2015 Advertising Opportunities - Find Out More!

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!

One Response to Open Source Business Models

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

The Education Revolution: Cloud In The Classroom

The Education Revolution: Cloud In The Classroom

The Education Revolution: Cloud In The Classroom With the back-to-school season now upon us, parents, students and teachers everywhere are once again struggling with the perpetual challenge of making kids job-ready in a high-speed and fast-changing environment. There is little doubt in anyone’s mind that information technology plays a central role in all areas of life…

PaaS And IaaS: Rising Champions Of Cloud Computing

PaaS And IaaS: Rising Champions Of Cloud Computing

PaaS and IaaS: Rising Champions of Cloud Computing In the cloud conversation, Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) appear much less than the famed Software as a Service (SaaS). This is not surprising when you consider that a world already populated with built platforms and infrastructure has but to operate…

The Lighter Side Of The Cloud – Holiday Photos

The Lighter Side Of The Cloud – Holiday Photos

The Lighter Side Of The Cloud – Holiday Photos Enjoy our weekly comics provided by our talented cartoonists. By David Fletcher About Latest Posts Follow Us!CloudTweaksEstablished 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…

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery  Business downtime can be detrimental without a proper disaster recovery plan in place. Only 6% of businesses that experience downtime without a plan will survive long term. Less than half of all businesses that experience a disaster are likely to reopen their doors. There are many causes of data loss and…

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

Featured Sponsors

The Internet of Everything Opens Up The World

The Internet of Everything Opens Up The World

Shaping The World With New Technologies As a connected collection of intelligent objects, the Internet of Everything promises to open up those areas of the world hardest hit by economic, political and agricultural blights. Relatively inexpensive devices, paired with revolutionary energy sources and unprecedented access to information offer great promise to farmers and workers in…

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

2015 Advertising Opportunities - Find Out More!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter