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Linux.com: Better Business Models for Open Source?

May 23, 2000, 13:00 (0 Talkback[s])
(Other stories by Matt Michie)

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"An extraordinary amount of time has been spent analyzing various open source business models. The business models that have been adopted so far have been: selling support, selling the software, selling documentation, or bundling with physical products. With a couple of financial quarters behind them, how are the Linux companies doing? Do the numbers show any model being clearly superior?"

"It is difficult to get a good handle on how well each strategy is currently performing. The Linux industry is still very new, and most companies have adopted several of the models. However, this article will attempt to give the reader some perspective on the current status on each company and which models they are using."

"One of the most talked about strategies for making money on free software is to sell support and services. There seems to be a trend in the entire software industry to move to this business model. Since Linux is freely downloadable, this seems like a good strategy. Businesses want to know that there is someone available who can respond to technical problems. Managers seem to sleep better knowing they can call someone when stuff starts to hit the fan."

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