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InfoWorld: Open Source Community Subversion as Marketing Ploy

Jun 28, 2006, 04:00 (2 Talkback[s])
(Other stories by Dave Rosenberg)

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"There are two main reasons proprietary vendors are threatened by open source alternatives: price compression and loss of market share.

"Open source companies have a pricing umbrella in relation to proprietary vendors license fees. Proprietary vendors argue that open source alternatives lack features, are less secure, socialist and so on, but fundamentally the difference in features is likely no more than 20%. Open source products are generally 10-30% of the cost of the proprietary competitor. This means you can pay roughly 20% of the cost and receive roughly 80% of the features. This is a very appealing proposition. And the more companies who take advantage of this fact the more market share is lost by proprietary vendors..."

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