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Making Money With Open Code, APIs, And Docs?

frustrated-open-sourcer asks: "We have a product in development and we want to make the APIs, docs, and source public, which is what we've announced, but we have to be able to make money on the end results or we'll just abandon the project. Is there any other way but to be closed or use patents?" I've had a lot of folks ask this question, but this one is by far the best version I've heard, and raises some really good questions.

"We've looked at the common model right now which is to sell support and give the code away on a CD for lots-o-money like a record label does. But our product doesn't work with that model very well. Our product is not many megabytes, so a CD to move bits isn't really justified. It's also fully documented in HTML, with man pages and HTML for the API, so a dead-tree manual is not needed at all. We're also doing development in a CMM-3+ environment, so there is no need for someone to buy support unless we purposely start adding "features" (i.e. bugs) or make it so complex no one can use it without calling us on the phone. That's just not an acceptable option since our product needs to operate in a five-9's environment, where if it doesn't work right it's never even allowed in the building.

We realize that if we do keep the source closed, but open the API or docs, someone will clone it because they don't want to pay for our work. Even with the typical no-quality clone, this makes the product life too short and the market too small to justify the large development costs.

Since the above model doesn't work for us, the only other way to make money (other then a sweet stock market scam) is to have a pile of patents. This is definitely not the way we want to go since we would need five lawyers for every geek in the company, and we all know software patents are all bogus since everything was done by 1975.

So did we back ourselves into a corner where we have to move to closed source or patents? Or should we just give up and go back to the day job working for someone with a pile of patents and a closed everything that can pay us? There are alot of issues here, but the bottom line is the bottom line, we have bills to pay, and if we can't pay them we'll go back to doing something else.

- frustrated."

194 comments

  1. One possibility... by ratbag · · Score: 2

    How about giving the stuff away and charging for any future customisations a particular customer needs?

    Rob.

    1. Re:One possibility... by ekmo · · Score: 1

      This is almost like the model Zope has (successfully) implemented. I am not sure how flexible your code is but you can look at some of the Zope case studies http://yyy.zope.org/Resources/CaseStudies and get a sense of specifically how this business model is effective.

      --

      | Ceci n'est pas une pipe.
    2. Re:One possibility... by hairychest · · Score: 1

      Sell the product with source code & headers but have a legally binding agreement in the installer that the end users are not allowed to resell the source or headers or the productin a form usable by 3rd parties, If you make the headers completely open don't allow them to deliver shared library binaries. The users are allowed to post fixes for bugs & modify to their own ends & maybe have the possibility of reselling the source with your license attached at a commission.

    3. Re:One possibility... by supersnail · · Score: 1

      This seems like the most sensable approach for this particular case.

      First copyright everything! Especially the header files for your APIs. Its enormously difficult to make a workalike product if you have to create new header files which are different enough from the old header files so as not to violate copyright.

      If you really need to work on a 99.999% availability environment then I wouldn't worry too much about low quality clones. They will need to fight your (well earned!) reputation for reliability.

      Charge a lot! Large corparations like to spend shareholders money and are absurdly suspicious of cheap software.

      Sell a package which includes source code, installation, support, maintenance, upgrades, user group membership and anything else you can think of. A cheappo clone would not be able to compete with this level of service.

      A low risk (low reward!) alternative would be to sell out to an established software vendor. Most large software copanies are desperate for some new product lines!

      --
      Old COBOL programmers never die. They just code in C.
    4. Re:One possibility... by mrbinary · · Score: 1

      Another option that just came to my mind is to provide the 'base' product as Open Source and have companies or persons who find the product useful pay for added features, similar to Blender (or is it Gimp?) Leave the optional 'plug-in' modules as menu options (I'm making an assumption this is a GUI-based product) that are greyed out unless you buy the specific upgrade modules, which you would have to have ready when releasing the base product. The 'upgrade modules' could be open source or not as you see fit. Plus you can make money from the treeware, which many large companies still like to have around 'just in case'.
      Best of luck regardless of how you proceed!


      ----

      --

      ----
      Slán leat agus go n'eirí an bóthar leat
    5. Re:One possibility... by scann · · Score: 1

      What if one where to apply the benefits of open source to a commercial solution. I think it could create:

      1. Source code included with product;
      2. Inexpensive product;
      3. Collaborative development with community and developers.

      I think such a commercial source product could have some distinct advantages:

      4. Support organization;
      5. income to pay for full time developers and company infrastructure;
      6. Possibly greater innovation.

      The company I work for - http://www.javacorporate.com/ offers several open source projects. These worthy projects generate interest in our other commercial products - they are also loss leaders. To open source all of our products would put us out of business. The reality is - many developers download the open source but few as a percentage contribute back to the community or pay for premium support. So open source services has not paid for our full-time developers.

      So we also offer a commercial source model on a number of products. We feel long term without the commercial source projects - innovation on our open source projects would be compromised without our fulltime developers who are leaders in the development and who support and encourage the community developers.

      I think the javacorporate.com model is win/win to everyone. And the commonality is all of over products enjoy the benefits of source code and a collaborative infrastructure. I hope you'll have a look.

