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The Failed Economics of Our Software Commons

An anonymous reader writes: Most software developers are intimately familiar with having to waste time implementing something they probably shouldn't need to implement, or spending countless hours making their code work with bad (but required) software. Developer Paul Chiusano says this is because the economic model we use for building software just doesn't work. He writes, "What's the problem? In software, everyone is solving similar problems, and software makes it trivial to share solutions to these problems (unlike physical goods), in the form of common libraries, tools, etc. This ease of sharing means it makes perfect sense for actors to cooperate on the development of solutions to common problems. ... Obviously, it would be crazy to staff such critical projects largely with a handful of unpaid volunteers working in their spare time. Er, right?? Yet that is what projects like OpenSSL do. A huge number of people and businesses ostensibly benefit from these projects, and the vast majority are freeriders that contribute nothing to their development. This problem of freeriders is something that has plagued open source software for a very long time." Chiusano has some suggestions on how we can improve the way we allocate resources to software development.

30 of 205 comments (clear)

  1. Marketshare by roman_mir · · Score: 2

    Freeriders are giving you the marketshare. Having a loss leader is not an uncommon business practice, nor is it untenable.

    1. Re:Marketshare by BarbaraHudson · · Score: 2
      The incremental cost of each "freeloader" is zero. The risk of having only "One True Way" to do something is huge.

      He uses OpenSSL as an example, and that companies should be devoting funds to this to help make it "perfect" to prevent the next Heartbleed attack. This ignores that there are already alternatives to OpenSSL. So, who should get the funding? OpenSSL or one of the alternatives?

      This is like governments trying to pick economic "winners" and giving them all sorts of moola. Doesn't work.

      --
      "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    2. Re:Marketshare by roman_mir · · Score: 3, Funny

      In this case the loss leader may just be a payment on other projects.

      When Elon Musk develops his Tesla thing that I do not own, does this change things for me, does it make me poorer or wealthier? Well, it's making the economy more productive, it's making the overall economy wealthier because of this new product that people want and a generally wealthier economy allows people to pursue their hobbies and in the case of free software developers the hobbies are developing free software (excuse me for that), so when I say a "loss leader", maybe another way to put it is a payment.

      In the software world code because currency itself. Code is something tangible, code has intrinsic value to people who want to use that code for something, so code is actually money. We exchange code, we exchange money, we make payments to each other this way.

      In fact us not charging for our code in some fiat government currency but instead just using each other's code, we are going around the government taxation and various business regulations.

      For all the talk about so many programmers being 'socialists', we are actually doing everything we can to avoid paying taxes, if the politicians only understood what kind of an economy is running right under their noses in this so called "free" software community, they'd be screaming murder! There would be Obama on the stage, talking about "paying fair share" and throwing "you didn't build that" slogans, while pointing fingers at a community that exchanges what basically amounts to labour without allowing government to skim off the top.

    3. Re:Marketshare by roman_mir · · Score: 5, Interesting

      wait, WHAT? A group of people releases some code without asking for any money and then if people start using the code then they will come for money later? I am with the OpenBSD team on this, not with you! What you are suggesting is actually immoral and probably cannot be legally enforced. Once you release your code under a license that allows people to use it (at least that version of it, which you released), you can't now come after those people's money!

      You know you don't have to develop anything at all, you don't have to develop anything for free and you don't have to develop anything and then give it away, but if you do, don't cry if people start using it!

      Now, I already mentioned that in free software community code became money long time ago, that's the point I am trying to make - code is money and we exchange it for free seemingly, but actually we are making a payment with our code to other people who also create code that we can use.

      Code is money and the labour that is used to create this wealth is not taxed or regulated by government, we do it on our own around all government regulations and around taxes and that is what built a vibrant economy, which the guy in TFA doesn't understand.

    4. Re:Marketshare by blue+trane · · Score: 2

      Pre-Reagan America had a government that didn't charge for national parks, but James G. Watt changed that.

      Government should provide for the General Welfare. It can and should create money to do so. The Fed has proven it can create money at will, and the stock market has reached record heights. Use that power of money creation to empower individuals instead of corporations, in the form of a Basic Income, say. Then people can work on open source, wikipedia, and challenges if they choose, instead of entering the morally hazardous world of the market with its perverse incentives.

    5. Re:Marketshare by SillyHamster · · Score: 3

      How about the Fed give money to individuals instead of corporations?

      "Steal from the right people" is still worse than "don't steal".

