Invest Like the Best with Patrick O'Shaughnessy Chetan Puttagunta and Jeremiah Lowin – Open Source Crash Course - [Invest Like the Best, EP.188]
Aug 25, 2020
Jeremiah Lowin, founder of Prefect.io, and Chetan Puttagunta, partner at Benchmark Capital, delve deep into the fascinating open-source software business model. They explain how companies can give away valuable tools for free while monetizing additional features, fostering community trust, and reshaping development approaches. The discussion covers the shift to cloud-based models, community engagement, and the potential of API-first strategies that democratize innovation. Their insights reveal how these principles can transcend software, offering lessons for various industries.
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Red Hat's Origin Story
- Red Hat, an early open-source company, merged a catalog business with Red Hat Linux in 1995.
- Its 1999 IPO was a huge success, showcasing open source's commercial potential.
Open Source's Value Proposition
- Open-sourcing software builds trust and encourages community involvement.
- It's about reach and compounding engagement rather than traditional marketing ROI.
Prefect's Open Source Model
- Prefect provides an open-source workflow engine for managing code execution.
- Its paid service focuses on alerting users of errors, acting as an "insurance product."