Open Core Model

"Open Core" is a business model where the core functionality of the software is free (Open Source), but critical "Enterprise" features (SSO, Audit Logs, High Availability) are proprietary and locked behind a paid license.

🛡️ RISK BADGE: 🏢 BUSINESS MODEL

Executive Summary: What is it?

"Open Core" is a business model where the core functionality of the software is free (Open Source), but critical "Enterprise" features (SSO, Audit Logs, High Availability) are proprietary and locked behind a paid license.

CFO / Business Impact: What does it cost/risk?

The "Upsell" Ceiling. It is not a trap, but it is a constraint. You can use the software for free up to a certain scale. Once you grow large enough to need compliance features, you will have to pay. Budget accordingly.

Technical Reality: How does it work?

Often leads to two versions of the software: a "Community Edition" (CE) and an "Enterprise Edition" (EE). Be aware that CE versions might receive security patches slower than EE versions.

Similar Alternatives

MIT License

The MIT License is the most permissive and popular open-source license. It allows you to use, copy, modify, merge, publish, distribute, sublicense, and sell the software. The only requirement is that you include the original copyright notice in your copy.

Apache License 2.0

The Apache 2.0 is a modern permissive license favored by large enterprises (Google, Android, Kubernetes). Like MIT, it allows full commercial use. Crucially, it includes an explicit patent grant, protecting you from patent lawsuits from the contributors.

BSD 3-Clause License

The BSD 3-Clause License (also known as "New BSD" or "Modified BSD") is a permissive free software license. It is very similar to the MIT License, allowing you to use, modify, and distribute the software for any purpose. The key difference is an added clause that prohibits using the nam...

GNU LGPL v3

The LGPL (Lesser General Public License) is a compromise between the permissive Apache/MIT and the strict GPL. It allows you to link your proprietary software to an LGPL library (dynamically) without forcing your proprietary code to become open source. However, if you modify the LGPL li...