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Open Source Business Models: Who Gets Paid When the Code Is Free

Support, open core, hosting, dual licensing: how Red Hat, GitLab, MongoDB and others make money, and what the licence wars settled.

Close-up of a computer screen showing lines of colourful source code

On August 10, 2023, HashiCorp announced that future releases of Terraform, the infrastructure-as-code tool used by a huge share of the cloud industry, would no longer be open source. The new Business Source License let most people keep using it for free, but barred anyone from building a competing commercial product on it. Within six weeks, a group of companies had forked the last open version, and the Linux Foundation had taken the fork, called OpenTofu, under its wing. Eighteen months later, IBM closed its $6.4 billion purchase of HashiCorp, ending one of the most closely watched tests of open…

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