    6. Re:Marketshare by roman_mir · · Score: 2

      No, it doesn't hurt me when people release anything under any license they like, the market share of that code will be negligible, there are many licenses like it (free excluding commercial use) but it doesn't hurt anybody. Many projects have corporate contributors, I believe the point of writing code is to have it used, not for it to sit somewhere idly so I would not write under such a license. I much prefer the BSD license myself to any other non-free version (including the GPL).

    7. Re:Marketshare by Tom · · Score: 2

      "Steal from the right people" is still worse than "don't steal".

      Propaganda.

      Stealing is the unlawful taking of someone else's property. There, I even highlighted the important word for you. There are many good reasons for lawfully taking someone's property or rather: Small parts of it. Unless you're a hard-core anarchist, you have to solve the problem of how to keep the government (small or big) working at all, and sooner or later your solution will be taxes, even if you call it by a different name.

      The major disagreement between political factions is how much to tax, who to tax and what to spend the money on, but never about taxation itself.

      --
      Assorted stuff I do sometimes: Lemuria.org
    8. Re:Marketshare by Tom · · Score: 3, Insightful

      Oh so basically you've bounded the debate?

      Show me a single argument that's not from either an anarchist or an idiot that explains how to run a country with zero taxation (ignore the tiny minority of countries that can run entirely on oil exports or such, we're talking the general case).

      Regardless, you have to explain what "lawful" means.

      No, I don't. That word is in the dictionary and its definition is in no way disputed.

      I don't care [...] Because morally,

      So you're asking me to explain "lawful" only to say that it actually doesn't matter?

      Other than 400 years ago, we did it with swords and gallows and dungeons and now we've made it a bit cleaner.

      You need to get your head out of your ass and into a history book. The rule of law is at least 2000 years old and while governments have always had the option of force, its actual use is comparatively rare. Especially compared to mob rule. Today, 100 or 1000 years ago - you can clearly see that when the government breaks down, violence and crimes increase dramatically.

      Morally, the difference between a "noble" passing a law that he can rape your wife on the first night of your marriage and then take your money for the rest of your life, is exactly the same as changing the US constitution to allow the state to tax in like manner.

      Firstly, you really need to study history. While ius primae noctis makes for a great legend, historians today are not convinced it ever actually existed, and even if it did there are no confirmed cases of it ever being actually used.

      Secondly, you should explain whether you are ok with the general principle of a society or not. In this context, "society" means that a group of people can make rules for themselves and enforce them. The details (nobility, democracy, segregation of powers, etc.) are unimportant as long as you make a covert argument that basically calls anything except pure anarchy immoral. So please come out of hiding behind phrases and state your position clearly. Do you think that people should be able to form societies and enforce their rules on each other or not?

      With a MORAL argument

      Humans are social animals by nature.
      A society can only function if it can enforce its rules.
      Laws are basically moral rules written down.
      Therefore, I don't see a principal difference between legal and moral arguments.

      The difference is that everyone thinks they understand moral, but few people understand law. And yes, not all laws are codified ethics, that's true. Many are of administrative nature, for example.

      Is there no room in this world for morals?

      Morals differ, even from person to person. That's why a society needs a common set of values.

      anyone who found you could just steal, rape, kill at will?

      Look around you. What's happening in Syria and Iraq? What's happening in parts of Africa? Yes, my idealistic friend, this is exactly what happens when government breaks down and societies fail. Sure, it is morally wrong, but it happens.

      So in fantasy lalaland, where everyone is perfectly moral and also shares the same morals, you don't need governments, taxation and all this shit. In the real world, where real humans with all their mistakes live, you do.

      I won't ask you to describe how a world based purely on morals and without government "interference" would work. Greater minds have failed at that task.

      --
      Assorted stuff I do sometimes: Lemuria.org
  2. Article doesn't address they "why" by crioca · · Score: 2
    And why is the situation like that? Because our Intellectual Property laws, which shape the markets for software and other information assets, are completely bonkers.

    If we want to address this issue, we need a complete overhaul of our IP laws.

    1. Re:Article doesn't address they "why" by jratcliffe · · Score: 2

      What aspect of current IP law do you believe creates this situation (i.e. the ease of free-riding on open source), and how should they be reformed?

      This looks like a classic tragedy of the commons problem, in which case assigning ownership (i.e. eliminating the free-as-in-beer aspects of FOSS) is the relevant solution.

    2. Re:Article doesn't address they "why" by grcumb · · Score: 3, Interesting

      If we want to address this issue, we need a complete overhaul of our IP laws.

      Er, no.

      The 'why' has little to do with IP law and a lot to do with group dynamics, especially herd behaviour. Take this statement, for example:

      One of my personal pet causes is developing a better alternative to HTML/CSS. This is a case where the metaphorical snowdrift is R&D on new platforms (which could at least initially compile to HTML/CSS).

