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HashiCorp announced on August 10, 2023, that Terraform and several related projects will transition from the Mozilla Public License (MPL) to the Business Source License (BSL). This strategic shift aims to balance open-source collaboration with the commercial sustainability of these tools.
Core Terraform features remain free to use, while ongoing development is supported by commercial subscriptions.
The image discusses a change in Terraform's licensing to a Business Source License (BSL), highlighting the balance between community collaboration and commercial interests.

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Why the License Change?

HashiCorp’s move to the BSL is driven by three key goals:
  • Protecting innovation: Prevent large cloud providers from repackaging Terraform as a managed service without contributing back.
  • Sustaining investment: Secure funding for ongoing feature development, bug fixes, and performance improvements.
  • Fair compensation: Ensure that creators and contributors are rewarded through a license model that supports both community use and enterprise adoption.
The image outlines the reasons for Terraform's licensing change, highlighting protection against competition, sustainability of innovation and investment, and fair compensation.

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Comparing MPL vs BSL

AspectMPLBSL
License TypePermissive, file-level copyleftSource-available, time-limited
Commercial UseAllowed, but minimal copyleft impactAllowed, with commercial safeguards
Contribution BackRequires changes to be open-sourcedEncourages contributions, protects IP
Competitive HostingCan be rehosted by anyoneRestricts unapproved managed services
SustainabilityRelies on community & donationsBalances open source with revenue

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References

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