Giving away code and making a living: open source contribution models

1. The paradox that isn't one

When you tell an SMB leader that the software you're offering is free, the reaction is almost always the same: "Yeah, but what's the catch?"

It's a fair question. We've been conditioned to believe that software is sold in a box (or a monthly subscription). The idea of giving away source code, the fruit of hundreds of hours of work, seems as absurd as opening a restaurant and handing out your recipes.

And yet, that's exactly what thousands of companies around the world do. Not out of starry-eyed altruism, but because the model works. It works so well, in fact, that 96% of organizations surveyed in 2025 maintained or increased their use of open source software compared to the previous year, and the open source services sector is growing at a compound annual rate of over 16%.

The "trick" is that in the open source economy, it's not the code you sell. It's everything around the code.

2. FOSS business models: not one, but many

There is no single model for making a living from free software. In practice, companies combine several approaches based on their size, market, and positioning.

2.1 The "professional services" model 

This is the oldest and most intuitive model: the code is free, but the expertise to deploy, configure, maintain, and evolve it has real market value.

This is the baseline model for any FOSS consulting firm, including Blue Fox. We deploy Nextcloud, Odoo, Vaultwarden, Matrix/Element and other tools for our clients. The software is free. Our time, skills, and support are not.

This model is ideal for:

• independent consultants and integrators
• small IT firms specialized in a FOSS ecosystem
• companies that want to offer a human service, not just a licence

2.2 The "open core" model

The core of the software is free and fully functional. But advanced features, often enterprise-oriented, are reserved for a paid edition.

This is Odoo's model. The Community Edition is published under the LGPL-v3 licence: CRM, inventory, sales, manufacturing, basic accounting, it's all there. The Enterprise Edition adds proprietary modules like Studio (no-code customization), manufacturing PLM, accounting OCR, and official support from Odoo S.A.

It's also the model used by GitLab (free Community Edition, advanced CI/CD and security features reserved for subscribers) and Mattermost (free self-hosted version + enterprise offering with compliance and advanced management).

Criterion	Open Core	100% free
Access to base code	✅ Free	✅ Free
Advanced features	❌ Paid	✅ Free
Official support	✅ Included in enterprise edition	❌ Community only
Financial viability	✅ Predictable recurring revenue	Variable (depends on services)
Lock-in risk	Moderate (proprietary features)	✅ None

2.3 The "SaaS / managed hosting" model

Here, the code is free, but the company offers a hosted and managed version, with updates, backups, monitoring, and support included.

Nextcloud is the textbook example. The software is entirely free, and anyone can install it on their own server. But Nextcloud GmbH offers enterprise plans with priority support, compliance features, and specialized integration. Nextcloud's revenue grows by about 25% per year.

Bitwarden works similarly: the code is on GitHub, but most users go through the paid cloud service.

2.4 The "support and subscription" model

This is Red Hat's model, now the largest commercial company built on free software. Red Hat doesn't sell software. It sells subscriptions that provide access to certified updates, technical support, and enterprise documentation.

The numbers are staggering:

• Red Hat reported ARR of USD 6.5 billion in 2024, with a compound annual growth rate "in the mid-teens"
• OpenShift (Red Hat's Kubernetes platform) reached USD 1.7 billion in ARR by 2025
• IBM, which acquired Red Hat in 2019 for USD 34 billion, considers it the most transformative investment in its history. Software margins for the segment reach 83.7%

RHEL's code is free (it's Linux), but the ecosystem of certification, support, and enterprise compatibility is what organizations buy.

2.5 The "foundation and ecosystem" model

Some projects are maintained by non-profit foundations, funded by contributions from large companies that use the software.

The Linux Foundation is the best-known example: hundreds of companies (Google, Microsoft, Intel, IBM, Huawei) fund the development of the Linux kernel, Kubernetes, Node.js, and many more. This isn't philanthropy. Each of these companies depends on Linux for its own products and services. Funding the foundation means protecting a critical asset.

Eclipse Foundation, Apache Software Foundation, and CNCF operate on the same principle.

3. Why companies "give away" code: the real incentives

Let's get down to business. When a company publishes code under a free licence, what does it actually gain?

3.1 Recruiting and retaining talent

Developers want to contribute to visible projects, not write code locked in a private repo that nobody will ever see. Publishing open source code is a strong signal: "Here, we do quality work, and we're not afraid to show it."

It's a massive recruitment advantage, especially when 93% of hiring managers struggle to find qualified IT talent.

3.2 Reducing maintenance costs

When your code is public, other people test it, report bugs, and suggest fixes. An Odoo module published under the MIT licence will be used by other integrators, who will find (and sometimes fix) issues you wouldn't have discovered on your own.

This is the principle behind Linus's Law: "Given enough eyeballs, all bugs are shallow." The more eyes on the code, the faster bugs are found and fixed.

