});
Back

anti-cloud resell clauses

The term anti-cloud resell clauses refers to a specific type of licensing strategy that has emerged recently in the software world in response to the "SaaS Loophole." The SaaS loophole is a gap in standard open-source licenses (like the GPL) where companies can modify software and run it on a server without ever having to release their source code, because network access technically doesn't count as "distributing" the software.


1. The Core Conflict: "The Free Rider Problem"

The definition mentions preventing hyperscalers (like AWS, Google Cloud, Microsoft Azure) from offering software as a "managed service." Here is the scenario these clauses try to stop:

  1. The Creator: A company (e.g., MongoDB, Elastic, Redis) spends millions of dollars developing a high-quality open-source database.
  2. The Hyperscaler: Amazon Web Services (AWS) sees that this database is popular. They take the free code, host it on their servers, wrap it in a billing interface, and sell it as "Amazon Managed Database."
  3. The Result: AWS makes billions of dollars because their infrastructure is convenient. The original creator makes $0 from those specific users and often loses potential customers to Amazon.

The creators view this as unfair: the hyperscalers are "strip-mining" open-source value without funding the R&D.

2. How These Clauses Work

Unlike the AGPL, which focuses on sharing code, "anti-cloud resell clauses" focus on commercial competition. They usually allow normal users to do whatever they want, but they specifically forbid selling the software itself as a service.

The logic usually looks like this:

  1. You CAN: Download the software, use it for your internal business, build an app on top of it, and use it for free.
  2. You CANNOT: Take the software, host it, and sell "access to this software" to others as your primary product.

3. Key Examples (The "Source Available" Shift)

Because these clauses restrict how you can use the software, the resulting licenses are no longer considered "Open Source" by the strict Open Source Initiative (OSI) definition. They are instead called "Source Available."

Famous examples include:

  1. MongoDB (SSPL - Server Side Public License): Created because cloud providers were reselling MongoDB. It says: "If you offer this as a service, you must open-source your entire cloud management stack." (Which no cloud provider will do).
  2. Elastic (ELv2): Elastic (creators of Elasticsearch) switched licenses after Amazon launched a competing service using Elastic's own code. The new license forbids providing the software as a managed service.
  3. Redis (RSAL): Redis recently changed their license to prevent cloud providers from selling Redis instances without a commercial agreement.
  4. HashiCorp (BSL): Used for tools like Terraform (before the IBM acquisition), preventing competitors from building commercial platforms directly on top of their free code.

4. The Distinction: AGPL vs. Anti-Cloud Clauses

It is important to distinguish this from the AGPL we discussed earlier:

  1. AGPL Strategy: "If you run this in the cloud, you must share your code." (Ideological goal: Software freedom).
  2. Anti-Cloud Clause Strategy: "If you run this in the cloud to compete with us, you must pay us or stop." (Commercial goal: Protecting revenue).
Share: