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Monetizing Open Source: Support and Security

Key Points

  • The discussion centers on how open‑source contributors can monetize their work, emphasizing Red Hat’s model of charging for enterprise‑grade support rather than the code itself.
  • Red Hat transforms community projects into polished products by hardening, stabilizing, and providing lifecycle management that lets customers choose supported versions.
  • Comprehensive support includes proactive security measures, positioning risk mitigation as a board‑room priority rather than just an engineering concern.
  • The company adds value through automated, AI‑driven patching and remediation, offering faster, predictive security updates that the open‑source community alone cannot guarantee.
  • This combination of reliable support, lifecycle guarantees, and advanced security tooling creates the business‑value layer that enables companies to earn revenue from open‑source technologies.

Full Transcript

# Monetizing Open Source: Support and Security **Source:** [https://www.youtube.com/watch?v=7_gRjg7DIUw](https://www.youtube.com/watch?v=7_gRjg7DIUw) **Duration:** 00:05:59 ## Summary - The discussion centers on how open‑source contributors can monetize their work, emphasizing Red Hat’s model of charging for enterprise‑grade support rather than the code itself. - Red Hat transforms community projects into polished products by hardening, stabilizing, and providing lifecycle management that lets customers choose supported versions. - Comprehensive support includes proactive security measures, positioning risk mitigation as a board‑room priority rather than just an engineering concern. - The company adds value through automated, AI‑driven patching and remediation, offering faster, predictive security updates that the open‑source community alone cannot guarantee. - This combination of reliable support, lifecycle guarantees, and advanced security tooling creates the business‑value layer that enables companies to earn revenue from open‑source technologies. ## Sections - [00:00:00](https://www.youtube.com/watch?v=7_gRjg7DIUw&t=0s) **Monetizing Open Source with Support** - Nadhan explains how Red Hat turns open‑source projects into enterprise‑grade products and generates revenue by offering hardened, lifecycle‑managed software plus paid support services. - [00:03:12](https://www.youtube.com/watch?v=7_gRjg7DIUw&t=192s) **Secure Platform, Focus on Value** - The speaker argues that by trusting a secure, compliant platform—illustrated with Kubernetes and OpenShift—companies can concentrate on their core differentiators and deliver the last 10% of value to customers instead of worrying about platform security. ## Full Transcript
0:00Welcome to Tech Talk! 0:01We're continuing our series on Open Source. 0:03And I have invited with us Nadhan, the Red Hat guy. 0:07And I really wanted to follow up on a question that came up in our recent video. 0:11We were talking about open source and how much people love it. 0:16But they asked, "How do we make money doing this?" 0:19And I thought I addressed this in the video. 0:22But I mentioned there was a foundational layer that you can use then to build business value in the last percentage. 0:31And I kind of alluded to support, but maybe I didn't cover it all too well. 0:35Being able to charge for that. 0:37This is part of the Red Hat business model. 0:39Can you elaborate on these points for our viewers? 0:42Absolutely, Dan. I'm going to start with support. 0:45Support is something that you really get to when something breaks. 0:49You want a foundation and you want to build up on it, and you want to actually secure it. 0:54You want to make it enterprise-grade from the get-go. 0:56What am I talking about? 0:58I am talking about going from project to product. 1:03And what's the difference? 1:04So when it comes to product, what Red Hat does is, we not only have employees who are paid to contribute in the open source community. 1:12We actually take a set of projects and then harden them. 1:16We stabilize them. 1:17That's what you get with a product. 1:20You get a lifecycle management. 1:22So that customers can actually use the version that best fits their needs and they have the support needed. 1:29Now, another way to mitigate support-- the need for support --is to make sure that you're ahead of the game 1:37when it comes to security. What comes to your mind, Dan, when you think about security? 1:42There's a lot-- that's a hot issue, quite honestly. And it can cause quite a panic. 1:46We've had some stirs and problems and break-ins and breaches and stuff like that. 1:52That can really drive a company crazy. 1:55How is it that this helps in the security? 1:58To your point, security is actually a boardroom topic. 2:01It is not a bunch of engineers and just hardware and software or applications thinking about it. 2:07It's risk management. 2:08It is mitigating risk. 2:10And you want to be ahead of the game. 2:12You want to be ahead of the hackers. 2:14So proactive remediation is what I'm talking about. 2:17I'm talking about automated patching. 2:19So if you leave it to the open source community, you don't get that type of "looking for what is the next vulnerability". 2:27What is the next issue that is likely to crop up? 2:30What we do is, we have products that would actually track what what types of remedial measures were taken and apply artificial intelligence to that. 2:40So that we can predict and then also be proactive about the remediation. 2:46And then that is automated patching for different types of products that we actually provide. 2:52And there have been vulnerabilities because it was manually patched in the open source community. 2:58And that's where the automated patching-- which you get with product and you don't with project. 3:04So you're saying that's where the value-add, where the business value-add, that other companies can then offer for open source project. 3:12Is that kind of the model you're proposing? 3:15Well, tweak it a little, Dan. 3:16If you are secure on that foundation with the product, you can add business value with your core competencies. 3:26Maybe you are building a soft drink, or maybe you're flying an airline, or running a bank. 3:30And you can focus on that-- that differentiates your business --rather than worrying about "Is my platform secure or not?" 3:38Can I focus on the last 10% that really delivers value to my customers? 3:42Exactly. 3:42Got it. 3:43And so let's cite a specific example. Like, for example, Kubernetes is a project and OpenShift is a product. 3:51How does the security issue come into play specifically with it? 3:55Absolutely. 3:55So security is not-- so Kubernetes is a library-- a set of projects. 4:01Now, Kubernetes is also-- there is a reason why it is getting the traction it is-- 4:06--because there are different companies. 4:08Google started it, Red Hat joined. 4:10And then now it is available across multiple cloud providers. 4:15But there is something to be said about being compliant-- 4:20--no matter what hardware vendor you are working with, or which software vendor you are needing to integrate. 4:25Or which, hybrid cloud / cloud provider you are working with. 4:29You want to be on a platform that is secured and compliant no matter where you are applications are running. 4:36That is really what makes it a platform that allows you to work with the ecosystem. 4:42And this also mitigates risk because, Dan, you don't want to actually hit that panic button for support. 4:49If you make sure you are working with the ecosystem, 4:53you are certified on hardware, you are compliant, and you're patching, and you are secure. 4:56And with lifecycle management, the chances that you will actually make that support call-- you are actually reducing it. 5:03You are mitigating risk. 5:04So strong foundation-- very minimal support, only as needed. 5:10Got it. 5:10And so the takeaway message from this is, is that open source is a bus you can get on essentially. 5:17Enterprise open source! 5:18Fair enough. 5:19And you can ride along, but not necessarily have to drive the bus. 5:23Yes. 5:24In fact, please don't. 5:25Because it takes multiple companies, not just contributors. 5:29And open source is fun. 5:31Let's face it. 5:32Transformation is not just a week's project. 5:35And it's not a destination, it's a journey. 5:39And what we are transforming to today could change tomorrow. 5:43That's where the ride is fun. 5:44The open source ride. 5:45The enterprise open source ride. 5:47Excellent. 5:47And that's a good note to end on. 5:49So we're going to wrap with that. 5:51If you'd like to hear new topics on Tech Talks, be sure and drop us a line below. 5:56And before you leave, please remember to hit Like and Subscribe.