[HN Gopher] Choosing a Model for Your Open Source Business (2017)
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       Choosing a Model for Your Open Source Business (2017)
        
       Author : neinasaservice
       Score  : 37 points
       Date   : 2021-01-11 13:05 UTC (8 hours ago)
        
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 (TXT) w3m dump (snipe.net)
        
       | a9t9 wrote:
       | Nice overview.
       | 
       | "Freemium is a harder model to implement in open source, since
       | the source is, well, open, but we do see this in things like
       | WordPress...."
       | 
       | => Just to add another flavor: The Freemium model is working well
       | for us even so we are _not_ SaaS.
       | 
       | In our case, the main part of the RPA software is open-source
       | (GPL) and free. All Internet access is only done within the open-
       | source core.
       | 
       | The features of this core app can be extended by local native
       | apps for Mac, Linux and Windows. These are proprietary/closed
       | source.
        
       | teddyh wrote:
       | See also _Selling Exceptions to the GNU GPL_ :
       | https://www.gnu.org/philosophy/selling-exceptions.html
        
       | open-source-ux wrote:
       | Among the thousands of open source projects, the ones championed
       | as successful open source business make up a tiny proportion i.e.
       | the _exception_ not the norm.
       | 
       | Meanwhile the SaaS business model continues to eat the software
       | market. A model that gives users less control than the desktop
       | software model. And where the source code (built on open source)
       | is not visible.
       | 
       | Open source software has been critical to the success of the SaaS
       | model. You could argue SaaS is the true success of the 'open
       | source business model'. Just not in the way open source advocates
       | expected it to be.
       | 
       | There is another option - one that some open source advocates
       | will immediately dislike: source-only products i.e. you sell your
       | software product to customers to run them themselves. You give
       | them the source code of your product so they can customise it to
       | meet their needs. But the software is not open source and cannot
       | be shared the way open source can.
       | 
       | There are successful source-only products. Two examples: Craft
       | CMS and Kirby CMS. Both publish their source code on GitHub [1]
       | [2] and rely on the honesty of their customers to pay (which they
       | do). They have a thriving community of developers making plugins
       | and extensions - proving that you can create a community of
       | developers around a 'source-only' product.
       | 
       | [1] Craft CMS: https://github.com/craftcms
       | 
       | [2] Kirby: https://github.com/getkirby
        
         | james_impliu wrote:
         | > Among the thousands of open source projects, the ones
         | championed as successful open source business make up a tiny
         | proportion i.e. the exception not the norm.
         | 
         | I think this is a correlation not a causation thing.
         | Specifically, open source is a great place to put hobby or WIP
         | projects - SaaS isn't, you wouldn't want to pay for others to
         | use your stuff for free. Certainly, historically, your point is
         | valid - SaaS has benefitted hugely thus far, but I think it
         | seems rational this starts to change.
         | 
         | Open core feels like it has the advantage of the source-only
         | approach yet also enables a community to use a free product on
         | top, generating faster growth and user trust and feedback, all
         | of which are harder to create with SAAS. The downside? You have
         | to build two products. At least for those willing to do the VC
         | route (not for everyone), it is possible to get funding to do
         | this.
         | 
         | Disclaimer: I am a co-founder of a VC-backed open core company!
        
         | MayeulC wrote:
         | > Among the thousands of open source projects, the ones
         | championed as successful open source business make up a tiny
         | proportion i.e. the exception not the norm.
         | 
         | I think that open source projects tend to be smaller. However,
         | is size the correct proxy for success? I would argue it isn't
         | for companies, and rather the opposite in fact.
         | 
         | A small company that does well what it set out to do is
         | successful in my view, even if you can count the employees on
         | one hand. Likewise for software projects. Also, maintenance
         | mode is a thing, and it's all right, so the number of commits
         | isn't a good proxy either, IMO.
        
         | orlandohill wrote:
         | The Polyform Project has a set of standardized _source-
         | available_ licenses. These can be used for a dual-licensing
         | business model. Customers can use the software for free under
         | the terms of the _source-available_ license, or pay to buy a
         | proprietary license.
         | 
         | https://polyformproject.org/
        
       | mrskitch wrote:
       | I think dual licensing is possibly the best way to go, if your
       | product mitigates a risk. It's why we went that way with
       | browserless.io
       | 
       | Truth be told selling a small library probably isn't enough to
       | make significant money on your product since it isn't solving a
       | big enough risk. The risk of forking is fairly low, especially
       | for small to mid sized companies. Larger companies, maybe so
       | since things like security become much more urgent.
       | 
       | It's hard to separate people from their money, but I feel it
       | becomes a lot easier if it offsets a potential risk they're not
       | willing to take. Just my 2 cents.
        
       | ralmidani wrote:
       | I used to be a Copyleft zealot. But eventually I realized that an
       | absolutist insistence on "Free as in Freedom" has become
       | outdated: when the GNU project was started, it was not easy to
       | distribute copies of large programs. That is no longer the case
       | (you can now serve complete photo editors, IDEs, etc. over the
       | web). The FSF thinks it's OK to "sell" your program, but if it's
       | under a "true" FOSS license, how do you get compensated for the
       | value your program provides to those who get their copies from
       | the person/company who initially paid you? And what's to prevent
       | a group of people/companies from pooling their money and
       | pretending there's only one customer willing to pay for your
       | product?
       | 
       | Zealotry makes it impossible to have a middle ground between
       | "Four Freedoms" and "all rights reserved", and insisting there's
       | only one true way to do FOSS will lead to 100% proprietary
       | software dominating end-users (which is who the Four Freedoms
       | were about in the first place).
       | 
       | I think an approach that preserves some of the Four Freedoms,
       | while restricting distribution of the core program, would still
       | be in agreement with the spirit of FOSS. For example, what's
       | wrong with a license that lets anyone study the program, modify
       | it, etc. but empowers the Copyright owner to collect money from
       | those who run it in production? If selling your program is OK,
       | but modern technology makes it impossible to be compensated
       | fairly by users of your software (and even worse, competitors
       | with deep pockets can out-scale you and put you out of business),
       | this seems like a reasonable middle ground.
        
         | orlandohill wrote:
         | Putting certain restrictions on The Four Freedoms for the sake
         | of building a sustainable business sounds very reasonable.
         | 
         | Some licenses put restrictions on freedom 0, the right to run
         | the program. That's the approach taken by Prosperity and the
         | Polyform licenses.
         | 
         | https://prosperitylicense.com/
         | 
         | https://polyformproject.org/licenses/
         | 
         | The Parity Public License takes a different approach, and
         | expands the concept of copy-left to require developers to
         | release the source code for all of the software that they
         | develop with the program, not just software that they
         | distribute to others.
         | 
         | https://paritylicense.com/
        
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