      The problem with the 'snowdrift' here, to abuse the metaphor, has nothing to do with IP law, and nothing to do with lack of innovation. It has everything to do with the size of the drift. You don't have any choice but to wait for someone else to come along to help shovel. But the author is trying to say, If everyone doesn't shovel, nobody gets out. And that's not always true.

      A quick reminder: When HTML first came out, the very first thing virtually every proprietary software vendor of note did was publish their own website design tool. And each of those tools used proprietary extensions and/or unique behaviour in an attempt to corner the market on web development, and therefore on the web itself.

      But the 'snowdrift' in this case was all the other companies. Because no single one of them was capable of establishing and holding overwhelming dominance, the 'drift' was doomed to remain more manageable by groups than by any single entity. (Microsoft came closest to achieving dominance, but ultimately their failure was such that they have in fact been weakened by the effort.)

      Say what you like about the W3C, and draw what conclusions you will from the recent schism-and-reunification with WHATWG. The plain fact is that stodgy, not-too-volatile standards actually work in everybody's favour. To be clear: they provide the greatest benefit to the group, not to the enfant terrible programmer who thinks he knows better than multiple generations of his predecessors.

      Yes, FOSS projects face institutional weaknesses, including a lack of funding. Especially on funding for R&D. But funded projects face significant weaknesses as well. Just look at the Node.JS / io.js fork, all because Joyent went overboard in its egalitarian zeal. Consider also that recent widely publicised bugs, despite the alarm they've caused, haven't really done much to affect the relative level of quality in funded vs proprietary vs unfunded code bases. They all have gaping holes, but the extent of their suckage seems to be dependent on factors other than funding. If not, Microsoft would be the ne plus ultra of software.

      Weighed in the balance, therefore, FOSS's existential problems are real, and significant, but they're not as significant as those faced by all the other methods we've tried. So to those who have a better idea about how to balance community benefits and obligations, I can only reply as the Empress famously did when revolutionaries carried her bodily from the palace: 'I wish them well.'

      --
      Crumb's Corollary: Never bring a knife to a bun fight.
    3. Re:Article doesn't address they "why" by Artifakt · · Score: 2

      Anyone who uses the phrase "Tragedy of the Commons" should have to first pass a test showing they know the history of the enclosure acts before they throw that phrase around.

      --
      Who is John Cabal?
  3. I am no economist, but as a geek ... by Taco+Cowboy · · Score: 5, Insightful

    As a little toddler I already developed signs of geekiness. As I grew older, my geekiness ballooned so much so that I could not, even if I want to, deny that in this life, I am a geek

    Now that I am old, as an old geek, I still think that what we geek do, what we truly enjoy doing, often goes counter to the outside rule

    That is why, when that guy is telling me (and other geeks) that we live by a "failed economic commons", hey, I am not surprised

    If we geeks are to live by a "successful economic commons" many of the geeky things that we do, and many of the geeky creations that we have created, would not exist

    The gist of the whole thing is this --- economy, whether it be "failed" or "successful" --- is in eye of the beholder

    One can say that the economy of a certain country/region is good --- but good for whom? For the general populace, or for the 0.1%?

    That is why, we geek don't give a flying fuck about the economy. We do what we do because we enjoy what we do. That is all

    If they (and when I say "they" I mean those who look down on the geeks) don't like it, they can go jump into the sea

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:I am no economist, but as a geek ... by roman_mir · · Score: 5, Insightful

      Well, he is wrong, but your feeling about the economy do not matter one way or another, it operates outside of your sentiment, a failing economy would not allow you to be a developer.

      Imagine if the economy was such that for you to be able to do all the 'geeky' stuff you do, you'd literally have to starve yourself to death and/or use up 99% of your normal sleeping time. I mean if you had no choice but to gather/hunt for food the entire day or otherwise you wouldn't survive, that would be the economy dictating to you that you cannot really do much of anything beyond just surviving.

      The economy as is allows people to spend their time however they feel like, some forego entertainment and leisure to work on their favourite pet projects. It's like telling a stamp collector that his hobby is a failed idea economically... he'd just laugh at the guy.

      You do what you have to do to survive in the economy, so you do care, you are just not necessarily aware of it, but everything you do in life is based on the health / state of the economy.

    2. Re:I am no economist, but as a geek ... by RabidReindeer · · Score: 3, Insightful

      Maybe - just maybe - the economy of free software is based on a different type of currency than what the Fed prints.

      Not everything in this Universe is based on Dollars, Pounds, and Euros.

      Heck, the Universe itself is a non-profit organization.

