Mifos is open-source technology, which allows everyone free access to the product source code.  Developers can add to and modify the product at will and MFIs worldwide can freely install the product without paying any licensing fees.  Of course, MFIs should recognize that using Mifos does not imply a zero-cost software solution.  Mifos deployment is not a trivial task, and will require expertise to install, train users, and maintain the software. You’ll still need to engage Mifos Specialists to help with the installation and ongoing maintenance and there will be hardware and connectivity costs to run the software.

Beyond freely available source code, open source software has the following characteristics:

• Openness. An open source software project provides a forum, typically through a Website (like this one), in which people can critique, report bugs, and contribute to the design of the software.
• Transparency. The development of open source software is transparent, allowing the community to see what’s going on. This includes a published road map and design documentation, a public bug (defect) tracking system, and communication about schedules and hurdles.
• Early and Often. Open source code is available in its earliest drafts to anyone who wants to review it or use it, and is updated often. Zipped archives of the source code are also publicly available.
• Community. The elements of an open source project, including a Web site, source code, roadmap, defect tracking system, and forums, constitute the project. Those participating in the project constitute the community. An open source project depends on the community, or public collaboration, for its success.

For Mifos, open source software means that MFIs can engage local IT resources to customize Mifos in their own timeframe and at local, affordable rates. In this way, Mifos facilitates a faster delivery of software enhancements and localization than is possible with proprietary products.