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How to build an open source business

122 pointsby mattgregover 4 years ago

9 comments

xyzzy_plughover 4 years ago
I&#x27;m all for open source software but this feels like an awfully contrived way to make a profitable business.<p>18-36 months between each stage? This feels perhaps tenable for VC backed corps but for anyone bootstrapped, this is a long, long road.<p>I&#x27;m not remotely convinced that these steps feed into each other in a more pragmatic way than... I guess any other way? Couldn&#x27;t you start with enterprise sales and move backwards, releasing your stuff as OSS once you&#x27;re running a stable business?<p>The thesis seems to be that without community and a proven track record, you can&#x27;t make money organically, which is patently false and proven by hundreds of businesses that don&#x27;t have OSS&#x2F;communities. Also, SaaS seems tangential to Enterprise sales in many cases, they&#x27;re often times different segments (i.e. I won&#x27;t consider your SaaS since I must be on-prem) -- if you only serve one segment, you&#x27;re only missing out on the other segment, not cannibalizing? This is all hand-wavey of course, but I posit that this is <i>a</i> way to <i>maybe</i> build an open source business, but I&#x27;m not sure it&#x27;s a solid, proven recipe by any means.<p>Maybe once Ockam knocks it out of the park in their IPO we can look back on this with greater confidence.
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ThePhysicistover 4 years ago
Interesting post. We&#x27;re also building a business based on open-source &#x2F; open-core software and have managed to build an active Github community around our first product (Klaro - <a href="https:&#x2F;&#x2F;github.com&#x2F;kiprotect&#x2F;klaro" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;kiprotect&#x2F;klaro</a>). It&#x27;s a pretty simple tool that helps organizations to manage consent and protect their user&#x27;s privacy on their website. We have other, more complex products in the making as well (e.g. <a href="https:&#x2F;&#x2F;github.com&#x2F;kiprotect&#x2F;kodex" rel="nofollow">https:&#x2F;&#x2F;github.com&#x2F;kiprotect&#x2F;kodex</a> - a privacy engineering toolkit). What we found during the development of Klaro is that even a very simple product can require a tremendous amount of work to turn into a functioning product. I think we&#x27;re almost there now but it took several months of building and refining.<p>For me, the main benefit of developing in the open is the great feedback and contributions we get from our community. A lot of people have reached out to us based on our open-source work, I don&#x27;t think this would&#x27;ve happened if we had developed a closed-source tool.
brianthelionover 4 years ago
OP, assuming you are the author. This is obviously the work of someone that has lived open source for a long time, and not the musings of a market analyst or investor. The product focus suggests tactical lessons-learned driving the broader thesis outlined here. What&#x27;s the origin story on the piece? I&#x27;d love to see a follow-up piece one those lessons-learned.
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vvoyerover 4 years ago
I read the website multiple times but I still can’t grasp what is your product exactly and what does it solves. Can you provide examples of how companies are using ockam? Thanks
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notamyover 4 years ago
Marginally related, but something I&#x27;ve been curious about:<p>With the recent news about things like the TSL (Timescale Licence), BSL (Business Source Licence) maybe?, and other such licences, is there anything that&#x27;s more general that covers the &quot;you can use this but not sell this-as-a-service&quot; use-case for a broader category? For a contrived example, if I were to make a geolocation-by-IP API as an open-source (source-available?) product, and I wanted to run a business around it, but didn&#x27;t want a cloud provider to just snag it and offer it unmodified, what licence would I use?
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mrkramerover 4 years ago
I think the secret behind making open source profitable is bringing it to the enterprise level. At first I didn&#x27;t believe you can make a lot of money with open source but after Red Hat got sold for $34 billion I changed my mind. Also GitHub getting sold for $7.5 billion is pretty impressive.<p>I recommend watching Bob Young&#x27;s presentation &quot;So You Want To Start an Open Source Company&quot; on YouTube[1], he is the co-founder of Red Hat.<p>[1] <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=FJVEAXlPadg" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=FJVEAXlPadg</a>
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yesimahumanover 4 years ago
Interesting post! Resonated quite a bit with us at Ionic (we commercialize Ionic Framework and tooling&#x2F;products around it) and have experienced every one of these steps to the letter (now in the enterprise step)! Very cathartic and insightful.
hamza_noualiover 4 years ago
Nice project!<p>Just wondering, why did you choose Github to build your community? why not Slack!
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sanjodover 4 years ago
Nice post!