    3. Re:I am no economist, but as a geek ... by blue+trane · · Score: 3, Interesting

      "I mean if you had no choice but to gather/hunt for food the entire day or otherwise you wouldn't survive, that would be the economy dictating to you that you cannot really do much of anything beyond just surviving."

      But hunter-gatherers had more leisure time than we do:

      Free from market obsessions of scarcity, hunters' economic propensities may be more consistently predicated on abundance than our own.

    4. Re:I am no economist, but as a geek ... by the+phantom · · Score: 2

      In hunter/gatherer societies, people typically have *more* leisure time than people in agrarian and industrial societies (where leisure time is understood to mean time that is not spent in the production or procurement of food and shelter). There are some developed nations---primarily in Europe---where people are beginning to approach the amount of leisure time that hunter/gatherers have. The nomadic lifestyle of a hunter/gatherer is simply not sustainable for a human population of 7 billion people; it has a certain brittleness with respect to natural disasters like a bad rainy season; and it doesn't provide the resources to maintain the standard of living that your average middle-class suburbanite has grown accustomed to, but you didn't make those arguments. ;)

    5. Re:I am no economist, but as a geek ... by roman_mir · · Score: 3, Insightful

      and they had computers and electric power and the Internet I presume?

  4. All goes according to plan by Sneftel · · Score: 4, Informative

    If you don't want free riders, don't make free software.

    You get to choose your license. You don't get to complain that people are following it.

    --
    The opinions stated herein do not necessarily represent those of anybody at all. Deal with it.
  5. No, it's not crazy by ras · · Score: 2

    Obviously, it would be crazy to staff such critical projects largely with a handful of unpaid volunteers working in their spare time.

    The people who do this have a number of reasons. Some do it open source software garners job offers. Some do it because they or the businesses they work for need free software to exist, and it's a self perpetuating loop - the more free software there is the more people contribute to it, so the more they have to chose from. For some it's like attending church - it feels right. For some it's a nice social group to be in. None of these reasons means they or the system they contribute to are crazy.

    As for the free loaders - without legions of these "free loaders" free software would not exist. Few would bother to put the effort into Linux, or X, or Debian if there weren't legions of users out there to test it, and give feedback, find bugs, suggest improvements. They are a necessary part of the system. A system that for all its faults, works as least as well as any other commercial way of developing software if you go by deployments.

  6. It's not just about collaboration or economics by Reibisch · · Score: 2

    Don't confuse the issue by pretending it's all about collaboration and economics of software. It doesn't make sense to try to shoehorn my software idea into an existing framework exclusively due to price and availability. Just because there's a square peg available for free doesn't mean that it'll fit a round problem, even if a square solution may take longer.

    I predominately work in computational analysis and have spent a significant portion of my career trying to figure out physical problems (first in video games and now in engineering analysis), particularly in the finite element/CFD domain. That makes OpenFOAM is a classic example for me -- it's the benchmark for open source CFD analysis. But I'm still employed at an engineering firm developing our own numerical analysis tools.

    OpenFOAM is quite good at a very small subset of what it claims to do, but it doesn't do *everything* well. Unfortunately, the framework is sufficiently mature at this point that trying to fork it and address those flaws would be a colossal undertaking. This means that for many toolsets, starting from the ground up is simply a more attractive alternative. Could we reuse a few elements deep in the integrators? Maybe, but those would come with their own baggage.

  7. Re:"This problem of freeriders is something... by jratcliffe · · Score: 2

    "Create a Basic Income (financed by the Fed at zero cost to taxpayers),"

    How, out of curiosity, will this miracle be achieved? What magic wand will the Fed wave in order to create these resources from midair?

    Now, there's a pretty decent argument for a basic income (from economists across the political spectrum, including Friedman, not generally known as a soft-headed liberal), but the money would have to be transferred from elsewhere in the economy via taxes.

  8. The real solution is really much simpler. by Narcocide · · Score: 4, Interesting

    Large companies need to stop spending boat loads of money on buying overpriced, re-released commercial operating system and productivity software that changes absolutely nothing useful about business functionality and spend maybe say, 10% of the money from what that budget would have been on donating to or contributing to software projects that the infrastructure's critical functionality relies upon.

    Seriously. The money would go further and the software would last longer and everyone would get a lot more actual work done. Every time you buy a new version of Windows its like you're paying to re-arrange the deck chairs on the Titanic.

