The open source community has long been the backbone of the modern software stack, but a growing number of companies are abandoning this community-driven model in favor of more restrictive licenses. The trend, which has gained momentum over the past decade, is driven by concerns over commercial exploitation and the need to protect their bottom line.

One of the primary reasons companies are making this shift is to prevent third-party vendors from monetizing their open source software without contributing back to the project. This phenomenon, often referred to as the "Amazon problem," has led companies like Redis, MongoDB, and Confluent to switch to more restrictive licenses. These licenses, such as the Redis Source Available License (RSAL) and the Server Side Public License (SSPL), aim to prevent cloud hyperscalers like AWS from selling their own versions of the service without contributing to the open source project.

Another reason companies are moving away from open source is to protect their intellectual property. For instance, Cockroach Labs, the creator of the CockroachDB distributed SQL database, switched to the Business Source License (BUSL) in 2019 to prevent cloud providers from offering "as-a-service" versions of their product. Similarly, Sentry, the app performance monitoring platform, moved to BUSL to counter "funded businesses plagiarizing or copying our work to directly compete with Sentry."

However, not all companies are abandoning open source entirely. Elastic, the creator of Elasticsearch and Kibana, went proprietary in 2021 but later adopted an AGPL license, making its software open source once again. This move highlights the complexity of the issue, as companies must balance their need to protect their intellectual property with the benefits of community-driven development.

The trend has significant implications for the tech industry as a whole. As more companies transition away from open source, it may become increasingly difficult for developers to access and contribute to these projects. This could lead to a decline in innovation and collaboration, ultimately harming the industry as a whole.

Despite these concerns, it's clear that companies are willing to make significant changes to protect their interests. HashiCorp, the creator of the popular "infrastructure as code" tool Terraform, abandoned open source in 2023, citing the need to prevent vendors from monetizing its software without contributing back. Snowplow, a VC-backed platform, made a similar move in 2024, switching to a limited use license agreement to fund its "exciting technology roadmap."

As the open source landscape continues to shift, it's essential for companies to weigh the benefits of community-driven development against the need to protect their intellectual property. By understanding the motivations behind these changes, we can better navigate the complex world of open source software and ensure that innovation and collaboration continue to thrive.