Open Source in Proprietary Software: 5 Factors to Consider

Thinking about using open source in your proprietary software? Here’s what you need to know:

1. Licenses and IP Rights: Understand the rules or risk legal trouble.
2. Security Issues: Open source can mean open vulnerabilities.
3. Code Integration: Mixing open and closed code isn’t always smooth.
4. Maintenance and Support: Who’s going to fix it when it breaks?
5. Business Strategy Fit: How does this impact your bottom line?

Factor	Key Consideration	Potential Risk
Licenses	Type (Public Domain, Permissive, Copyleft)	Forced code disclosure
Security	Vulnerability management	Data breaches
Integration	Code compatibility	Technical debt
Support	In-house vs. paid	Unexpected costs
Strategy	Market differentiation	Competitive advantage loss

Open source can save you time and money, but it’s not all sunshine and rainbows. You need a solid plan to make it work.

Remember: It’s not about using open source just because it’s there. It’s about using it smart.

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1. Licenses and IP Rights

Let’s face it: open source licenses can be a headache. But if you’re using open source in your proprietary software, you need to know this stuff.

Here’s the deal:

There are three main types of open source licenses:

1. Public Domain: Do whatever you want with the code.
2. Permissive: Minimal rules. Examples: MIT License, Apache License 2.0.
3. Copyleft: Share-alike. The big one here is the GNU General Public License (GPL).

Each type comes with its own set of rules. For example, if you use GPL code in your software, you might have to open source your entire codebase. Yikes!

Here’s a quick breakdown:

License Type	What It Means	Watch Out For
Public Domain	Use freely	Limited protection for original authors
Permissive	Use commercially with few strings attached	May need to give credit
Copyleft	Must keep derivative works open source	Can force your proprietary code to go open source

Now, here’s the kicker: up to 90% of code in software projects can be third-party stuff. That’s a lot of potential license headaches.

So, what can you do? Here are some practical tips:

• Use a license compliance checklist before launching your product
• Double-check that your published source code matches what you’re actually distributing
• Train your team to keep source code change logs up-to-date
• Use license scanning tools to spot potential issues

Remember, just because it’s free doesn’t mean there are no rules. Getting it wrong can lead to legal trouble and damage your reputation.

"Open source is not a fad, or a bunch of hippies out in California. It’s the way modern development happens," says Jim Zemlin, executive director of the Linux Foundation. But he also warns: "With great power comes great responsibility. Companies must be diligent in how they adopt and manage open source."

Take Equifax, for example. In 2017, they had a massive data breach that exposed 143 million Americans’ personal data. The culprit? An unpatched vulnerability in an open source component.

The bottom line: Know your licenses, manage your code, and stay out of trouble. It’s not just about following rules—it’s about protecting your business and your users.

2. Safety Risks

Open source components can be a big security headache for your software. Here’s why:

• 78% of codebases have at least one open source vulnerability
• 54% of these are high-risk, meaning hackers can easily exploit them

The community-driven nature of open source often leads to poor security practices. When vulnerabilities are found, they’re made public. This means hackers know about them too.

Let’s look at a real-world example:

In 2017, Equifax had a massive data breach. Hackers stole personal info from 143 million people. The culprit? A known vulnerability in the open source Apache Struts framework that Equifax didn’t patch.

So, how can you protect yourself? Here are some practical steps:

1. Set up DevSec teams: Get security experts involved early in your development process.

2. Use automation tools: Try Software Composition Analysis (SCA) to track open source components and find vulnerabilities.

3. Create clear policies: Make rules about checking an open source component’s history before using it.

4. Keep a Software Bill of Materials (SBOM): This is just a fancy way of saying "keep a list of all your open source parts."

