[Zope] OT:looking for info/ideas on "Open Source Business Models"

[Paul Howell]

A "better base" than closed source?  No, not necessarily, but certainly a 
valid one.

I think three very good large projects for examples would indeed be Zope 
and MySQL, plus JBoss.  At their hearts, each primary developer of these 
products takes a different basic business model for their core commercial 
product, but there is some convergence among them:

Zope (Zope Corp):
   Open source product: python-based application server.
   Commercialization: sells custom development services, also training.

JBoss: (JBoss Group)
   Open source product: java-based application server.
   Commercialization: sells documentation and training, also sells custom 
development services.

MySQL: (MySQL AB)
   Open source product: SQL database.
   Commercialization: sells support and training, sells non-GPL licenced 
versions, also sells custom development services.

So at the very least, you've got three viable business models for the lead 
developers:  Sell documentation and training, sell support, sell 
development services.

In addition, each of these provides the basis for a vast cottage industry 
for outside developers to use these products to sell development, training 
and support services locally or internationally.  That's what many of us on 
this list seem to do.  Mostly these are smaller organizations (or 
individuals) than the prime developer... but this need not be the case for 
all open source projects.

Of course, the only real difference in BUSINESS models (how revenues and 
profits are generated) is that these open source models do not derive 
revenue from licensing of the open source products, whereas licensing is 
one of the primary revenue sources in closed products.  This provides the 
tradeoff... revenues from closed source licensing sales presumably goes to 
pay to further develop the closed source product with in-house 
programmers.  In contrast, open source product development derives from the 
bazaar model of the community (which has "free" access to the product and 
cottage impetus to further its usefulness), and from in-house developers 
fed by the other revenue sources.

Another cottage example:  IBM derives revenues from Linux through direct 
consulting services and support, and also through sales of its own products 
that run on their Linux servers.  IBM has thus become a part of the vast 
cottage industry spawned by the Linux open source operating system.  Linux, 
of course, has a less simply defined but also successful business model 
(such a definition is left as an exercise for the reader, and for Robert).

<notice i've completely avoided giving any references.  it's my day off. />
my2c
=Paul

At 09:16 AM 1/10/2004 +0100, you wrote:
>Hi all,
>
>I am going to give a speech on "Open Source Business Models"  for which I am
>searching ideas and concepts.
>
>What I would like to show is why and where  OSS provides a better base to 
>make
>business than closed source.
>A main focus should not be how to provide "big" software packages like Zope/
>Mysql/et al but on what business could be buildt around them.
>
>Any Ideas and pointers would be greatly appreciated.
>
>Robert