Closed (Source) Core | Open (Source )Core | |
---|---|---|
Company examples | Facebook / Salesforce / Oracle / Twilio | Liferay / Red Hat / Elastic / GitLab |
Business models | Many, often advertising, SaaS, cloud, etc. | Many, often cloud serivces, value-added IP, insurance |
Capitalism | Shareholder-Oriented, Value-Capture Focused | Stakeholder-Oriented, Value-Creation Focused |
Category | "SaaS" / "Cloud" | COSS |
Distribution | Costly, Permissioned | Free, Permissionless |
Funding/Capitalization | Largely Capital Intensive | Highly Capital Efficient |
GTM/Sales | Top-Down-First (mostly), Community Exploitative | Bottoms-Up-First, Community Nurturing |
Hiring | Geo-Concentrated / Office-First | Geo-Distributed / Remote-First |
Innovation Strategy | Ivory Tower | Often Disaggregated |
Primary Output | Distribution (1-to-N) | Technology (0-to-1) |
Software Licensing | Fully Closed Core and Partially Open-Source Crust | Open Source Core, Proprietary (not necesarrily Closed-Source) Crust |
Patents | Usually covered by a patent portfolio | Rarely covered by a patent portfolio |
Market dynamics | Macro, Vulnerable, Push | Micro, Secular, Pull |
Marketing | User = Lead, Funnel Modeling | User != Lead, Ecosystem Modeling |
Innovation | Zero Sum, Trends towards homogeneity | Positive Sum, Trends towards heterogeneity |
Product development | Single Roadmaps | Dual/Multi Roadmaps |
R&D | Always Centralized | Often decentralized at least in part |
Tech/Company Relationship | Core software/tech tightly coupled to company | Core software/tech loosely (if at all) coupled to company |
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Comparing fundamental differences across Closed Core vs. Open Core oriented companies
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Comparing fundamental differences across Closed Core vs. Open Core oriented companies
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