| Closed (Source) Core | Open (Source )Core | |
|---|---|---|
| Company examples | Facebook / Salesforce / Oracle / Twilio | Liferay / Red Hat / Elastic / GitLab |
| Business models | Many, often advertising, SaaS, cloud, etc. | Many, often cloud serivces, value-added IP, insurance |
| Capitalism | Shareholder-Oriented, Value-Capture Focused | Stakeholder-Oriented, Value-Creation Focused |
| Category | "SaaS" / "Cloud" | COSS |
| Distribution | Costly, Permissioned | Free, Permissionless |
| Funding/Capitalization | Largely Capital Intensive | Highly Capital Efficient |
| GTM/Sales | Top-Down-First (mostly), Community Exploitative | Bottoms-Up-First, Community Nurturing |
| Hiring | Geo-Concentrated / Office-First | Geo-Distributed / Remote-First |
| Innovation Strategy | Ivory Tower | Often Disaggregated |
| Primary Output | Distribution (1-to-N) | Technology (0-to-1) |
| Software Licensing | Fully Closed Core and Partially Open-Source Crust | Open Source Core, Proprietary (not necesarrily Closed-Source) Crust |
| Patents | Usually covered by a patent portfolio | Rarely covered by a patent portfolio |
| Market dynamics | Macro, Vulnerable, Push | Micro, Secular, Pull |
| Marketing | User = Lead, Funnel Modeling | User != Lead, Ecosystem Modeling |
| Innovation | Zero Sum, Trends towards homogeneity | Positive Sum, Trends towards heterogeneity |
| Product development | Single Roadmaps | Dual/Multi Roadmaps |
| R&D | Always Centralized | Often decentralized at least in part |
| Tech/Company Relationship | Core software/tech tightly coupled to company | Core software/tech loosely (if at all) coupled to company |
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Comparing fundamental differences across Closed Core vs. Open Core oriented companies
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