Yet there’s a vocal segment of software insiders that preach the looming failure of open source software against competition from proprietary software vendors. The future for open source, they argue, is as also-ran software, relegated to niche projects. It’s proprietary software vendors that will handle the really critical stuff.
The success or failure of open source is not the software itself – it’s definitely up to the tasks required of it – but in the underlying business model.
At Index Ventures, we have been investing in open source for 12 years, and we’ve never seen such a “perfect storm” moment for open source companies to make the jump from scrappy-and-free to large-and-profitable. [...] it’s clear that the industry is finally ready to accept and value open source startups as real businesses poised for long-term growth.
Why — after decades of entrepreneurs trying to use free open source technology to build profit-generating companies — is now the breakout moment for billion-dollar open source companies?