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User base #1 wants free (as in freedom and free beer) and open source software. Company wants to cater to them to generate goodwill.

User base #2 wants fully featured, fully supported, easy to use software, and doesn't care about the source code. Company wants to cater to them to make money.

Ultimately when the VC money runs out both these aims are going to be in direct conflict with each other, and you are going to have to pick a side. Companies pretty much always start by focusing on 1 (OSS contributors, enthusiasts, indie devs) and switch to 2 (corporate customers) over time. I have lost faith that any such project can walk this line successfully and stay true to group 1.



A rare few do. I think WordPress being the most noteworthy.


That's because it is owned by a non-profit foundation, and never took VC funding to begin with.


Are you sure that most users actually want #1, and not just free an in beer?




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