On this episode of Startup Show, John Biggs sat down with Philippe Noël, founder and CEO of ParadeDB, to discuss his company’s innovative approach to building a modern competitor to Elasticsearch. ParadeDB is a database product aimed at providing high-quality integration and search capabilities for companies using Postgres, a popular database framework.
During the conversation, Noël explained that while Elasticsearch is a solid tool, it is showing its age and can be cumbersome and expensive to run, especially when paired with Postgres. His personal experience made him realize there was room for improvement.
Noël and his team were working in the supply chain sector and found it challenging to operate both Elastic and Postgres simultaneously. This frustration led them to develop a more efficient solution that integrates search capabilities directly within Postgres, eliminating the need for a separate, outdated tool like Elasticsearch.
Like Elasticsearch, ParadeDB is an open-source product, though Noël was quick to clarify that while open-source tools are often perceived as free, they can still be costly to operate due to server and employee costs. Elastic, for example, requires significant resources to run effectively, whether managed in-house or through Elastic’s services. ParadeDB aims to reduce these costs by offering a modern, low-footprint alternative that is easier to run and maintain.
However, there are challenges, especially when it comes to pitching an open-source product to potential customers who might be satisfied with existing solutions. Noël explained that ParadeDB’s modern design and efficiency make it a more attractive option for companies looking to reduce operational costs and improve performance.
Noël also noted that open-source products, while free at the entry-level, can still be lucrative. Elastic, for instance, generates over a billion dollars in sales annually despite offering a free version of its product.
Noël’s commitment to open source stems from a belief in its collaborative and community-driven nature. It is a way for wealthier enterprises to subsidize tools for smaller organizations and individuals. This model allows for rapid feedback and improvement, benefiting both the developers and the broader community.
When asked about raising investment for an open-source project, Noël acknowledged that while it might seem challenging, the success of companies like Elastic proves that it is possible to build a profitable business around open-source software. He emphasized that making money and providing free tools are not mutually exclusive goals.
Noël further remarked that while some developers might be drawn to quick profits in realms like cryptocurrency, there remains a strong community of individuals dedicated to building and maintaining open-source projects out of passion and a sense of craftsmanship. He cited the small but dedicated group of contributors to Postgres as an example of this enduring commitment.
Regarding the future of ParadeDB, Noël is pragmatic with a desire to solve real problems for users and build a sustainable business. Whether this leads to being acquired by a larger company or going public remains to be seen. For now, the focus is on delivering a valuable product and growing its user base.
