Revenue Model

OCV companies build commercial open source software (COSS) based on open source projects. The open source core will always be free and open to the community.

Sample Pricing Tiers

Buyer-based open core pricing models tend to have three paid tiers with a large price difference between the tiers.
Potential Buyer
Individual Contributor
Managers / Directors
Price / Unit / Year
Free (Open Source)
Pricing is the same regardless of how the application is hosted. Annual subscriptions are recommended over monthly subscriptions.
See additional pricing considerations here.

COSS Risks

COSS companies face the risk of service-wrapping by the hyper clouds. Ways to manage this risk include developing application software and adopting a buyer-based pricing model.
Infrastructure software What the application software is built on top of (MongoDB, Confluent, Redis)
Application Software The top-level application that people interact with (Wordpress, GitLab)
Fork & Commoditize Resistance
Application Programming Interface (API)
Graphical User Interface (GUI)
GUI is more complex to replicate than API
Hyper clouds are better at running single-tenant software
Needs lots of compute power
Needs little compute power
Hyper clouds are in the business of selling compute and storage. Applicaiton software tends to drive less compute.