HashiCorp, a company known for developing open tools such as Vagrant, Packer, Hermes, Nomad, and Terraform, has announced a change in their software license. Previously developed under the Mozilla Public License Version 2.0 (MPLv2), HashiCorp will now be implementing the Business Software License (BSL) 1.1 for all future versions of their products, excluding libraries, APIs, and SDKs. This new license does not meet the criteria set by the Open Source Initiative (OSI).
The decision to change the license was driven by the need to secure funding for their developments. HashiCorp sought to address the issue of companies using their code to create commercial cloud products without contributing to the community or participating in joint development efforts.
The BSL license was proposed by the co-founders of MySQL as an alternative to the Open Core model. Under this license, the expanded functionality of the code is initially accessible for modification, distribution, and copying only for non-profit use or the creation of commercial systems that do not compete with HashiCorp’s products and services. This restriction primarily targets cloud services that utilize HashiCorp systems to develop competing products. Separate licensing is required for the use of the code in competing commercial products. Additionally, after a certain period of time, the additional functionality automatically transitions to a free license, making it available for non-profit use and friendly commercial products.