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24 Comments

Profitable SaaS idea: Host open-source software?

How do you make money from open source?

Offer a hosting service around an open source project.

It all started with Wordpress

WordPress is open-source software. Most of the popular hosting companies (such as Hostgator) became popular largely due to them offering "managed Wordpress hosting".

Then came more specialized hosting companies; WPEngine makes more than 1 million in revenue, for example. If you type "wordpress hosting" into Google, you'll find hundreds of competing companies.

But it doesn't stop with WordPress

There are hundreds of open-source projects that people don't know how to setup and host.

Take any industry and you'll find many popular open-source projects for it:

How do we validate if there's any demand in terms of people wanting to host/use these projects?

People are trying to solve this pain point

There are freelancers already offering to install & host open-source projects.

If you look on Fiverr, you'll see freelancers offering installation and hosting services for Ghost:

ghost

For Sharetribe:

sharetribe

and for Moodle:

moodle

This can be a great form of validation; go to Fiverr, enter the open-source project name and check if there are any installation/setup projects related to it.

Where to find popular open-source projects

  1. Github. Github has topics pages for various categories you can monitor

  2. There are directories (like this one on open-source alternatives to proprietary software).

  3. Bitnami has a stacks page where you can also get some ideas.

Hope you found this post to be useful!

  1. 2

    Brilliant idea. Even better if you're already the maintainer of an open source project and looking to monetize it.

    In the beginning I wouldn't even automate it. Just put up a landing page with a payment link. Set everything up manually for the first few customers. Start working on the hosting automation after it gained traction.

  2. 2

    I was thinking of an open-source version of Loom, and still waiting for it to come out.

    1. 2

      Looks like you have yourself a business idea ;)

  3. 2

    I adopted the same strategy with polygonjs, a node-based WebGL design tool, which has an open source core and a commercial license for the visual editor.

    This approach also has the following advantages for customers:

    • it helps build trust, as clients know that if the company folds for any reason, they can keep using the tool.
    • since it's open source, they can easily extend it for custom requirements.

    A win-win for everybody.

    1. 2

      Very interesting, I'm also currently working on a new project that I want open-source + commercial license. I will dig about this PolyForm Shield License. Thanks for the info :)

  4. 1

    I'm doing this hostedgitea.com - not a huge number of customers but the model works.

  5. 1

    Hello

    Just few questions in terms of intellectual property.

    Can we do so on every open source project?

  6. 1

    Maybe another idea, or to find the niche. Create a directory of existing open source hosting options per open source software , possibly with user ratings and comparison of features/prices (with affiliate links)...

  7. 1

    Totally agree with this.

    In fact just this weekend I was scribbling some ideas for a self-host saas product, so very much the same principle as here.

    The idea is to allow users to pick a particular, let's call application, it gets installed in its VPS, SSL configured and admin users created. All the user needs to do is to start using.

    They still have control over the hosting, but all maintenance is managed.

    I am thinking of a monthly subscription with a possible limit on the number of applications or a flat-monthly free with extra services for an extra fee.

  8. 1

    As someone who's start up is this... yep. Having a community to support your product is really excellent too!

  9. 1

    Cool idea! If you're looking for a way to scale this idea when things begin to lift off, check dyrectorio on GitHub :) We do multi-instance deployments for non-specialists who want to manage their microservices and configurations at ease. If you like our project pls give it a star

  10. 1

    this more or less validates my idea -- but let's see how does market respond

  11. 1

    This is amazing -- I am already working on a project where anyone -- with or without tech understanding can use open source projects at and very low price -- the pricing model will be (software hosting cost + 10% software development cost)

    We will be working and helping the community -- bridging the gap between open source devs and users -- A lot is coming soon

  12. 1

    The last mile is always time consuming and not scalable. So it's always an opportunity.

  13. 1

    Have you also considered managing some specific OS software (eg. WordPress) but on customers’ premise? Eg. a user signs up for a VPS on Digitalocean and provides you root access. You add that resource to your management platform that will then install the software and start maintaing and monitoring it (obviously in a completely automated way). If you go out of business or the customer does not need your service anymore, they cut out your access and still keep the fully functional software with no data loss or need to migrate it.

  14. 1

    This is so relatable! I launched hosting open-source based project literally yesterday. 🚀

    It is https://www.hostedpmm.com

    We provide hosted open-source pmm servers for database monitoring. Didn't get any clients yet. It is free to start. I would appreciate your feedback. 🙃

    1. 2

      seems like you're using a cert made for api.xxx for the root domain

      1. 1

        Yep, thanks! I'll fix it. https://www.hostedpmm.com works now

      1. 1

        Yep, thanks! I'll fix it. https://www.hostedpmm.com works now

  15. 1

    I think you can also do this on any self-hosted closed-source software as well.

    1. 1

      Yeah, for example here's a gig for Sendy.

  16. 1

    Interesting. I also found many projects for which there were 0 Fiverr gigs; maybe that's a sign there's no interest or nobody has tried offering it as a service in the first place.

    1. 2

      Yeah these examples were a bit cherry-picked :) Lots of projects with no gigs, but if you type "[project name]" into Google and see the suggested searches, you may see things like "installation" as one of the suggestions. That can be a positive validation signal as well.

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