The Reasoning Show
The Reasoning Show - Reasoning through the AI Revolution
The industry's leading AI podcast, explores how leaders think through AI, technology, and transformation. Each week founders, investors, and operators unpack the decisions behind the systems shaping modern business.
Hosts: Aaron Delp and Brian Gracely
The Reasoning Show
Open Source and Business…sigh
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Every few years we have to be reminded that open source isn’t a business model. Let’s talk about the business dynamics that everyone seems to keep forgetting.
SHOW: 816
SHOW TRANSCRIPT: The Cloudcast #816
SHOW VIDEO: https://youtube.com/@TheCloudcastNET
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SHOW NOTES:
- Adam Jacobs discusses open source and business (The Changelog)
- “figure out how to play nice with competition” (Twitter)
- The will never be another Red Hat - Economics of OSS (a16z)
OPEN SOURCE IS A LICENSE, NOT A BUSINESS MODEL
- There are rules around software licenses (e.g. Apache, GPL, etc.)
- There are no rules about how people feel about software, creators or maintainers
FREE, FREE TIERS, EXTENSIONS, CLONES
- Red Flags: Writes most of the code, took VC funding (multiple rounds)
- Green flags: Lots of diverse (companies) contributors
- Yellow flags: Foundation owns copyright
- “There’s the business side and there’s the hippie side of OSS”
- “I have endless ambitions”
- “I didn’t build a forever entity”
- “When is the rug pull going to happen?”
- If a company takes VC funding, is open source anything more than a marketing vehicle?
- “Docker figured it out and now they are doing like $100M”. Did they?
- When is OSS personal, and when is it a company?
- Will there never be another Red Hat, or just not another Linux?
- How much is too much when determining if a company should give things away for free?
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