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Open source software is essential for businesses: ways to maintain profitable relationships.

How Open Source Software Maintains Its Connection to Profit.

The open-source community plays a fundamental role in today's online business ecosystem by providing code that can be used for free. This situation is very advantageous for for-profit companies operating online these days. However, despite the selfless dedication of many developers who contribute their time to projects they value, these communities often require support to keep their systems robust and growing.

This backing typically comes from large corporations that sponsor or invest in these initiatives, whether with financial or labor resources. Although these partnerships are often beneficial for both parties, they can sometimes become strained due to misaligned incentives. A clear example of this was recently evidenced in the dispute between Matt Mullenweg, founder of WordPress and CEO of Automattic, and WP Engine, a hosting provider serving websites built on WordPress. Both companies utilize the open-source software managed by the WordPress Foundation and WordPress.org.

Mullenweg criticized WP Engine for some of its features and for using "WP" in its name, arguing that it caused confusion among users, making them believe they were associated with the official WordPress community. In response, WP Engine defended its position by sending a cease-and-desist letter, stating that its use of the brand was covered under the concept of "fair use." This conflict has created an intense struggle between the two companies, harming end users with inoperable websites vulnerable to attacks, affecting approximately 40% of websites on the internet that run on WordPress software.

The discussion not only impacts website management, as the infrastructure of the modern web largely depends on this kind of free open-source code. It is crucial for large corporations to recognize the importance of supporting the open-source community, not only from an altruistic perspective but also from a well-understood interest: the dependence on the infrastructure provided by these initiatives.

The advantages of open-source initiatives are numerous. The availability of a vast repository of software allows companies to accelerate their developments, reduce costs, and foster competition. It also offers a flexible solution by not having contractual restrictions, enabling users to integrate any third-party tools they wish. The transparency of open-source code, supervised by a large community of experts, helps identify and fix bugs quickly, contributing to a safer web environment.

Despite these benefits, corporations do not always choose to support these communities. The struggle between Automattic and WP Engine underscores that collaboration between public and private entities can be hindered by unclear usage guidelines or branding conflicts. Therefore, it is essential for open-source communities to effectively structure their projects, being aware of potential future challenges. While some choose to monetize their products, like Red Hat, which offers versions of its projects to companies, this can create branding issues if not managed properly.

Separating the operational bases of commercial entities and establishing good governance is crucial to reducing confusion. This, in turn, allows for the creation of large communities and generating incentives that motivate corporations to contribute. Once these foundations are established, companies will have many reasons to support open-source projects. Among these is their interest in the growth of these resources, which are crucial for promoting innovation.

Several companies sponsor open-source projects that cater to their specific needs, such as Google with the Python Software Foundation, where they invest significantly to address technical challenges within their use of the language. Additionally, reputation plays a role as developers tend to align with the ideology of keeping open-source code free from profit-driven intentions.

In a context of tensions, as evidenced by the recent decisions of some Automattic employees, it is vital for companies to give something back to open-source communities to cultivate a good reputation. This not only grants them access to valuable code but also the opportunity to discover and recruit outstanding talents from this community of contributors.

In summary, although sometimes the incentives between for-profit companies and open-source communities seem to be at odds, collaboration is essential to ensure the long-term stability of a web that we increasingly depend on in our daily activities.