OSS for Commercialization
From free source code to sustainable businesses
Open source software (OSS), by definition of the external page Open Source Initiative, must allow anyone to use and redistribute the source code free of charge. Under the Exploitation Guideline (RSETHZ 440.4), the decision to distribute a computer program under an open source license, rather than a proprietary license, lies with the responsible Research Group Leader (normally the professor). Such distribution is permitted only if and as long as the specific requirements set forth in the Guideline are met, regardless of whether or not a company will be founded based on the OSS.
If an ETH Spin-off is established using OSS derived from ETH research results, the Business Creation Regulation (RSETHZ 440.5, effective 10 July 2025) applies. In such cases, since the OSS has already been licensed and distributed to the public, the ETH Spin-off does not need to obtain an additional license from ETH Zurich for the source code. However, the standard equity terms set out in the new Equity and Licensing Policy (RZETHZ 440.51, effective 10 July 2025) still apply to the ETH Spin-off.
Open Source Business Models
OSS can be the foundation of a thriving startup or a new extension of an existing business. There are different ways to build a business around OSS, and the following list shows some common models and examples:
Provide professional support, consulting, training, and maintenance services around open source software, creating sustainable revenue streams while keeping the core software free.
Examples:
- Red Hat: Enterprise Linux support and consulting services, generating $6B+ annual revenue through this model
- Canonical: Ubuntu enterprise support and cloud services
- MongoDB: Database support and professional services
Offer the same software under two different licenses: a restrictive open source license for community use and a commercial license for enterprises seeking proprietary integration.
Examples:
- Qt: Cross-platform application framework with dual licensinggener, generating €209M+ annually
- MySQL: Database with GPL and commercial licensing options
- Ghostscript: PostScript interpreter with dual licensing Qt
Complement a free, open-source foundation by premium enterprise features, advanced security and compliance tools, and specialized integrations available through paid subscriptions.
Examples:
- GitLab: provides basic Git hosting free, advanced CI/CD and security paid, with tiered pricing from free to $99/user/month.
- Elastic: Open search engine with premium security and ML features
- Docker: Container platform with enterprise orchestration tools
Embed open source software into physical devices, IoT products, and specialized hardware, with revenue generated through device sales while maintaining software transparency and community contributions.
Examples:
- Raspberry Pi: Open source software on affordable computing hardware
- Tesla: Open source automotive software with proprietary hardware
- Arduino: Open hardware designs with open source development environment
Certify OSS through rigorous validation and documentation for highly regulated industries, such as health care, aviation, and finance, where compliance is critical and stakes are high. Certified versions are offered at higher prices than standard editions. Some vendors also provide liability insurance to protect customers when deploying certified versions.
Key Examples:
- OsiriX MD: FDA-cleared medical imaging software for diagnostics
- Siemens Embedded: Certified Linux kernels for healthcare devices
- OpenAPS: FDA-approved algorithms for medical devices
While the software remains freely available, companies provide cloud hosting, managed infrastructure, automated scaling, and enterprise-grade SLAs for organizations seeking hassle-free deployment.
Key Examples:
- MongoDB Atlas: Fully managed database-as-a-service in the cloud
- Confluent Cloud: Managed Apache Kafka streaming platform
- WordPress: powers 43.5% of all websites through managed hosting
A free, open source platform serves as the foundation for a thriving ecosystem where third-party developers can distribute extensions, apps, and services through revenue-sharing models.
Key Examples:
- Android: Open source OS with Google Play Store monetization
- WordPress: Open CMS with premium plugin and theme marketplace
- Drupal: Open source CMS with commercial module ecosystem
Expand distribution and create new revenue streams through partnerships. This can include licensing pre-installation rights to device manufacturers, creating custom solutions by exclusive integration with partners, and allowing resellers to bundle open source with their own products.
Key examples:
- Mozilla Firefox generates $400M+ annually through partnerships with Search engine and default search deals
- LibreOffice: Enterprise partnerships and certification programs
- GIMP: Corporate training and customization partnerships
Software Commercialization at ETH Zurich
Please refer to the infographic below for an overview of the workflow and conditions involved in software (including OSS) development and exploitation at ETH Zurich. For detailed information please proceed to Commercializing Software.
