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The Yin and Yang of Open Source Commerce, Part 4

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OSS

So far in this series of articles, it has been demonstrated that there is a large and growing global IT market. The bulk of Linux business opportunity is demonstrably in the SMB/SME marketplace, a market that is presently under-serviced by Linux companies. The nature of the market as a whole has been discussed, and in this concluding part of the series, the competitive situation is briefly mentioned so as to round out the argument that it is time for seriously profitable Linux business activity from businesses that know the rules for success.

A business that earnestly wants to gain market share will choose those segments that offer rapid product uptake, economy of scale, short repurchase cycles, and a diverse distribution channel that can offer a suitable defense against retaliatory action from incumbent competitors. Beyond the 50,000 global enterprise businesses there are some 30+ million SMB/SME businesses. An incumbent competitor can mobilize a small team to defend themselves in 50,000 customer sites, but even the largest company in the world cannot long afford to retaliate in a large customer base.

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