Dec 06 2008
Open Source as a Business Model Myth
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Open source , FOSS , Free open software are all in buzz words current recession days and lot of startups are talking of adopting open source as a business model.
However there is a small problem, Open source is not a Business model (Open source is a development methodology).
Many would not understand what I meant here by development methodology, So let me put some more light on terminology , Development here signifies development , modification of software by IT developers . This could be making software codebase, modules, plugins etc.
Now most of the companies nowadays are opting for open source software’s to cut development cost mentioned above or to avoid companies deploying development teams and making proprietary software’s.
So in short “Open source is used to cut down operation cost in a company” , So just companies putting open source as a business word and terming as them open source startups are according me to people without a vision.
However there are some exceptions like Cynapse who have really used open source software’s very well and packaged there service support system very well around it. But organizations like these are very few and they cater to a very set niche of Enterprise Sector.
In the long run either these companies will drown or vanish, Or else will be standing in the market with a complete different vision and approach.
Feedbacks and comments are most welcome
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4 Responses to “Open Source as a Business Model Myth”
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http://parleys.com/display/PARLEYS/Home#slide=1;talk=6972;title=Professional%20Open%20Source
Solaris, Suse, Red Hat all works on open source business and they all have functionnal business model.
What you are saying isn’t based.
@Dadyroll
Thanks for your comment, However if you look at their business model you will see that there revenue model depends on the enterprise selling system and support , And they use open source completely for their development of Operating System , Open source is thus a development methodology .
I hope i am clear
Yes, clear. In fact, in a simple maneer, you cant make a business model on Open Source, and thats totally logic. Open Source is, by definition, free, and a busines model is, by definition, on how to gain money (simplified). Those two things are opposed.
But a business model can be based on Open Source like these companies.
The things I wan’t to clear with you is if you tell that a business model cannot be based on Open Source, you are wrong. If you only mean that Open Source IS NOT a business model, you are right