InfluxData vs. MongoDB: Lessons from Two Different Open Source Monetization Approaches
In 2016, when InfluxData was deciding how to monetize their open source database, they looked to MongoDB for inspiration. In a recent episode of Category Visionaries, CEO Evan Kaplan revealed how studying MongoDB’s approach helped shape their strategy, while also highlighting how their paths ultimately diverged.
The MongoDB Blueprint
“What Paul got right completely was that approach to the time series category by making it schema list, by building the capabilities directly in, by allowing it to scale horizontally,” Evan explains, acknowledging MongoDB’s influence. “And what Mongo got right was in a world where Oracle and postgres were the standard, they figured out something, a document database that was really easy to use, super easy for developers to work with in the beginning.”
This core insight – prioritizing developer experience – became central to both companies’ strategies, but their monetization approaches took different paths.
Different Problems, Different Solutions
While MongoDB focused on document databases, InfluxData targeted time series data. As Evan describes their niche: “The thesis here is really simple, which is we want our systems to be smarter and smarter, but we want them to be, at a minimum, correctable. Then you want them self healing, and then you want them autonomous. Well, it turns out every stage of that journey is about instrumentation over time.”
The Monetization Challenge
Both companies faced the fundamental challenge of open source monetization: “You’re a phenomenal open source company if you could monetize 1% of your community,” Evan reveals. This stark reality forced both companies to make critical decisions about their business models.
InfluxData’s Multi-Pronged Approach
InfluxData opted for what Evan calls an “open core” model: “The open source is free, it’s completely useful, but once you get up to a certain scale, you have to buy our closed source software.” They also diversified their offering: “We offer the product, we offer it in a serverless form in the cloud, so people can just pay you go serve. We offer a dedicated form in the cloud, and then we offer it on prem.”
The Clustering Decision
A pivotal moment came when InfluxData decided to move clustering to their enterprise offering. “We had planned on keeping the clustering and the high availability in the open source… But we were faced with kind of an existential threat as we couldn’t keep funding the company and building the database if we didn’t find a way to monetize.”
Building Community While Building Business
Both companies recognized that success required more than just great technology. For InfluxData, this meant focusing on what Evan calls “enrollment” – bringing stakeholders along rather than dictating direction. “If I have to tell somebody to do something, I’ve already lost. So my view is I have to enroll people in whatever we’re doing.”
Key Lessons for Founders
The parallel journeys of InfluxData and MongoDB offer several insights for founders building open source companies:
- Developer experience is paramount
- Multiple monetization paths increase chances of success
- Community management is as important as code
- Hard decisions about features are inevitable
As Evan notes, “My philosophy after my three long stints as a CEO is if you can get 60-65% of the stuff you’re doing right, you’re going to have an amazing company.” This pragmatic approach to building sustainable open source businesses has served both companies well, even as they took different paths to success.
The story of these two companies demonstrates that there’s no single “right” way to monetize open source software. Success depends on understanding your specific market, your community’s needs, and being willing to make tough decisions when necessary. What matters most is building a sustainable business that can continue investing in the technology and community over the long term.