Open Source Business Models

Advertise on CloudTweaks

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

CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in cloud connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as technology related infographics and comics.

Contact us for more information on how to get involved in our content related services and placement programs.

CONTRIBUTORS

Forget What You Have Heard About the Retail Apocalypse. Due to the Cloud Retailing is Booming

Forget What You Have Heard About the Retail Apocalypse. Due to the Cloud Retailing is Booming

Cloud Retailing is Booming Huh? You’ve heard that retail is dying. What if you were to learn that more jobs ...
Why ‘Data Hoarding’ Increases Cybersecurity Risk

Why ‘Data Hoarding’ Increases Cybersecurity Risk

Data Hoarding The proliferation of data and constant growth of content saved on premise, in cloud storage, or a non-integrated ...
The Next Wave of Cloud Computing: Artificial Intelligence?

The Next Wave of Cloud Computing: Artificial Intelligence?

Cloud Computing and Artificial Intelligence Over the past few years, cloud computing has been evolving at a rapid rate. It ...
The Growing Complexity with IoT, Cloud and the Edge

The Growing Complexity with IoT, Cloud and the Edge

IoT, Cloud and the Edge The convergence of the Internet of Things (IoT), edge, and cloud has changed how enterprises ...
Enterprises look for partners to make the most of Microsoft Azure Stack apps

Enterprises look for partners to make the most of Microsoft Azure Stack apps

Microsoft Azure Stack Apps The next BriefingsDirect Voice of the Customer hybrid cloud advancements discussion explores the application development and platform-as-a-service (PaaS) benefits from Microsoft ...
How to Fight Fake News with AI

How to Fight Fake News with AI

How to Fight Fake News with AI With two-in-three U.S. adults, or 64 percent, saying that fake news stories are ...
Financial Management Finds a Welcome Home in the Cloud

Financial Management Finds a Welcome Home in the Cloud

Cloud Based Financial Management The most cautious person in any organization is likely to be the CFO. After all, they’re ...
If Not Managed Correctly, The Cloud Can Cost An Organization

If Not Managed Correctly, The Cloud Can Cost An Organization

Cloud Application Management When organizations implement cloud applications, they do so as a means to be more efficient and in ...

NEWS

CIOs Cutting Through the Hype and Delivering Real Value from Machine Learning, Survey Shows 

CIOs Cutting Through the Hype and Delivering Real Value from Machine Learning, Survey Shows 

New survey reveals progressive CIOs tap machine learning to solve everyday work problems SANTA CLARA, Calif. – October 17, 2017– A ...
Cisco Unveils Industry's First Predictive Services Powered by AI

Cisco Unveils Industry’s First Predictive Services Powered by AI

New offerings designed to manage growing technical skills gap through unique expertise, intelligence and automation SAN JOSE, CA--(Marketwired - Oct ...
New IDC Spending Guide Forecasts Nearly $120 Billion in Worldwide Spending on Security Products and Services in 2021

New IDC Spending Guide Forecasts Nearly $120 Billion in Worldwide Spending on Security Products and Services in 2021

FRAMINGHAM, Mass., October 19, 2017 – Worldwide spending on security-related hardware, software, and services is forecast to reach $119.9 billion in ...

NEWSLETTER SUBSCRIBE

CloudTweaks has been a prominent influence covering cloud technologies since 2009. We have worked and continue to work with a tremendous number of writers, contributors and partners throughout the world – all of whom provide insights into the cloud business community. This information is provided to our Newsletter subscribers on a weekly basis - free of charge.

Subscribe to receive our weekly collection of Best of Thought leadership, Technology news, Tweaks, Curated resource links, Exclusive promotions and our popular Comic series.

Something went wrong. Please check your entries and try again.