open source, Open Source CMS, Web CMS, Web Content Management

Open Source: Mere Business Tactic or Viable Business Model?

Some say that if you’re not employing a hybrid business model for your open source project — you are, basically, doomed. If you want to flourish, turn to one of more than 80 different combinations of development models, vendor licensing strategies and revenue triggers that were identified by the 451 Group.

At the same time, software giants like Microsoft started playing friendly in the open source space; esp. with the latest release of Silverlight 2. Additionally, CMS vendors like eZ and Alfresco report that open source can be profitable.

Key takeaways from the 451 Group’s research and blog:

  • Open source is a business tactic, not a business model.
  • Open source is not a market in itself, nor is it a vertical segment of the market.
  • Open source is a software development and/or distribution model.
  • “The cat is already out of the bag,” when it comes to open source-related business models.
  • There is very little money being made out of open source software, of there’s no additional support from proprietary code and services

One of the most interesting thoughts in both the blog and the report is the idea of blurring the lines between proprietary software and open source software. Allegedly, as open source software is being embedded in proprietary hardware and software products, more and more customers are attracted to the proprietary extensions.

The fact and the matter is that there are very few vendors generating revenue from open source software, when they follow the purist approach of offering code and licensing of all of their software under open source licenses.

Full article on CMSWire: Study: Pure Open Source Is Not a Business Model

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2 thoughts on “Open Source: Mere Business Tactic or Viable Business Model?

  1. Pingback: webEdition CMS Abandons Licensing, Goes Open Source « Irina Guseva: Random Thoughts on CMS, WCM, ECM and Other Acronyms

  2. Pingback: Rebrandable Zimplit CMS, All Yours « Irina Guseva: Random Thoughts on CMS, WCM, ECM and Other Acronyms

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