Many tech companies have shifted from open-source models to proprietary licenses driven by competition and investor pressure. However, this strategy has not yielded the expected financial benefits, resulting instead in stagnant growth and a loss of user trust. Evidence presented at the UK's State of Open conference shows that community-driven forks, which remain true to open-source principles, are thriving. Studies indicate no significant link between changing licensing and increased company value, challenging the effectiveness of this business strategy.
The theory behind going proprietary appears appealing, but companies that have switched licenses often experience stagnant growth and disillusioned users while community-driven forks thrive.
RedMonk's study found no clear correlation between changing licenses and increased company value, suggesting companies are misled about the financial benefits of going proprietary.
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