Open Source: What It Means for Businesses (Benefits and Risks)

Open source is a model where software is distributed with publicly available source code, typically under a license that defines what you can and cannot do. For businesses, open source is not simply “free.” It is about transparency, the ability to customize, and often better long-term control over your systems.

Open source also does not mean “no costs.” You still pay for implementation, infrastructure, security, backups, and upgrades. The difference is that you’re usually less dependent on a single vendor compared to a closed SaaS.

Why businesses choose open source

1) Control and ownership

You can self-host, choose your infrastructure provider, and control permissions and data. This matters when data privacy and compliance are important.

Examples relevant to this site:

• ERPNext is an open-source business system (see /en/glossary/erpnext/)
• Plane is an open-source work management tool (see /en/glossary/plane/)
• n8n offers workflow automation with an open-source option (see /en/glossary/n8n/)

2) Flexibility and customization

Open source makes it easier to adapt workflows, fields, integrations, and plugins. If your business has a unique process, this can be a major advantage.

3) Transparency and security

“Open source is more secure” is not automatically true, but it is transparent: code can be reviewed and behavior can be understood. However, security outcomes depend on how you deploy, configure, and maintain the system.

4) Long-term economics

Instead of paying per-user licenses forever, you may invest in infrastructure and maintenance. For a growing business, open source can be cost-effective—when planned properly.

Open source vs freeware

• Open source: source code is available and licensing enables reuse/modification under conditions.
• Freeware: the software may be free to use, but the source code is closed and customization/control is limited.

A “free SaaS” plan is often a marketing strategy; open source focuses on freedom to use and competitive choice.

Licensing basics (high level)

This is not legal advice, but practically there are two common categories:

• permissive licenses (e.g., MIT/Apache) that allow broad usage, including commercial
• copyleft licenses (e.g., GPL) that impose conditions when you distribute derivative works

For a business, the key questions are: are you only using the software internally, are you modifying code, and are you distributing a product? The answers affect licensing considerations.

The responsibilities that come with open source

Maintenance and upgrades

If you want to avoid being stuck on an old version, you need an upgrade process: testing, backups, and ideally a dev/staging environment.

Infrastructure, backups, and monitoring

Self-hosted deployments require infrastructure work: servers, security, monitoring, and backup/restore testing. That’s why /en/services/infrastructure-setup/ is often a prerequisite.

Security

Open source doesn’t secure itself. A responsible setup includes:

• timely updates
• proper permissions and role management
• strong authentication (password policy, 2FA where possible)
• backups and restore drills

FAQ

Is open source right for every business?

Not always. If you cannot maintain it (internally or via a provider), SaaS may be simpler. But if you require customization, control, or data ownership, open source is often a strong fit.

Is self-hosting always better?

No. The right choice depends on criticality, budget for maintenance, and operational maturity.

How should we choose an open-source system?

Start by defining processes and requirements, often via a plan like /en/services/work-program/. Then implement infrastructure and adoption step by step.

Open source is not just a technology choice—it’s a strategic decision about control, flexibility, and responsibility. Done well, it enables durable systems that support growth for years.