this post was submitted on 11 Aug 2023
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The biggest problem I see is that you can suddenly become non-compliant just because Hashicorp decides to release a new service (i.e.they start competing with you, rather than the other way). It can be a huge risk for companies.
So it would seem it's always a good idea to contact them, get a commercial license or custom licensing terms (they do seem open to that from what I gather here and here) before building a business on top of their software.
Probably works well if you are an established company, but why would e.g. a startup pick licensing headaches over the competition? I imagine bigger companies would also rather just move to e.g. CDK or ARM if they don't need multiple providers (at least our company started discussing this today).
What kind of "custom licensing" do you anyway think a 5-person startup would get?
The FAQ covers this:
So if you are selling a product and HashiCorp releases a product which competes with yours, you can still use Valut, Terraform, etc the way you had been. I can't see a way for your senario to play out based on their FAQ.