At first glance, “commercial” and “open source” might sound like opposites. Open source suggests free and transparent, while commercial implies paid and proprietary. But in reality, commercial open source is a powerful hybrid model that combines the openness of community-driven software with the sustainability and support of business-backed development.
Let’s break down what commercial open source is, how it works, and why it matters—especially in today’s tech landscape.
Open source: a quick recap
Open source software (OSS) is software whose source code is made freely available to anyone. Users can view, modify, and redistribute it under licenses like MIT, GPL, or Apache.
Examples of popular open source projects:
- Linux
- PostgreSQL
- Firefox
- Kubernetes
- WordPress
Open source thrives thanks to community contributions, transparency, and the principle of shared innovation.
So what is commercial open source?
Commercial open source refers to open source software that is developed, maintained, or supported by a for-profit company.
The source code is still open and often free to use—but the company builds a business model around it through:
- Paid support and consulting
- Premium features
- Hosted (cloud) versions
- Enterprise integrations
- Licensing options for commercial use
In short: it’s open source with a business engine behind it.
Examples of commercial open source companies
- Red Hat (now part of IBM) – offers enterprise support and services for Linux and Kubernetes
- Elastic – creators of Elasticsearch, with a free core and commercial add-ons
- GitLab – offers a free self-hosted version and paid tiers for DevOps teams
- MongoDB – free community version and commercial cloud platform (Atlas)
- Grafana Labs – monitoring and visualization tools with commercial hosting and plugins
These companies typically build on top of the open source core, offering enhanced features, tools, or services for customers who need more than what the community edition offers.
Why companies use commercial open source
For businesses, commercial open source offers a balance between:
- Cost efficiency (free or low-cost base software)
- Transparency and control (ability to inspect and modify the code)
- Professional support and reliability from a vendor
- Avoiding vendor lock-in while still getting enterprise-grade capabilities
It’s particularly attractive for developers, startups, and enterprise IT teams looking to scale.
Business models behind commercial open source
- Open Core
Core functionality is open source, but advanced features are proprietary or behind a paywall. - Dual Licensing
The software is offered under both a free/open source license and a commercial license (e.g., for embedding in other products). - Managed Hosting (SaaS)
The software is open source, but companies offer it as a cloud-based service with subscriptions. - Support and Services
The code is free, but the company makes money by offering expert help, updates, and consulting.
Benefits and challenges
Benefits:
- Innovation driven by community and market needs
- Faster adoption due to free entry-level access
- Transparency builds trust with users
- Flexibility for companies and developers alike
Challenges:
- Balancing open contributions with business goals
- Preventing competitors from using the same open code
- Monetizing while keeping the community engaged
This has led to license shifts like SSPL or BSL, which restrict certain commercial use cases while maintaining source code availability.
Commercial open source is not a contradiction—it’s a powerful way to combine community innovation with business sustainability. It gives developers freedom, businesses flexibility, and users the best of both worlds: open code backed by serious support.
As more companies rely on open infrastructure, the commercial open source model will only grow in relevance and value.
