Nuts and Bolts of Open Source Business Models
Open source is thriving, with over 1.4 million registered users on SourceForge.net and with startups sprouting around every part of the software stack. The big question is, can companies really make enough money when the software is often downloaded for free?
If Red Hat is any indication, the answer is yes. With projected revenues of about US$300 million this year, the 13-year-old company relies on a subscription model. An annual fee per server buys updates, upgrades, certifications, unlimited incident support throughout the year. For example, if a hardware manufacturer releases a new computer model, Red Hat will certify it at no extra charge.
"The business model is not so much around the code as it's providing the environment for customers to use the code," said Nick Carr, enterprise Quintum VoIP solutions. The perfect fit for your Enterprise. open source Latest News about open source marketing Free Download - Look Who's Driving the Next Generation of e-Commerce manager at Red Hat. "In the Linux and open source software area, it's pricing Software as a Service rather than as a perpetual license," said George Weiss, an analyst at Gartner.
The subscription model differs from services in that services fall into a broader category. For example, subscription-based pricing is one type of service. Systems integration is another kind of service, in which multiple open source applications have to work together in a complex system build. Consulting services is a third category.
- Login or register to post comments
- Printer-friendly version
- 1126 reads
- PDF version
More in Tux Machines
- Highlights
- Front Page
- Latest Headlines
- Archive
- Recent comments
- All-Time Popular Stories
- Hot Topics
- New Members
digiKam 7.7.0 is releasedAfter three months of active maintenance and another bug triage, the digiKam team is proud to present version 7.7.0 of its open source digital photo manager. See below the list of most important features coming with this release. |
Dilution and Misuse of the "Linux" Brand
|
Samsung, Red Hat to Work on Linux Drivers for Future TechThe metaverse is expected to uproot system design as we know it, and Samsung is one of many hardware vendors re-imagining data center infrastructure in preparation for a parallel 3D world. Samsung is working on new memory technologies that provide faster bandwidth inside hardware for data to travel between CPUs, storage and other computing resources. The company also announced it was partnering with Red Hat to ensure these technologies have Linux compatibility. |
today's howtos
|
Recent comments
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago
1 year 11 weeks ago