Open Source vs Proprietary Software

You will learn how open source differs from paid, closed, and free software.

Knowledge of Computers › Concept of Open Source Technologies · 18 min read

In the previous chapter, we learned what source code is and why the open-source model of software development was born. We saw how a community of developers collaborating out in the open can build incredibly powerful tools.

But if you look at the computer or smartphone you are using right now, chances are high that the operating system running it, and many of the apps installed on it, were not built that way. Most of the software we interact with daily is built behind closed doors, owned by a single company, and heavily restricted.

To truly understand what makes open-source software special, you have to understand what it is rebelling against. In this chapter, we are going to place open-source software side-by-side with its alternatives: proprietary software, freeware, and shareware. By the end of this reading, you will never again confuse "free software" with software that simply costs zero rupees.

The Great Divide: Who Holds the Recipe?

To understand the difference between software models, we need to return to the most helpful analogy in computer science: the recipe.

Imagine you are at a famous restaurant, and you order their signature dish. It tastes incredible. You want to make it at home, so you ask the chef for the recipe. The chef refuses. They will gladly sell you the finished dish as many times as you want to buy it, but the list of ingredients and the step-by-step cooking instructions are a closely guarded trade secret.

In the software world, the "finished dish" is the application you run on your computer (the executable file, like a `.exe` on Windows or an `.app` on a Mac). The "recipe" is the source code—the human-readable instructions written by programmers.

The fundamental dividing line in the software world is about who gets to see, keep, and change that recipe.

Proprietary Software: The Walled Garden

Proprietary software is the "secret recipe" model of the digital world. It is also commonly called closed-source software.

When a company like Microsoft creates Microsoft Word, they hire thousands of programmers to write the source code. Once the code is finished, they compile it into the final, ready-to-use application. When you go to a store or go online to get Microsoft Word, you are only given that final application. The source code remains locked away on Microsoft's servers.

You Don't Actually Own It

Here is a fact that surprises many people: when you pay ₹5,000 for a piece of proprietary software, you are not actually buying the software. You are buying a license to use it.

Whenever you install proprietary software, you are presented with a massive wall of legal text, and you have to click a button that says "I Agree" before the installation will continue. This document is called the EULA.

If you actually read a standard EULA for proprietary software, you will find strict rules:

  1. 1No reverse engineering: You are legally forbidden from trying to break the software apart to see how it works or to recreate its source code.
  2. 2No modification: You cannot change the software to suit your needs. If there is a bug, you cannot fix it yourself; you must wait for the company to release an update.
  3. 3No redistribution: You cannot make copies of the software and give them to your friends.
  4. 4Limited installation: The license usually restricts you to installing the software on a single computer, or a specific number of devices.

Examples of Proprietary Software

Proprietary software dominates the commercial tech industry. Some of the most famous examples include:

  • Operating Systems: Microsoft Windows, Apple macOS, Apple iOS.
  • Productivity Suites: Microsoft Office (Word, Excel, PowerPoint).
  • Creative Tools: Adobe Photoshop, Adobe Premiere Pro.
  • Video Games: Almost all commercial video games (like FIFA, Call of Duty, or Grand Theft Auto) are strictly proprietary.

Open Source Software: The Community Cookbook

Now let's flip the model entirely. Open-source software is like a community cookbook published on the internet. Not only do you get the finished dish, but the recipe is printed right next to it. Furthermore, the authors actively encourage you to tweak the recipe, add your own spices, and share your improved version with the rest of the world.

When you download open-source software, the developers make the source code publicly available. Anyone with an internet connection can inspect it, learn from it, modify it, and distribute their modified version.

The Power of the Open License

Just like proprietary software, open-source software also comes with a license. But instead of restricting what you can do, an open-source license is designed to guarantee your freedoms.

When you agree to an open-source license (like the famous GNU General Public License, or GPL), it essentially says:

  • You are free to use this software for any purpose (personal, commercial, or educational).
  • You are free to look at the source code and change it however you like.
  • You are free to share copies of the software with your friends, family, or customers.
  • You are free to share your modified versions with the public.

Examples of Open Source Software

  • Operating Systems: Linux (including distributions like Ubuntu, Fedora, and Android's core).
  • Productivity Suites: LibreOffice, Apache OpenOffice.
  • Web Browsers: Mozilla Firefox, Chromium (the open-source base of Google Chrome).
  • Creative Tools: GIMP (an alternative to Photoshop), VLC Media Player.