5. Do regular security checks: Update your software often to patch known vulnerabilities.

Here’s a quick look at some common risks and how to deal with them:

Risk	What It Means	How to Fix It
Public vulnerabilities	Hackers can see and exploit known issues	Update your software regularly
Lack of security know-how	Poor security in the code	Train your team or hire experts
Abandoned projects	No more updates or support	Check project health before using it
Hidden vulnerabilities in libraries	Issues in code you can’t see	Track all your dependencies
Fake packages	Downloading malicious code by mistake	Double-check package names and sources

3. Mixing Open and Closed Code

Blending open-source and proprietary code isn’t a walk in the park. It’s like mixing oil and water – possible, but tricky. Let’s dive into the nitty-gritty of making this combo work.

Keep Your Code Clean

When you’re throwing open-source ingredients into your secret sauce, you’ve got to keep things tidy. Here’s how:

• Set clear rules for adding open-source code
• Make sure the new code plays nice with your existing stuff
• Write everything down – future you will thank present you

Don’t Get Sued

Using open-source code is like borrowing your neighbor’s lawnmower. You can use it, but there are rules. Here’s what to do:

• Read the fine print on those open-source licenses
• Give credit where it’s due
• Keep a list of all the open-source bits you’re using

Test, Test, and Test Again

Before you ship your Frankenstein’s monster of code, make sure it works. Here’s the game plan:

• Put the code through its paces
• Check for security holes
• Be ready to fix any bugs you find in the open-source parts

Let’s break it down:

What to Do	Why It Matters	How to Do It
Set coding rules	Keeps your code neat	Write a style guide
Check licenses	Avoids legal headaches	Use license scanning tools
Test thoroughly	Prevents nasty surprises	Automate testing processes
Document everything	Makes future fixes easier	Use clear, detailed comments

Remember, mixing open and closed code is like cooking with new ingredients. It can make your dish amazing, but you need to know what you’re doing.

Take Walmart, for example. In 2018, they open-sourced their cloud management platform, OneOps. Jeremy King, Walmart’s CTO at the time, said: "By making OneOps available to the tech community, we’re enabling any organization to achieve the same cloud portability and developer productivity that Walmart has enjoyed."

But it wasn’t all smooth sailing. They had to spend months cleaning up the code and making sure they weren’t accidentally giving away any secret sauce.

The takeaway? Mixing open and closed code can be powerful, but it takes work. Do your homework, keep things clean, and always, always test.

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4. Upkeep and Help

When you mix open source with your own code, you need to think about who’s going to fix things when they break. Unlike paid software where you just call the company, open source gives you options.

DIY or Pay Someone Else?

You’ve got two main choices:

Support Type	Good Things	Watch Out For
Do It Yourself	Cheaper, you control it	Need smart people on your team
Pay for Help	Experts handle it, guaranteed service	Costs extra money

If your team knows their stuff, DIY can work great. You can use online forums, mailing lists, and docs to figure things out. But you need people who can keep up with the open source world.

The Open Source Help Market

Open source creates a whole market for support. This is good news because:

1. You’ve got choices. At least five ways to get help:

   • Fix it yourself
   • Pay the people who made it
   • Hire someone when you need them
   • Buy a support contract
   • Ask your IT consultants

2. Prices can be better. More competition means better deals.

3. You decide what you need. Want someone available 24/7? You can get that.

Real-World Example

Simon Bowring from Transitiv Technologies says it best:

"With open source software, we can write code for our customers very quickly, and contribute it back to the community, if the customer agrees."

This means you can get new features fast, which was hard with old-school software.

Think Long-Term

Before you add open source to your mix, check these things:

What to Check	Why It Matters
Active community	More people = more help and updates
Regular updates	Shows the software is still cared for
Good docs	Makes fixing problems easier
Works with your stuff	Avoids future headaches

5. Effects on Business

Let’s talk about how using open source in your proprietary software can shake up your business. It’s not just about saving a few bucks – it can change your whole game plan.

Money Matters

Here’s the deal with costs:

What You’re Looking At	Open Source	Proprietary Only
Upfront Costs	Usually zilch	Can be a big hit to the wallet
Long-term Spending	Might need to pay for help and tweaks	Ongoing fees for licenses and upkeep
Getting to Market	Can be super quick	Often takes longer

Red Hat’s a prime example. They built a billion-dollar business on open source. In 2018, IBM bought them for $34 billion. That’s a lot of zeros for "free" software.

