Open source technology is central to Morphlabs’ business model. The company, launched in 2007 with Yoram Heller as a cofounder, builds fully modular, scalable public and private cloud products. It takes open source software and designs architecture to run on specific hardware. Building its products on top of open source software is the main innovation that allows Morphlabs to dramatically lower the barrier of entry to cloud computing. Using Morphlab’s technology, public cloud service providers can realize 60 percent margins.