What 'Open Core' Means and Why Companies Use It
Open core is a common business model behind open source tools. Here's how it actually works.
Open core describes a business model where a company releases the core functionality of its software as genuinely free and open source, while selling additional advanced features, support, or hosting as a paid product built on top.
Why companies choose this model
It lets a company build trust and adoption through a genuinely useful free product, while still funding ongoing development through revenue from businesses that need the additional paid features, support guarantees, or managed hosting.
The tension this model creates
Open core companies face an ongoing balancing act deciding which features stay free and which become paid, since moving a popular free feature behind a paywall later can alienate the exact community that helped the product grow in the first place.