Biz - Software business models

Source-available vs open source

https://drewdevault.com/2024/07/16/2024-07-16-So-you-want-to-compete-with-FOSS.html

Selling open source software

https://thenewstack.io/entrepreneurship-for-engineers-selling-open-source-software/

License changes → financial outcomes?

https://redmonk.com/rstephens/2024/08/26/software-licensing-changes-and-their-impact-on-financial-outcomes/

Competitive advantages of open source

https://github.com/getlago/lago/wiki/Open-Source-does-not-win-by-being-cheaper

• NOT because it’s cheaper (race to the bottom)
• solves a transparency problem (critical customer data flowing through third party systems)
• solves an extensibility problem (need for a variety of integrations including exotic ones)
• leverages rhe community for product definition

https://supabase.com/blog/should-i-open-source-my-company

• Simplifies hiring
• Community-contributed integrations

Experience with open-source models

https://gist.github.com/lleyton/9c0b75d065f37333ea9851b6cad1d1e6

• ’mold’ software tool
• review of common models and their drawbacks
• unexplored: SaaS backed by open source

Open-core

https://opencoreventures.com/blog/2023-04-red-hat-model-only-worked-red-hat/

-Red Hat was an exception : low rake, a complicated model under constant threat

• Open core model
• Support and services models don’t achieve hypergrowth
• Support and services companies are uninvestable
• Professional services as a jumping-off point
• Transitioning from subscription-based services to a product company

From open source to open core

https://altinity.com/blog/is-clickhouse-moving-away-from-open-source

• challenges of that transition for Clickhouse

More on Open core model

https://en.wikipedia.org/wiki/Open-core_model

Open-core chosen instead of BSL

https://earthly.dev/blog/earthly-open-source/

https://blog.paradedb.com/pages/agpl

From open core to source available

https://www.scylladb.com/2024/12/18/why-were-moving-to-a-source-available-license/

Source-available models

Business Source License (BSL or BUSL)

https://opencoreventures.com/blog/2023-08-23-hashicorp-switching-bsl-shows-need-for-open-charter-companies/

https://blog.koehntopp.info/2023/11/11/a-revolution-devours-its-children.html#departure-from-traditional-open-source-licenses

Server-Side Public License (SSPL)

Functional Source License (FSL)

https://fsl.software/

Fair Software License (FSL)

https://fair.io/about/

• BEWARE if Licensor starts accumulating patents
• Works for tools and apps, not libraries and plugins

https://writing.kemitchell.com/2016/03/30/First-Read-of-the-Fair-Source-License.html

NOTICE file instead of individual file headers: https://github.com/apache/kafka/blob/trunk/NOTICE

Alternatives to open core

Open foundation

https://thenewstack.io/the-future-of-open-source-or-why-open-core-is-dead/

• True opensource project as conplement to business
• Spinnaker
• Kubernetes
• React

SaaS vs open core

https://goteleport.com/blog/open-core-vs-saas-business-model/