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18 Ways To Differentiate Open Source Products From Upstream Suppliers

By Scott McCarty | February 12, 2021

Successful open source products must be able to charge a cost that is sufficient to pay for the defrayed upstream open source contributions (development costs) and the downstream productization costs (vendor costs). Stated another way, products can only charge a sufficient price if they create value that can only be captured by customers paying for them. That might sound harsh, but it's a reality for all products. There's a saying in product management: Pray to pay doesn't work. With that said, don't be too worried. There are ethical ways to capture value.

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What is open core?

By Scott McCarty | November 23, 2021

What is open core? Is a project open core, or is a business open core? That's debatable. Like open source, some view it as a development model, others view it as a business model. As a product manager, I view it more in the context of value creation and value capture...With open core, at least some of the code is proprietary. With proprietary code, a company hires engineers, solves business problems, and charges for that software. For the proprietary portion of the code base, there is no community-based engineering, so there's no process by which a community member can profit by participating. With proprietary code, a dollar invested in engineering is a dollar returned in code. Unlike open source, a proprietary development process can't return more value than the engineering team contributes...

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