Research You Didn't Know You Needed
Wait! Free Doesn't Really Mean Free?
As a CTO, I can personally attest to the value of open source software (OSS). I have never tried to quantify this value, however, except when discussing lower operating expenses for Linux vs Windows (generally speaking). Enter "The Value of Open Source Software", which offers a comprehensive examination of the economic significance of OSS to the global economy.
Despite OSS being available freely and forming the backbone of numerous technologies we use (or engineer) daily, its value has been challenging to quantify due to its non-monetary nature. Through innovative data analysis involving millions of global firms, the study presents a groundbreaking estimation of both the supply-side and the much larger demand-side value OSS contributes to the economy—$4.15 billion and $8.8 trillion, respectively.
This analysis not only highlights OSS's immense economic value but also its efficiency and the disproportionate contribution of a small percentage of developers to its overall value.
The Hidden Economic Titan
OSS’s non-monetary nature has historically obscured its true value within economic measures. The estimated value, far surpassing previous estimations, underscores OSS as a foundational element of the digital economy, driving efficiency and innovation across global firms (including mine). The realization of its vast economic impact invites a reevaluation of OSS’s role in economic planning and policy formulation, urging greater recognition and support for this hidden titan of the digital age.
Efficiency and the Cost of Innovation
The research unveils the cost-efficiency of OSS, indicating that firms would need to spend 3.5 times (3.5!!) more on software development in its absence. This efficiency is not only a testament to the economic advantage OSS offers but also highlights its role in democratizing innovation. By lowering the barriers to entry for software development, OSS catalyzes technological advancement and competition, fostering a more vibrant and inclusive digital economy. This findings call for strategies to sustain and enhance the OSS ecosystem, ensuring it continues to serve as a wellspring of innovation and economic value.
The Pivotal Role of a Few
An intriguing aspect of the study is the disproportionate contribution of a small fraction of developers to the OSS ecosystem's value. With 5% of developers responsible for 96% of the demand-side value, the study highlights the critical role of these key contributors (please keep them safe!). This concentration of impact underscores the importance of nurturing and supporting these developers, who are the linchpins of the OSS community. Policies and initiatives aimed at promoting OSS should consider mechanisms to recognize, reward, and retain these vital contributors, ensuring the sustainability and growth of OSS.