This Software Giant Declared War On Amazon. Will Other Open Source Companies Follow?

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In January, Elastic changed its software license to block Amazon Web Services from selling its software. It joins a growing number of open source companies taking action against the cloud giant.

Shay Banon, center, CEO of Elastic, changed his company's software license to prevent Amazon from selling it. “If you don’t stand up at one point to this level of behavior, then it’s like a bully in the schoolyard.”In January, the publicly-traded software company Elastic faced a serious existential threat — from itself.

Since 2018, at least four other multi-billion dollar companies — Redis Labs, Confluent and publicly-traded MongoDB — have changed their software licenses to block Amazon from reselling their software to AWS’ massive customer base.

In October, a House Judiciary Antitrust Subcommittee cited Amazon’s use of Elasticsearch as one example of harming innovation in the open source community. “Amazon’s conduct has already led several open-source projects to become more closed, a move driven by a need for protection from Amazon’s misappropriation,” the reportAndy Jassy, CEO of Amazon Web Services, is set to take replace Jeff Bezos as Amazon CEO. He has overseen the cloud division's success since it launched in 2006.

 

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