Sentry’s mandatory innovation contract

Sentry is an open source company. They make a piece of software that makes it easy to monitor the performance of software. And they sell this software as part of a monthly subscription model.

This subscription model is not what interests me. It is their open source software license.

By default Sentry’s open source license is protective of their product. Companies can see the code, and run an instance of their software. But they can’t resell the product. This protects Sentry’s business model.

However. After two years, the code becomes “generally” available, for anyone to do with as they please. That means that the version from two years ago is now ‘yours’, to build a business on. And every day, you can upgrade to Sentry’s version from exactly two years ago.

This is interesting - because it forces Sentry to innovate. For eternity, it will lock Sentry’s management into a situation where they have to improve the product to stay in business. Any features or improvements they add, must add so much value, that no customer would want to use an outdated 2 year old cheaper version of the product.

Even if Sentry was to change it’s software license, make it closed-source or lock it in any way, it would have to innovate ahead for another 2 years, before the changes would have any real effect. And the foundational product and code would then also, long be open and accessible.

It is a self-inflicted legal trap. It forces your company to be agile, oriented around product and adding real-world value. It locks out the money squeezers and predator investors.

I think it is brilliant