Economist.com

Economist.com
As “open-source” models move beyond software into other businesses, their limitations are becoming apparent

EVERY time internet users search on Google, shop at Amazon or trade on eBay, they rely on open-source software—products that are often built by volunteers and cost nothing to use. More than two-thirds of websites are hosted using Apache, an open-source product that trounces commercial rivals. Wikipedia, an online encyclopedia with around 2.6m entries in more than 120 languages, gets more visitors each day than the New York Times's site, yet is created entirely by the public. There is even an open-source initiative to develop drugs to treat diseases in poor countries.

The “open-source” process of creating things is quickly becoming a threat—and an opportunity—to businesses of all kinds. Though the term at first described a model of software development (where the underlying programming code is open to inspection, modification and redistribution), the approach has moved far beyond its origins. From legal research to biotechnology, open-business practices have emerged as a mainstream way for collaboration to happen online. New business models are being built around commercialising open-source wares, by bundling them in other products or services. Though these might not contain any software “source code”, the “open-source” label can now apply more broadly to all sorts of endeavour that amalgamate the contributions of private individuals to create something that, in effect, becomes freely available to all....