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Open Source Business Model Is Broken

From the article:

The open-source business model that relies solely on support and service revenue streams is failing to meet the expectations of investors. For anyone who hasn't been paying attention to the software industry lately, I have some bad news. The open-source business model is broken.

Companies have long hoped to make money from this freely available software by charging customers for support and add-on features. Some have succeeded. Many others have failed or will falter, and their ranks may swell as the economy worsens. This will require many to adopt a new mindset, viewing open source more as a means than an end in itself.

I do not agree 100% with the article. You can make tons of money by selling solution. For example, I can sell Linux Webserver cluster setup solution to meet my clients need or setup OpenBSD based CRAP solution to save tons of money on Cisco gear. Once solution is sold, someone need to monitor and fix the problem. Another option is bug fix or add addition features to original software. If you can add a value to customer, they will purchase your solution. What do you think?

=> Open Source: The Model Is Broken

Open Source Guide for Small and Medium Enterprise / Business

This is an excellent set of guides encouraging FLOSS for small and medium size enterprises / business. From the guide:

Open source software is the most significant all-encompassing and long-term trend that the software industry has seen since the early 1980s". This is one of the conclusions of a recent IDC report [IDC 06], which shows how much the perception of FLOSS (free/libre/open source software) has changed in the recent years. Right now, the majority of developers in the world are using open source software [Forr 07], and FLOSS platforms are used in one way or the other by a large share of companies.

Despite this situation, there is still a significant barrier in the adoption process for small and medium companies, both in terms of using FLOSS internally and in creating products and services centered on FLOSS products. The purpose of this report is to provide a simple and in-depth view of the fundamental aspects of FLOSS, how to adopt it within a small/medium company, and how to build a sustainable business based on it.

Download FLOSS Guide for SMEs / SMBs

  • FLOSS guide (80 pages, 2Mbytes PDF)
  • FLOSS catalog (94 pages, 20Mbytes PDF)