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iFelix | 2 years ago

The shift to commercial open source with a hybrid financing model is what's driving the trend. It makes it possible to get enough funding to build high-quality software while bringing the costs down for everyone.

We're doing just that with our own CRM [1]. It couldn't have been a side-project as you need thousands of engineering hours to build something decent. But with only a few millions in engineering spend, we'll have something that is genuinely as good as the products from billion dollar behemoths. Open Source software will never be able to monetize as well as closed-source. We might only capture 10% of the value we create. But being open source inherently creates strong network effects that tends to push towards a limited number of winners, and the addressable market in CRM is so big that it's still possible to build a multi-billion dollar company while massively driving the costs down for everyone.

It's kind of like the Prisoner's Dilemma: If every company keep their software proprietary, they can all make moderate growth/profit. But if one goes open-source, they could attract a large community, drive innovation, and potentially reap long-term profits while reducing the overall market size.

[1] https://github.com/twentyhq/twenty

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