The Enterprise GTM Podcast
The Business of Open Source for Infra and Dev Tool Founders
In this episode, we discuss what it means to build a business based on open source for infra and dev tool founders. Sharing her broad and deep insights with us is Emily Omier, the world’s leading expert in positioning OSS companies for success.
Key Points From This Episode:
* The Perennial and fundamental challenge for an OSS company is building a business while still having an OSS project that delivers clear value in and of itself and is entirely free to the world!
* Understand the difference between project-market fit and product-market fit. (Hint: assume them to be the same at your peril).
* Most founders and investors expect that a sure % of their OSS users will, over time, become paid customers. It is dangerous to assume a linear relationship between the two. Instead, it is best to truly engage in customer discovery and understand what your users might be willing to pay for. It is common for your OSS and commercial offering to cater to two different personas and markets–this makes customer discovery vital. Done right, startups will not just assume that there is naturally a market for their SaaS offering. So, first, test the hypothesis instead of spending expensive resources to build a SaaS offering on the back of an OSS project.
* OSS business models are often tricky for early-stage startups because of the inevitable spread of resources between completely different offerings, customers, and sales and marketing efforts.
* OSS companies do not need to build a community. Similarly, a community of users can be built even if the company doesn’t have an OSS offering. So, it is essential to be clear about your goals with OSS, community building, and everything that goes with initiatives that require a reasonably long timeline.
* The business of OSS continues to evolve as we speak. Rather than being an OSS purist or zealot, it helps to continuously evaluate the value OSS offers over a business’s existence.
* Bonus! Insider details about an exciting upcoming open-source conference.
Quotes:
“You have project market fit, and then you have product market fit, and having one does not mean you have the other.” — @EmilyOmier [0:07:28]
“OSS companies are already spreading themselves thinner than non-OSS companies. One of the biggest risks for OSS companies is taking on too much” — @EmilyOmier [0:21:00]
“Open Source is often idolized, especially by leaders drawn to large companies' attractive aspects. Large adoption, a thriving community that advocates on their behalf, and the assumption that it's an easy flip of the switch from adoption to commercialization” — @TimZonca [0:25:00]
“Community building is a long game.” — @EmilyOmier [0:37:55]
Links Mentioned in Today’s Episode:
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