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WordPress vs. WP Engine: An Explainer

WordPress.com vs. WPEngine

This explainer is primarily for those who just use WordPress for their website (not devs, designers, coders, or those intimately involved) and want an overview of what’s going on, why now, and what led up to this.

Before I continue, I want to express my gratitude for WordPress. I remember discovering it (it was born on May 27, 2003) and knowing right then and there that it would be a game-changer. As a “web designer,” I immediately realized the impact and importance of this open-source software.

I wouldn’t have the life and business that I have without WordPress. Yes, I could have used other platforms and tried them all, but I’ve yet to run into one that could replace WordPress (for various reasons.)

WordPress offered a way for my clients to take a hands-on approach to their websites. They could work on their websites without always needing a programmer or web designer, which I knew all my clients wanted. This opened the online door for many who may not have walked through.

Over the years, several issues have percolated and contributed to this current saga. So, let’s clarify a few things.

The Feud

There is a lot of animosity and a healthy he-said-she-said dynamic about this feud. That is why knowing as much as possible and understanding the big picture is essential.

Automattic (WordPress’ “parent” company, aka WordPress.com), developers, and designers have taken different approaches and operated differently. Each has a unique role in what is now a vast ecosystem.

First, we must acknowledge that WordPress is available under a GPL license to understand these dynamics.

The GNU General Public License (GPL) is a license that outlines the conditions for copying, modifying, and redistributing open source software. It’s a “strong” license that’s incompatible with proprietary software because it requires users to make the source code available when distributing copies of the software.

The Big Picture

Why feud? As of October 2024, WordPress is used by over 43.5% of all websites, making it the most popular content management system (CMS). This means that roughly two of every five websites you visit are built on WordPress.  That’s a lot of money.

Here are some other WordPress statistics: 

  • Market share: WordPress has a 63.0% CMS market share. If you only consider websites that use a known CMS, WordPress’s market share is up to 62.9%. 
  • Growth: WordPress usage has increased by an average of 12% per year since 2011. 
  • New sites: More than 500 sites are built on WordPress every day. 
  • Plugins: The official WordPress plugin directory has over 55,000 free and paid plugins. 
  • Usage: 31% of people use WordPress for personal or passion projects, 26% use it for client services, 20% use it for their business, and 14% use it for their employer.

The feud between WordPress and hosting companies, particularly WP Engine (owned by private equity firm Silver Lake since 2018), revolves around differences in trademark use, business models, competition, pricing, and ultimately more control over the WordPress ecosystem.

Direct Competition and Pricing Conflicts

  • WordPress.com vs. Managed Hosting Providers: WordPress is available in two primary forms: WordPress.com (a hosted service by Automattic, the company behind WordPress) and WordPress.org (self-hosted open-source software—meaning you install WordPress on any server you want to use).
  • Pricing Models: Hosting companies like WP Engine often charge premium prices for managed services. WordPress.com has adjusted its pricing to target similar markets, competing for the same customer base.

Control Over the Ecosystem

  • WordPress Plugins and Themes: Hosting companies like WP Engine offer curated experiences, providing specific themes and plugins that are optimized to work best with their services. However, WordPress.com continues expanding its premium themes and plugins, which may conflict with hosting companies’ solutions.
  • Caching and Performance Tools: WP Engine and similar providers develop proprietary tools to optimize WordPress performance, while WordPress.com has built-in features that may overlap or compete. This competition makes it challenging for hosting providers to differentiate their offerings.

Revenue Sharing and Affiliate Programs

  • Revenue and Licensing: WordPress.org is open-source (free), but Automattic monetizes WordPress.com and other services. Hosting companies like WP Engine have built profitable businesses around WordPress, but don’t necessarily share revenues with Automattic. Understandably, this dynamic creates pressure over who profits from the WordPress ecosystem.
  • Affiliate Programs: WP Engine and other hosting companies offer affiliate programs to bloggers and influencers, allowing them to promote their services. As WordPress.com competes more directly in the hosting space, it creates competition over affiliate relationships and customer acquisition strategies.

Customer Data and Site Ownership

WordPress.com has more control over customer data and the overall user experience. In comparison, managed hosting companies like WP Engine emphasize giving users more control and ownership over their websites (this statement varies from host to host). This distinction creates tension in how each party views the customer’s relationship with WordPress.

For me, WordPress.com’s “control” and, therefore, limitations are why I do not recommend that hosting service. I’m also not a fan of JetPack. So yes, while there is “competition,” that doesn’t mean WordPress.com is a given or the be-all and end-all for every website.

Conversely, I’m not a fan of how WP Engine alters WordPress’s operation. Additionally, specific tasks are more complicated than necessary compared to other WordPress hosts.

Different Philosophies on Open Source

WordPress began as an open-source project, and many hosting companies believe in the open-source ethos that empowers users to control their websites. As Automattic builds more proprietary features into WordPress.com, some in the community feel it goes against the open-source spirit, fueling the feud.

Trademark Issues

The current trademark issue between Automattic and WP Engine centers around the use of the “WordPress” brand* and Automattic’s enforcement of trademark policies, which WP Engine may have violated.

