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WPEngine VS Matt Mullenweg

October 13, 2024

By John Curry

The recent tensions between Matt Mullenweg, co-founder of WordPress and CEO of Automattic, and WP Engine, a popular managed WordPress hosting provider, have sparked significant discussion in the WordPress community. These tensions appear to revolve around differing visions for WordPress and concerns about open-source principles, innovation, and business practices within the WordPress ecosystem.

What is WordPress?

WordPress, founded in 2003 by Mullenweg and Mike Little, has grown to become the most widely used content management system (CMS) in the world, powering more than 40% of websites globally. One of the core principles of WordPress is that it’s open-source software, meaning its code is freely available for anyone to use, modify, and distribute under the GNU General Public License (GPL).

WordPress is a powerful system used to create websites for organizations of all sizes, from your personal dog blog all the way up to fortune 100 companies and even the Whitehouse.gov website.

What is WPEngine?

WP Engine, founded in 2010 by Jason Cohen, is a leading managed WordPress hosting company. It provides premium hosting services designed to make it easier for businesses to build and maintain WordPress websites without worrying about the technical aspects like performance, security, and updates. WP Engine has played a major role in helping WordPress become more accessible to a wider audience by offering optimized hosting environments and enhanced customer support.

What Happened?

Before we get into the drama, we need to understand how open-source works, and how the world benefits from it.

What is Open Source?

Open source refers to a type of software licensing model in which the source code is made freely available for anyone to view, use, modify, and distribute. This approach contrasts with proprietary software, where the code is privately owned and protected, and users are typically restricted in how they can use or modify the software.

Key Features of Open Source:

  1. Free Redistribution: Open-source software can be freely shared and redistributed, either as-is or in modified form, without any restrictions or the need to pay royalties.
  2. Source Code Availability: The source code—the underlying instructions that make the software work—is openly available to users. This allows anyone to examine the code, find bugs, or add new features.
  3. Modification: Users can modify the software to suit their own needs. Whether it’s adding new functionality, fixing problems, or tailoring it to specific use cases, modifications are encouraged.
  4. Community Collaboration: Open-source projects often rely on a community of developers who contribute improvements, features, and fixes. This collaborative nature is one of the strengths of open source, as it allows for rapid innovation and problem-solving.
  5. Licensing: Open-source software is distributed under licenses such as the GNU General Public License (GPL), MIT License, Apache License, or others. These licenses set the rules for how the software can be used, shared, and modified. The GPL, for instance, ensures that any modified versions of the software are also distributed under the same open-source terms.

Examples of Open-Source Software:

  • Linux: A widely used open-source operating system.
  • WordPress: A content management system (CMS) built on open-source principles.
  • Firefox: A web browser developed by Mozilla.
  • Apache: A popular open-source web server software.

How is WPEngine Benefitting from Open Source & WordPress?

Website Creation: WordPress is only a content management system. It helps with the creation of a website, and it is FREE to use. Even though the tool is free, in order to display the website publicly, you need a server that hosts the website. You can think of it like being an architect. You can design a building for free by drawing it on paper, but to make that building a reality, you need to pay for the real estate.

That’s where WPEngine and competitors come in. Companies like BlueHost, NameCheap, WPEngine, and many others have physical space where computers are stored that have open access to the internet. They store their customers websites on these computers and charge the customers.

While BlueHost and NameCheap design their servers to host websites built on lots of platforms, including WordPress, WPEngine SPECIALIZES in WordPress.

WordPress is free to use, you still need to pay someone to store your website somewhere, which is how WPEngine makes its money.

Extending functionality: Some websites have custom needs that aren’t provided out of the box in an open-source system like WordPress. For example, if I wanted to create a garage-door opener button on my website, I wouldn’t be able to. Since WordPress is open-source, I can pay developers to add that feature. Since I’ve spent thousands of dollars making this feature for myself, why not sell it so other people an open their garage door with their website?

With this extended functionality we now have a privately owned product that relies on open-source software. Keep in mind, there is no requirement to pay royalties.

How Does WordPress Benefit from WPEngine?

WordPress may need updates, bug and security fixes, and other solutions in order to maintain the quality of their privately owned product. If the garage door opener breaks due to an update, the owner is incentivized to contribute to making WordPress better so their private products continue working. With over 40% of the web being powered by WordPress, we end up with millions of developers contributing, benefiting themselves and the community as a whole.

Other Interesting Points about Open Source:

WordPress, an open-source project, is built on PHP, another open-source project. PHP is a very popular programming language developed by the community.

Many big companies are using open-source. Netflix, LinkedIn, and many other companies run on Linux servers, which is an open source project.

