miscellaneous

Three Areas of Open Source Economics

These days, I get involved in a lot of discussions about open source economics. Usually, they lead to an invitation to present our research and clarify “how open source works” to the audience. I’ve found it helpful to distinguish these three rather different areas of open source economics: (1) direct profits, (2) public welfare, (3) labor market. In more detail:

  • Direct profits: Single-vendor commercial open source. Single-vendor open source projects are open source projects dominated or owned by a single firm. This firm wants to earn direct revenue streams from the project and become or remain profitable based on these revenues. Thus, this area of open source economics is about growing new software firms. Examples are MySQL, SugarCRM, and Jaspersoft. I’ve explained how some of this works in the article “The Commercial Open Source Business Model.”
  • Public welfare: Community open source. Community open source projects are open source projects that are run by a diverse community of stakeholders; unlike single-vendor commercial open source, there is no single dominant owner. Community open source creates public welfare in the form of high-quality software that people can use for free and that innovators can build on. A maturing community open source project typically joins or creates an open source foundation to become sustainable. Examples are Linux, Apache, and Gnome. I’ve explained some of the economics behind this in the paper “The Economic Case for Open Source Foundations.”

Continue reading.

JOIN OUR NEWSLETTER
Enjoying the article you're reading? Subscribe to our newsletter to receive updates and new articles as soon as they are published - right in your Inbox
We hate spam. Your email address will not be sold or shared with anyone else.
Please share:

We Recommend These Vendors and Free Offers

Launch an SSD VPS in Europe, USA, Asia & Australia on Vultr's KVM-based Cloud platform starting at $5:00/month (15 GB SSD, 768 MB of RAM).

Deploy an SSD Cloud server in 55 seconds on DigitalOcean. Built for developers and starting at $5:00/month (20 GB SSD, 512 MB of RAM).

Want to become an expert ethical hacker and penetration tester? Request your free video training course of Online Penetration Testing and Ethical Hacking

Whether you're new to Linux or are a Linux guru, you can learn a lot more about the Linux kernel by requesting your free ebook of Linux Kernel In A Nutshell.


One Comment

  1. Pingback: Three Areas of Open Source Economics — LinuxBSDos.com | Open Hacking

Leave a Comment

Your email address will not be published. Required fields are marked *

*