OpenSource Community vs. HashiCorp: OpenTofu takes Terraform's place

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Sometimes you should not pursue profit — this can have a detrimental effect on your reputation.

In response to HashiCorp's August change of their Terraform product's license to the Business Source License (BSL), a number of companies — including Terrateam, Harness, Gruntwork, Spacelift, env0, Digger, Massdriver, and Terramate-which previously relied on the open source version of Terraform-immediately launched their own public fork of the tool called Terraform. OpenTofu, which soon received support from the Linux Foundation.

David Mcgennett, CEO of HashiCorp, expressed his outrage at this combination of circumstances and stated: "If open source funds sponsor third-party forks, there will soon be no open source companies left in Silicon Valley at all."

Jim Zemlin, executive director of the Linux Foundation, responded to these statements as follows: "OpenTofu embodies our collective commitment to truly open collaboration in the field of infrastructure as code. This approach is in line with our shared goal of providing reliable and affordable tools for the tech world."

It is worth noting that among those companies that did not support changing the HashiCorp license, there were not only small organizations, but also real giants of the industry. So, the transition to OpenTofu was openly announced by the global insurance conglomerate Allianz.

As you might guess, many members of the open source community have criticized mcgennett. For example, Joe Brookmeyer of Percona noted: "The possibility of creating a fork is sacred. For the broader community, including companies implementing open source software, this is an insurance policy that provides everyone with the opportunity to purchase the software and continue to use, improve, and distribute it."

Mike Dollan, senior vice president of the Linux Foundation, said that Terraform exists as it is, only thanks to the support of the community, and it would take developers decades to recreate a product of such functionality on their own. Therefore, it is very selfish to change your business model to BSL.

Since HashiCorp's license change announcement, the company's stock has fallen 22% over the year and 27% since its last earnings report in late August. HashiCorp declined to comment on the current situation, but it is unlikely that the company's representatives will be able to find sufficiently weighty arguments to convince such a large and friendly open source community.

According to a study conducted last year by GitHub representatives , open source is currently the basis of more than 90% of software in the world.
 
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