WordPress Trademark Policy

The WordPress trademark, owned by the WordPress Foundation, restricts businesses from using “WordPress” in domain names, company names, or branding. This prevents confusion between the open-source project and commercial ventures, ensuring that the WordPress name remains tied to the community-driven project.

Companies can use “WP” as a shorthand, but must avoid using “WordPress” in commercial domains or products unless explicitly authorized to do so by the WordPress Foundation. That is why I post clearly what I do:

*I do not work for or receive any payments or royalties from WordPress. I am an independent consultant and coach who helps individuals with WordPress-powered websites achieve the level of success they desire.

Why WP Engine?

  • Alleged Trademark Violation: WP Engine has reportedly used “WordPress” in ways that may have crossed the trademark boundaries set by the WordPress Foundation. This likely involves WP Engine’s marketing materials or promotional strategies that included the “WordPress” brand in a way that conflicts with Automattic’s and the foundation’s rules.
  • Automattic’s Response: As a result, Automattic (through the WordPress Foundation) can issue warnings or take legal action to enforce the trademark. This enforcement could include demands for WP Engine to remove or alter any usage of “WordPress” in its branding, website, or marketing materials.
  • Competitive Strain: This trademark enforcement occurs at a time when Automattic’s WordPress.com and WP Engine are competing more directly in the managed WordPress hosting space. Automattic’s strict enforcement of the trademark could be seen as a way to assert control and limit WP Engine’s ability to leverage the “WordPress” name to promote its services.
  • Power Imbalance: Some in the WordPress community view Automattic’s position as problematic, as it can freely use the “WordPress” name for its WordPress.com service, while competitors like WP Engine are restricted from doing so. This dynamic reinforces Automattic’s dominance in the ecosystem, giving it a potential edge over companies that cannot fully capitalize on the WordPress brand.

Through the WordPress Foundation, Automattic enforces these rules to protect the WordPress brand. This enforcement comes amid growing competition between WordPress.com and other hosting providers, such as WP Engine.

This environment highlights the complexities of balancing trademark protection with fair competition, particularly as Automattic benefits from the “WordPress” name in ways other companies cannot.

Then add a dash of personalities and private equity, and here we are.

Power and Money

  • Automattic’s Acquisition Strategy: Automattic has acquired companies like WooCommerce and expanded its hosting and e-commerce capabilities, encroaching further into the territory traditionally served by managed hosting companies like WP Engine.
  • Hosting Companies Building Alternatives: In response, some hosting companies have invested in developing their own technologies, tools, and proprietary solutions that integrate with WordPress, providing unique value propositions.

Although WordPress is open-source software governed by the WordPress Foundation, Automattic employs many core contributors and developers who influence its direction and development. Automattic is investing much more time and dollars directly in the project than WP Engine, while giving Automattic substantial influence over the platform’s evolution.

Community and Ecosystem Power Balance

  • Open Governance: The WordPress project is technically governed by the WordPress Foundation, and a community of contributors collaborates to develop the core software. While Automattic has a significant presence, it’s not the sole decision-maker, helping prevent a monopoly within the ecosystem.
  • Growing Alternatives: As WordPress evolves, other platforms (like Shopify in e-commerce or Wix and Squarespace for simple website building) continue to grow in market share, ensuring that Automattic doesn’t monopolize website creation.

View from Above: Competition and Control

The feud between WordPress (Automattic) and hosting companies (or private equity firms) like WP Engine revolves around competition, control, and revenue within the WordPress ecosystem.

In this case, one of the issues is that WP Engine is changing how WordPress operates to generate revenue. It’s always about the money, isn’t it? (It is to private equity firms.)

Devil’s Advocate

  • Should companies that make millions from open-source WordPress be expected to give back or contribute funding in some way?
  • Shouldn’t commercial entities that use WordPress’ trademarks have licensing agreements in place?
  • Should Automattic be transparent about its motives for decisions impacting open-source users?
  • Should everyone in the WordPress ecosystem have more of a voice at the table?
  • Should the WordPress Foundation (WordPress.org) explore ways to better fund its efforts without relying so heavily on Automattic? (A developer I know and respect suggested a sensible way to support the WordPress Foundation.)

Additional Reading: WordPress vs. WP Engine (& Silver Lake)

Now that you have a backdrop to all the hubbub, here are some resources, commentary, and videos for your review. Lots-o-opinions.

#WPDrama

As a WordPress enthusiast, I’ve been concerned about how both sides have handled some things over the years. WordPress has become the force it is because of so many dedicated volunteers (and more small business owners than large corporations, by the way) who work on it to improve, test, create themes and plugins, promote, and contribute to the ecosystem.

Sadly, this ongoing public feud continues in ways that don’t benefit WordPress users and supporters. It’s like watching a couple who have been your good friends for years, who argue every time you are out in public with them. It’s embarrassing and uncomfortable.

I know many great WordPressers, and most do what they can to give back—volunteering, helping out, and creating communities entirely around WordPress. For many of us, this has been a personal and passionate journey over the years.

Hopefully, the entire WordPress ecosystem can work towards solutions that benefit all parties involved for the right reasons—for the .org, the .com, its users, and investors.

At your service,

*Some of the links on this page are to companies with which I have a professional affiliation.
Read my complete affiliate statement here.

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