Open Source projects vs products: A strategic approach
As a leading model for software development and innovation, Open Source continues to garner interest from enterprises across various industries. In many cases, these companies contribute substantial resources to Open Source projects, driven by commercial objectives such as the need for new functionalities, security patches and overall software enhancements. However, enterprises also require resource-intensive tasks like certifications, long-term technology lifecycle management, and high-level support. These can be difficult and expensive for purely volunteer-driven Open Source projects to manage, let alone deliver effectively. Many enterprises have also started offering products and services based on or incorporating Open Source projects. Fully understanding the differences between products based on Open Source and Open Source projects is crucial for business success.
A primary advantage of Open Source software is that it is available for free, eliminating any cost barrier. Every new version of Open Source, upstream projects, brings patches, new features, and innovation while also enhancing the software’s overall functionality. The monetary value of Open Source is staggering. According to research from Harvard Business School, without Open Source software, firms would face costs approximately 3.5 times higher to develop the software and platforms essential for their operations, amounting to an estimated $8.8 trillion. Like most things, however, there are drawbacks. Every new version of Open Source, upstream projects, may remove features we and our customers depend upon, introduce new bugs and potential performance issues and other regression that can disrupt business operations. Therefore, businesses relying on Open Source must actively manage these changes to avoid potential disruptions.

Open source projects typically focus on the developer, writer and tester communities—those who contribute code and documentation, report bugs and help build the project’s reputation. Typical measures of success include the number of active contributors, the frequency of code commits and the buzz generated on social media and other platforms. These metrics reflect the health and vibrancy of the project, indicating a high level of engagement and continuous improvement.
In contrast, product success is measured by customer outcomes, especially for those customers paying for the value-add beyond the source code. Businesses that develop commercial products based on Open Source projects must provide additional value, such as enhanced features, support services, and reliability assurances that go beyond what is available in the Open Source version. The success of these products is measured by customer satisfaction, revenue generation and market share.
To bridge the gap between project and product perspectives and ensure successful collaboration, organizations must create cross-functional teams that foster joint ownership, improve communication and provide a holistic perspective on technology development. To ensure project and product goals are aligned, create cross-functional teams where all members contribute a holistic perspective. This eliminates the traditional upstream/downstream split, fostering collaboration that leverages the strengths of both approaches
The following are some options organizations can explore to bridge the gap between products and projects effectively:
1. Implement clear guidelines and processes for contributing to the codebase: Well-defined procedures can ensure contributions align with both project and product goals. This includes setting coding standards, documentation requirements, and review processes that maintain the quality and integrity of the codebase.
2. Encourage and facilitate knowledge-sharing: Create moments for collaboration between the internal team and the broader Open Source community to align efforts and identify shared goals. This can be achieved through regular meetings, code reviews, and community events that bring together contributors from different backgrounds and perspectives. By fostering open communication and mutual support, organizations can create a more cohesive and effective development environment.

3. Implement transparent decision-making processes: Create mechanisms that address both project and product perspectives, ensuring that decisions are made with a comprehensive understanding of their impact. Transparent prioritization is key. Prioritize effectively by establishing clear criteria for features, bug fixes and changes. Keep communication channels open to ensure continuous feedback and discussion. Avoid closed doors and black box decision-making, as this erodes user trust and credibility.” Transparent decision-making processes help build trust and accountability within the team and with the broader community.
According to a 2022 report by the Linux Foundation, 82% of IT leaders indicated that Open Source software plays a significant role in their organizations’ ability to innovate, underscoring the importance of Open Source in the software industry.
By following these strategies, organizations can successfully navigate the complexities of Open Source development, leveraging its benefits while mitigating potential drawbacks. This approach ensures that businesses can continue to innovate and deliver value through their products, while also contributing meaningfully to the Open Source community. By creating a collaborative and inclusive environment, organizations can bridge the gap between Open Source projects and commercial products, driving success in both areas.
It’s a best-of-both-worlds scenario where market focus and stability of products meld with the innovation and rapid development of Open Source projects to deliver the solutions that will advance the way we all live and work. This approach merges the strengths of market focus and product stability with the innovation and agility of Open Source projects. By combining these, we can create solutions that revolutionize the way we live and work.
This article is part of our series on Practical Open Source (POSI) program. POSI aims to facilitate discussions about doing business with and for Open Source. The 2024 edition consists of blog posts on OpenSource.net and a panel at All Things Open in October. More details and how to pitch on the POSI 2024 page.
