E27: Security Operations at Scale with Panther (And, from Open to Closed Source)

Open Source Benefits

Open source initially offered Panther significant advantages in product validation and community support. Jack Naglieri highlights how open source projects like OS query and Bro have been pivotal in the security community, providing essential tools for organizations worldwide 1. He emphasizes the importance of community feedback in refining Panther's offerings, stating, "Open source was again just a way to give back to the security community, get some other different environments and get people using it in all these different ways, and learn from those experiences and make the tool overall better for everybody" 1. This approach allowed Panther to gain traction and validate its market fit, ultimately leading to the decision to build a company around it 2.

   

Open Source Dilemma

Transitioning from open source to a commercial model presented challenges for Panther. Jack explains that while open source offers transparency and community collaboration, it also imposes operational burdens that can outweigh its benefits 3. He notes, "If you really want to do commercial open source forever and you feel very strongly about it, then lean into it, but realize you're going to have to hire a team that's just dedicated to it" 4. This realization led Panther to focus on building a sustainable business model through SaaS, which he believes is the future for many companies 4.

   

Closed Source Transition

The decision to transition Panther to a closed-source model was driven by the need for sustainability and reduced operational friction. Jack describes the process as gradual, ensuring users were informed and supported throughout the transition 5. He advises founders to be decisive in their approach, stating, "My advice broadly is just decide one way or the other. If you want to do commercial open source, go all in on it. If you're not comfortable, then just go all in on SaaS" 6. This strategic shift allowed Panther to focus on delivering a high-quality product without the complexities of maintaining an open-source model 5.