But it’s not all sunshine and rainbows. In 2019, Chef Software got caught in a PR storm when folks found out ICE was using their open source tools. They had to scramble to change their license terms.

Standing Out from the Crowd

Open source can give you an edge:

1. New Ideas: You get to play with cutting-edge tech without reinventing the wheel.
2. Bend It Like Beckham: You can tweak the code to fit your needs perfectly.
3. Talent Magnet: Developers often prefer working with open source. It’s like catnip for coders.

But remember, your competitors can use the same stuff. So you’ve got to be smart about it.

Making Your Product Special

To keep your edge:

• Build cool features on top of open source foundations
• Make sure everything works together smoothly
• Offer top-notch help and extra services

Take WordPress. It’s open source, but companies like WP Engine make bank by offering hosting and support. In 2021, they hit $132 million in annual recurring revenue.

Fitting It All Together

When you’re mixing open source into your secret sauce:

1. Know Your Strengths: Figure out what makes your software special and keep that part under wraps.
2. Give and Take: Decide if you want to contribute back to open source projects or just use them.
3. Watch Your Back: Keep an eye out for security issues and legal snags.

Netflix is a master at this. They use tons of open source tech but keep their recommendation algorithm locked up tight. That’s their secret weapon.

Conclusion

Let’s wrap this up. Using open source in your own software isn’t a walk in the park. You need to think about 5 big things:

1. Licenses: Don’t get sued. Know the rules.
2. Safety: Watch out for bugs and hackers.
3. Mixing Code: Keep your secret sauce secret.
4. Upkeep: Figure out who’s fixing what.
5. Business Impact: How does this change your game plan?

Open source can save you money and time. But it’s not all sunshine and rainbows.

Here’s a quick look at some real-world examples:

Company	What They Did	What Happened
Red Hat	Built business on open source	IBM bought them for $34 billion in 2018
Chef Software	ICE used their open source tools	PR nightmare in 2019, had to change licenses
WordPress	Open source platform	WP Engine made $132 million in 2021 offering hosting and support
Netflix	Uses open source tech	Keeps recommendation algorithm secret

Want to make open source work for you? Try this:

• Make a clear plan that fits your business goals
• Set up ways to check licenses and security
• Train your team and talk to the open source community
• Keep an eye on how open source affects your product and market position

Remember, it’s not about using open source just because it’s there. It’s about using it smart.

As Linus Torvalds, the creator of Linux, once said:

"Talk is cheap. Show me the code."

In other words, don’t just talk about using open source. Do it right.

FAQs

Can open-source software be used for commercial purposes?

Yes, you can use open-source software in commercial products. But it’s not as simple as copy-paste. Here’s what you need to know:

1. License matters

Different open-source licenses have different rules. Some examples:

License	Can you use commercially?	Do you need to open-source your code?
MIT	Yes	No
Apache 2.0	Yes	No
GPL	Yes	Yes, if you distribute the software

2. Give credit where it’s due

Most open-source licenses require you to give credit to the original authors. It’s not just polite, it’s often legally required.

3. Watch out for "copyleft"

Some licenses, like GPL, are "viral". If you use GPL code in your product, you might have to open-source your entire codebase.

Real-world examples

1. Android

Google’s Android is built on an open-source foundation. In 2021, Android had an 83% market share in mobile operating systems.

2. Tesla

Tesla uses Linux in its cars. In 2018, they released some of their software as open-source after pressure from the GPL community.

3. Microsoft

In 2018, Microsoft bought GitHub for $7.5 billion. They’ve since become one of the largest contributors to open-source projects.

Tips for using open-source in commercial products

1. Keep a software bill of materials (SBOM) Track all open-source components in your product.

2. Use license scanning tools Tools like FOSSA or Black Duck can help spot potential license issues.

3. Have a clear open-source policy Make sure your team knows what licenses are okay to use.

4. Contribute back when you can It’s good karma and helps keep the open-source ecosystem healthy.

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