Cockroach Labs, the company behind the distributed SQL database CockroachDB, has announced a change in licensing strategy, consolidating its self-hosted product under a single enterprise license. This move aims to encourage larger businesses to pay for premium features based on the number of CPUs or cores in the deployment server system.
Startups below a certain revenue threshold will continue to have access to the enterprise version at no cost, with the hope that as they grow, they will eventually transition to a paid model. Cockroach Labs’ co-founder and CEO Spencer Kimball mentioned that the revenue threshold will be self-attesting, relying on an honor system.
The company’s decision to change its licensing model fits within a broader trend in the enterprise software sector, with companies like HashiCorp, Element, and Sentry also making adjustments to their licensing terms. With these changes, Cockroach Labs aims to strike a balance between offering value to smaller customers for free while ensuring a fair exchange of value with larger enterprises.
The Origins of Cockroach Labs
Founded by Kimball, Mattis, and Darnell, Cockroach Labs traces its roots back to the creation of the GNU Image Manipulation Program (GIMP) by Kimball and Mattis in the nineties. After a brief stint at Google and the launch of a photo-sharing app called Viewfinder, the groundwork for CockroachDB was laid during their time at Square, with the first open source commit occurring in February 2014.
The trio left Square to establish Cockroach Labs in 2015, securing funding and launching CockroachDB the following year. Over time, Cockroach Labs has raised substantial capital and gained recognition for its resilient and scalable database solution.
The Rise of ‘Source Available’ Model
As hyperscalers like Amazon began offering managed versions of open source projects, companies like Elastic and Cockroach Labs transitioned to a “source available” license model. This approach provides the benefits of open source while restricting commercial exploitation without licensing fees.
Kimball highlighted the challenges faced by startups and large enterprises under the previous licensing model, leading to the decision to consolidate all self-hosted deployments under a single enterprise license. This change, effective with the launch of CockroachDB version 24.3 on November 18, aims to provide startups with access to enterprise-grade features while ensuring a fair exchange of value as they scale.
The Continued Evolution of Open Source
Despite shifting licensing trends, open source remains a fundamental component of the software ecosystem. While some commercial projects may lean towards closed-source models to monetize services, the value of open source components and tools continues to thrive.
Kimball expressed confidence in the longevity of open source components while acknowledging the evolving landscape of commercial software projects. As Cockroach Labs navigates these changes, the company remains committed to delivering quality solutions to its diverse customer base.
