Elastic’s Open Source Reversal: Breaking the Licensing Trend
In the volatile world of commercial open source, licensing battles are nothing new. Major players like Grafana and Element have shifted to restrictive copyleft licenses, while others like HashiCorp abandoned open source entirely. But Elastic, the $8 billion force behind Elasticsearch and Kibana, just bucked the trend by returning to open source after four years of proprietary licensing.
The Backstory: Why Elastic Went Proprietary in 2021
Elastic’s 2021 shift to closed-source licenses stemmed from a high-profile clash with AWS, which offered a managed Elasticsearch service under the “Amazon Elasticsearch” brand. While AWS complied with Apache 2.0 licensing terms, Elastic argued the branding caused market confusion.
“The issue wasn’t AWS offering our software—it was the trademark violation,” explained Elastic CTO and co-founder Shay Banon. “Legal battles take years, and by then, the damage is done.”
After settling its trademark lawsuit, Elastic’s licensing change forced AWS to fork Elasticsearch into OpenSearch, now under the Linux Foundation.
Why Return to Open Source Now?
With OpenSearch established, Elastic saw an opportunity to realign with its roots. Key factors driving the decision:
- Community trust: Banon emphasized, “I love open source. It’s magical—it encapsulates freedoms developers cherish.”
- Market perception: Users often filter tools by “open source” status, impacting adoption.
- Strategic flexibility: AGPL licensing offers protections while meeting OSI standards.
The Licensing Compromise: AGPL Over Apache 2.0
Elastic didn’t fully revert to its original permissive license. Instead, it adopted AGPL, which:
- Requires derivative works to use the same license
- Is OSI-approved (unlike Elastic’s previous SSPL license)
- Balances openness with safeguards against commercialization by third parties
What’s Next for Elastic and Open Source?
Banon hopes to collaborate with the Open Source Initiative (OSI) to refine licensing frameworks, ideally blending AGPL and SSPL principles. For now, simply reclaiming the “open source” label marks a significant win—for Elastic and its community.
“Open source isn’t just about code access,” Banon noted. “It’s about community, collaboration, and the freedoms that define our industry.”
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