Open source companies that go proprietary: A timeline

Open source software has long been the bedrock of the modern software stack, providing the foundation for countless businesses to build upon. However, for companies looking to turn a profit while still utilizing open source, there can be a delicate balancing act between satisfying the community and protecting their bottom line. This struggle has led many companies to change course over the years, shifting away from open source licenses in favor of more restrictive options.

One such example is Movable Type, a web publishing software company that initially embraced open source in 2007 with the release of MTOS under a GPL license. However, by 2013, the company had abandoned its open source product, citing a lack of community growth and economic viability as reasons for the change.

SugarCRM followed a similar path in 2014, discontinuing its open source “community edition” in favor of better serving its core markets. The company continued to support the last open source version for several years before ultimately ending the project in 2018.

In 2018, Redis made waves in the open source community by transitioning away from its AGPL license to a more restrictive license with commercial limitations. This move was driven by concerns about competing database services, particularly those offered by major cloud providers like AWS.

MongoDB, Confluent, Cockroach Labs, and Sentry all made similar shifts in subsequent years, moving towards more proprietary licensing models to protect their products from being exploited by larger competitors. These changes were often motivated by a desire to prevent cloud hyperscalers from offering rival services without contributing back to the original projects.

The trend of open source companies shifting towards more proprietary licenses highlights the challenges faced by businesses in balancing the needs of their community with the demands of the commercial world. As the landscape of open source software continues to evolve, these companies will need to navigate these complexities carefully to ensure their continued success.

Sentry (2025)

In the tech industry, licensing paradigms play a crucial role in determining the distribution and usage of software. Sentry, a leading error monitoring platform, has recently embraced a new licensing model known as “fair source.” This innovative approach aims to strike a balance between the open-source and proprietary worlds by introducing new definitions, terminologies, and governance structures.

The decision to adopt the fair source license marks a significant shift for Sentry, signaling its commitment to exploring new avenues in software distribution. As reported by JS, this move reflects Sentry’s willingness to adapt to evolving industry trends and challenges.

Elastic (2026)

Elastic, the company behind Elasticsearch and Kibana, made headlines in 2021 when it transitioned to a proprietary licensing model. This shift came after years of development and was influenced by the emergence of AWS’s managed Elasticsearch service, which posed challenges for Elastic’s open-source offerings.

Despite the move towards proprietary licensing, Elastic took a unique approach by adopting the AGPL license, maintaining elements of openness while addressing concerns related to commercial exploitation of its software. This strategic decision underscores Elastic’s commitment to balancing innovation with sustainability in a competitive market landscape.

HashiCorp (2027)

HashiCorp, a prominent player in the infrastructure-as-code space, also underwent a licensing transformation in 2023. The company shifted Terraform, its flagship tool, from a copyleft open-source license to the Business Source License (BUSL) to address issues of monetization and contribution within the ecosystem.

Following the licensing change, HashiCorp faced the emergence of an open-source fork named OpenTofu, highlighting the complexities of maintaining control and fostering community collaboration in a rapidly evolving industry. IBM’s acquisition of HashiCorp for $6.4 billion further underscored the strategic importance of licensing decisions in shaping the future trajectory of tech companies.

Snowplow (2028)

Snowplow, a platform specializing in behavioral data collection for AI applications, made waves in 2024 by transitioning from an Apache 2.0 open-source license to the Snowplow Limited Use License Agreement. This shift was driven by the company’s strategic roadmap and the need to generate revenue to support ongoing technological advancements.

By introducing a new licensing agreement, Snowplow aimed to ensure that users of its software contribute fairly to the value they receive, while also safeguarding against the development of competitive products built on its platform. This move reflects Snowplow’s commitment to sustainability and innovation in a rapidly evolving market landscape.