DZone
Thanks for visiting DZone today,
Edit Profile
  • Manage Email Subscriptions
  • How to Post to DZone
  • Article Submission Guidelines
Sign Out View Profile
  • Post an Article
  • Manage My Drafts
Newsletter
Log In / Join
Refcards Trend Reports
Events Video Library
Refcards
Trend Reports

Events

View Events Video Library

Related

  • Securing the Software Supply Chain: Chainguard Builds on Foundational Innovation
  • Key Developer Concepts and Tools in Software Supply Chain Security
  • Binary Code Verification in Open Source World
  • Log4Shell: A Case for Trusting Open Source – With Guardrails

Trending

  • Every Generation Fears the Machine. Here Is How the AI Job Panic Usually Ends
  • Designing Memory Architecture for Stateful AI Agents: Short-Term Context and Long-Term Persistence
  • When a Coding Agent Fixes the Test Instead of the Bug
  • RAG Architecture Patterns: Proxy, Caching, and Routing

Draft This article hasn't been published, so readers can't see it.

In moderation This article is waiting for review, so readers can't see it yet.

Deleted This article has been deleted, so readers can't see it.

  1. DZone
  2. Popular
  3. Open Source
  4. Decoding Business Source Licensing: A New Software Licensing Model

Decoding Business Source Licensing: A New Software Licensing Model

More companies are pursuing a software licensing model that sits somewhere between open source and proprietary licensing.

By 
Tom Smith
DZone Core CORE ·
Sep. 18, 23 · Analysis
Post on X (opens in a new tab) Share on LinkedIn (opens in a new tab)
5.4K Views

Join the DZone community Save articles, join the discussion, and download Refcards and Trend Reports with a free account.

Join for free Already a member? Log in

Business source licensing (BSL) has recently emerged as an alternative software licensing model that aims to blend the benefits of both open-source and proprietary licensing. For developers and IT professionals evaluating solutions, understanding what BSL is and its implications can help inform licensing decisions.

What Is Business Source Licensing?

Like open-source licensing, BSL makes source code viewable and modifiable. This allows a community of developers to collectively improve the software. However, BSL applies restrictions on how the software can be used commercially. This provides revenue opportunities for the company publishing the software, similar to proprietary licensing.

BSL is often positioned as offering “the best of both worlds” — open collaboration on source code plus commercial protections. Companies like Percona, Cockroach Labs, and Confluent have adopted BSL models. But is this hybrid approach right for your organization?

The topic came up during a breakout session with customers at TIBCO Next. As TIBCO CTO Rajeev Kozhikkattuthodi notes, BSL represents an “open set of questions around the viability of operating both for vendors and for customers to operate open core businesses.” He cautions that “commingling of licenses is not necessarily a good thing” and predicts companies will avoid these “somewhat in-between sort of open core models.” 

Rajeev continues, "We really like to keep it simple and straightforward. There are going to be open-source technologies that we use, and we contribute back. Sure. Those are going to be under clean, compliant, open licensing models, right? We will give our enterprise customers commercial subscription models and those subscription models are going to be covered under the typical licensing license.  We do not see this mixed model licensing as a viable approach going forward."

Potential Benefits of BSL

Transparency and Security

Like open source, BSL provides full access to source code. This allows you to inspect components for security and quality. Rather than relying on opaque proprietary code, you can verify integrity yourself.

Community Contributions

Making source code accessible enables community contributions to improve software, as with open-source projects. This crowdsourced development can potentially accelerate innovation.

Flexibility

BSL offers some source code freedoms not permitted in closed-source proprietary software. This may provide more flexibility to modify and extend the software if desired.

Potential Drawbacks of BSL

Limited Rights

The commercial restrictions in BSL mean core freedoms of open-source software are forfeited. Your rights may be limited depending on the specific BSL terms.

