A NEW cult is spreading in the tech world, but there are no bebo flower children involved. More and more companies are drinking the Kool-Aid.

The philosophy of this Liberation Technology movement promises that, by embracing radical transparency and giving away your product's design for free, your product will become stronger, more robust and allow you to achieve marketshare Nirvana.

For something straight out of a hippy commune, open source can ma§ke surprising business sense. So some of the biggest names in technology have been converted, and in turn are making what was fringe into orthodox religion. Next weekend Ericsson, Oracle, Sun Microsystems and even Microsoft will attend a gathering at UL called SkyCon to talk about their fascination with this new sect of open source.

So what exactly is open source and why are the intellectual property big guns flirting with it? Forfás last July released an extensive report on open source and the benefits of using it.

"Open-source software refers to software that is created by a development community rather than a single vendor.

It is typically programmed by volunteers from many organisations, and proponents of OSS claim that a broad group of programmers produces a more useful and more bug-free product, " according to Forfás.

Open source does not apply just to software though; you can open-source hardware, business processes and even your granny's meatball recipe.

Two aspects of open source are important for businesses. Firstly there are the savings afforded by adoption of free, open-source products. Businesses are already using open-source software such as the Linux operating system, the Firefox web browser, the free competitor to Microsoft Office, known as Open Office.

In fact, more than half of all websites - 58% - run on servers using the open-source software called 'Apache', one of the bestknown.

In his book The World Is Flat, Thomas Friedman tells the story of an IBM manager who, when he first found his team using Apache, asked his engineers where it could be purchased. They explained it was free. He then wanted to know who to contact if it messed up. His engineer, surprised at the question, didn't know. "It just works."

But as the IBM manager validly asked, how can a business trust something that is free? What about support? Ronan Kirby, regional alliance manager for RedHat, a company that gives away the Linux software product for free and makes revenue by distributing it and offering an after-sales service, points out that just because the product is free, it doesn't mean it is unsupported.

"By its very nature, OSS is more reliable - support is not an issue. Whether or not software is open source should have absolutely no bearing on the level of support you receive. It is important to remember that open-source software does not mean no service or support, you just have to deal with the right company."

Why on earth is Microsoft, arch-defender of intellectual property and software patents, now interested in open source?

Bill O'Brien from Microsoft Ireland highlights the fact that Microsoft itself now has over 80 of what it calls "shared source" projects on the go and even has their own open source lab in Seattle (http: //port25. technet. com/). O'Brien is quite complimentary about open source.

"The process of peer reviews, testing and releasing is a good way of developing, " he says.

The second aspect of open source is to release your blueprints or your designs for free and, with it, the hope that a handful or a few hundred enthusiastic contributors might come along, if your product is appealing enough. When Linden Labs, creators of SecondLife did this recently, an instant community of developers sprung up and within three weeks, SecondLife clients for a dozen different operating systems were released.

When it comes to going from closed source to open source, Bill O'Brien is a little more cautious but suggests that, for a resource-poor company or a company unable to get market share, then open sourcing is one way of staying afloat.

"Open sourcing your product is still a niche and it presents lots of challenges but the advantages are that your R&D costs will come down as you let the community do it for you. If you don't have much market then you can build a community around you by open sourcing."

Open sourcing will not suit every company though. Justin Mason, creator of the open source 'Spam Assassin' software, now part of the Apache Group, suggests that moving your product to open source means a cultural change in your organisation.

"I don't think it's something that commercial companies can adopt, unless they really know what they're doing and understand that it's not necessarily going to bring them quick profits."

Mason suggests that if large companies bring their commercial methods to an open source model then they could run into all sorts of problems if they alienate their new extended community of contributors. He does think that smaller companies can adapt to this new model of development and, as mentioned by O'Brien, it might be the only way of survival for some.

" If you're a small commercial developer with big corporate competition, open sourcing is often the only way to ensure you'll have a niche and not be knocked out of the market by monopolistic gorillas.

Basically, there are a lot of niches in the software market where it's almost impossible for a commercial company to compete with a well-established open-source project."

It isn't just a change in the development process that can cause headaches though.

UCD IT law lecturer TJ McIntyre recommends caution for companies moving from a closed source to an open source model and lists a few questions they need to address when considering open sourcing.

"Are they entitled to do this, first of all?

Maybe they don't have copyright in all their code. Maybe they're using a patent under licence only. Which OSS licence will they use? Will they permit commercial exploitation?"

McIntyre also points out that, even when releasing something as free, a company can still be liable for any damage caused if the software or code does something unexpected. He points out that even a standard disclaimer of liability might still leave you open to legal woes.

Open source is another choice in how you control your intellectual property and how you operate your product development.

If you want an army of developers who work for recognition only, and if you're willing to give away some control of your products, then it might suit your business.

Like all business choices, there are pros and cons that need to be considered before shaving your head and donning the open source robes. Amen.