Understanding Open Source: Its History, Linux, and Business Applications

Open source software is one of the most “human” practices in the tech industry, and it has always captivated me. My appreciation for open-source came on the heels of my freshman year of college, shortly after I learned to code, and truly took shape on an 8-hour train ride through the French countryside during my first ever study abroad. Despite having to carry all of my possessions on my back, The book Wisdom of the Crowds by James Surowiecki accompanied me across Europe that summer. Far from a deep technical treatise, Surowiecki used human stories—like the successful crowdsourced search for the lost 1968 U.S. submarine Scorpio—to illustrate the “quorum effect,” where enough independent guesses eventually converge on the right answer. In the case of the Scorpio - a team of Naval experts had failed to find the sunken ship's location, but when they published their research and crowdsourced solutions the general public was able to pinpoint the exact location of the ship! 

That example showed me the raw power of collective problem-solving. When I returned to college, I began exploring open-source software and realized it was much like the submarine search: a vast global repository where people contribute their specialized knowledge to solve complex technical challenges. Each person’s contribution, however small, accumulates into some of the most advanced software we have today. Open source communities have become a bedrock of developer collaboration and ethical standards, lighting the path to our collective digital future.

Open source is more than free code—it’s a philosophy grounded in transparency, collaboration, and curiosity. By making source code available to anyone, open-source projects encourage worldwide participation. Think of it as an ongoing global brainstorming session: the more people join, the stronger the result.

A Brief History of Open Source and the Rise of Linux

Initially, most software was proprietary—closed off behind company walls. That began to change in the early 1980s, leading to the 1990s release of the Linux operating system, which transformed open source from a fringe movement into a global force.

Linux was created by Linus Torvalds as a personal side project. In a conversation with TED, Torvalds once said, “I started Linux for myself, partly because I needed the end result, but even more because I just enjoyed programming.” That hobby became the foundation of a worldwide, developer-driven effort. Today, Linux powers everything from high-speed financial servers to Android smartphones - with the Linux Kernel Repository being over 1.5GB in size.

One of open source’s biggest commercial success stories is Red Hat, which built its entire business around providing enterprise-grade products and services from open-source components. In fact, Red Hat is one of the largest contributors to projects like the Linux kernel, Systemd, Wayland, GNOME, Python3, and J2EE—paying developers to improve both server-side and desktop technologies. Red Hat’s model of combining freely available software with paid support and consulting has proven highly profitable, culminating in IBM’s $34 billion purchase of Red Hat to strengthen its hybrid cloud offerings—particularly around OpenShift, Red Hat’s container platform for multi-cloud environments.

It’s important to note that while this acquisition greatly boosts IBM’s competitive edge in the cloud, concerns have arisen that IBM’s more traditional, server-focused mindset could lead to diminished investment in Red Hat’s desktop initiatives. Should that happen, it may have a lasting negative effect on the broader open-source desktop ecosystem. Despite this, Red Hat’s journey remains a standout example of how open collaboration, strategic support, and an “all-in” commitment to open source can build a multi-billion-dollar enterprise.

Why Business Owners Should Care

If you’re running a business, you might ask, “Why should I look into Open Source?” From General awareness to starting your own project, open source offers several advantages:

• Cost Savings
  Avoid high licensing fees by using tools such as LibreOffice or GIMP, which rival pricier proprietary software.

• Stronger Security
  With countless developers scanning for vulnerabilities, open-source projects often provide quicker, more transparent security fixes.

• Tailor-Made Solutions
  Peek under the hood and modify the software to match your exact needs—no more “close enough” solutions.

• Scalability and Performance
  Linux-based technologies like Apache, Docker, and Kubernetes can grow alongside your business, from small startups to massive enterprises.

• Community and Credibility
  Supporting open source can boost your tech reputation. Contributing back—through code or documentation—earns respect among developers and potential partners.

• Dual-Model Flexibility
  Many open-source companies, like Red Hat, pair a free community edition with paid support or premium features.

Open source has evolved beyond its idealistic origins into a cornerstone of modern business and technology. Meticulously organized contributions—supported by thorough documentation—keep projects like the Linux kernel on track, preventing chaos while fostering innovation. From cost savings to robust security, open source offers a range of benefits for both small businesses and large enterprises.

However, open source isn’t a silver bullet. To capitalize on it, companies need to engage with the community, plan how they’ll monetize or maintain their software, and invest in good documentation. Done right, open source can reduce expenses, spark creativity, and build worldwide networks of passionate problem-solvers.

So dive into the repositories, skim the kernel docs, and explore how open source might power your next big idea. Whether you’re customizing software in-house or contributing to a global project, you’ll join a tradition that celebrates transparency, freedom, and shared success.