Open Source Business Models, Revisited | Kellblog

http://kellblog.com/2011/06/19/open-source-business-models-revisited/

by mblakele • 15 years ago

10 2 15 years ago

prasunsen• 15 years ago

One more model: SAAS. You can have open source product that is free to download and use but offer hosted version, paid, for those who prefer someone else to have the hassle of installation and configuration. Of course you don't need to be the creator of the open source software to do this.

runT1ME• 15 years ago

In the words of Marc Fleury, Open Source is not a business model, it's a distribution model. Rather than spending time and resources convincing companies to download and try your product, you instead have to spend time and resources convincing companies to actually pay for your product.

If you don't add a lot of value and it's not something business rely on, then it's a tough business model (vlc, etc.). However, when you're software is used by companies who value their time more than money (I'm channeling Jonathan Schwartz here), you are in good shape.

I've worked with numerous companies that were all happy to pay the Redhat, MySql, and Jboss licensing fees once the product was up and running and profitable. Suddenly a few thousand dollars a server seems kind of inconsequential if it means at any moment you can have developers on the phone getting your app back up.

The argument of the Open Source paradox could just as easily be applied to SAAS in general. As software and hardware becomes easier to set up, run, and administer all while being more reliable, than surely people will move away from SAAS? Of course not. Just because a company can, doesn't mean they want to stray from their core competency to save a few bucks. Same goes for buying support contracts from Open Source companies.

Open Source Business Models, Revisited | Kellblog

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