[Carpetsmoker]

The alternative is GitLab not being able to hire developers to actually build GitLab since the "kindly ask to please pay"-model doesn't really work very well.

"The community" is often vastly overrated anyway IMHO. Patches are always good, of course, but people who actually consistently invest time in a project are exceedingly rare. You can't build a product based on sporadic patches. Besides, a lot of the time "the community" is just users (people with no contributions) complaining you're not doing stuff right.

Unless you have a viable (preferable proven) model that allows GitLab to hire developers and keep everything 100% open source, it seems to me this is the best and most balanced option. To the best of my knowledge, such a model doesn't really exist.

I continue to be surprised at the hesitancy (or even outright hostility) whenever someone tries to make an economically viable open source product, which usually involves things not being 100% open source because turns out, that's the only way to make things viable. "90% open source" is a hell of a lot better than 0% open source in my book.

[cycloptic]

The oldest viable and proven business model where you can keep 100% open source, is to sell support contracts and warranties. This model is harder for your average SaaS company to pull off but provides much better ROI if you can actually do it.

[Carpetsmoker]

It only works well if you have a decent amount of large enterprise customers (like RedHat); I don't think it will work out well for GitLab, which is mostly aimed at small-to-medium businesses. I don't think it's viable for most projects (otherwise they would be using it).

Even if it is viable, you're usually leaving a lot of money on the table, and even Red Hat – the poster child of this model – does stuff like releasing updates to paying customers first.

[cycloptic]

You are always leaving money on the table. The choice of business model is only a decision of whose table you are going to leave it on. The downsides of the open core model have already been mentioned here. I am not suggesting that GitLab change their business model, I don't have any opinion about what they should do. But I will say that releasing updates to paying customers first is still consistent with being 100% open source, as long as those updates are still released to them under an open source license.