Once hailed as the spirit of open collaboration and transparency, open source software (OSS) stood for freedom.
Anyone could view the code, use it, and contribute to it.
But in 2025, OSS looks different—and increasingly commercialized.
Why?
Because goodwill alone doesn’t pay the bills.
Maintaining an OSS project
—writing code, managing documentation, patching security holes, running community channels—all costs time, money, and energy.
That’s why more OSS creators are building sustainable business models around their projects.
Gone are the days when OSS creators were separate from the people building businesses.
Now, the creators are the businesses.
Here are the 5 dominant OSS monetization models today:
Model | Description | Examples |
---|---|---|
Open Core | Core features free, advanced features paid | GitLab, Redis Enterprise |
Hosted SaaS | Cloud-hosted versions for users who don’t want to self-host | MongoDB Atlas, Supabase |
Dual License | OSS for community, commercial license for enterprise use | MySQL, Qt |
Support/Training | Paid consulting, support, and training for OSS usage | RedHat, HashiCorp |
Ecosystem Monetization | Free core tools, revenue from add-ons or hosting | Vercel, Sentry, Tailwind UI |
These models allow OSS projects to grow like startups—turning GitHub stars into users, and users into revenue.
Thanks to these monetization paths, OSS-based startups are raising serious VC money.
Why?
Because the playbook is now clear:
Build in public → grow community → monetize value.
Here are some standout examples:
Company | Core OSS Project | Funding Raised | Model |
---|---|---|---|
Vercel | Next.js | $300M+ | Hosted SaaS, plugins |
HashiCorp | Terraform, Vault | $350M+ | Support & Enterprise |
PostHog | PostHog | $27M+ | Open Core + Hosting |
Airbyte | Airbyte | $180M+ | Managed Platform |
Supabase | Supabase | $116M+ | Hosted SaaS |
These aren’t side projects. They’re full product companies built on open source foundations.
One notable shift in this new era?
Traditional OSS licenses like MIT or Apache are being replaced with “source-available” licenses that limit commercial exploitation—especially by large cloud providers.
Key licensing shifts include:
- Elastic → SSPL (response to AWS fork of Elasticsearch)
- Redis → RSAL (restricts hosting reselling)
- MongoDB → SSPL (protects against SaaS vendors monetizing the DB)
- Sentry → BSL (Business Source License, open after 4 years)
These changes have sparked debates over what “real open source” means.
But for many maintainers, these licenses are strategic necessities for sustainability—not betrayals of the OSS spirit.
GitHub Stars used to be a vanity metric.
Not anymore.
Today, they’re a core signal for early traction—used by investors, users, and hiring managers alike.
A high-star project can even land funding before launch.
Why GitHub Stars matter:
- Organic SEO + discoverability
- Positioning and brand validation
- Early user momentum and buzz
Founders now actively optimize their README files, GitHub SEO, and star funnel strategy—just like a landing page.
It’s no longer just about tech.
Launching an OSS company now requires:
- Technical edge: Fast, extensible, well-documented code
- Product model: Where does the open part end, and paid part begin?
- Community strategy: Contribution guides, fast issue responses, Discord/Slack
- Revenue model: SaaS, licensing, support
- Team structure: DevRel, Docs, Growth—not just engineers
OSS founders must think like startup founders, not just developers.
Some say “open source is over.”
They point to license changes, commercialization, and rising paywalls.
But that’s not death. That’s evolution.
It’s about rewarding developer effort, ensuring project survival, and delivering better products to users.
Open source has become more than a philosophy.
It’s now a legitimate, sustainable business model—and we’re living in the heart of that transition.
The rules have changed.
And if you’re building software in 2025, you’re building in the age of commercial open source.