Embedded software is the biggest growth opportunity for open source

Invisible software companies like Plaid, Twilio, and Mapbox play crucial roles in powering well-known applications without seeking the spotlight, a model similar to hardware companies like TSMC, which manufactures chips for major tech devices. This embedded or OEM software model allows companies to integrate specialized functionalities without developing them from scratch, providing a cost-effective and efficient solution. However, the stakes are higher when it comes to embedded billing systems, which require full control over infrastructure and code to avoid catastrophic outages. Companies like Lago have embraced this model, offering their open-source software as a customizable billing solution for other products. By doing so, they leverage their open-source nature to allow deep integration and customization while protecting their business model through licensing. This approach not only expands their market reach but also positions them as the foundational, yet invisible, backbone of future software infrastructure.

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