Portrait Hermann Assmann
Hermann Assmann

Editor, PR and Social Media Manager at +Pluswerk

Many people automatically equate "open source" with "free". In fact, well-known open source projects such as the Firefox browser or the Linux operating system are completely free for the end user. Strictly speaking, however, "open source" only means that the source code is publicly accessible and modifiable - and not that the software costs nothing. Behind every open source solution are developers, infrastructure and often also companies that invest time and money in the software.

Open source refers to software whose source code is publicly accessible. This means that anyone can view, modify and further develop the source code. This openness enables developers and interested users to make their own innovations and changes to the software without prior release or approval. However, although open source software can often be downloaded without payment, costs are incurred elsewhere: for maintenance, further development, hosting or support.

The misconception that "open source = free" stems from the widespread and free availability of products such as Firefox, LibreOffice or Linux. But even these "free" products need money: Mozilla, the publisher of Firefox, generates revenue through partnerships with search engine providers. The free LibreOffice is financed by donations. Widely used Linux distributions are further developed by large and financially strong technology companies such as IBM.

Milestones in open source software

1953
the first open source software is created: the A-2 compiler system of the first commercial computer UNIVAC.
1974
clarifies for the first time that computer programs are subject to copyright and must be licensed.
1978
the BSD license (Berkeley Software Distribution) is the first ever explicit open source license.
1989
the first modern open source license is published by Richard Stallman as the "GNU General Public License (GPL)".
1998
netscape placed the source code of its commercial web browser under an open source license and thus launched the Mozilla project.
2012
red Hat was the first open source company ever to achieve annual sales of more than 1 billion US dollars

Typical financing models

Many open source projects are financed via support and service contracts. Companies such as Suse (Suse Linux) or Canonical (Ubuntu Linux) offer free software and sell professional support, maintenance contracts and individual customizations to go with it. Another model is dual licensing: Qt or MySQL are available as open source, but also offer commercial licenses with an extended range of functions or without specific licensing conditions.

Another model is the so-called open-core principle: the basic software remains free of charge, while extended functions, premium add-ons or exclusive features are subject to a fee - as is the case with Docker or Sidekiq, for example. Hosted solutions also play a role: software such as Meteor or Monica offers free self-installation but paid hosting. Furthermore, open source projects are also financed via sponsoring or community support in order to secure development in the long term.

Ein geöffneter Laptop-Bildschirm zeigt Code in einem dunklen Texteditor, darunter HTML- und JavaScript-Syntax. Die Tastatur im Vordergrund ist leicht unscharf, während der Bildschirm scharf dargestellt ist. Die Szene vermittelt ein Gefühl von Softwareentwicklung und Open-Source-Programmierung.
The freedom to change the code of software as you see fit is at the heart of the open source concept.

Example TYPO3: an open source CMS

TYPO3 is one of the best-known open source CMS in the DACH region and a good example of the fact that open source software is not automatically free. It is funded by the TYPO3 Association, which is financed by membership fees and donations. Its annual budget of around 1 million euros flows into the further development of the software, community projects and marketing. In addition, TYPO3 GmbH provides funds for core development in order to guarantee long-term quality and security.

Another important aspect of TYPO3's financing are paid services. For example, TYPO3 users can purchase a fee-based Extended Long Term Support(ELTS) to receive longer security updates for older TYPO3 versions. There are also certified training courses and workshops that provide in-depth TYPO3 knowledge. Hosting providers also offer specialized TYPO3 environments that guarantee optimized performance for business-critical websites.

Community engagement as a source of strength

In addition to the commercial offers, the TYPO3 community is an essential component for the financing and further development of the CMS. Volunteers and companies make contributions in the form of code, bug fixes and feature developments. Participation in TYPO3 events such as code sprints or conferences is often sponsored by companies. Public relations and marketing for TYPO3 also incur costs, which are also covered by sponsoring memberships and donations.

More than 3 billion
Devices use the open-source Android operating system every month - making Android the largest open-source software of all time.
Over US$ 5 billion
Sales per year make the commercial Linux distribution "Red Hat" the highest-selling pure open source project to date.
Over 75 percent
is the total market share of the most important open source web servers. Only around 1/4 of all websites worldwide run on commercial server software.

Conclusion: Open source software needs reliable investments

Open source software such as TYPO3 offers companies and other users enormous advantages: Flexibility, independence and a strong community. However, these advantages do not come about by themselves - they require continuous investment. Whether through financial contributions, code contributions or participation in events - open source only remains sustainable if everyone involved is actively involved. Without this support, important security updates, innovations and further developments could not be guaranteed.

TYPO3 is an example of how open source is not a free product, but a joint investment. Companies benefit from the software, but should also give something back - be it through membership of the TYPO3 Association, paid support contracts or the promotion of developers. Open source is not a sure-fire success, but a model that grows through collaboration and enables long-term digital innovation.

Partner for successful open source projects

As an active supporter and experienced partner in the open source sector, we underline our expertise and passion for free software solutions. Find out more about our services or start your next open source project with us.

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