The Rise Of Open-Source Software - YouTube

Channel: CNBC

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Much of the software that powers the world's largest companies, protects
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our personal data, or encrypts national security information is open to
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the public. Anyone can download the source code behind Facebook's user
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interface, Google's Android operating system or even Goldman Sachs' data
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modeling program, and use it as a building block for a totally new
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project. What's more, lots of this software is actually developed
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collaboratively, created and maintained by an army of thousands, from
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unpaid volunteers to employees at competing tech companies.
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As a kid in a small town in Virginia, I could get connected to the best
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developers anywhere on earth and learn from them and even read the code
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that they'd written. I really wanted to give back and these people were
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always my heroes, so I wanted to participate too.
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And my voice mattered, it was just immediately, I was hooked.
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This is the collaborative world of open-source software, where code is
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written and shared freely.
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If individuals catch a bug or see an opportunity for improvement, they can
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suggest changes to the code and thereby become a contributor to some of
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the biggest software projects on Earth.
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But this model hasn't always been the norm.
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At the dawn of the Internet era through the late 1990s, proprietary
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software proliferated.
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Microsoft even went so far as to call open-source un-American and bad for
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intellectual property rights.
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Software was a finite commodity that people hoarded and wanted to sell as
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a product. Open-source software was only developed and maintained by a
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dedicated few. And there was this fringe world, there was this academic
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world who were creating software according to their own rules and sharing
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it publicly and making it free.
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Certainly dreamed, like wouldn't it be awesome if we could sort of take
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over the world? Now, open-source has, essentially, taken over the world.
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Companies in every industry from Walmart to ExxonMobil to Verizon have
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open-sourced their projects.
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Microsoft has completely changed its point of view and is now seen as a
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leader in the space.
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And in 2016, the U.S.
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government even promised to open-source at least 20 percent of all its
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new, custom developed code.
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So whether you know it or not, you are relying on the volunteer labor in
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many cases of thousands of strangers from around the world.
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In the 1970s, the M.I.T
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Artificial Intelligence Lab had a printer that regularly jammed.
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So staff programmer, Richard Stallman, altered its source code, so that
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when problems arose it would send a message to everyone in the lab saying,
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"Go fix the printer." When the lab finally got a new printer, Stallman
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discovered its source code was inaccessible.
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He asked for the code, got refused, got upset and ultimately quit his job
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to develop a completely open operating system called GNU, in 1983.
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With this, Stallman spearheaded the free software movement from which the
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open-source movement was born.
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It's sort of a very natural way to work together.
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Collectively, if everybody comes and contributes their piece, you end up
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with something that's a lot greater than something that an individual
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could contribute on their own. But throughout the 1980s and the 1990s,
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proprietary software is still dominated.
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And that was a very lucrative way of producing and selling software, and
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created an incentive for large technology companies to create a
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proprietary de facto standard.
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It was against this backdrop that the open-source operating system Linux
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was unceremoniously released in 1991.
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It incorporated many elements from Stallman's GNU project, but was mainly
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used by hobbyists looking for an alternative to Windows or MacOS.
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Throughout the decade though, Linux gained momentum as large companies
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took advantage of its flexibility and tweaked the software to their
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specific needs. By the turn of the century, NASA, Dell and IBM were all
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using it. The platform itself changes nine times an hour.
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Ten thousand lines of code are added to Linux every day.
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About five thousand lines are changed and about eight thousand lines are
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removed. It is by far the highest velocity, most effective software
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development process in the history of computing.
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As Linux grew, other open-source projects were also gaining popularity,
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like the database management system MySQL, the Perl programming language
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and the web server Apache.
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But for the layperson at the turn of the century, the rise of these
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technologies could have gone unnoticed.
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After all, hardly anyone ran Linux on their personal computers.
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But then in 2008, Google released Android devices, which run on a modified
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version of Linux. Suddenly, the operating system blew up the smartphone
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market. We are still overwhelmed with the amount of innovation that is
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happening in that ecosystem of Android.
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Today, there are over 2.5
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billion active devices using Android.
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As Google demonstrated, businesses were increasingly relying upon this
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complex web of open-source technologies to build products and platforms
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quickly. And whether they knew it or not, this also meant that they were
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depending upon the vast open-source community to maintain this software.
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The ability for one company to produce the amount of software that's
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required for any modern technology, product or service became
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overwhelming. Today, in a modern luxury automobile, there are more lines
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of software code than in an F-15 fighter jet.
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There's just simply too much software to be written for any single
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organization to write it themselves.
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Ninety nine percent of Fortune 500 companies use open-source.
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Every web server is pretty much Linux.
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Most people choose to use open-source programming languages.
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It's this like amazing buffet.
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You just come in and take this, this, this, this and you slap together
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something. You can build, you know, amazingly powerful products with very
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little work. The sheer increase in volume drove a need amongst developers
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for a central repository where they could collaborate on these huge
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projects. And in 2008, GitHub provided an answer.
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What GitHub really did for open-source is it kind of standardized the way
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that people can contribute to open-source projects and interface with
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them. And so that any developer, anywhere on earth knew how to contribute
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to a project on GitHub.
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And that fed this explosion of open-source activity.
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Today, Github hosts the grand majority of the world's open-source software
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projects. And in 2018, Microsoft even acquired GitHub, affirming the tech
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giant's commitment to open-source development.
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We have about 140 million open-source or software projects that are on
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GitHub, and over 50 million of those have been added just in the last
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year, so it's growing incredibly fast.
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And the community has expanded far beyond idealistic hobbyists, as major
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companies are increasingly leading the charge, spearheading the
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development of open-source projects in-house.
