📦 Open Source Projects

Open Source Business Models: How Companies Make Money from Free Software

An in-depth look at how companies generate revenue from open source software, examining dual licensing, open core, managed services, and other proven business models.

⚡ Key Takeaways

  • {'point': 'Open Core Dominates VC-Backed Open Source', 'detail': 'Most funded open source companies use the open core model, keeping core features open while charging for enterprise additions like SSO, audit logging, and compliance tools.'} 𝕏
  • {'point': 'Cloud Providers Disrupted the Ecosystem', 'detail': 'AWS and other cloud providers offering managed versions of open source databases and tools forced several companies to adopt more restrictive licenses.'} 𝕏
  • {'point': 'No Universal Model Exists', 'detail': 'The best business model depends on the software category: managed services for infrastructure, open core for developer tools, and foundation funding for shared standards.'} 𝕏
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