Cockroach Labs, the company behind the popular distributed SQL database CockroachDB, is making changes to its licensing model once again. This move is aimed at encouraging larger businesses to pay for the features they need, while still providing options for smaller startups.
Under the new enterprise license, businesses with more than $10 million in annual revenue will now have to pay based on the number of CPUs or CPU cores in their server system. This means that the cost will scale with the size of the database deployment.
On the other hand, startups below the revenue threshold can continue to use the enterprise version at no cost, with the hope that they will eventually grow to a point where they need to pay for premium features.
CEO Spencer Kimball explained that the company is moving towards a more balanced exchange of value, providing better products for smaller customers while ensuring fair compensation from larger businesses.
How Cockroach Labs Got Started
Cockroach Labs was founded by Kimball, Peter Mattis (CTO), and Ben Darnell (chief architect). The journey began with the creation of the GNU Image Manipulation Program (GIMP) in the nineties, followed by the founding of a photo-sharing app called Viewfinder in 2011. The idea for CockroachDB emerged during their time at Square, leading to the official launch of Cockroach Labs in 2015.
Since then, Cockroach Labs has raised over $600 million in funding and gained traction among developers for its resilient and scalable database capabilities.
Why Companies Are Adopting 'Source Available' Licenses
Many companies, including Cockroach Labs, are moving towards 'source available' licenses to protect their products from being monetized by major cloud providers. This model allows for the benefits of open source software while restricting commercial use without a license.
With the new licensing model, Cockroach Labs aims to address the needs of both startups and larger businesses, providing a fair exchange of value for all users.
In conclusion, the changes in Cockroach Labs' licensing model reflect a larger trend in the enterprise software space, balancing the needs of different customer segments while ensuring sustainable growth for the company. Whether you're a startup or a large business, understanding these licensing changes can help you make informed decisions about your database management strategy.
In a strategic move set to take effect on November 18th, Cockroach Labs will introduce a new licensing model for their enterprise-grade product, CockroachDB version 24.3. This change will consolidate the various licenses currently attached to the self-hosted product into a single license known as the CockroachDB Software License. While existing cloud products remain unaffected, this shift aims to provide early-stage companies with access to enterprise features at no cost, with the hope of fostering growth and success.
According to Cockroach Labs CEO, Kimball, this investment in early-stage companies is a mutually beneficial arrangement that positions them for success and eventual revenue growth. By offering enterprise-grade capabilities for free, Cockroach Labs is positioning itself as a key player in supporting the growth of emerging businesses.
The Future of Open Source: A Closer Look
Amidst these licensing changes, the debate over the future of open source software continues to evolve. While some may argue that open source is facing challenges, it remains a vital component of the software ecosystem. Cockroach Labs, for example, relies on numerous open-source technologies in its development process, while also contributing back to the community by open-sourcing its own internal tools like Pebble key-value store.
Companies like Spotify are also leveraging open source efforts to transition into developer-focused organizations, showcasing the ongoing relevance and importance of open source in the tech industry. However, concerns persist around the sustainability of fully-commercial, vendor-driven open source projects, as seen in recent events.
Looking ahead, Kimball believes that while the software component side of open source will continue to thrive, the monetization of finished products may shift towards closed-source models. Building a service around a product could be the key to long-term success and revenue generation in the evolving landscape of open source software.
In conclusion, the licensing changes introduced by Cockroach Labs reflect a broader trend in the tech industry towards reevaluating the traditional models of open source software. Investors and stakeholders should pay attention to these shifts, as they have the potential to impact the future of technology innovation and business growth.