Vendor Lock-In

Proprietary aspects of BSL can still lead to vendor lock-in risks. Transitioning between BSL solutions may be challenging if restrictions hinder compatibility.

Unproven Model

BSL is relatively new and unproven compared to established open-source and proprietary models. The risks versus rewards are still being evaluated in the marketplace.

Assessing BSL for Your Enterprise

When evaluating BSL-licensed technologies, focus on four key considerations:

Compatibility With Existing Systems

Will the BSL technology seamlessly integrate with your current landscape? Assess integration costs and risks.

Optimization for Your Environment

Is the technology tailored and optimized for enterprise-scale performance? Review benchmarks in context.

Consumability of the Technology

Analyze the usability, learnability, and adoption challenges. Can your team be productive quickly?

Vendor Relationships and Support

Research the provider’s reputation and customer relationships. Review their support model and SLAs.

Balancing the Trade-Offs

Every licensing model involves trade-offs. There are no hard and fast rules on whether BSL is universally better or worse than open-source or proprietary alternatives. The choice ultimately depends on your specific technical, business, and cultural constraints.

Some organizations may find BSL strikes the right balance of code transparency and commercial protections for their needs. Others may determine that traditional open-source or proprietary models are preferable.

By fully evaluating BSL in your context against other options, you can make the most informed licensing decision for your systems and organization. With a thorough analysis of the pros, cons and hidden costs, you can determine if this emerging approach is a fit or if tried-and-true models are the safer choice.

Here are some additional key things to know about business source licenses (BSLs):

  • BSL terms can vary: There is no standard BSL license. The specific rights and restrictions can differ significantly between BSL implementations. Carefully review the details.
  • Compliance complexity: Complying with BSL terms may require tight controls on commercial usage. This could increase auditing and compliance overhead.
  • Contribution clarity: The ability to contribute to BSL codebases may be unclear or limited. Some BSLs discourage community contributions.
  • Support uncertainties: With BSL, it may be unclear if community support or paid vendor support is ideal. There are pros/cons to both.
  • Licensing evolution: BSL is still evolving. License terms could change substantially in future iterations, disrupting adoption.
  • Hybrid licensing risks: Some BSL companies dual-license with open source and BSL. Misusing code between licenses can cause compliance issues.
  • Acquisition impacts: If a BSL company is acquired, license terms could change depending on new owner's policies.
  • Competitive concerns: BSL could raise antitrust issues if vendors collude on license terms. Regulatory impacts are untested.
  • Open core transitions: Some open source projects transition to BSL post-monetization. This can trigger community forks to stay open.

Overall, treat BSL with caution. View it as a work-in-progress model with uncertainties. Thoroughly evaluate potential pitfalls before adopting BSL-licensed technologies for your work or business.

Open source Software optimization security

Opinions expressed by DZone contributors are their own.

Related

  • Securing the Software Supply Chain: Chainguard Builds on Foundational Innovation
  • Key Developer Concepts and Tools in Software Supply Chain Security
  • Binary Code Verification in Open Source World
  • Log4Shell: A Case for Trusting Open Source – With Guardrails

Partner Resources

×

Comments

Loading comments

The comments didn't load

Please try again in a moment.

Likes

Loading

The next likes didn't load. Please try again.

The likes didn't load

Please try again in a moment.

See who liked this

Log in or join DZone for free to see who liked this article.

Log in Join for free
  • RSS
  • X
  • Facebook

ABOUT US

  • About DZone
  • Support and feedback
  • Community research

ADVERTISE

  • Advertise with DZone

CONTRIBUTE ON DZONE

  • Article Submission Guidelines
  • Become a Contributor
  • Core Program
  • Visit the Writers' Zone

LEGAL

  • Terms of Service
  • Privacy Policy

CONTACT US

  • 3343 Perimeter Hill Drive
  • Suite 215
  • Nashville, TN 37211
  • [email protected]

Let's be friends:

  • RSS
  • X
  • Facebook