Spencer Kimball, CEO of Cockroach Labs: Future of Open Source
Nov 7, 2023
43:30
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Spencer Kimball, CEO of Cockroach Labs, discusses the future of open source companies, competing with giants like AWS and Oracle, and offers essential advice for first-time founders. They explore the evolution of open source and open core companies, the decline of Oracle's market share, and the advantages of cloud platforms for databases.
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Quick takeaways
Open source projects can monetize their offerings through models like open core and cloud services, finding the right balance between valuable features and supporting the open source core.
The open source landscape has evolved with a focus on cloud services and closed source products, driven by the need for faster time to value and reduced complexity in the market.
Deep dives
Different Models for Monetizing Open Source Projects
There are various models that open source projects use to monetize their offerings. One of the earliest models was the open core model, where companies provided support and additional enterprise features on top of the open source core. Another example is the cloud service model, where companies offer their open source product as a managed service on the cloud. The key to success is finding the right balance between offering valuable features that customers are willing to pay for while not creating obstacles for those who rely on the open source core.
The Evolution of Open Source and Closed Source
The open source landscape has evolved over time, with more focus now on cloud services and closed source products. While open source continues to have its benefits, such as allowing communities to contribute and providing users with control, the need for faster time to value and reduced complexity has led to the rise of closed source cloud services. Companies, especially those born in the cloud, are looking for solutions that offer quicker and more efficient time to value, and cloud services provide that advantage.
Challenges and Competition with Cloud Vendors
Competing with cloud vendors can be a challenge for open source projects. Cloud vendors often take advantage of open source projects to offer their own managed services without contributing back to the open source community. This has led to changes in licenses and strategies for open source companies to protect their projects and differentiate their cloud services. However, the market continues to evolve, and finding the right strategy to compete and partner with cloud vendors is crucial.
Understanding the Database Market and Cockroach Labs' Position
The database market is crowded and competitive, but also growing rapidly. Cockroach Labs differentiates itself by offering a globally distributed SQL database, addressing the needs of large enterprises with global footprints, particularly in industries like financial services, retail, gaming, and big tech. Cockroach Labs focuses on enterprises that require high data resilience, the ability to run across different clouds, and data sovereignty. By catering to this niche and understanding the market dynamics, Cockroach Labs can position itself as a valuable solution in the growing database market.
Spencer Kimball is the founder and CEO of Cockroach Labs, a $5 billion company that makes the CockroachDB database used by Netflix, Nubank, Shipt, and many other leading tech companies. Spencer was building and contributing to major open source projects before he graduated from college.
In this episode of World of DaaS, Spencer and Auren do a deep dive on open source companies: How they make money, what the ecosystem looks like in 2023, and competing with the giants like AWS and Oracle.
Auren and Spencer open with an in-depth history lesson on the software industry and open source’s role in it. Spencer explains how open source and open core companies evolved and how the rise of cloud giants like AWS has changed the industry. They also discuss how belief and optimism affects founders, Spencer’s “hierarchy of success,” and essential advice for first time founders.