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Matt Asay May 13
As good as ’s strategic open source partnership play is (), and it’s very good, is there an even better model whereby a cloud vendor kicks back to the open source vendor/community cash for running their code (including “unpaid” community versions?)
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Matt Asay May 13
Replying to @mjasay
Cloud vendors get paid on usage, so why not a single bill to the enterprise customer that is solely usage based? They then pay MDB/Elastic/etc. based on what’s running on their cloud? You could say, “Why would they? That cuts into their margin,” and you’d be right, unless...
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Matt Asay May 13
Replying to @mjasay
They’re looking to truly be *the* default place to run open source in the cloud. Enterprises start off by not caring where they run their open source but arguably those open source companies/communities would increasingly optimize for the cloud that pays
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Matt Asay May 13
Replying to @mjasay
I’m sure I’m missing something in here. For community-driven projects maybe it’s harder to manage/less needed, but for company-driven projects it seems like this would be a great new sales channel, while simultaneously giving a cloud a real competitive advantage
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msw May 13
Replying to @mjasay
For company produced products/services, it seems that the product they are selling is often proprietary and exclusive, with open source at the core (which is a fine business model). The pitfalls of open core persist in the cloud as in historic SW business models.
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Matt Asay May 13
Replying to @_msw_
Of course, there is the argument "why should I, the cloud company, pay for free open source?" And it's a totally valid stance. I just wonder if vendors would optimize those oss bits for a cloud that paid them back. Again, I'm likely missing something in this...
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msw May 13
Replying to @mjasay
Having trouble following... Are you using a particular population sample in your thought experiment?
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Matt Asay May 13
Replying to @_msw_
so if someone (a cloud vendor) came in and helped me monetize a chunk of that, I’d be really happy. Not sure what it would mean to “optimize” for a particular cloud, but if I was making more money with AWS, for example, I’d try to find ways to steer traffic there
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msw May 13
Replying to @mjasay
But in your thought experiment population, open core means that customer value is in proprietary extensions, and the primary sponsor of the open core does not have incentives to making the core project easier to manage at scale, or take advantage of any particular cloud feature.
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Matt Asay May 13
Replying to @_msw_
Probably, but if the $ from the open core outpaced the $ from the proprietary peel? Not sure but just thinking it through
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msw May 13
Replying to @mjasay @adamhjk
I think that articulates the challenges of getting $ for the core open source in an open core model far better than me.
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Jon Bock May 14
Replying to @_msw_ @mjasay @adamhjk
The cloud providers generally support their ecosystems (including but not exclusively vendors commercializing open source) by giving away cloud usage credit to those vendors. That's relatively cheap for them and has a positive feedback loop. Giving out $ is much more expensive.
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Jon Bock May 14
Replying to @_msw_ @mjasay @adamhjk
Another challenge is the business models of most cloud providers are generally high volume with lower margin. Those margins are viable because there's less money invested in core technology development, most of the R&D investment goes to operations & automation.
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jay 🗽☁️🤘 May 14
this is across all three major clouds, if you aren't building you're dying
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Jon Bock
But in a large part of the general technology market, R&D investment in developing new product technologies has shifted from big companies to smaller ones. Big companies acquire or (for open source) offer those technologies, and their investment is more on scale, efficiency, etc.
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