Forbes on open source business models
Here are three pieces you might find interesting from Forbes Magazine; the first is a look at VA Software’s devotion to the OS model, specifically the disparity between its forwardness in telling everyone how open sourcy it is and its reticence in telling everyone how its software works. Not wanting to blow our own trumpet, but it’s a similar point to one we made a few weeks ago in relation to Sun and IBM.
The second piece outlines a business model known as the “incubator” which is particularly suited to the OS development model, especially as examples of incubators include Gluecode and Simula Labs. Finally, there’s an article on Novell’s future, including its growth potential.
August 16th, 2006 at 8:43 am
Nice update, thanks for the links
Making revenues from free & open source software is one of the most frequently asked questions these days. While there have been a few successful examples of companies (like MySQL, Red Hat etc) which are making money, I’d surmise that these are still very early days for open source revenue & profit models.
While open source as an operational paradigm certainly has been having exceptional success against proprietary and closed-software models in the recent past, in my opinion, a lot more thought need to be given and experimentations done before the emergence of viable revenue models for the free & open source models that can successfully compete with the current proprietary software revenue model. Some specifics of the business models are emerging fast, but it will take a few years for the market to test each of these out and hopefully, the fittest will survive.
I co-ordinate a site that focuses exclusively on revenue models from open source is Follars.com – Free, Open-source Dollars! I plan to include the links you have provided - at least one of them at the page. Thanks again for the update
Ec @ IT, Software Database @ eIT.in