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Open Source Business Innovation and the Subscription Model

“Stephen O’Grady has a great post (as always) on how companies
using free and open source software in their customer solutions can
make more money for their investors. Companies like MySQL, JBoss,
and Red Hat, and now Canonical have all developed subscription
offerings based on value added networks. There’s good commentary
from Javier Soltero (Hyperic CEO) and Zack Urlocker (Product VP at
MySQL) as well–companies that are exactly engaged in this
business. One of the business model innovations from the FOSS world
that often goes unsung is exactly this subscription network
model.

“Traditional software companies have dreamed of ‘subscription
revenues’ for at least the last 7-8 years…”


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