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So we see companies like Intel, Google, Facebook, Amazon, Microsoft all
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contributing heavily to open-source, Googlers have been contributing to
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over 28 thousand projects in 2018.
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This number includes projects that Google has driven as well as
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contributions it's made to projects led by other companies or individuals.
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In the open-source world, you have these fierce commercial rivals who
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collaborate every day together.
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And they haven't signed anything.
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And it's not just software companies.
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ExxonMobil has open-sourced its developer toolkit.
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Walmart open-sourced its cloud management platform, and Goldman Sachs
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recently open-sourced its data modeling program.
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This open-source way of working turned out to be better.
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Because even in a big tech company where you might have 20 or 30 or 50
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thousand developers, you can't compete with the 40 million developers that
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are now on GitHub working on open-source every day.
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Put simply, open-source development has become the new norm.
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And so I expect to see more and more investment into open-source
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communities and more and more projects as well as companies finding ways
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to commercially monetize the activity that's collected across all of these
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different open-source communities.
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So how is open-source monetized, when the product is basically given away
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for free? Basically, the answer lies in selling support services,
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subscriptions and/or commercial versions of the software.
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Red Hat, founded in 1993, was the first to figure out a successful
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business model, which relies upon selling support services for its
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operating system, Red Hat Enterprise Linux.
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Anyone can download the software for free, but if businesses want
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technical support and greater security, they'll need to buy a
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subscription. After decades of commercial success, IBM officially acquired
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Red Hat in 2019 for 34 billion dollars.
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It was the largest software acquisition in history.
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It's really groundbreaking, and it just shows the power and success of
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open-source across the world, across the industries.
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While Red Hat's 100 percent open-source model has been hard to replicate,
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other companies like database program MongoDB and integration platform
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MuleSoft, rely upon an "open-core" model, meaning the basic features are
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free, but add-ons and other useful elements are proprietary.
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As these companies have racked up multi-billion dollar valuations, there's
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no doubt that on the enterprise level, there's big money in open-source.
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But as for the individual developers, the hobbyists who contribute to and
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maintain open-source projects just for fun, their path to profitability is
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much less clear. There are a lot of different models for how people make
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money in open-source.
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One of the models is actually they don't.
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A lot of them are volunteers and they do this in their free time, in the
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evenings and on the weekends.
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But sometimes these "just for fun" side projects end up becoming widely
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used, critical to the internet infrastructure that we generally take for
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granted. Certain projects get so popular and so widely used that, you
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know, they're in every product.
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They're used by every company. And then this result of like, you know,
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massive Fortune 100, Fortune 500 companies building their businesses on
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top of this code that's written by hobbyists for who knows what reason,
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right? As one might imagine, problems can arise when critical systems are
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based on software that's maintained by unpaid volunteers with no
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professional obligation to see to the maintenance of the project.
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This issue came to a head in 2014, when the security vulnerability dubbed
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Heartbleed was found in OpenSSL, an open-source encryption technology
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that's used by the majority of web servers to protect user's personal
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data. The flaw has gone undetected for about two years and has exposed
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millions of usernames, passwords and possibly credit card info as well.
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They left this lock capable of being picked, because they didn't write the
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code quite right.
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And when they looked into it, the OpenSSL team was tiny.
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It was just a few people, who were mostly working on donations, and their
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donations had started to dry up.
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And understandably, these incredibly talented programmers had a hard time
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justifying spending full-time on this, even though it was one of the most
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important building blocks of the entire Internet.
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Ultimately, organizations like the Linux Foundation pulled together to
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provide financial support for OpenSSL, as well as other critical pieces of
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underfunded open-source software.
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But the disaster served as a wakeup call for an industry that still
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largely relies upon unpaid labor.
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The burden on the maintainer can become quite intense.
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You have sort of all these businesses coming and saying like, you know,
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your code is broken, and it's preventing me from getting my job done.
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And so you get this like almost intense guilt, I feel like, a lot of
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maintainers have a guilt.
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Now, companies are taking note and helping to formalize new funding
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models. In 2019, GitHub rolled out their Sponsors program, which allows
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developers to give and receive recurring donations for their work.
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We already have some people who are making their full living on GitHub
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Sponsors, so they don't have another job.
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And so that's huge for us.
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And that's really the key number that we are trying to move up.
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For developers like Aboukhadijeh, making a full-time living around
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open-source is indeed the dream.
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I prefer the freedom of being able to just follow my interests wherever
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they go and solve whatever problems I think are interesting.
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I'll never make money from some of the stuff I've worked on, but I think
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I've done a lot of good in the world by working on it.
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It's still early days, but if funding models like GitHub Sponsors pay off,
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we may see a new class of software engineers eschewing traditional tech
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jobs in favor of independent, open-source work.
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Open-source has created so much technological progress.
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But because it never quite solved this funding problem in those early
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years, I think that we are at a point now where we could lay the
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groundwork for the next stage of open-source.
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This could also mean expanding the cooperative ethos to industries outside
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of software. As the idea of sharing technology and collaborating
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collectively expands, we're moving into open hardware initiatives,
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data-sharing initiatives, and that's really going to be the future.
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After all, the success of open-source reveals that collaboration and
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knowledge sharing are more than just feel-good buzzwords, they're an
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effective business strategy.
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And if we're going to solve some of the world's biggest problems, many
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believe that we can't afford to hoard our resources and learnings.
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We have environmental concerns.
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We're trying to understand things like cancer and Alzheimer's.
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These are major collaborative efforts.
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The complexity of building these technologies isn't going down, it's only
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going up. We can get that technology out there faster when everybody works
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together.