The "Free" Confusion: Speech vs. Beer

We now arrive at the most common trap in the entire topic of software distribution. It is a trap that catches thousands of students every year.

When people hear the term "Free Software" (which is closely related to, and often used interchangeably with, Open Source Software), they immediately think of price. They think "Free Software means I don't have to pay any money for it."

This is completely wrong.

In the context of open-source and free software, the word "free" refers to liberty, not price.

To clear up this confusion, Richard Stallman, a pioneer of the free software movement, coined a famous phrase that you must memorize:

"Think of free as in free speech, not as in free beer."

— Richard Stallman

Let's break that down:

  • Free Beer (Gratis): If a bartender gives you a free beer, it costs you zero rupees. But you don't have any freedom over the beer. You can't change its ingredients, and you can't go behind the bar and brew it yourself. It is simply a product given away at no cost.
  • Free Speech (Libre): Free speech is a fundamental right. It means you have the liberty to express yourself, change your mind, and share your thoughts with others.

When we say "Free Software" or "Open Source Software," we mean the software respects your freedom (like free speech). It means you have the freedom to access the source code, modify it, and share it.

Can Open Source Software Cost Money?

Yes! Absolutely. This is a massive misconception. You are legally allowed to sell open-source software.

Imagine a brilliant programmer takes an open-source operating system, spends a year customizing it to make it perfect for hospitals, and then sells CDs of this software to hospitals for ₹10,000 each. Is this allowed? Yes. As long as she also provides the hospitals with the source code and allows them the freedom to modify and share it further, she is perfectly within the rules of open source.

She is charging for her time, her expertise, and the convenience of the packaged CD, but the code itself remains open and free (as in speech).

Freeware: It Costs Nothing, But You Can't Touch It

If open-source software is about freedom, what do we call software that simply costs zero rupees but keeps its source code hidden?

We call it Freeware.

Freeware is proprietary, closed-source software that the creator has decided to give away for free (as in free beer). You do not pay a single rupee to download or use it, but you are still bound by a strict EULA. You cannot see the source code, you cannot modify it, and you cannot reverse-engineer it.

Why would a company give away software for free?

Companies aren't charities. They release freeware for strategic business reasons:

  1. 1The Ecosystem Trap: Adobe gives away Adobe Acrobat Reader entirely for free. Why? Because if everyone in the world has a free program that can read PDF files, then businesses will be forced to buy Adobe's expensive, paid software (Adobe Acrobat Pro) to create those PDF files. The freeware creates the demand for the paid software.
  2. 2Data Collection: Many free mobile apps and desktop programs are freeware because they collect your data and show you advertisements. You aren't paying with money; you are paying with your attention and data.
  3. 3Upselling (Freemium): A company might offer a basic version of their software as freeware, hoping you will like it so much that you will pay to unlock advanced features.

Examples of Freeware:

  • Adobe Acrobat Reader (for viewing PDFs)
  • Skype (basic version)
  • WhatsApp
  • Google Chrome (the final browser provided by Google is freeware, though it is built on open-source parts).

Shareware: Try Before You Buy

Before high-speed internet was common, downloading large software files was impossible. In the 1980s and 1990s, software was distributed on floppy disks. This era gave rise to a unique distribution model called Shareware.

Shareware is proprietary, closed-source software that is distributed for free on a trial basis. The developer encourages you to share the software with your friends (hence the name "share-ware"), but there is a catch: after a certain period, or to unlock the full game, you are legally and morally expected to pay a fee.

If you pay the fee, you are usually given a license key (a string of letters and numbers) that you type into the software to unlock it permanently.

Types of Shareware

Shareware comes in several different flavors, depending on how the developer tries to convince you to pay:

  1. 1Trialware (or Demoware): The software works perfectly, but only for a limited time (e.g., a 30-day free trial of an antivirus program). After 30 days, it stops working entirely until you pay. In video games, this might be a demo where you can only play the first level.
  2. 2Nagware: The software never stops working, but every time you open it, a highly annoying pop-up window appears on your screen reminding you to buy the full version. You have to click "Close" or wait 10 seconds before you can use the app.
  3. 3Crippleware: The software has no time limit, but crucial features are disabled. For example, a photo editing software might let you edit photos forever, but the "Save" or "Print" buttons are disabled until you buy the license.

