Open-Source vs Proprietary Software: The Clear Winner in 2025

Open-source software, commonly referred to as OSS, is a class of software that adheres to four main principles outlined by the the Free Software Foundation:

• you can use it for personal or commercial use
• you have access to the source code and can change it
• you can redistribute original copies
• you can redistribute modified copies

Open-source software also falls under the free software category (sometimes termed free and open-source software or FOSS), although not all free software is open-source software.

Another dichotomy of open-source software is project/community open-source and commercial open source software (COSS).

The open-source community comprising volunteers maintains the former, although some organizations might sponsor/contribute (e.g., Apache Web Server, Linux, ReactJS).

COSS is typically owned in entirety by one entity that controls contributions and requires that any modifications become its legal property (e.g., Red Hat distributes enterprise versions of the open-source software Linux).

All open-source software is distributed with a free software license stating how it can be used, modified, and distributed. These licenses can vary widely, so it's important to understand the specific terms of the open source license associated with the software.

The most common open source software licenses are:

• MIT License
• GNU General Public License (GPL)
• BSD License

Examples of Open-source Software

Linux: A UNIX-like operating system, Linux is one of the most widely used open-source operating system software, with multiple forks like Ubuntu, Fedora, CentOS, and others available.

Drupal: Drupal is a highly customizable, extensible, and secure web platform that powers ten percent of the top ten thousand websites globally, including Tesla.com, the Australian Government, Mint.com, and NASA.com.

LibreOffice: LibreOffice is a free and open-source office productivity suite launched in 2010 and overseen by the Open Document Foundation.

WordPress: WordPress is the most popular CMS platform on the Internet, powering 455 million websites globally, including TechCrunch, BBC America, The New York Times, and Microsoft News Center.

Apache: Apache is a free and open-source HTTP server that works in Windows and Unix environments. A community of contributors maintains it, overseen by the Apache Software Foundation.

Mozilla Firefox: Firefox is a popular open source software browser developed and maintained by the Mozilla Foundation that uses the Gecko rendering engine, which implements current and next-generation browser best practices.

Chromium: The Chromium project develops the open source software Chromium browser and Chromium OS. Google Chrome and Chrome OS are built using Chromium.

Proprietary Software Definition

To define proprietary software simply: it is software protected by legal measures, such as patent or copyright law, that restrict its use, distribution, and modification. Proprietary software development is typically carried out by a dedicated team of developers within a company or organization, with a focus on meeting specific business needs.

Also called closed-use, closed source, or commercial software, its developer, publisher, or vendor enforces these protections and only provides access to it under certain conditions, usually purchase, lease, or license.

A distinguishing feature of proprietary software is that end-users can’t access the source code, which remains the owner's intellectual property. The source company (the Independent Software Vendor or ISV) manages all modifications, upgrades, and patches.

The commercial software license (also called proprietary software license) outlines the terms and conditions under which the software can be used and accessed. Restrictions prohibit end-users from repackaging or redistributing commercial software, details of which are in lengthy End-user License Agreements (EULA), Terms of Service (TOS), and other user agreements.

Examples of Proprietary Software

Microsoft Windows and Microsoft Office: Microsoft fully owns and controls their operating system and productivity software, only installing or licensing them within the scope of detailed EULAs.

Slack: Slack is a SaaS platform and only provides end-users with functionality while abstracting the back end.

Adobe Photoshop: Adobe Photoshop and other apps in the Adobe Creative Cloud (formerly known as the Adobe Creative Suite) are sold as downloadable software and are only usable after purchasing or licensing. Any software code is usually highly protected through encryption and other means.

Norton Antivirus: This antivirus software, like most antiviruses, is a commercial software. It restricts access to the source code, besides restricting any modification or redistribution.

When comparing open source software vs commercial software, it's important to consider factors such as cost, customization, support, and more. Below we discuss the pros and cons of both open-source and proprietary software.

Open-Source Software

Pros:

1. Cost-Effective: Open-source software is typically free to use, aligning with the core principles of the free software movement, and thus, can significantly reduce costs.
2. Flexibility and Customization: You can modify the source code to fit specific needs, offering enhanced customization.
3. Community Support: A large community of developers and users often provides extensive support, documentation, and troubleshooting.
4. Transparency: With access to the source code, you can identify and fix vulnerabilities or issues, ensuring more secure software.
5. No Vendor Lock-In: You are not tied to a particular vendor, giving you more freedom to switch providers or modify the software as needed.
6. Innovation: Open-source projects often evolve rapidly due to contributions from a diverse group of developers.

Cons:

1. Limited Official Support: While open source community support is strong, official and guaranteed technical support may be limited compared to proprietary software.
2. Complexity: Customizing and maintaining open-source software can be complex and require specialized skills.
3. Compatibility Issues: Open-source solutions may not always integrate seamlessly with other proprietary systems or computer software.
4. Less User-Friendly: Some open-source software can be less intuitive and harder to use than proprietary counterparts.
5. Variable Quality: The quality of open-source software can vary widely, sometimes lacking polish or features found in proprietary software.

Proprietary Software

Pros:

1. Professional Support: Proprietary software often comes with dedicated customer support, including training, troubleshooting, and regular updates.
2. User Experience: Typically designed with user-friendliness in mind, offering intuitive interfaces and comprehensive features.
3. Reliability and Consistency: Generally, proprietary software goes through rigorous testing to ensure reliability and performance.
4. Integration: Often designed to work seamlessly with other products from the same vendor, offering better integration.
5. Security: Vendors usually provide regular security updates and patches, reducing the likelihood of vulnerabilities.

