The term "open-source" indicates that software is released with its source code available for anyone to view, modify, and distribute. This fosters collaboration and innovation as developers can contribute to the project, fix bugs, or add new features. Open-source software promotes community-driven development, transparency, and cost-effectiveness, often leading to higher quality and more secure applications. Well-known examples include the Linux operating system and the Apache web server, which have thriving communities that support ongoing improvements.