3.3 Credibility and trust

A client who can read the source code of the tool being deployed has an assurance that proprietary software can never offer: total transparency. No backdoors, no hidden data collection, no dependency on a vendor who might change their terms tomorrow.

In Quebec, with Law 25 requiring organizations to know exactly where their data goes and how it's processed, this transparency isn't a luxury. It's a compliance asset.

3.4 The community leverage effect

When Odoo S.A. publishes its Community Edition under the LGPL licence, it doesn't "lose" revenue. It creates an ecosystem of 7,500 partners across 120+ countries who deploy, customize, and support the software. Each of these partners contributes modules, documentation, and translations. The result? Over 50,000 community modules on the Odoo store and a user base of 13 million people.

No company, no matter how wealthy, could pay to build that ecosystem alone. Free code did it organically.

3.5 Strategic positioning

Publishing free code can also be a competitive strategy. Google open-sourced Android and Kubernetes not out of generosity, but to reduce the market's dependence on Microsoft and Amazon respectively. When your competitor sells a proprietary product, publishing a free alternative changes the rules of the game.

On a much more modest scale, a consulting firm like Blue Fox publishes its in-house Odoo modules under the MIT licence for the same fundamental reason: prove our expertise, contribute to an ecosystem we use daily, and let others benefit from the work. In the long run, it makes the tool better for everyone, including our own clients.

4. The Blue Fox case: why we publish under the MIT licence

At Blue Fox, we develop Odoo modules tailored to Quebec realities: daycare centre management, Law 25 compliance, integrations with FOSS tools we deploy (Nextcloud, Vaultwarden, etc.). We publish these modules under the MIT licence, one of the most permissive licences out there.

Why MIT rather than GPL or AGPL? Because MIT essentially says: "Take this code, use it, modify it, sell it if you want. Just keep our name in the LICENSE file."

It's a deliberate choice:

• We're not in the business of selling code. We're in the business of selling expertise, support, and peace of mind. The code is a tool, not the final product.
• An MIT module can be integrated anywhere, including in enterprise projects or deployments by other Odoo partners. Less friction = more adoption = more eyes on the code = better quality.
• It's consistent with our values. We advocate for digital sovereignty and transparency. If we hid our own code, we'd be in a poor position to criticize Big Tech for doing exactly that.

Does that mean a competitor could take our modules and use them without paying us? Technically, yes. In practice? The module without deployment expertise, without knowledge of the Quebec daycare context, without ongoing support... it's like having a master chef's recipe without knowing how to cook. The real differentiator is us, not the .py file.

5. Concrete examples: from Belgian startup to billion-dollar giant

5.1 Odoo: from a Belgian farm to EUR 5.3 billion

Odoo's story is probably the most spectacular in the FOSS world.

Fabien Pinckaers started the project in 2002, from his farm in Belgium. OpenERP (Odoo's former name) was just another open source project. But the open core strategy (free Community Edition, paid Enterprise), combined with a growing partner network, created a snowball effect.

In 2024:

• Odoo exceeded EUR 650 million in annual revenue
• The company grows at 40-50% per year, profitably
• It hasn't needed to raise primary capital since 2014. Investors are lining up to buy secondary shares
• Its valuation reaches EUR 5.3 billion, with CapitalG (Alphabet/Google) and Sequoia Capital among the investors
• The community has over 100,000 active developers and 7,500 partners in 120+ countries

The message is clear: you can build a software empire by giving away your code. Revenue comes from the enterprise edition, hosting, support, and the partner ecosystem.

5.2 Red Hat: the original model

Red Hat invented the "support and subscription" model for free software. Linux is free. Red Hat Enterprise Linux is not, because what you're paying for is certification, guaranteed stability, security patches delivered on a predictable schedule, and 24/7 technical support.

IBM paid USD 34 billion to acquire Red Hat in 2019. Five years later, Red Hat contributed 17.5% of IBM's systems revenue and the Hybrid Platform & Solutions segment (largely powered by Red Hat) generated USD 18.8 billion in 2024 with software margins of 83.7%.

The lesson? Free code, well-packaged, well-supported, and well-positioned, can generate margins higher than proprietary software.

5.3 Nextcloud: sovereignty as a selling point

Nextcloud was born from a split with ownCloud in 2016. Frank Karlitschek, the founder, bet on a 100% free model: all code is available, with no features hidden behind a paywall.

The revenue model? Enterprise contracts for support, deployment, and compliance features. The German federal government, the European Commission, and hundreds of thousands of organizations worldwide use Nextcloud. Growth runs at about 25% per year.

What makes Nextcloud especially relevant for Quebec: your data stays where you decide to put it. On an OVH server in Beauharnois? Perfect. On your own infrastructure? Also fine. No US Cloud Act, no surprises.

