The True Value Of Open-Source Software Isn’t Cost Savings

Luca Maraschi is the cofounder and CEO of Platformatic.

Open-source software powers the majority of today’s businesses. An estimated 70% to 90% of modern software solutions use a code base made up of open-source components, according to 2022 data from the Linux Foundation and the Laboratory for Innovation Science at Harvard.

Yet in my conversations with enterprise leaders, I still encounter common misconceptions about the value of open-source software in deploying and scaling applications. A phrase I often hear is: “I don’t want to pay for proprietary software; I want to use open-source software.”

It’s true that a key benefit of open-source technology is that it doesn’t require a licensing fee—but thinking of it as just a free solution cultivates the wrong mindset. The real value of open-source software comes from the contributions of the community that uses it.

Reframing The Pros And Cons Of Open-Source Software

Cost savings is an undeniable advantage of open-source software, but I believe that enterprise leaders often overlook other benefits that are even more valuable to the organization.

When developers use open-source tools, they join a collaborative global community that is constantly learning from and improving on the technology. They share knowledge, resources and experiences to identify and fix problems and move updates forward more rapidly than they could individually.

Adopting open-source software can also be a win-win talent recruitment and retention strategy for your enterprise. Many individual contributors see participating in open-source software communities as a tangible way to build their own profiles as experts in their field—and in the process, they also enhance your company’s reputation as a cool place where tech leaders want to work.

However, there’s no such thing as a free meal. Open-source software isn’t immune to vendor lock-in, when your company becomes so dependent on a partner’s product that it is prohibitively costly or difficult to switch to an alternative. You may not be paying licensing fees, but you still need to invest in support contracts for open-source tools.

The bigger challenge from my perspective is that it’s still rare for enterprises to contribute regularly to open-source software communities. Leaders are focused on investments that generate revenue, and they don’t always see the connection between open-source community participation and business outcomes. But encouraging your people to invest back into the technology they use every day—continuously improving it and being part of a healthy ecosystem—has enormous short- and long-term value for your company.

Maximizing The Advantages Of Open-Source Software

To take full advantage of open-source software’s potential, start with a mindset shift. Look beyond the economic benefits to see how your entire enterprise can benefit from actively participating in open-source communities.

1. Promote the value of your organization’s contributions.

Make the intangible more concrete. Define why you want to support open-source contributions at the enterprise level and what you need to do so. Create an open-source initiative or comparative practice dedicated to making open-source software a success. Work with cross-functional teams—including procurement, legal, HR, marketing and engineering—to provide value throughout the organization and ensure you meet requirements such as liability coverage and support contract fulfilment.

Formalizing the value of open-source software enables a more proactive software development lifecycle. For example, if you find a bug, you can fix it much more quickly because you understand the code base. It also helps counter the idea that open-source technology is the “Wild West” by firmly establishing your employees’ contributions within standard enterprise processes.

2. Let your talent shine.

Give your employees an opportunity to advance their individual profiles through their open-source contributions. Express this value not just to engineering and finance teams but also to HR and marketing. Enterprises are looking to hire top talent while staying within their budgets, and many individual contributors view open-source community participation as part of a greater benefit package. They may be willing to negotiate on salary if they have clear opportunities to grow their visibility in high-profile open-source communities.

3. Build in the open.

Let go of “enterprise ego,” the idea that your company is the best in the world and must protect its secrets at all cost. The truth is that your enterprise likely has one or two key core values that set it apart, and supporting technology does the rest of the heavy lifting.

You don’t have to reveal your key code algorithm or content delivery network, but you can embrace transparency and share open-source tools that help strengthen and inspire other companies. Building in the open has the power to benefit every enterprise and team that participates.

The Future Of Enterprise Innovation Runs on Open Source

Ultimately, open-source software isn’t just a cost-saving mechanism—it’s an enabler for innovation, talent development and long-term resilience. The organizations that thrive in the next decade won’t be the ones that simply use open-source software; they’ll be the ones that contribute to it, support it and help lead it forward.

By formalizing open-source practices, encouraging active contribution and shifting away from a “consumer” mindset, enterprises can tap into a powerful global network of collaboration and problem-solving. You’ll build better software, attract and retain better talent and establish your company—not only as a user of cutting-edge tools, but as a leader in the tech ecosystem.

Don’t just adopt open source. Invest in it. Build with it. Be part of it. That’s where the real value lies.

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