Cons:

1. Cost: Proprietary software can be expensive, with licensing fees, subscriptions, and potential additional costs for upgrades or add-ons.
2. Limited Customization: You have little to no access to the source code, limiting the ability to customize the software to specific needs.
3. Vendor Lock-In: You may become dependent on a single vendor for updates, support, and additional functionality, which can be restrictive.
4. Slower Innovation: Innovation may be slower due to longer development cycles and less community involvement compared to open source projects.
5. Privacy Concerns: Proprietary software often involves sharing data with the vendor, raising potential privacy concerns.

Reach out to us if you need further information or have specific questions about which solution is right for your business. We can also guide you through a discovery process to identify which is best for your particular needs.

From the list above, you’ll notice that there are about equal pros and cons for each class of software. This parity alludes to the fact that each one might thrive in specific scenarios while faltering in others.

Let’s break down the main differences between the two based on their strengths and weaknesses.

Functionality/Features

Open-source software often comes with many features due to so many people contributing to the code base and the almost unlimited scope of an open source project.

Proprietary software often has limited functionality due to focusing resources on easily commercialized and maintained features.

Nowadays, both open-source and proprietary software are also incorporating artificial intelligence in their functions, the extent and nature of AI adoption may vary depending on factors such as project goals and resource availability.

Cost

Open-source software is free software, so the upfront cost is low. However, customizations, maintenance, and support add a cost component to it.

Proprietary software has a high upfront and ongoing cost. However, these costs can be offset if the vendor offers support and maintenance.
 

Is Open-Source Actually Free Forever?

Flexibility (Customizations)

Open-source software is heralded for its easy customizability. With an open source code base, it is easier to make deep customizations that provide highly specialized functionality.

Proprietary software is considered rigid due to inbuilt customization limitations like a restricted source code, hard-coded features, and locked-in product scope.

It is also worth noting that the term "open source" and "free software" are often used interchangeably. There is not much difference between open source and free software, but they are not exactly the same thing. 

Free softwares give their users freedom to run, study, modify, and distribute the software. Open source focuses on the accessibility of the source code and is defined by the Open Source Initiative (OSI)'s Open Source Definition. Both terms are used to describe software that is freely available and can be modified by users.

Extensibility

Open-source software platforms like Drupal and WordPress have hundreds of community-made plugins, some paid but most free, extending the core product.

Lack of such resources makes extending proprietary software difficult, even though sometimes the software vendor might invite the community to develop additional non-core extensions (like Adobe Photoshop plugins).

Security

Open-source software platforms are typically more secure because of the sheer number of eyeballs scanning the code. Fixes are also often quick because of enthusiastic community members.

Proprietary software tends to have more exploits, although they aren’t as visible because of code restrictions. In this sense, this software is secure because no one has found the exploits (yet).

Integrations

Open-source solutions have extensive integration capabilities again because of the unlimited nature of product development. Community members can include integration capabilities (APIs) simply because they can.

Proprietary software usually has limited integrations due to its rigid nature. Nevertheless, most ISVs will provide an extensive list of available integrations and usually provide new ones on request.

Templates/Libraries

Open-source software has a tremendous number of free and paid templates, themes, and libraries provided by a community of developers.

Proprietary software often has a limited number of templates due to the limited resources and scope of services most provide. However, most offer features that allow end-users to develop custom templates or themes.

User Experience / Developer Experience

Open-source software platforms like Drupal are typically not user-friendly because they mainly focus on back-end programmers. Others, like WordPress, have a more user-friendly experience, although at a high cost to customizability.

Proprietary software is built with the end-user in mind, so most have excellent user experiences. Also, developer-facing features are designed and built for ease of use.

Assume you are facing a site redesign or rebuild. Should you pick proprietary software like Agility CMS, Kentico, and Sitecore or open-source software like Drupal, WordPress, and Adobe Magento?

The answer is... it depends.

To make an informed decision, you must carefully consider the key differences between open source and commercial software and how they align with your business model or project's goals. Since each software class has strengths and weaknesses, the choice will depend on project dependencies like budget, timeline, features, and scope.

Here’s a brief rundown on which type of software to pick for different project scenarios. (Keep in mind these dependencies interplay, so the recommendations below will differ in different scenarios.)

Budget

Significant budget: Proprietary or closed source software, though more costly, comes with refined features out of the box, so it might be a good option.

Limited budget: Open-source is always a good idea when resources are limited. Other free components like themes and plugins add to its affordability.

Project Timeline

Ample time: Open-source solutions are a good option here because most are developer-friendly and can be customized to meet requirements with enough time.

Limited time: Pick proprietary software because it works more seamlessly, works right out of the box, and has a more straightforward route-to-market.

Project Scope/Size

Few/simple features: If you are building a brochure site or a similarly limited website, consider proprietary software as its limited flexibility will not hinder the outcome.

Many/complex features: Consider using open-source software like Drupal because it offers maximum flexibility for customizations and extensions.

Open-source software and proprietary software each play a crucial role in diverse business environments. While companies might pick one or

At O8, we work with both proprietary and open-source software because we understand that each can play a pivotal role in helping a client meet their objectives.

As one of the developers on our Extended Dev Team says, one type of software might meet the needs of one client, but as an agency, we offer both because they each have a place in meeting diverse project requirements.