Open Source Services: Moving toward Modern Software Development

Key takeaways:

• Introduction
• Advantages of open source services
• Innovative product/service launches in the industry

Open-source software (OSS) applications are computer programs whose underlying code is publicly accessible for all and can be inspected, modified, and enhanced by anyone. Generally, the source code of OSS programs is developed through open collaboration approaches, which promote inclusiveness, transparency, and regular public updates. Thus, it is a decentralized model of software development and has become a pillar of modern computing application design. Several computer engineering studies have shown that the value of prominent open-source software applications to IT companies across the globe amounts to more than $8 billion. Over the years, specialized services for providing technical support to these applications have emerged, which help software developers customize, integrate, and deploy OSS as per the company’s needs.

Growing adoption of OSS applications generating new investment opportunities

Over the years, the preference for open-source software programs has increased exponentially due to the growing number of IT firms across the globe. Additionally, many of the leading multinational companies have shifted to OSS applications to manage their mission-critical workloads. Recently, OpenLogic, Inc., a software company, and Open Source Initiative (OSI), a non-profit organization, published the “2022 State of Open Source Report,” which highlighted that more than 75% of the organizations surveyed increased the deployment of OSS applications in 2021.

The main reason behind the rising adoption of OSS programs and open source services is their cost-effective nature, which helps companies minimize their expenses drastically. A paper published by Harvard Business School has demonstrated that IT businesses would have to pay 3.5 times more to develop programs if OSS applications were available. The concept of open source programs is especially beneficial to small and medium-scale companies as it aids in setting up their businesses and compete with multinational giants easily.

Along with this, the agility, flexibility, and speed of software development offered by open source services make them ideal for companies that are planning to transition toward new technologies. For instance, the emergence of AI and machine learning has compelled IT firms to adopt new data management strategies. In such a scenario, businesses have started adopting open source services to develop open-source databases like PostgreSQL and MySQL, which include several native AI features. Apart from assisting companies in launching pilot programs, OSS applications also aid in scaling these solutions, thus enabling companies to expand their operations seamlessly.

Launch of innovative products by private and non-profit companies transforming industry dynamics

The open source services industry accounted for $33.9 billion in 2023 and is predicted to gather a revenue of $165.4 billion by 2033, rising at a CAGR of 16.8% during 2024-2033. The increasing investments by various market players in developing new OSS applications are anticipated to create new opportunities in the sector. In November 2023, for instance, Persistent, an Indian multinational IT company, unveiled its first-ever open-source maintenance service. Designed to help companies update their OSS applications and fix software bugs, this solution focuses mainly on component upgrades and maintaining the integrity and security of the system. Furthermore, the service aids in integrating advanced technologies, such as generative AI and large language models (LLMs), into existing architecture seamlessly. The press release issued by the company highlighted that Persistent partnered with Lineaje, a digital tool developer, to enhance the AI capabilities of the open-source maintenance service.

In February 2025, the Open Source Security Foundation, a community of software developers and software engineers, announced the initial release of Open Source Project Security Baseline, an initiative aimed at improving open-source software security. Through this launch, the organization extended an invitation to application developers, IT firms, and maintenance service providers to opt for the OSPS Baseline to promote the best practices in the field of software security. The press release issued by the foundation stated that the initiative helps companies to develop systems that adhere to cybersecurity norms as per the National Institute of Standards and Technology (NIST) Secure Software Development Framework (SSDF) and EU Cyber Resilience Act (CRA).

In conclusion, the growth of the open source services industry is attributed to the rising adoption of OSS applications by several multinational IT firms. Moreover, the advantages offered by these programs, such as flexibility, scalability, and cost-efficiency, have led to an increase in their popularity in recent times. In addition, the launch of novel services by various companies and non-profit organizations is anticipated to strengthen the position of the landscape in the coming period.

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