Open core is a business model for monetizing open-source software. It involves offering a free, open-source version of a software product, referred to as the 'core,' while additional proprietary features or add-ons are available for a fee. This model allows companies to leverage community contributions for software development and rapid innovation, while still generating revenue from premium features[1][3][4].
The open core model emphasizes the balance between the free and paid versions of the software. Companies need to be careful not to offer too little in the free version, as this may alienate potential customers, or too much, which may cannibalize their market[3]. Critically, while the open-source core enables community involvement, the proprietary parts of the software may limit community contributions and participation[2][3][4].
Examples of successful open core implementations include GitLab, which offers a free community edition while charging for premium features, and Red Hat, which provides open-source Linux distributions alongside enterprise support and management tools[3][4].
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