Three levers to fix crisis in open-source software

In this last episode about open-source software I want to look at three levers that can help solve the sustainability issues that plague the sector.

They revolve around commercialization, taxation and social validation.

Commercialization is the traditional route, which involves finding business models to subsidize open-source projects.

It creates a direct revenue stream for developers, enabling them to sustain and further develop their projects.

Financial rewards can incentivize them to innovate and continuously improve their software.

Quite often, commercialization comes with professional support and services, enhancing the reliability and usability of software that is itself free and open source.

On the other hand, introducing commercial aspects might limit access for individuals and smaller organizations that cannot afford to pay for the software.

Commercialization can lead to fragmentation within the community, where some versions of the software are exclusive to paying customers.

The focus might shift from community-driven development to profit-driven decisions, potentially affecting the open-source ethos.

The key to the commercialization lever is you need something scarce to have a business. Open-source is post-scarcity by design, so you have to find something else.

Taxation is another way to economically sustain open-source technologies.

In Germany, for instance, the Federal Ministry for Economic Affairs and Climate Action is financing the Sovereign Tech Fund, a Sovereign Tech Agency project, that is investing in projects that benefit and strengthen the open-source ecosystem.

Tax incentives or funding can support OSS development, ensuring a steady flow of resources for project innovation and maintenance.

Recognizing OSS as a public good, taxation can help redistribute resources to support community-driven projects.

Long-term, stable funding from taxation can help sustain OSS projects and reduce reliance on private donations or commercial revenue. However, implementing and managing tax incentives can be complex and bureaucratic. Excessive reliance on government support can lead to a lack of independence and potential political influence on project direction.

There might be resistance from taxpayers who do not understand the value of OSS, leading to public opposition to such funding mechanisms.

The final piece of the puzzle is social validation.

It reinforces the community aspect of OSS, encouraging collaboration, contribution and recognition of developers' efforts.

Recognition and appreciation can drive developers to contribute passionately to OSS projects, motivated by the desire to help and be acknowledged by their peers.

The Drupal Association follows this approach through a credit system that recognizes and incentivizes contributors in the Drupal community for their efforts to create a safe, secure and open web for everyone.

Individuals and organizations who contribute to Drupal - be it through code, documentation, submitting case studies that demonstrate success with the software or financial support - earn credits for visibility and advertising on the Drupal.org website, as well as early access, discounts and sponsorships to events among other benefits.

Encouraging social validation can lead to a broader range of contributions, including non-code contributions like documentation, design and community management.

But social validation does not provide financial compensation, which may be necessary for full-time developers.

Recognition can be subjective and might not always accurately reflect contributions, potentially leading to conflicts within the community.

Relying solely on social validation might not be sufficient to address the broader financial and resource needs of large OSS projects.

A balanced approach that combines elements of commercialization, taxation and social validation is likely the most effective strategy.

Each lever has its strengths and can address different aspects of OSS sustainability - commercialization can provide financial sustainability and professional support for projects, taxation can offer stable funding and recognize OSS as a public good, while social validation can maintain community engagement and intrinsic motivation.

Promoting a hybrid model where OSS projects can receive funding through multiple channels will create a more resilient and sustainable ecosystem.

Dr Jolly Wong is a policy fellow at the Centre for Science and Policy,

University of Cambridge