Moodle is freely available under the General Public License (GPL). Anyone can go to Moodle.org and download Moodle, run it on any server for as many users as they want, and never pay a penny in licensing costs. The GPL also ensures that you will be able to get the source code for Moodle with every download, and have the right to share that code with others. This is the heart of the open source value proposition. When you adopt a GPL product, you have the right to use that product in any way you see fit, and have the right to redistribute that product as long as you let others do the same.

Moodle's open source license has other benefits beyond simply cost. Forrester recently conducted a survey of 132 senior business and IT executives from large companies using open source software. Of the respondents, 92 % said open source software met or exceeded their quality expectations, while meeting or exceeding their expectations for lower costs.

Many organizations go through a period of adjustment when making a conscious decision to adopt an open source product. Most organizations start using open source solutions for simple applications, or deep in their network infrastructure. Common open source applications in the data center include file serving, e-mail, and web servers. Once the organization develops a level of comfort with open source, they begin to move open source into mission critical and customer-facing applications. Many organizations use an open source content management system like Drupal or Alfresco to manage their web presence. Open source databases and middleware, like MySQL and JBoss, are common in application development and have proven themselves reliable and robust solutions.

Companies adopt open source software for many reasons. The Forrester survey suggests open standards, no usage restrictions, lack of vendor lock-in and the ability to use the software without a license fee as the most important reason many organizations adopt open source software.

On the other side of the coin, many CTO's worry about commercial support for their software. Fortunately, there is an emerging ecosystem of vendors who support a wide variety of open source products and provide critical services.

There seem to be as many models of open source business as there are open source projects. A number of different support models have sprung up in the last few years. Moodle is supported by the Moodle Partners, a group of 50 companies around the world who provide a range of Moodle services. Services offered range from hosting and support to training, instructional design, and custom code development. Each of the partners provides a portion of its Moodle revenue back to the Moodle project to ensure the continued development of the shared platform. In the same way, Linux is developed by a range of commercial companies, including RedHat and IBM who both share some development and compete with each other for business.

While many of the larger packages, like Linux and JBoss have large companies behind them, there are a range of products without clear avenues for support. However, the lack of licensing fees makes them easy to pilot. As we will explore in a moment, you can have a full Moodle server up and running on your laptop in under 20 minutes. You can use this to pilot your solutions, develop your content, and even host a small number of users. Once you are done with the pilot, you can move the same Moodle setup to its own server and roll it out to the whole organization.