5.4 Individual contributions: the long tail

Alongside the giants, there are thousands of independent developers and small firms contributing free code. Their motivations vary but converge:

• Building a public portfolio: an active GitHub profile is often more eloquent than a resume
• Solving a personal problem then sharing the solution: the origin story of most FOSS projects
• Creating a loss leader: a free module often leads to a paid customization contract
• Participating in an ecosystem: in the Odoo world, contributing modules on the community store brings visibility among potential clients

6. What this means for your organization

Let's get to the what's in it for you. If you're a Quebec SMB, a non-profit, or a daycare centre considering open source solutions, here's what the open source economy concretely offers you.

6.1 No vendor lock-in

With proprietary software, if the vendor raises prices by 30%, changes terms of use, or decides to drop support for your version... you're stuck. With free software, the code belongs to you. You can switch support providers without losing your investment.

6.2 Predictable and lower costs

No per-seat licences that balloon as your team grows. Investment goes into integration, training, and support, expenses that have tangible and immediate value.

Expense item	Proprietary (typical)	FOSS (typical)
Software licence	$$/user/month	✅ $0 (Community)
Hosting	Variable	Variable (comparable)
Integration	$$$	$$$ (comparable)
Annual support	Included or $$$	$$ (support contract)
Future migration	❌ Often costly/impossible	✅ Open code, migratable
Access to source code	❌ No	✅ Yes

6.3 Easier compliance

Law 25 requires you to know where your data goes and how it's processed. With proprietary software, you depend on the vendor's word. With FOSS self-hosted in Quebec, you control the entire chain: the code, the server, the backups, the access.

6.4 A mutual support ecosystem

When you adopt Nextcloud, Odoo, or Matrix, you don't become the client of a single company. You join a global community. Forums, community documentation, third-party modules, local integrators: the resources are significantly more diversified than in a closed ecosystem.

6.5 Contributing without being a developer

People often think contributing to FOSS means writing code. In reality, the most valuable contributions are often:

• Reporting bugs: every bug report improves the software for everyone
• Translating: most FOSS software lacks quality French translations
• Documenting: writing a user guide is an immense contribution
• Funding: some organizations like FACIL or CHATONS accept donations or memberships that directly support the francophone free software ecosystem

7. The honest limitations

FOSS is not magic. It takes expertise to deploy it properly. A poorly configured Nextcloud is no more secure than Google Drive. It's potentially worse.

The "100% community" model has its limits. As expert Vicky Brasseur notes in Business Success with Open Source (2025), no major open source company has survived on donations alone. You need a viable revenue model.

Updates and maintenance don't happen by themselves. The code is free, but the human time to manage it is not. That's precisely why paid support models exist.

"Open core" isn't perfect. When critical features are only in the enterprise edition (as is sometimes the case with Odoo), the "free" in Community Edition has practical limits. You need to evaluate case by case.

The question isn't "FOSS or proprietary?" in a binary way. It's: "Which tools, free or not, give me the most control, transparency, and value for my specific needs?"

A word from Blue Fox

At Blue Fox, we live this model every day. We deploy free software at daycare centres, non-profits, and Quebec SMBs. We develop Odoo modules that we publish under the MIT licence. We host Nextcloud and Vaultwarden instances on Canadian servers. And we pay our bills through the expertise we bring, not through licence keys.

When we contribute code to the world, we're not "giving away" our livelihood. We're enriching the ecosystem that our clients and we ourselves depend on. Every module shared, every bug fixed, every documentation improved comes back as quality, credibility, and trust.

Is that naive? Odoo at EUR 5.3 billion valuation could answer. Red Hat at USD 6.5 billion ARR too. At our scale, the answer is the same: free software is not a sacrifice. It's a strategy.

We support Quebec organizations that want to take back control of their digital tools, without depending on a California tech giant and without draining their budget on licences. The code is open. So is the door.

Sovereignty. Transparency. Community. That's how you build software that lasts.

#DigitalSovereignty #FreeSoftware #FOSS #OpenSource #Odoo #QuebecSMB #Law25 #Cybersecurity #FOSSContribution #OpenEconomy

Sources

• The Business Research Company, Open Source Services Market
• TechCrunch, Odoo raises $527M via secondaries
• CNBC, Alphabet's VC arm backs Odoo
• AVP Capital, Odoo S.A. announces €500M transaction
• IBM SEC Filing, Annual Report 2024
• Nasdaq, IBM Boosts Forecast on AI and Red Hat
• The Next Platform, IBM's Red Hat Acquisition
• Red Hat, IBM Closes Landmark Acquisition
• Mordor Intelligence, Open Source Service Market
• SocietyByte, Odoo's Open Core Model
• Odoo.com, Open Source Business Model
• Pragmatic Bookshelf, Business Success with Open Source (Vicky Brasseur, 2025)