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Director, OpenShift Strategy at Red Hat. Founder of Rishidot Research, a research community focused on services world. His focus is on Platform Services, Infrastructure and the role of Open Source in the services era. Krish has been writing @ CloudAve from its inception and had also been part of GigaOm Pro Analyst Group. The opinions expressed here are his own and are neither representative of his employer, Red Hat, nor CloudAve, nor its sponsors.

2 responses to “Making Money In Open Source: Does It Matter?”

  1. kaiyzen

    I disagree somewhat with the statement that Open Source isn’t a business model. Open Source in its true form isn’t, but any company that dual licenses their software with a free community version and paid pro/enterprise license is using open source as their development and lead-gen strategy, which in my opinion is Open Source as a biz model.

    Sounds like it was a good event with some good debating going on. Biggest mistake people make when busting out the revenue measuring sticks between open source vs proprietary vendors is two main facts:

    1) Commercial Open Source vendors inherently price their solutions lower then their proprietary counterparts. Its the easiest way to get early attention, and what it comes down to in the long run is the argument that its cheaper to develop/maintain an open sourced based product line so the firm should pass savings on to their customers

    2) Commercial Open Source vendors end up not only competing with their proprietary counter parts, but also with their free community editions. This is part of the game of getting people on your platform, even if it means them not paying for it

  2. ebarroca

    Hi,

    Open source is definitely not a business model. I would prefer to call it an “open legal framework enabling multi-entity collaboration” (than a philosophical platform because the latter imply some form of ideology).

    And, as a CEO running a business directly linked to open source software we are producing, I believe the best thing about open source is that it enables collaboration, hence innovation, between for self-interested entities. It has opened huge opportunities for the web-era businesses (no web & no internet without open source, from the low-level infrastructure to the latest ajaxy hype). And it’s totally ubiquitous now be that in proprietary software or cloud services. It is totally key to today’s innovation in IT.

    I’ve written more about this topic (and open core model specifically) here: http://blogs.nuxeo.com/ebarroca/2010/04/business-open-source-my-take-on-the-open-core-debate.html.

    Cheers,

    EB.