Open source on top of open source: Millions of websites around the world are powered by Linux servers (open source) which then run open-source web servers on top of them, such as NGINX and Apache (both open source) which then run open source programming languages (like PHP) which then power open source Content Management Systems (like WordPress, Joomla, Drupal, etc.) to run a website.

Thrown in the mix is proprietary systems that both contribute and profit off these systems. Google Cloud for example packages up Linux servers and puts their customers software on it, and charges the customer.

Cease and Desist, Trademark Infringement details:

Prior to the annual WordCamp conference, Matt Mullenweg, founder of Automattic, sent a cease and desist letter to WPEngine. See PDF Letter Here. Matt didn’t like what WPEngine was doing, and wanted compensation in the ballpark of $32 million a year. Some of the frustrations explained are outlined below:

  • Possible trademark infringement issues, using the terms “WordPress”, “WooCommerce”, and “Woo”
  • WPEngine’s claim they “Bring WordPress to the masses”.
  • Small contributions to the WordPress project. WPEngine contributes 40 hours per week, while Automattic contributes 4000 hours a week.
  • Misleading consumers to believing there’s an association between WPEngine & WordPress.
  • Revenue earned due to “unauthorized use” of trademark.
  • Competition between WPEngine & Automattic

In the letter it is suggested, although not explicitly stated, that Matt wants at least $32m a year in licensing fees.

Even a mere 8% royalty on WP Engine’s $400+ million in annual revenue equates to more than $32 million in annual lost licensing revenue for our client. – Matt Mullenweg & Automattic’s Cease & Desist Letter

Matt Mullenweg’s demands of WPEngine:

  • Stop unauthorized use of trademarks.
  • Remove any offerings using trademarks from all platforms.
  • Remove / destroy advertising using trademarks.
  • Provide accounting records involving trademark usage.
  • Pay the compensation (to be determined after looking at accounting)

Why This is Confusing:

coming soon….

The Conflict: Mullenweg’s Criticism

The friction between Matt Mullenweg and WP Engine seems to center on WP Engine’s business practices and the direction it’s taking within the WordPress ecosystem. Mullenweg has been vocal about his concerns with WP Engine, particularly when it comes to proprietary tools and products they have developed on top of WordPress, which he believes may undermine the open-source nature of the platform.

Some key points of contention include:

  • Proprietary Solutions: WP Engine has introduced several proprietary solutions, including its Genesis Framework and Flywheel Local tools, which Mullenweg has criticized for being closed off and non-collaborative. These tools are not open-source, which runs counter to WordPress’ open-source philosophy, leading to concerns that it may create a bifurcated ecosystem where some users benefit from locked, premium products.
  • Pricing and Access: WP Engine’s premium hosting services come at a higher price point, which has led to debates about accessibility within the WordPress community. Mullenweg has voiced concerns that the high cost of some services, paired with proprietary technologies, might create barriers for smaller users or limit their ability to take full advantage of WordPress’s open-source foundation.
  • Innovation vs. Commercialization: While WP Engine has driven innovation within the WordPress hosting space, Mullenweg has warned about the risks of large commercial players overly influencing the direction of WordPress development. He stresses that innovation should not come at the expense of open collaboration or the accessibility of the platform for all users, big or small.

WP Engine’s Response

WP Engine has defended its practices, highlighting the value it brings to the WordPress ecosystem by helping businesses run their websites more efficiently and securely. The company has pointed to its contributions to the WordPress community, including sponsoring WordCamps and supporting open-source projects. WP Engine has also emphasized that its premium tools are designed to solve specific pain points for agencies, developers, and businesses that rely on WordPress for mission-critical websites.

Jason Cohen and WP Engine leadership have generally refrained from engaging directly in public disputes with Mullenweg, instead focusing on their mission to provide value-added services to their customers.

The Larger Debate: Open Source and WordPress’s Future

At the heart of the dispute is a broader debate about how the WordPress ecosystem should evolve, especially as the platform matures and becomes more commercially lucrative. As WordPress continues to grow, more companies like WP Engine are building products and services around the platform, creating a tension between open-source ideals and the reality of sustaining profitable businesses.

Mullenweg remains a strong advocate for keeping WordPress’s open-source principles intact, ensuring that the platform remains free and accessible to everyone. However, companies like WP Engine argue that there is room for both open-source innovation and commercial success, as long as the two are balanced in a way that benefits the wider community.

Conclusion

The situation between Matt Mullenweg and WP Engine highlights the ongoing challenges of balancing open-source values with the demands of a growing commercial ecosystem. While both parties have made significant contributions to the success of WordPress, their differing visions for the platform’s future reflect the broader tensions at play in the tech industry, where innovation, commercialization, and collaboration must find a way to coexist. As WordPress continues to evolve, these discussions will likely shape the future direction of the platform and its community.