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How to Protect Your Mini SaaS Business? My Advice Is Unconventional.

When Gemini rebuilt ~98% of my client’s SaaS from public information, it became clear: cybersecurity isn’t enough. What founders need now is moatsecurity — a strategic defense against AI-driven replication.

19 hours ago   •   3 min read

By Vladimír Záhradník
A padlock on a keyboard, symbolizing defensibility and the growing need for moatsecurity in modern SaaS products. Photo by FlyD on Unsplash

One of my clients runs a small SaaS business. Competitive niche, modest revenues — but still enough to live comfortably.

As part of my consulting, I wanted to understand how vulnerable the business really is. So I tried something unusual:

I bought the most expensive Gemini model and told it to “copy the product.”

Important: No internal knowledge was given. Gemini had access only to:

  • public website
  • documentation
  • REST API
  • integration list
  • demos or marketing materials

Exactly what a potential competitor would see.

The Result? My Jaw Dropped.

Gemini reconstructed ~98% of the internal implementation based purely on public information.

It even generated a roadmap to rebuild the entire SaaS:

  • MVP architecture
  • backend structure
  • feature parity plan
  • recommended tech stack
  • scaling strategy
  • UX assumptions
  • pricing model

All from outside.

This experiment revealed one uncomfortable truth:

My client has no moat.
His only protection is that nobody cares about his niche right now.

Startups are chasing AI hype. His niche is ignored. But that won’t last forever.

So How Do You Protect Such a Business?

My advice is unconventional, but I strongly believe it is the best path for small SaaS founders.

Before we continue, there’s a term worth knowing:

Moatsecurity

A new discipline focused on protecting a digital product from being economically or structurally replicated — especially through AI-assisted reverse engineering. Cybersecurity protects your data. Moatsecurity protects your entire business model.

This article essentially outlines the first practical steps toward moatsecurity for SaaS founders.

Open-source your product — with teeth.

Not everything — and not blindly. There are levels of exposure, and each has strategic benefits.

Snarling dog baring its teeth, symbolizing open-source strategies that include firm boundaries and commercial protections.
Open-source can be friendly — until someone crosses the line. Photo by Alexas_Fotos on Unsplash

Level 1 — Open-Source Your Integrations (Safe + High Value)

Your API is public anyway. Publishing integrations leaks nothing.

Do it right:

  • publish high-quality GitHub repos
  • include documentation
  • write unit tests
  • add GitHub Actions
  • license under Apache (my preferred option)

Why this works:
People assume your core product has at least the same quality as your public integrations.

This builds:

  • trust
  • credibility
  • developer goodwill
  • organic marketing

Level 2 — Publish Documentation or Non-Sensitive Website Parts

This increases:

  • transparency
  • community engagement
  • onboarding quality
  • contribution potential

Allow pull requests. Automate deployments.

Proton uses this model successfully: client apps open-source, core technology closed. They earn trust because they are open enough.

Level 3 — The Controversial Option: Open-Source the Entire Codebase

(with a license that has teeth)

Choose a commercial-restricted license. Allow non-commercial use. Require a Contributor License Agreement (CLA) for contributions.

Benefits:

  • If Gemini can copy you, a competitor can too — but now they discover you first.
  • You stand out dramatically in the market.
  • You attract external contributions.
  • You build a community.
  • You increase transparency and trust.
  • Most companies will still pay for hosted SaaS.

Why?
Running the service in-house:

  • is expensive,
  • requires staff,
  • offers no SLA,
  • shifts all risk to the company.

They’d rather pay you.

This model works. Look at n8n, Sentry, Redis, and more.

This Isn’t Theory — It’s Already Industry Reality

I’ve been in open-source for years. I’ve lived through unpaid hours, endless emails, and maintenance battles.

I know what works.
I know what fails.

My conclusion:

Open-source is not commercial suicide.
Done correctly, it is a competitive advantage — and one of the strongest tools of moatsecurity.

My roadmap is similar:

  • publish everything that can be published
  • keep sensitive modules closed
  • provide paid extensions
  • offer hosted SaaS for revenue

Hybrid ecosystems are sustainable — even for big projects.

Final Insight

If you operate a mini-SaaS, open-source might be your strongest shield.

I can help you assess:

  • what to open
  • what to protect
  • which license to choose
  • how to structure CLA
  • how to balance open-source + SaaS revenue
  • how to build an actual moat in 2025

Transparency is your leverage.
Trust is your moat.
Moatsecurity is your strategy.
Open-source — done correctly — is your advantage.

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