HN Explorer

Ask HN: SaaS startup releasing an open-source version?

1 points by myflash13 ↗ HN
I would love to hear your thoughts about running a commercial SaaS enterprise with an open-source offering. For example, Instructure Inc. created the open-source Canvas LMS, but they charge for the enterprise hosted version. Are you aware of any big-name startups that did something similar?

I’m seriously considering releasing a free version of my software (for marketing purposes) as an open source product, in order to generate buzz and interest (apart from the goodwill), and then create an enterprise closed-source version of it with fully hosted/managed features that I can charge for. My first question is, what licence would I release the open source version under, in order to protect my commercial enterprise, while still making it useful to others?

1 comment

[ 5.0 ms ] story [ 10.7 ms ] thread
a13n
I can't recall any off the top of my head, but I've definitely heard of multiple SaaS companies doing this. Most customers are lazy and will just go with the hosted version. They don't have to host it themselves and it's less work to maintain/support, which is usually what you're paying for.

I think this marketing channel depends on who your customers are. If they're developers, then releasing something to developers would be valuable. If they're sales people, then probably less so.

Another thing I've heard of is releasing a less related project for free / open source. This way you build a good brand with your target customer segment. Then they're more likely to find out about your core product, and they already like you for your free tool. Front did this.