a16z Podcast The Open Source CIO
Feb 28, 2020
Peter Levine, a general partner at Andreessen Horowitz, and Mike Kelly, CIO of Red Hat, dive into the evolving role of open source in today’s tech landscape. They discuss Red Hat's pioneering approach and how its business model has shaped the SaaS revolution. The conversation explores the shift from on-premise solutions to open hybrid architectures, the strategic navigation of IT investments, and the critical balance between innovation and operational excellence. Plus, they share insights on the nuances of successful acquisitions in the tech world.
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Open Source 1.0 Model
- Red Hat pioneered the "open source 1.0" model (free software, paid support).
- This model is difficult to replicate due to the substantial backend infrastructure costs.
Open Source SaaS
- Open source as a service (SaaS) offers a new economic model.
- It unlocks further potential for open source companies.
Red Hat's Hybrid Approach
- Red Hat's initial model was on-premise subscriptions.
- They adapted by ensuring their technology runs on all major cloud platforms, embracing a hybrid approach.