Open Source Business Models

Open Source Business Models

Open-source business models are employed by companies that rely on development of open source software to make profit. These models are essential for these companies to remain economically viable. These companies are known as Commercial Open Source Software (COSS) or Professional Open Source Software (POSS). The following are some of the models that they use.

Dual Licensing: The POSS provide two different licenses for the same open source software. The software is available under both open source and commercial licenses. The POSS make profit by selling software under commercial license. It is important to understand why someone would choose to pay for software that is available for free. Under the open source GPL licensing, if the open source software is linked to proprietary software, the proprietary software also becomes open source. Consumers buy open source software to avoid this. MySql and SugarCRM are among the examples of POSS using dual licensing.

Split Open Source Software: The open source software is split into portions. The first part provides all the basic features and is available under the open source license. The other parts are extensions of the features of the first part. These extensions are available under commercial license and the company is making profit from selling them.

Product Specialization: In this model, the POSS provide the open source software for free. As the open source software has presence in many different domains, these companies provide training and consultancy on specific domains, earning significant revenue.

Platform Providers: With the introduction of service-oriented architecture we no longer buy software from one particular vendor. We build software using components from different vendors and integrate them into one system. There are various risks and issues that need to be considered if all these components are open source. Integrating components can be a challenging task as not all software has common requirements. Community support, resources required, integration, and finding the right version are among the issues that entail serious consideration. To avoid these overwhelming issues, consumers are willing to pay the company to deliver a platform that is tested and verified. A good example of platform-provider business model is Zend, a platform for developing PHP applications.

By Jake Rosenblum

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!
FacebookTwitterLinkedInGoogle+Share

One Response to Open Source Business Models

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Advertising Programs

Click To Find Out!

Sponsored Posts

Sponsored Posts

CloudTweaks has enjoyed a great relationship with many businesses, influencers and readers over the years, and it is one that we are interested in continuing. When we meet up with prospective clients, our intent is to establish a more solid relationship in which our clients invest in a campaign that consists of a number of

Popular

Top Viral Impact

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs SMEs (Small/Medium Sized Enterprises) make up the bulk of businesses today. Most cloud based applications created today are geared toward the SME market. Accounting, Storage, Backup services are just a few of them. According to the European Commission, cloud based technology could help 80% of organisations reduce costs by

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts It’s no secret that Cloud Computing is more than just a buzz term as that ship has sailed off a long time ago. More and more companies are adopting the uses and benefits of cloud computing while aggressively factoring cloud services spending into their budget. Included is an excellent

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things There are many interesting ways in which companies are looking to connect devices to the cloud. From the vehicles to kitchen appliances the internet of things is already a $1.9 trillion dollar market based on research estimates from IDC. Included is a fascinating infographic provided by AriaSystems which shows us some

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Whitepapers

Top Research Assets

HP OpenStack® Technology Breaking the Enterprise Barrier

HP OpenStack® Technology Breaking the Enterprise Barrier

Explore how cloud computing is a solution to the problems facing data centers today and highlights the cutting-edge technology (including OpenStack cloud computing) that HP is bringing to the current stage. If you are a CTO, data center administrator, systems architect, or an IT professional looking for an enterprise-grade, hybrid delivery cloud computing solution that’s open,

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security Cloud applications are a priority for every business – the technology is flexible, easy-to-use, and offers compelling economic benefits to the enterprise. The challenge is that cloud applications increase the potential for corporate data to leak, raising compliance and security concerns for IT. A primary security concern facing organizations moving