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Open Source Becomes Key Player in Business Models

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OSS

What will become of open-source companies when they grow up? Will there be an open-source dot bomb, or is the investment going into open source leading the way for a whole new kind of software company?

Although the jury is still out, it is evident open-source software has and will continue to impact the software industry and the business models of new and existing companies, as both start-ups and large entrenched players vie to keep ahead of open-source projects.

But leading companies will face increasing pressure from open-source projects that tend to commoditize entire technologies and portions of companies' business, such as application servers, Web servers, operating systems and databases.

The question for big companies becomes whether to open-source their own technologies to get out ahead of the curve and hold some influence on how things turn out, said Cliff Schmidt, vice president of legal strategy for the Apache Foundation and a consultant who advises large companies on how to interact with the open-source community.

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