From Project to Product: How Unleash Transformed Open Source Adoption into Enterprise Sales
Most open source companies face a critical dilemma: how do you monetize without alienating your community? In a recent episode of Category Visionaries, Egil Osthus revealed how Unleash, the world’s largest open source feature management platform, cracked this code by rethinking the traditional open core model.
Starting with Developer Value
Unlike most companies that start with a business model and try to build community later, Unleash began as a pure open source project. “It was launched as an open source because developers want to give back to community, share their code and really be part of a larger community,” Egil explains.
This organic approach led to natural adoption, solving a critical pain point for developers. “Releasing software today often is a very tedious and stressful moment for most developers, software engineers. And what we do, we are taking away that stress.”
The Monetization Challenge
When it came time to build a business, Unleash faced intense internal debate. “When I talk to our sales team, they want us to kind of just slim down the open source, make it like as few features, no support, anything,” Egil shares. But they took a different path.
Instead of artificially restricting features, Unleash identified natural monetization points around organizational scale. The transition happens organically “when you start scaling from individual developers into kind of teams, large organization, more kind of compliance needs.”
Building Enterprise Features
Their enterprise offering focuses on capabilities that matter at scale. “Some of the features, it’s very kind of obvious. Like single sign on. We do offer single sign on out of the box in enterprise,” Egil explains. “Other more kind of complex needs such as large number of projects, or multiple environments, or role based access control with custom roles mapped back to your ad or whatever kind of authentication tooling you’re using.”
The Technical Success Approach
Rather than traditional customer success, Unleash built a technical support model. As Egil describes it, it’s about “having technical people sitting together with developers, leaders, architects, similar kind of profiles, and really make them getting the most out of the product as absolutely possible, making their everyday life and processes as easy as absolutely possible.”
Managing Community Relations
The key to successful monetization was maintaining community trust. “We are fortunate to deal with a very skilled audience or market. I mean, developers, they are bright people. They are seeing right through if we do not have integrity in what we do,” Egil notes.
This meant being upfront about their commercial intentions while continuing to invest in the open source product. “There is a very clear tension between the commercial drivers because we are hairful business for sure. At the same time there is a tension between a commercial aspect of the company and the open source side of the company,” Egil acknowledges. “What we decided to do very early on is basically train on getting this tension right.”
The Results
This balanced approach has led to impressive growth: 16.5 million Docker pulls and approximately ten thousand community members. More importantly, it’s created a sustainable business model that doesn’t compromise their open source values.
For founders looking to monetize open source projects, Unleash’s journey offers a clear framework: start with genuine value, identify natural enterprise needs rather than artificial restrictions, build technical-first support, and always maintain community trust. The path to revenue doesn’t require compromising your open source principles – it requires aligning them with enterprise needs.