Why Wall Street Hates Open Source

Written By
Web Webster
Web Webster
May 23, 2012

The reason that makes sense is that open-source software companies don’t make much money.

When you offer code on a Web site, free for the taking, people tend to take it. Most won’t pay you for using it. Some might even try to make money from it, and the costs of policing a license violation don’t come back.

Most open-source benefits don’t go to the vendor. Most go to the customer. You make money from open-source by using open-source to make something.

Take Eclipse, for example. The Eclipse Foundation organizes the code base, polices the license, and builds a community around its code. Its funding comes from members and sponsors, who are all free to extend the code base to make their own products.

Web Webster

Web Webster

Web Webster has more than 20 years of writing and editorial experience in the tech sector. He’s written and edited news, demand generation, user-focused, and thought leadership content for business software solutions, consumer tech, and Linux Today, he edits and writes for a portfolio of tech industry news and analysis websites including webopedia.com, and DatabaseJournal.com.

Linux Today Logo

LinuxToday is a trusted, contributor-driven news resource supporting all types of Linux users. Our thriving international community engages with us through social media and frequent content contributions aimed at solving problems ranging from personal computing to enterprise-level IT operations. LinuxToday serves as a home for a community that struggles to find comparable information elsewhere on the web.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.