Menu

Use of Open Source as a business model

2001-04-25
2001-05-10
  • Christine Miyachi

    I'm curious on what others think about using Open Source as a business model.  Do you think it can work for general purpose projects for the long term?  What are the business models for companies moving to Open Source?  Here are the ones I  have come up with:

    1.  If the company is a hardware vendor, Open Source may get more people to buy the hardware.

    2.  The company may open source some software and then sell add on's.

    What about development?  Most companies use traditional project management but open source projects are usually management free?  Has anyone had this work inside their company?  Has it reduced the layers of management?

     
    • Anonymous

      Anonymous - 2001-04-26

      Open source provides additional incentives to developers to perform high quality work. It allows them to share their not-so-profitable ideas beyond the boundary of their company. If properly "managed", it can significantly improve the moral and productivity of a software organization.

       
    • Ambrose Kam

      Ambrose Kam - 2001-04-26

      I think open source will create lots of value.  However, I am not sure how exactly do companies capture some of the values that they help create in the process.  Take Java, for example, I am sure Sun has created lots of value by having launched that initiative.  However, I am still puzzled on how do they make any money on Java.  Of course, by being the champion of a technology like Java commands lots of respect and leadership, but it's still unclear how much revenues do the Java technologies actually help to bring in.

      Ambrose 

       
    • Ragnvald Larsen

      Ragnvald Larsen - 2001-04-26

      OpenSource provides software solutions, minimizing the need for some IT-professionals with higher competence; programming andsystematinzation, project management, etc...

      At the same time it provides complete solutions that professionals of a lower competence level may implement even if they lack the competence to build these solutions.

       
    • Anonymous

      Anonymous - 2001-05-10

      As a business model by itself it is horrible.
      There must be some other means of (as another user posts) "capture value".
      Whether this is through increased hardware sales, or customization and integration services doesn't matter, but there must be something.

      Open-source may lead to more robust software, but in and of itself does not equate to high revenues.  Any company looking to provide open-source software better have an idea about where there revenues are going to come from and build out that competency.

       

Log in to post a comment.

Want the latest updates on software, tech news, and AI?
Get latest updates about software, tech news, and AI from SourceForge directly in your inbox once a month.