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Who's Making Money from Open Source? | |
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| Time: 17:45 EST/22:45 GMT | News Source: NewsFactor | Posted By: Robert Stein | ||
|
In the programming world, open source software such as Linux (news - web sites) is known for its publicly available source code. Because of this availability, communities of unpaid programmers around the world work to develop and troubleshoot such software. While the term "open source" to most people has come to mean "free," companies large and small have proven there is money to be made in the open source sector. In fact, software distributors, original equipment manufacturers (OEMs) and service and support providers all stand to make a profit from open source products. And Carl Howe, research director at Forrester Research, likened the open source business model to the difference between selling Coke and selling water. "Microsoft is like Coke," Howe told NewsFactor. "It's a secret formula, all the money is from distribution, and their goal is to get Coke everywhere. Open source is like selling water. There are water companies like Perrier and Poland Spring, but you're competing with something that's free. | ||
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| #1 By 2 (24.54.153.167) at 4/8/2002 7:42:58 PM |
| lol |
| #2 By 135 (209.180.28.6) at 4/8/2002 8:25:24 PM |
|
"The sale of support and integration services, management and development tools, middleware applications and even companies' own proprietary software are sources of such companies' revenue."
The same is true with Windows also. It's really simple economics of scale. It's far cheaper for me to pay Microsoft for access to their software than it is for me to hire developers to write and maintain something on our own. Why? Because Microsoft amortizes the cost over hundreds of millions of customers rather than the few hundred thousand I might have. I guess the point is it really is no different. I often see claims that Open Source is somehow better, more cost effective and so on, but that only works out if you are completely willing to rely upon volunteers to operate in your companies best interest. While people often claim that Microsoft doesn't operate 100% in the customers best interest, because of the exchange of $, you are guaranteed a much more positive relationship than that coming from volunteers who may dissappear at any time they get bored. Open Source is really oversold. From a development methodology it is years behind what is currently going on within commercial software houses, etc. It's unfortunate that so much attention is paid to it, because it doesn't deserve it. |
| #3 By 135 (209.180.28.6) at 4/8/2002 8:26:01 PM |
| JeffChapnet - Can you say FUD? |
| #4 By 3339 (65.198.47.10) at 4/8/2002 8:49:54 PM |
| Ceazar, don't forget working for a proprietary company on open source projects--Apple's got at least 10 of the biggest OS names at this point... I would wager that Sun, IBM, etc.. have a few too. For these companies, they reap huge benefits by advocating OS--they get to reap the rewards of these guys work anyway, might as well pay them for it and make them happy too... It's becoming a bigger and bigger trend to be OS working for $ companies. |
| #5 By 135 (208.50.201.48) at 4/8/2002 9:58:13 PM |
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sodajerk - "It's becoming a bigger and bigger trend to be OS working for $ companies. "
And yet is still pales in comparison to the hundreds of thousands of people employed and working on commercial software. Which follows my trend analysis that OS is overhyped. |
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