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CSci 395.86 Open Source Software Development


Free and Open Source Software - Business Models

Instructor: Stewart Weiss

Copyright 2020 Stewart Weiss. This work is based on slides written by Joanna Klukowska, released under a CC BY 4.0 license,
which may be found at https://joannakl.github.io/ossd_s19/slides/HFOSS.html. These slides are released under a Creative Commons Attribution-ShareAlike 4.0 International License.

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Sources and Interesting Articles

  • Musings on open source software business models is an article by Tom Callaway of RedHat in which he discusses various business models for open source software.

  • TideLift.com is the webpage that describes TideLift, a company with a novel business plan that acts as an intermediary between open source software companies and the companies that use their products.

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Sources and Interesting Articles

  • Open Source Within Modern Companies is an explanation of why modern software companies need an office that can exert influence on various sectors of software ecosystems, clarify its open source messaging, maximize the clout of its projects, or increase the efficiency of its product development.
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Open Source

is NOT a Business Model

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Open Source

is NOT a Business Model

but,

there are business models that are

built around open source projects

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Open Source

is NOT a Business Model

but,

there are business models that are

built around open source projects

  • there is money made in the world of open source

  • many people think that open source, as an idea, is antithetical to the idea of making money

    • if this was the case, the business world would not be using and participating in open source projects
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Business Models

  • Software Consulting
  • Subscription Offerings
  • Auxiliary services ...
  • Donations
  • Open core
  • Software as a Service (SaaS)
  • Dual licensing / Selling exceptions
  • Peace of Mind
  • Bounty driven development
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Software Consulting

  • provide consulting to other businesses regarding the use of open source in their daily operations.
  • provide consultation for starting and running an open source project

Examples:

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Subscription Offerings

  • provide services that accompany the software that is otherwise available to anyone who wants it
  • examples of such services:
    • installation
    • maintenance
    • training
    • localization
    • day to day support

Examples:

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Donations

  • provide the software or service and encourage donations
  • sell products branded with the company name

Examples:

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Open Core

  • provide the core of the project as open source
  • keep addons, customizations, improvements as propriatery

Examples:

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Software as a Service (SaaS)

  • customers subscribe to an online service (the software running there is open source, but it is the service that generates revenue)

  • frequent overlap with open core model

Examples:

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Dual Licensing / Selling Exceptions

  • software is available under the open source license,
  • exceptions to that license are made (for a fee) to allow a third party company to use it under different rules

Examples:

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Peace of Mind

  • acting as a middle-men between the company consuming the open source software and the open source project itself
    • charge the consumer in exchange for guarantees that the project will be supported and will continue development
    • support the open source project (financially)

Examples:

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Bounty driven development

  • third party companies using the open source software pay to have the bugs fixed and new features implemented

Examples:

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Sources and Interesting Articles

  • Musings on open source software business models is an article by Tom Callaway of RedHat in which he discusses various business models for open source software.

  • TideLift.com is the webpage that describes TideLift, a company with a novel business plan that acts as an intermediary between open source software companies and the companies that use their products.

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