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Business model Quote by Stephen O’Grady

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““So if open source is cannibalizing the commercial software markets, it’s all smooth sailing for those who commercialize open source, right? Well, not exactly. In order to monetize an otherwise free and open source software product, vendors have been forced to develop creative new business models to get buyers to pay for what they can otherwise get for free. The most common of these are described below. Support/service The most common model of commercial open source is support and service. Instead of paying for the product, buyers pay vendors to support a product they can otherwise obtain at no cost. The advantage of this model is that most large organizations require commercial support for production applications, so sales is less of a challenge. The disadvantage of this services-only approach is that the deal size is commensurately lower than with traditional commercial software that includes both a license component and support and service.””

Stephen O’Grady

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