There are hundreds of open source companies - many making gobs of money. Not all - many fail. This team has name recognition and a few successful projects already - Babel and yarn. I can see it working out.
JavaScript is one of the most popular programming languages. Millions of developers. With solid execution, there are monstrous markets here.
[citation needed]
It seems there may be many open source companies with tons of users, but they seem to struggle with monetization and turning those users into paying users.
Redhat which used to be the epitome of a company making money from open source got acquired by IBM.
A lot of other open source companies are switching to non-open source licenses.
That being said, a compiler toolchain is not so easily monetized as something like Grafana, which has obvious enterprise features that need filling in and which can be hosted as a cloud service, generating revenue that way.
I imagine the team has ideas for monetization, otherwise they would not have raised $4.5M from some top shelf venture capitalists. I would like to know what those ideas are.
> Eric Raymond, the founder of the Open Source Initiative and one of the authors of the standard-bearing Open Source Definition, said Kyle’s decision violated the fifth clause of the definition, which prohibits discrimination against people or groups.
That's true. The market is small and price-sensitive.
Does seem like quite a departure from the original premise of Rome, but it seems like a sensible strategy. FWIW many companies easily spend 6-7 figures on CI/CD per year, so there's definitely room to carve out a niche there.
I would like to see that measured.
My suspicion is that many developers are already too reliant on tooling and that reliance harms productivity rather than improves it. Bundling those tooling concerns eliminates some operational costs associated with a plurality of tools but increases dependency upon the tool.
This problem is not a technical problem (as in how do I solve a problem), but a cultural problem (as in what is the proper way to solve a problem). It comes down to the difference between a product focus (what do we ship) versus an operational focus (what do we work on).
On the contrary I would also say that I see a lot of developers not being reliant enough on tooling. A simple example is getting very acquainted with the debugger in your language of choice. It's very common to sprinkle logs everywhere instead of properly learning how to step through code.
Clearly they have a vision that investors thought was compelling enough to buy into.
Perhaps be patient and see what they announce in the future? This is their day one (zero?)..
If there was an easy answer here, someone else would have already done it.
edit: they (sort of) answer in another thread https://news.ycombinator.com/item?id=27039330
People used git because it was mandated for linux kernel work.
http://www.rockstarprogrammer.org/post/2008/apr/06/differenc...
GitHub, yeah absolutely, but git makes no money because noone pays for git.
Likewise, noone pays for command line package managers (in fact I doubt anyone pays for a command-line tool at all). So its ok to say it generates value, but if you can't caputre that value its not a sound business model.
like every open source company, they will sell additional services to companies. When you have millions of users you always find a way to monetize it, even if you think you are just a "javascript library". Redis is just a database, Word is just a text processor, ...
VCs fund startups which has the potential to 100x their returns right? How is that going to work here? How will they monetize a javascript library? Will we have an IPO for a javascript library? Or are they betting on a big tech company to acquire a Javascript library for 100s of millions of dollars? I am confused.