The Ultimate Example of Shareware: WinRAR If you have ever used a Windows computer, you have likely encountered WinRAR, a program used to compress and extract ZIP and RAR files. WinRAR is the most famous piece of nagware in history. It offers a "40-day trial." After 40 days, it doesn't stop working; it just shows a pop-up asking you to buy a license every single time you open it. Millions of people just close the pop-up and keep using it for years.

The Decision Tree: How to Classify Software

If you are ever confused about what category a piece of software falls into, you can use this simple logical flow to figure it out.

Software Classification Logic

  1. 1Start: Do you have the legal right to view and modify the source code?
  2. 2If YES -> It is Open Source Software. (Price does not matter).
  3. 3If NO -> It is Proprietary (Closed Source) Software. Move to next step.
  4. 4Does the software cost money to use permanently?
  5. 5If YES, upfront -> It is standard Paid Proprietary Software (e.g., MS Office).
  6. 6If YES, after a trial -> It is Shareware.
  7. 7If NO, it is completely free to use forever -> It is Freeware.

Side-by-Side Comparison

To cement these concepts for the exam, let's look at a direct comparison of the four major models we have discussed.

  • Open Source Software
  • Source Code: Publicly available.
  • Modification: Allowed and encouraged.
  • Cost: Usually free, but can legally be sold for money.
  • Example: Linux, VLC Media Player, Mozilla Firefox.
  • Proprietary (Paid) Software
  • Source Code: Hidden (Closed).
  • Modification: Strictly prohibited by EULA.
  • Cost: Requires upfront payment or subscription.
  • Example: Microsoft Windows, Adobe Photoshop.
  • Freeware
  • Source Code: Hidden (Closed).
  • Modification: Strictly prohibited by EULA.
  • Cost: 100% free of charge.
  • Example: Adobe Acrobat Reader, WhatsApp.
  • Shareware
  • Source Code: Hidden (Closed).
  • Modification: Strictly prohibited by EULA.
  • Cost: Free for a trial period or limited version; requires payment for full/permanent use.
  • Example: WinRAR, 30-day Antivirus trials.

Real-World Matchups

In the real world, open-source software and proprietary software are in constant competition. For almost every expensive proprietary program, there is an open-source alternative built by a community of volunteers.

Here are some of the most famous head-to-head matchups. Knowing these equivalents is highly useful for practical computer knowledge and exam scenarios:

  • Operating Systems:
  • Proprietary: Microsoft Windows / Apple macOS
  • Open Source Alternative: Linux (Ubuntu, Linux Mint)
  • Office Productivity:
  • Proprietary: Microsoft Office (Word, Excel)
  • Open Source Alternative: LibreOffice / Apache OpenOffice
  • Web Browsers:
  • Proprietary: Apple Safari / Microsoft Edge (historically Internet Explorer)
  • Open Source Alternative: Mozilla Firefox / Brave
  • Image Editing:
  • Proprietary: Adobe Photoshop
  • Open Source Alternative: GIMP (GNU Image Manipulation Program)
  • Media Players:
  • Proprietary: Windows Media Player / Apple QuickTime
  • Open Source Alternative: VLC Media Player

When a student or a small business cannot afford the high licensing fees of proprietary software, they almost always turn to these open-source alternatives. Because open-source software is usually distributed free of charge (even though it doesn't have to be), it provides immense value to the world, democratizing access to powerful digital tools.

Quick Revision

  • Source Code is the human-readable programming instructions. Who controls the source code defines the software model.
  • Proprietary Software (Closed Source) hides the source code. You buy a license to use it, not the software itself. You cannot modify or distribute it.
  • EULA (End User License Agreement) is the legal contract you agree to when installing proprietary software, which restricts your rights.
  • Open Source Software provides the source code to the public. You have the freedom to inspect, modify, and share it.
  • "Free as in speech, not free beer" means open source is about the liberty to change the code, not about the software costing zero rupees. Open-source software can legally be sold for money.
  • Freeware is software that costs zero rupees but keeps its source code hidden. You cannot modify it. (e.g., Adobe Reader).
  • Shareware is trial software. It is free to download, but requires payment after a time limit or to unlock features. (e.g., WinRAR).
  • Nagware and Trialware are specific sub-types of Shareware.

Related notes