    And don't fucking reply to me saying shit like "durrr, but OpenSSL got hacked and doesn't deserve to have had more money." Maybe that's true, but probably not. Even if it were true, above, I said donating or contributing, as in - spend your own company resources auditing the software if you don't trust it. If you find enough vulnerabilities to distrust the people who make it, then FORK IT OR PAY SOMEONE TO DO SO. The bottom line is, economically even in a worst-case scenario its still cheaper than every single company rolling their own from scratch, or every single company buying the same software over and over again made (perhaps not any more securely or competently) by some completely unaccountable, inauditable closed-source company.

  9. Cause: Computers are Stupid by Tablizer · · Score: 2

    The real problem is that software is bunches of little idiot savants glued together. They do their known role well but ONLY their known role. They are not flexible and have no common sense to adapt to new situations. They have to have an exacting or pre-known environment.

    When we try to make software more flexible, it becomes unpredictable, often backfiring. Often it's better to keep it narrow and crash rather than have it "guess" and do something wrong because you may end up with a million wrong results before you catch it.

    I remember a story about military battle simulation software being built in the early days of OOP. An Australian company wanted a customized version for Australia, so they asked the vendor to add Kangaroos to the simulation.

    Rather than code up a Kangaroo from scratch, which would take a while, the developers made the Kangaroo class inherit from the already built "Human" class. It all worked fine until a group of simulated Kangaroo's were spooked by explosions and whipped out weapons and started fighting back. The "Human" class was tuned for military simulations, not general animals because that wasn't the vendor's original goal.

    The story may be an urban myth, but it illustrates some of the pitfalls of "reuse". Unless you have full knowledge of what you are reusing, you may end up reusing unexpected and inappropriate sub-features.

    It's probably an undeniable rule of the universe that you have to balance predictability against flexibility. No free lunch, at least not until "true" AI comes along such that software won't make stupid guesses anymore; but then we'd all be obsolete.

  10. Summary, or tl;dr by phantomfive · · Score: 4, Informative

    The article is long and poorly organized (that is, the organization is stream of conscious writing like most bloggers; he goes off into a mini-rant about how much he hates CSS/HTML, for example). Here is a summary, as well as I can understand it:

    1) A new non-profit is trying to make it easy to fund open-source software, with a new donation method. You can donate, but your donation doesn't go through until ten (or X) other people donate the same amount.

    2) This will increase funding for open source projects because:
    * Companies don't want to fund open source if someone else will do it.
    * It will be cheaper TCO for companies to fund open source projects they use. For example, if OpenSSL had been given more money, they would have fewer bugs (probably by rewriting everything in Erlang; really, that's what he said).

    That is literally it. In all 2000 words he wrote, I cannot find another single point that supports his main thesis, that the new non-profit will increase funding for open source-projects. He however did spend a lot of words explaining that popular open source projects should get more money from the companies that use them, so that's something.

    --
    "First they came for the slanderers and i said nothing."
  11. That's why GPL is necessary by Anonymous Coward · · Score: 2, Insightful

    While people yell it's too offensive and impossible to get success at business (an very common opinion I've heard so many times), it at least makes the game much fair via requesting you pay for your freedom. For other licenses I think they work "well" is only because they welcome people to pillage their work as the article reveals, so sorry I don't feel sorry for those projects adopted such licenses and claim they're more friendly toward business.

  12. Thoughtstuff is a nonlinear space by RightwingNutjob · · Score: 2

    Software is thought-stuff as Brooks famously put it, and it lives in a multidimensional nonlinear space. Just because two programmers are implementing the same thing sitting next door to each other doesn't always mean they're mucking in the darkness, looking for a great software sage to show them how to write reusable code. Maybe one of them is coding for speed, the other for memory footprint, and the third for prettyness. You can't have one set of libraries do all three for you without effectively implementing it three times and giving them each the option. Just because software looks close, doesn't always mean there's a short path to get it to where you need it.

  13. He doesn't get it by msobkow · · Score: 2

    I work on my pet project (http://msscodefactory.sourceforge.net) because it's a fun challenge I set myself many years ago. Whether others use it is irrelevant. Whether I ever make money off it is irrelevant. There is only one thing that matters to me:

    Having fun coding.

    That's it. Beginning and end of story. I work on it for fun.

    --
    I do not fail; I succeed at finding out what does not work.
  14. failed or just different economics? by plopez · · Score: 2

    The benefits of open source softwares and freeware are incomprehensible those brainwash that greed is good or even that only through greed can come good. The open source projects have created enabling technologies such as httpd, TCP/IP, html, mosaic, etc. Without those technologies the economic booms circling the globe would probably be impossible. It created a feedback loops which into the private sector which then creates jobs and technologies which then help open source projects.

    Calling those effects a failure is just silly.

    --
    putting the 'B' in LGBTQ+