That's not how it works.
Open source makes it trivial for the nerds inside a company to deploy. Soon, they start taking advantage of various APIs and integrations. They'll have scripts written in Bash, Perl, Python, Ruby and what not talking to various API endpoints, communicating with other systems using JSON, XML, etc. Every single bot or integration like that is one more "tentacle".
Without signing a contract or even having the board or upper management discuss it, the organization is now entrenched with this piece of software. Comes along a new regulation for your industry; GPDR, SOX, HIPAA, etc. It doesn't matter. What do you do? Fortunately, the provider of your "open source" (or rather: open core) solution offers features supporting your use case. You just have to upgrade from the MIT-licensed core, community edition to the enterprise edition, for $xx,xxx per year.
Nobody cares about that. Sales and value is what matters in the real-world. Gitlab has sales from customers who have proven they value the product. That's where the valuation comes from.
It doesn't matter if you can clone it exactly tomorrow. Go ahead and do so. It won't give you the same valuation and it won't hurt theirs because that's not how it works.
Right. And next you’re going to tell me that the majority of their users don’t just download the software and deploy it without paying.
Gitlab as a company is about a precarious as Docker as a company. Most of its users are using it for free, and the few that are paying would happily pay anyone else who provided support for the same software. It’s a commodity.
All freemium business models have a large free usage tier. This is completely unsurprising.
But yes, many people also pay Gitlab for enterprise features (which are not open-source), hosting, support, and more. If they would pay anyone else then why aren't they using Github? If they just wanted git itself then why aren't they using the numerous lightweight alternatives?
Business isn't as simple as replicating a product, it's about selling value, and Gitlab has a unique solution that covers the entire software lifecycle. I'm sure you know all this but yet you've made numerous posts disparaging this company. Why, exactly?
I love how the gitlab fanboys try to have it both ways.
When arguing why it’s better than alternatives, the talking point is that “it’s open-source!” But when it’s (rightfully) pointed out that this doesn’t leave much of a defensive moat, the open-source philosophy gets thrown under the bus.
Yes, yes...it’s “open core”. That just means that it’s 10% more difficult to clone and replicate the business. Mark my words: someday, Gitlab will do something to piss off the “community”, and this will quickly happen.
It’s pretty hard to claim a technical moat when most of what you sell can be replicated with a repo fork.