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Open source (financial) benefits

INTRODUCTION

Elastic will be adding AGPL (an OSI approved license) as another license option next to ELv2 (a BSD inspired license) and SSPL in the coming weeks for Elasticsearch and Kibana.

WHAT DOES THIS REALLY MEAN?

Key Points of AGPL:

  1. Free Use: You can freely use, modify, and distribute AGPL-licensed software, similar to other open-source licenses like the GPL.
  2. Source Code Sharing Requirement: If you modify the software and use it to provide a service over a network (such as a web application), you must make the source code of your modified version available to all users who interact with it. This is the primary distinction of AGPL from GPL, which only requires sharing code if you distribute the software.
  3. No Licensing Fees: AGPL-licensed software does not require licensing fees, meaning you can use and modify it without financial cost.

This means:

  • You can use AGPL software commercially without paying licensing fees.
  • If you distribute software yourself that incorporates AGPL-licensed code, you must make the entire work available under the AGPL license.
  • If you modify AGPL-licensed code, you must release your modifications under the AGPL.

FINANCIAL BENEFITS

Using AGPL licensed open source can result in following financial benefits:

  • Development costs and time can be reduced.
  • Improvements, updates, patches made by the community can be used without having to pay licensing fees. This can reduce maintenance costs.
  • AGPL-licensed software could replace proprietary software fees.
  • Free and open-source software (FOSS) can significantly lower the entry barriers for launching a new product or service.
  • You could offer hosted services (e.g., SaaS) using AGPL software without needing to invest in the development of the software.
  • Companies that develop AGPL-licensed software can offer a dual-licensing model, where the software is available under the AGPL for those who accept its terms or under a proprietary license for those who want to avoid the AGPL’s requirements. This can generate revenue from businesses that prefer not to disclose their source code.

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