Can Open Source Software Limit SaaS Development?

Open source software (OSS) is a popular tool for developers. It saves time, offers transparency, and allows code modification. Many companies use OSS when building Software as a Service (SaaS) products. But some licenses come with rules that may limit how the software can be used.

Can OSS Limit SaaS Use?

Yes. While most OSS is free to use and modify, a few licenses include terms that affect SaaS platforms. These licenses aim to make sure that companies using OSS in cloud services also share their changes or contribute back.

Licenses That Impose SaaS Restrictions

Here are some of the licenses to watch for:

AGPL (GNU Affero General Public License)

What it does: Requires you to share your source code with users if they interact with your service over a network.
Effect: If your SaaS app includes AGPL code, you must publish your full source code, including changes.

Commons Clause

What it does: Blocks you from selling the software or using it in a paid service.
Effect: You can’t offer it as part of a commercial SaaS product, even if the code is available to view.

SSPL (Server Side Public License)

What it does: Forces you to release the full source code for any service that uses the software.
Effect: Not just your changes to the original software—your whole service must be made public.

Why These Rules Exist

Older OSS licenses didn’t account for cloud-based services. A company could run open source code on servers without giving back any changes because they weren’t “distributing” the software in the traditional way. AGPL and SSPL were introduced to close this gap.

Tips for SaaS Teams Using OSS

Read licenses carefully.
Use permissive licenses like MIT, BSD, or Apache 2.0 if you want fewer restrictions.
Talk to legal experts before using software with AGPL or SSPL terms.
Give back to projects when possible, even if not required.

Most open source tools are safe for SaaS products, but a few have strict terms. Know the licenses before using them in your service. This can save time, protect your code, and avoid legal trouble later.

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