The open-core model is a business model for the monetization of commercially-produced open-source software. Coined by Andrew Lampitt in 2008, the open-core model primarily involves offering a "core" or feature-limited version of a software product as free and open-source software, while offering "commercial" versions or add-ons as proprietary software.
The concept of open-core software has proven to be controversial, as many developers do not consider the business model to be true open-source software. Despite this, open-core models are used by a large number of open-source software companies.
Use of contributor license agreements
Some open-core products require their contributors to sign a contributor license agreement, which either dictates that the copyright of all contributions to the product become the property of its owner, or that the product's owner is given an unlimited, non-exclusive license to use the contributions, but the authors retain copyright ownership. In an open-core scenario, these agreements are typically meant to allow the commercial owner of the product (which in some cases, is ultimately the copyright holder to all of its code, regardless of its original author) to simultaneously market versions of the product under open-source and non-free licenses. This is in contrast with more traditional uses of CLAs, which are meant solely to allow the steward of an open-source project to defend its copyright, or guarantee that the code will only ever be made available under open-source terms, thus protecting it from becoming open core.
- Oracle's MySQL database software is dual-licensed under a proprietary license, and the GNU GPL; proprietary versions offer additional features and enterprise support plans.
- Eucalyptus, private cloud software, has a proprietary enterprise edition which provides additional features.
- Gitlab CE (Community Edition) is under a MIT-style open source license, while Gitlab EE (Enterprise Edition) is under a commercial license.
- Neo4j CE (Community Edition) is under GPLv3, while Neo4j EE (Enterprise Edition) is dual-licensed: AGPLv3 and Commercial, allowing clustering and hot backups.
- Redis is under a 3-clause BSD open source license, while Redis Labs offers Redis Enterprise is under a commercial license which provides additional features including a search engine and JSON support.
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Some companies have only a single version of their software, while others follow an “open core” model, providing a community release of the core version, and offering proprietary premium features using a commercial license.
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It was one of the first commercial companies to champion a concept called "open core."
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"We deliver a fully functional cloud with Eucalyptus software. You can download it on a GPL v3 license. But, additionally, we provide enterprise features only if you pay for them ... it's open core," he says.
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To make money, Eucalyptus Systems uses an open-core business model, offering one version of the software free through an open-source license and selling a commercial version with support and additional features ...
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