HashiCorp’s License Change: A Step Away from Open Source Ideals?

Alexander Obregon
4 min readAug 17, 2023

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Introduction

In a recent and significant move, HashiCorp, a stalwart in the DevOps and Infrastructure as Code (IaC) spaces, announced a change in its source code license. HashiCorp’s products, notably Terraform — one of the most effective and widely used tools in the IaC landscape — had been under the Mozilla Public License v2.0 (MPL 2.0). Now, HashiCorp will use the Business Source License (BSL) v1.1 for all future releases of its products. This shift marks a critical juncture not only for HashiCorp, but also for the broader open-source community.

Background

When HashiCorp was founded, the company strongly believed in the open-source ethos: freely available source code, building a community around their products, and maintaining transparency for users. These beliefs, instilled by founders Mitchell Hashimoto and Armon Dadgar, were core to the company’s identity and its relationship with the developer community.

The BSL: What It Is and Why It’s Different

The BSL is a source-available license, allowing copying, modification, redistribution, non-commercial use, and limited commercial use. Under the BSL, end-users can continue to use the codebase as they did before, except when providing a competitive offering to HashiCorp. This is a sharp contrast to the MPL 2.0, which is a free and open-source license.

The Reason for Change, According to HashiCorp

HashiCorp states that the change is a response to vendors who take advantage of pure open source models for their own commercial goals, without meaningful contributions back to the projects they utilize. HashiCorp sees the BSL as a pathway to sustainably share its source code while maintaining more control around commercialization.

The Potential Drawbacks of HashiCorp’s Decision

Stifling Innovation

One of the strongest arguments for open-source licensing is that it fosters innovation. By restricting how its software can be used commercially, HashiCorp may inadvertently stifle the very innovation that open source is designed to foster.

Community Distrust

Open-source thrives on a sense of community and mutual trust. This change could erode the trust that many in the community have placed in HashiCorp and its products.

Reduced Collaboration

Under a more restrictive license, other companies and developers may be less inclined to contribute to HashiCorp’s projects, potentially resulting in a reduced rate of improvement and innovation for their products.

A Trend Away from Open Source?

HashiCorp isn’t the first company to move in this direction. Other major players like MongoDB, Elastic, and Redis Labs have made similar moves. This growing trend raises questions about the future of open-source software and whether more companies will follow suit, shifting the landscape of free and open software development.

Why This Matters

For HashiCorp and many other companies, this isn’t solely a business matter; it’s a question of principle. The transition from MPL to BSL by HashiCorp has significant ramifications, potentially stifling innovation and imposing restrictions on how Terraform and other tools can be used commercially.

OpenTF

In response to HashiCorp’s decision and similar moves by other companies, a new initiative known as OpenTF has emerged. OpenTF is a community-led effort aimed at maintaining an open and collaborative environment within the Infrastructure as Code (IaC) space, irrespective of corporate interests or license changes.

The Objectives of OpenTF

OpenTF seeks to provide a vendor-neutral home for Terraform providers and seeks to ensure that the broader community can continue to innovate, collaborate, and freely use and modify the code. Its goal is to uphold the principles of free and open-source software (FOSS) in the face of increasingly restrictive licensing terms.

Why OpenTF Matters

As licensing changes like HashiCorp’s become more common, there is a growing need for a resilient community response. OpenTF represents a collective effort to uphold the principles that have long defined the open-source world: collaboration, transparency, and unrestricted innovation. It is an initiative that seeks to keep the ‘open’ in ‘open source,’ even as the terrain of software licensing becomes more complex and contentious.

Spacelift’s Role in OpenTF

Companies like Spacelift have shown significant support for OpenTF, recognizing the importance of maintaining an open ecosystem around Terraform and related technologies. Their involvement in OpenTF signifies not just a commitment to their business, but also a principled stance on the future of open source in the face of changing licensing norms.

This grassroots initiative, supported by companies and individual contributors alike, is a testament to the strength and resilience of the open-source community. It exemplifies the belief that the best way to solve complex problems is through collaboration and open exchange of ideas and code, without the encumbrance of restrictive licenses.

Conclusion

HashiCorp’s decision to adopt the BSL marks a significant departure from its founding principles and adds to a growing trend of companies moving away from pure open source models. It begs the question: is this a sign of the evolving future of software development, or a step away from the collaborative, open environment that has driven innovation for years?

In an industry built on trust, transparency, and collaboration, this move by HashiCorp is undoubtedly going to be a topic of intense debate for some time to come. It is a reminder that the ideals of the open-source community are not just philosophical; they have practical implications on the software that powers our world.

  1. Read Spacelift’s Blog Post on the Subject
  2. Learn More About OpenTF On Github
  3. OpenTF’s Manifesto

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Alexander Obregon

Software Engineer, fervent coder & writer. Devoted to learning & assisting others. Connect on LinkedIn: https://www.linkedin.com/in/alexander-obregon-97849b229/