HACKER Q&A
📣 ruslan_talpa

Does Anyone Use a "Closed Core" Software Model?


Hello HN,

I'm exploring variations in software business models and came across what I'd call a "closed core" approach: the main system is proprietary, but all additional modules are open-source.

- Are there examples of companies adopting this model?

- What are the potential benefits or pitfalls?

- How does it impact community engagement and software adoption?


  👤 suumcuique Accepted Answer ✓
Obsidian.md: closed source app but it uses an open storage format (markdown) and there's a sprawling ecosystem of open source plugins.

👤 eimrine
Telegram does this by having proprietary server and allowing users to compile its own client.

Benefits: you can abuse the users, pitfalls: you can be abused by the Government.

I hate to use software where developer party considers I need some "engagement" and the fact I have installed the software at all as "adoption", for me these are clear notices that you are doing some scam.


👤 mooreds
FusionAuth does this. We have a free as in beer downloadable solution with our own software license (available on our site). I am an employee.

Benefits: no risk of hyperscaler takeover or fork or future software licensing fiasco, business model of selling software is proven, either license or SaaS

Challenges: no halo effect, harder to get contributions (but you can do 'open development' and get bugs and feature requests from community; we do), some devs get less excited about solution, have to address continuity concerns earlier (maybe?)

We have a FAQ on our site addressing this question.

Hard to tell about community engagement because straight comparisons are hard, but it definitely retards uptake to some extent. Using a free downloadable option can help; we definitely have customers who kick tires before they talk to us.

Really depends on your target market too: devs care more about OSS, business users don't.


👤 mindwok
Tailscale is another one. The coordination server is closed source but all the clients are open source.

👤 pclmulqdq
My tiny company is starting on this philosophy. The core device and our real IP is closed-source, but all the other components around it are open. Going forward, the same sort of thing will apply - almost everything open, except the bits that are actually hard to replicate.

Since the market is security, it makes a lot of sense to open-source as much as possible without compromising our market positioning.

I believe several other security-related companies (Tailscale comes to mind) also adopt this philosophy.


👤 gus_massa
Many games had mods made by the comunity, and some of them are unofficialy "closed core".

👤 gpm
Skyrim (mods are open source)?

I'm kidding, sort of, games that rely on "user generated content" often feel like exactly this.


👤 gitgud
> "Are there examples of companies adopting this model?"

Many examples across the industry:

- Autodesk AutoCAD (closed) + Plugins/Addons (many open)

- MS Windows (closed) + Many 3rd party programs (open)

- Github (closed) + Github Actions (open)

- Npm (closed) + Npm modules (mostly open)

> "What are the potential benefits or pitfalls?"

Benefits:

- Harder to replicate, the company gets to keep the "secret sauce" a secret

- Opening up a way to "extend" the platform means 3rd party developers add value to your system

- The core isn't open, so less effort is required to maintain compare to OpenSource

Pitfalls:

- Closed-source is hard to verify, company is essentially saying "trust me bro"

- Less innovation, as user's can't contribute to the core

> "How does it impact community engagement and software adoption?"

There's hardcore FOSS advocates that will hate anything not fully open. But a business has to make money and protect it's IP, having a "closed core" is one way to do that and ensure a sustainable business model.

Another approach is the opposite, open-core + closed-premium-addons. An example of this is "React Admin"

- Open Core -> https://github.com/marmelab/react-admin

- Premium Modules Offering -> https://react-admin-ee.marmelab.com/