Companies monetize open-source software through several strategies that leverage the strengths of the open-source model while providing value to users. One common method is offering premium support and consulting services. While the software itself is free to use and access, companies can charge for professional assistance, such as installation, customization, or troubleshooting. This approach is seen in companies like Red Hat, which provides enterprise versions of their open-source software along with subscription-based support services, ensuring that businesses can rely on expert help when needed.
Another strategy involves dual licensing, where a company offers the software under an open-source license, allowing for free use, but also provides an alternative proprietary license for those who require certain features or need to use the software in proprietary projects. This method allows users to choose between the open-source version and a commercial version with additional features or guarantees. MySQL adopted this approach, offering its database software under both open-source and commercial licenses, which has enabled it to reach a wide user base while generating revenue from companies that need the proprietary version.
Lastly, some companies generate revenue by creating add-ons or premium features that enhance the open-source software. For example, companies like Elasticsearch offer free open-source tools while also providing a range of commercial features and services, such as security controls, monitoring capabilities, and cloud hosting solutions. By combining free and paid offerings, they can attract a broader audience while monetizing the enhanced capabilities that users might need as their usage scales. This creates a win-win situation, where users get a valuable tool for free, and the company can build a sustainable business model around its offerings.