Open-core business models are a way for software companies to offer both open-source and proprietary products. In this approach, the core version of the software is available as open-source, allowing users to access, modify, and even contribute to the code. However, the company also provides additional features, support, or services in a paid, proprietary version. This means that while developers can freely use and enhance the core product, they must pay for premium features or enterprise-level support that are usually tailored for larger organizations.
One popular example of an open-core business model is GitLab. The core version of GitLab is open-source and includes essential features for source code management. However, GitLab also offers a paid version that includes advanced functionalities such as enhanced security, analytics, and priority support tailored for businesses. This model allows developers to use the free version to build their projects while providing the company with a revenue stream from customers who need more robust solutions.
Another example is MongoDB. The base version of MongoDB is open-source, which is attractive for developers looking to build applications without costs. On the other hand, MongoDB Inc. offers additional features like advanced security controls and cloud services through paid subscriptions. This balance of free and paid offerings allows customers to choose the right level of service for their needs while enabling the company to sustain and grow its development efforts. Open-core models effectively bridge the gap between community-driven development and commercial viability, serving the needs of varied user bases.