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Open Source Business Model

What is the open source business model It is often confusing to people to learn that an open source company may give its products away for free or for a minimal cost. While it is true that an open source business may not make money directly from its prod

Open Source Business Model

  1. What is the open source business model
    It is often confusing to people to learn that an open source company may give its products away for free or for a minimal cost. While it is true that an open source business may not make money directly from its products, it is untrue that open source companies do not generate stable and scalable revenue streams. In actuality, in the 21st century web technology market, it is the open source company that has the greatest long-term strategic advantage. This is demonstrated by companies such as LINUX, Apache, and Netscape, a host of web-specific technologies such as Java, Perl, TCL, and a host of web-specific technology companies such as Send mail. The open source business model relies on shifting the commercial value away from the actual products and generating revenue from the 'Product Halo,' or ancillary services like systems integration, support, tutorials and documentation.
  2. Open Source as a Business Approach
    The purpose of this section of the website is to describe, in general terms, how open source business models work so as to provide a starting point for discussion of what would be involved in translating the open source approach from the software to the biotechnology context. I envisage two kinds of audience for my attempts to determine the viability of open source biotechnology as a business model. The first is made up of companies that release, sell and/or support biotechnology research tools commercially. In this category there are two subcategories: startups and established firms. Startups may be a tougher crowd because they are only likely to get one stab at getting established and may prefer what they see as the safer option of adopting the familiar IP-rent approach. On the other hand, established firms have more to lose by converting to a new approach.
  3. The Open Source Business Model
    In a recent column, she considered open source software as a business model, and found much to recommend it. For the sake of this discussion, the terms Open Source Model and Free Software Model  which in theory are synonymous, will be used differently: Open source has come to mean a larger set of software and software producers which do not adhere to all the qualities of a free software company, but perhaps some or most of them. The term open source has also gained currency since, as Sol puts it free software tended to scare off some people, especially investors and large clients, and open source did better in boardroom discussions. Her argument centers around the contention that  the open source software development process produces applications which equal or best applications produced in closed environments. The major reasons why are given below. 
  4. An open source business model
    Following is a series of notes on an open source business model that I think could unleash community driven software development. Today, workable open source business models that involve community driven software development are rare. The two models you typically encounter are:
    * You start and lead an open source project, and sell services around it; but I hardly see how this model can work, since you end up financing the R&D of your competitors.
    * You contribute to an already existing and widely supported open source project, and sell services around it; making this model a bit more workable .

  5. A Business Model For Open Source
    Tomorrow I?m heading out to San Diego to speak at the Linux Desktop Summit. I?ll be talking about Breaking the Barriers to the Acceptance of the Linux Desktop and I wanted to share some thoughts about the Open Source market .An important part of the Open Source market is the underlying operating system, generally Linux, which is developed by a volunteer community, with the assistance and cooperation of a number of for-profit companies (hardware, software, and services) that have a vested interest in the success and continuing refinement of Linux. It is a popular myth to think of these volunteers as entirely unpaid and Linux as free, but, in fact this explanation seems less true over time.
  6. Open-Source As A Business Model?
    Open-source, as an approach to create software as a commodity, new ways of doing journalism, news reporting and even video production may seem a little too cutting edge to many, but indeed these new experimental ways of working collaboratively and from the roots, show great promise as each day passes. That's why open-source as a business model may soon become more attractive to many, especially those who prioritize meaning and the greater good above a fatter wallet. Today, Slash dot opened its email-based news digest with an emblematic short introduction to a possible open-source approach in running a business company. While very simple and undetailed on many aspects, the post is representative of a growing trend toward open-source, P2P, collaboration and grassroots cooperation that sees no slowdown. 
  7. Open source business models come to the fore
    A few years ago, releasing once-secret source code to the public would have been a highly unusual first move for a company with a newly acquired software product line. But that's exactly what Integrated Computer Solutions is announcing this week with the project management software it bought on 1 January. And it's a move that today is downright ordinary. Open source software has become not only increasingly mainstream, but it's also often a way for a company to gain advantage over a proprietary rival with a close guard over its software's underlying instructions. Integrated Computer Solutions announced its open source move in conjunction with the Open Source Business Conference in San Francisco this week. The conference has become a focus for a new wave of open source companies with products that often run at a higher level than earlier open source successes such as Linux or Apache.
  8. Open Source Business Model in OATH
    It's a business model that seems to work for Safehaus, an organization now collaborating with OATH (Initiative for Open AuTHentication) on technologies for authenticating cell phone subscribers, among other things. For its part, OATH was formed by vendors who perceived a void in standards around authentication based on strong encryption, said David Berman, OATH's membership chair, during an interview with LinuxPlanet. The static password has been a weak link. We need to drive down the costs of strong authentication," according to Berman, who is also director of partner marketing for VeriSign Security Services. 
  9. The Open Source Business Model
    In the financial sense, I mean. Sometimes, a large corporation will offer a project funding. Or perhaps they will hire the primary developer and allow him to continue working on the project, as Microsoft has done with Iron Python. Most open source authors that I know of aren?t writing their software for the money they hope to make with it. They work on it because they love it and would do it even if there is no hope of gaining funding of any sort. They work on their projects in their spare moments before and after the job that pays the bills and when they aren?t enjoying time spent with their families. Sometimes, a project gains a large enough of a user base that the project?s author is able to offer his services around the project on a paid basis. Recently, Kevin Dangoor, the creator of Turbo Gears, announced that he would be offering consulting services around Turbo Gears, primarily development of Turbo Gears features, coaching, and training.  
  10. Enterprise Open Source Business Model
    Enterprise Open Source is the business model of eZ systems, meaning that we do business in the realm of freedom and responsibility. While our products are Open Source licensed, eZ systems is still a company with a professionally hired crew. Thus, just like any other company, we deliver if you pay us and we need to make money to pay our crew and bills. Since 1999, eZ systems has been creating Open Source software and serves its customers. During that time, we have first of all experienced the benefits of Open Source when it comes to efficient product development and distribution. We acknowledge that our software would not have been as good as it is today without the help of an active community and the Open Source development model.
  11. Matra Datavision: towards an open source business model
    On December 1999, Matra Datavision announced the adoption of an open source strategy for its CASCADE geometric modeling libraries with publication of their source code on the Internet, as the Open CASCADE product, distributed under a LGPL-like licence. Before that announcement, CASCADE had been marketed using a traditional, proprietary model, with an installed base of about 130 active customers, using 250 development licences and 1,500 run-time licences worldwide. From a technical point of view, Open CASCADE is a set of components for the development of technical and scientific modeling applications ranging from CAD/CAM/CAE to metrology and measuring machines, biomedical software, 3D geological mapping, optical simulation, product design and styling. When Matra Datavision decide that Open CASCADE was to be distributed under an open source licence, they gave developers free access to the source code of many 3D geometry data structures including hundreds of modeling algorithms.


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