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Open source software as a customer capture tool

Have you ever wondered how an open source software vendor makes money? Matt McAlister has posted information on how open source software vendor making money with open source software. He is comparing SugarCRM and Salesforce.com CRM software.

FTA, "...They’ve done a really clever thing which is to build a revenue model around the added services rather than try to charge for the core software..." Read more at his blog...

RedHat, MySQL and others, follows same type of revenue model to make money. You can download and install open source software free. Now vendor will charge for following services:

  • Tech support
  • Installation service and support
  • Paid or hosted solution
  • Priority software updates and bug fix
  • Software customization
  • Education (training) etc
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