The Lighter Side Of The Cloud – Privileged
The Lighter Side Of The Cloud – Surprise!
The Lighter Side Of The Cloud – No More Worries

The Trend Of Open Source And Proprietary Software Business Model

The Trend Of Open Source And Proprietary Software Business Model

Open source software has been there for a long time. Its popularity is increasing each and every day and has reached such a level that it’s hard to find a domain which does not have an open source presence. Companies are reluctant to buy proprietary software due to the cost involved. In most cases, open source software seems to be a viable option.

People often fail to realize that open source is not completely free. It has its own business model to generate revenue in order for the provider to remain financially viable. Some open source software providers gain revenue by offering two versions of their software. One of the versions is free but comes with limited functionalities. The other version is fee-based and has many additional features. Once the user gets accustomed with the free version, they can opt for the fee-based version. Open source software also gets revenue by providing service.

Companies providing proprietary software generate revenue by selling products. They gain profit not only by selling the software licenses, but also from providing additional services and support. Although this has been the trend of generating profits from proprietary software, the companies are looking for varying means to maintain market share in a highly-competitive environment.

Proprietary software is constantly losing ground due to intense competition from open source software. Like open source software, proprietary software is now offering a free version of their products to the customers. Companies selling proprietary software, like SQL Server, provide free versions of their software in the form of ‘express editions.’ The express edition does not have any services or support attached to it. It comes with a limit of 2GB of data that can be stored. It can be used by small companies to start with it and is replaced with the proprietary version as they grow. This model is the same as the open source model where free versions are provided while support and services come with a fee. Once the customer gets used to the free version, there is a potential that they will buy the fee-based version which has many additional functionalities.

The current trend shows rising popularity of open source which compels proprietary software to re-think their sales-based revenue model. The use of express edition and earning from support is a sign of this. The proprietary software will have to continuously come up with innovative ideas to maintain its grip on the market.

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!

Sorry, comments are closed for this post.

Support

Recent

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

The Lighter Side Of The Cloud – Due Diligence

The Lighter Side Of The Cloud – Due Diligence

By David Fletcher Please support our comics by sharing, licensing or visiting our cloud sponsors (Below). Your support goes a long way in allowing us to continue to produce our lighthearted comics each week.   About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information.…

Popular

4 Different Types of Attacks – Understanding the “Insider Threat”

4 Different Types of Attacks – Understanding the “Insider Threat”

Understanding the “Insider Threat”  The revelations that last month’s Sony hack was likely caused by a disgruntled former employee have put a renewed spotlight on the insider threat. The insider threat first received attention after Edward Snowden began to release all sorts of confidential information regarding national security. While many called him a hero, what…

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

15 Emerging Technologies To Watch Before 2020 The cloud, big data, the internet of things, and wearable technology have all featured heavily in Forrester’s latest list of fifteen technologies to watch before 2020. It is becoming a reality for businesses that they need to adapt and change to an increasingly technologically-minded customer base. Traditional marketing…

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most Cloud computing is rapidly revolutionizing the way we do business. Instead of being a blurry buzzword, it has become a facet of everyday life. Most people may not quite understand how the cloud works, but electricity is quite difficult to fathom as well. Anyway, regardless of…

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Cloud Public, Private & Hybrid Differences Many people have heard of cloud computing. There is however a tremendous number of people who still cannot differentiate between Public, Private & Hybrid cloud offerings.  Here is an excellent infographic provided by the group at iWeb which goes into greater detail on this subject. Infographic source: iWeb About…

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

What Cloud Technology Has Allowed Us to Do Better The cloud has made our working lives easier, with everything from virtually unlimited email storage to access-from-anywhere enterprise resource planning (ERP) systems. It’s no wonder the 2013 cloud computing research IDG survey revealed at least 84 percent of the companies surveyed run at least one cloud-based application.…

Sponsored Posts

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-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

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.

Branded Content Programs

Advertising