Applying the lessons from Docker with Solomon Hykes
Nov 20, 2024
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In a captivating discussion, Solomon Hykes, CEO and co-founder of Dagger and Docker, shares insights from his journey in container technology. He highlights the unique challenges of Docker's explosive growth, emphasizing that a vast community doesn't guarantee monetization success. Solomon reveals his strategy at Dagger, focusing on early monetization ideas. He also reflects on the balancing act between open-source ideals and practical business needs, showcasing the importance of community while navigating competitive pressures.
Solomon Hykes emphasizes that Docker's explosive growth presented unique challenges in monetization, a struggle heightened by competitive pressures and market commoditization.
At Dagger, Hykes adopts a proactive approach to monetization, balancing community growth with commercial viability by prioritizing transparency and clarity in their business strategy.
Deep dives
The Journey from Docker to Dagger
Solomon Hikes discusses his transition from co-founding Docker, known for pioneering container technology, to his current role at Dagger. He highlights how both companies initially did not start as open source ventures but evolved into open source businesses through necessity. For Docker, the shift involved open sourcing core technologies to create a standard in application deployment while building a community. This pivot allowed Docker to gain significant traction in a competitive market, transforming former competitors into collaborators and potential customers.
The Challenges of Monetization
The conversation touches on the monetization challenges faced by Docker and contrasts it with Dagger's more measured approach. Hikes reflects on Docker's explosive growth, which obscured the more traditional monetization strategies that could have been developed. He explains that despite the rapid expansion, the company struggled with setting a sustainable revenue model due to the intense competition and the commoditization of hosting services. In Dagger, however, the focus has been on preparing earlier for monetization, balancing community growth with commercial viability.
Navigating Community Dynamics in Open Source
Hikes emphasizes the shift in community dynamics within the open source landscape, noting a more pragmatic approach compared to the more ideological stance of the past. He reflects on Docker's early naivety in trying to appease all community members and the resulting challenges faced when competition became fierce. At Dagger, the strategy has evolved to prioritize clarity in the company's position, openly acknowledging their dual role as both a vendor and a contributor to the community. This transparency aims to foster a more constructive dialogue with the community while ensuring the product remains relevant.
The Advantages of Open Source Engineering
Hikes outlines the significant benefits that open source provides, particularly in enhancing engineering quality and facilitating a distributed workforce. He explains that open source practices lead to better engineering outcomes, enabling teams to innovate more effectively and efficiently. Additionally, Hikes points out that the open source model encourages a decentralized work structure, allowing companies to tap into global talent more readily while ensuring greater adaptability. The combination of these factors creates a robust development environment that can significantly enhance a product's overall quality and market effectiveness.
This week on The Business of Open Source, I have the first episode I recorded on-site at KubeCon Salt Lake City (and the only full-length episode), with Solomon Hykes, CEO and co-founder of Dagger, and co-founder of Docker.
One thing Solomon mentions briefly but that is very important is that there are limits to what can be learned from Docker’s story, simply because the situation was so unique. Docker experienced explosive growth, at least some of which was due to having the right technology at the right time. This kind of explosive growth is very rare, though, and it brought it’s own set of challenges. The point being that while most companies will struggle to get enough adoption, Docker struggled to monetize effectively but got so many chances to try again just because it had a massive community.
The hypothesis — or actually, lack thereof — behind creating the original Docker open source project.
How having a massive community does help — but also doesn’t guarantee you’ll be able to build a financially sustainable company
When you build a massively successful technology or standard, you’ll attract competition — and in the case of Docker, the competitors were savvy companies who’d won the previous cloud wars and ultimately were quicker to figure out how to monetize Docker containers than Docker itself
What Solomon is doing differently at Dagger compared to Docker, one of which is thinking about monetization much sooner
The open source movement was founded on such explicitly anti-commercial principles that companies building in the space would often not be intellectually honest about the fact that they were building both a software to give away for free as well as a business that needed revenue. Docker tried too hard to please everyone, including those who felt that open source should be pure and non-commercial — at Dagger, they’re much more transparent and upfront about the fact that it’s a company with commercial ambitions.
Solomon also talked about the difference between components and product, and how designing products requires control, including the ability to just say no without explaining yourself.
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It was fascinating to hear Solomon talk about the lack of intellectual honesty around who pays for the development and maintenance of a lot of open source projects, because that precise topic was the focus of two panels I moderated at KubeCon, one during the main conference and one during CloudNative StartupFest.
If you’re struggling to articulate how your product and project are different from each other (and others in the ecosystem) and why someone should pay you, you might want to work with me. Reach out!
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