft's annual report: Open-source mental block | The Open Road – The Business and Politics of Open Source by Matt Asay – CNET News.com]</ref>
{{quotation|Some of these [open source software] firms may build upon Microsoft ideas that we provide to them free or at low royalties in connection with our [[interoperability]] initiatives. To the extent open source software gains increasing market acceptance, our sales, revenue and operating margins may decline.
Open source software vendors are devoting considerable efforts to developing software that mimics the features and functionality of our products, in some cases on the basis of technical specifications for Microsoft technologies that we make available. In response to competition, we are developing versions of our products with basic functionality that are sold at lower prices than the standard versions.}}
There are numerous business models for open source companies which can be found in the literature.<ref name="Popp2"/>
== See also ==
{{Portal|Free and open-source software}}
* [[Linux adoption]]
* [[GNU Project]]
* [[Open system (computing)|Open system]]
* [[Vendor lock-in]]
* [[Network effect]]
==
{{Reflist}}
{{FOSS}}
{{DEFAULTSORT:Comparison of Open Source And Closed Source}}
[[Category:
[[Category:Software comparisons|Open source and closed source]]
[[Category:Proprietary software|Open source]]
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