A way some companies make money out of open source

    Bottom line: keep control of your code, but release versions of it under an opensourc license.

    • Commercial open source software projects are OSS projects that are owned by a single firm that derives a direct and significant revenue stream from the software. Commercial open source at first glance represents an economic paradox: How can a firm earn money if it is making its product available for free as open source? This paper presents the core properties of commercial open source business models and discusses how they work. Using a commercial open source approach, firms can get to market faster with a superior product at lower cost than possible for traditional competitors. The paper shows how these benefits accrue from an engaged and self-supporting user community. Lacking any prior comprehensive reference, this paper is based on an analysis of public statements by practitioners of commercial open source. It forges the various anecdotes into a coherent description of revenue generation strategies and relevant business functions.

       

      AKA “single-vendor commercial open source”

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    About Peter Cruickshank

    Lecturer in the School of Computing and a member of the Centre for Social Informatics at Edinburgh Napier University, Scotland. Interested in information systems, learning, politics, society, security and where they intersect. My attempts at rounding out my character include food, cinema, running, history and, together with my lovely wife, bringing up a cat and a couple of kids.
    This entry was posted in Daily Links, opensource, research, Techie and tagged , , . Bookmark the permalink.

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