[{"data":1,"prerenderedAt":699},["ShallowReactive",2],{"/en-us/blog/five-ways-resist-service-wrapping-buyer-based-open-core/":3,"navigation-en-us":36,"banner-en-us":447,"footer-en-us":460,"Vanessa Wegner":672,"next-steps-en-us":684},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"seo":8,"content":16,"config":26,"_id":29,"_type":30,"title":31,"_source":32,"_file":33,"_stem":34,"_extension":35},"/en-us/blog/five-ways-resist-service-wrapping-buyer-based-open-core","blog",false,"",{"title":9,"description":10,"ogTitle":9,"ogDescription":10,"noIndex":6,"ogImage":11,"ogUrl":12,"ogSiteName":13,"ogType":14,"canonicalUrls":12,"schema":15},"5 Ways to resist the threat of service-wrapping with buyer-based open core","Commercial open source businesses are at risk of commoditization by hypercloud providers – here are some ways to avoid the trap.","https://res.cloudinary.com/about-gitlab-com/image/upload/v1749680537/Blog/Hero%20Images/osls-buyer-based-open-source.jpg","https://about.gitlab.com/blog/five-ways-resist-service-wrapping-buyer-based-open-core","https://about.gitlab.com","article","\n                        {\n        \"@context\": \"https://schema.org\",\n        \"@type\": \"Article\",\n        \"headline\": \"5 Ways to resist the threat of service-wrapping with buyer-based open core\",\n        \"author\": [{\"@type\":\"Person\",\"name\":\"Vanessa Wegner\"}],\n        \"datePublished\": \"2019-04-03\",\n      }",{"title":9,"description":10,"authors":17,"heroImage":11,"date":19,"body":20,"category":21,"tags":22},[18],"Vanessa Wegner","2019-04-03","\n\nGitLab makes money as a commercial open source software (COSS) business. As you\nmight imagine, open source is at risk of becoming commoditized, just by its\ninherent characteristic of being completely … open. In today’s age of hyperclouds,\nopen source businesses are under threat of [service-wrapping via cloud\nproviders like Amazon](https://aws.amazon.com/blogs/aws/new-open-distro-for-elasticsearch/), Microsoft, and Google.\n\nTo avoid commoditization, [GitLab has tried a number of business models](/blog/monetizing-and-being-open-source/), from\ndonations to consultancy to single-tenant service, but none of them worked.\nFinally, we settled on open core. At this year’s Open Source Leadership Summit,\nour CEO [Sid Sijbrandij](/company/team/#sytses) talked about where GitLab has hedged its bet to avoid becoming obsolete.\nAs Sid describes in the presentation below, there are five key methods for resisting\ncommoditization with buyer-based open core.\n\n## Watch the presentation\n\n\u003C!-- blank line -->\n\u003Cfigure class=\"video_container\">\n  \u003Ciframe src=\"https://www.youtube.com/embed/G6ZupYzr_Zg\" frameborder=\"0\" allowfullscreen=\"true\"> \u003C/iframe>\n\u003C/figure>\n\u003C!-- blank line -->\n\n## Key takeaways\n\n### What is buyer-based open core?\n\nBuyer-based means that GitLab offers [four different tiers of the software](/pricing/), which offer different functionality based\non what each buyer persona needs.\n\n### How do you generate revenue with buyer-based open core?\n\nEach tier focuses on what the buyer wants – and nothing more. It is also priced\naccordingly. Those at a higher level in the organization often have more budget\nauthority – so they can spend budget on what provides value for them.\n\n### How can COSSes avoid commoditization?\n\n1. Insert proprietary functionality in a majority of your use cases.\n1. Offer many proprietary features.\n1. Offer interaction through a user interface, rather than through APIs.\n1. Cater to price-insensitive buyers.\n1. Attract users that rarely contribute to open source.\n\nLearn more about these best practices and how GitLab has implemented them by\n[watching Sid’s presentation](https://youtu.be/G6ZupYzr_Zg), or viewing his slides below:\n\n\u003Cfigure class=\"video_container\">\n\u003Ciframe src=\"https://docs.google.com/presentation/d/e/2PACX-1vRzKYXPPenZlKkbun3AklJP-xgrC4ga-AqBRyVxOAs2tczZ1VNNUGriYy0vF8iBccuT58rDcwateT3P/embed?start=false&loop=false&delayms=3000\" frameborder=\"0\" width=\"960\" height=\"569\" allowfullscreen=\"true\" mozallowfullscreen=\"true\" webkitallowfullscreen=\"true\">\u003C/iframe>\n\u003C/figure>\n\nCover image by [Nastuh Abootalebi](https://unsplash.com/@sunday_digital) on\n[Unsplash](https://unsplash.com/photos/eHD8Y1Znfpk)\n{: .note}\n","open-source",[23,24,25],"community","open source","inside 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