Monday, January 14, 2019 [Tweets] [Favorites]

AWS, MongoDB, and the Economic Realities of Open Source

Ben Thompson:

Basically, MongoDB sells three things on top of its open source database server:

  • Additional tools for enterprise companies to implement MongoDB
  • A hosted service for smaller companies to use MongoDB
  • Legal certainty

[…]

This leaves MongoDB Inc. not unlike the record companies after the advent of downloads: what they sold was not software but rather the tools that made that software usable, but those tools are increasingly obsolete as computing moves to the cloud. And now AWS is selling what enterprises really want.

Worse, because AWS doesn’t have access to MongoDB (it is only matching the API) it only supports MongoDB 3.6; the current version is 4.0.5.

[…]

This tradeoff is inescapable, and it is fair to wonder if the golden age of VC-funded open source companies will start to fade (although not open source generally). The monetization model depends on the friction of on-premise software; once cloud computing is dominant, the economic model is much more challenging.

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