    6. Re:One possibility... by david_goldstein · · Score: 1

      Good idea. I recommend that you make the software look as compelling as possible, but leave many hidden "land mines" where they will have to come back to you for modifications. I mean, if you do too good of a job on the software, nobody will ever ask you for modifications, and you won't make any money, right?

    7. Re:One possibility... by david_goldstein · · Score: 1

      I personally would prefer a company that was confident enough in its software to close the source and charge for it. If the coder is so desperate for customers that he has to give it away and ride the coattails of open source fever, I would be suspicious. And I would be doubly suspicious if this guy's only way to make money is to provide support. There is a financial incentive to sell complicated software, and no financial incentive at all to make the software stand on its own...

    8. Re:One possibility... by swright · · Score: 1

      We're in a similar dilemma with a product we're developing here in the UK. We'd thought of releasing a standard version of it (Linux only) that was free and (maybe) included the source - but the problem is that much of our business involves building and selling Linux servers to offices/companies. We always recommend Linux as the server OS - which means we won't get any more money for 'selling' this product. The way I see it is this: I don't like the idea of paying for Linux software. Linux software is (for me at least) _supposed_ to be free/OSS. I would feel rude trying to sell a closed source product for Linux. Whats the consensus on this - is it actually acceptable to release closed source Linux software?

    9. Re:One possibility... by BeeJay · · Score: 1
      I personally would prefer a company that was confident enough in its software to close the source and charge for it. If the coder is so desperate for customers that he has to give it away and ride the coattails of open source fever, I would be suspicious.

      There's absolutely no reason to believe that closed-source products are from companies that produces better code. Rather the opposite: By open-sourcing, you are revealing all the nasty hacks in the code, if any. So, companies doing quick-n-dirty programming cannot go open-source.

      So staying closed source IMHO doesn't indicate that the company is confident in its software, rather that they are unconfortable with other people seing how crappy their product really is.

    10. Re:One possibility... by angel'o'sphere · · Score: 1

      Unfortunatly the URL provided
      http://yyy.zope.org/Resources/CaseStudies
      does not state anything about a business
      model or something similar :-)
      So whats up with OS business models?

      --
      Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
  2. Why open source? by grahamsz · · Score: 5
    I mean I realise the open source community is fantastic but there is still no requirement for companies to open source things.

    At the end of the day, i'd guess, your company is in business to make money and I dont entirely see why you should be so keen to open source something if your livelyhoods depend on it.

    Where open source fit in nicely is when a company has some internal software that they use and isn't central to their line of business. This way they can return something to the community and other people can help them sort out bugs.

    Obviously open sourcing some of your products can help promote other products, but this essentially only works for large companies who aren't dependant on one core product.

    If you have developed a package which is truly unique then you could potentially make a lot of money off it, and I think that's only fair. But unless opensource fits in well with your business proposal then there's no real reason to use it (apart from that warm fuzzy feeling inside)

    Ok having stuck my head up and i'm going to hide before someone shoots it off :)

    1. Re:Why open source? by Anonymous Coward · · Score: 1
      I would have expected that on Slashdot we would see more advocacy for the "free software" philosophy. E.g., from the the www.gnu.org/philosophy/shouldbefree.html page:

      "What Do Users Owe to Developers?

      There is a good reason for users of software to feel a moral obligation to contribute to its support. Developers of free software are contributing to the users' activities, and it is both fair and in the long term interest of the users to give them funds to continue.

      However, this does not apply to proprietary software developers, since obstructionism deserves a punishment rather than a reward."

      Presumably we should be "punishing" Frustrated for even considering a proprietary sales model -- and yet half the respondants here seem to be advocating one!

      I've always considered Stallman's philosophy specious -- it explains how "free software" benefits society, but provides no mechanism through which society may fund the development of such software on a large scale. As such, it's a bit like a perpetual motion machine -- lovely for society to have one, yes, but providing no blueprint for its design.

      Apparently I'm not alone among Slashdotters in my my skepticism of the "free software" model?

    2. Re:Why open source? by grahamsz · · Score: 1

      Open source is all good and well when you've got a large number of developers working in their own time to achieve something great.

      However in the corporate world developers are usually expected to produce products that bring money in.

      I wouldn't expect many boards of directors' or shareholders' would be particularly thrilled with the statement "Well our company operated at a $10M loss this year because we decided to give all our products away... however the good news is that a few outsiders helped us save nearly 50 man hours"

      Open source has its place, and a growing place at that, and whilst for a small upstart web company I'm quite comfortable using a linux box with apache and mysql, if i had to deploy something mission critical i'd use Sun and Oracle... i just would :p

    3. Re:Why open source? by FauxPasIII · · Score: 2

      >> for a small upstart web company I'm quite comfortable using a linux box with apache and mysql,
      >>if i had to deploy something mission critical i'd use Sun and Oracle

      What about using apache in a mission-critical environment ? Your example does not support a comparison of open vs closed source. I think that anybody who's been using Linux and Solaris long enough would agree that at this point, Solaris is more robust and scalable. Same with Oracle vs the various open alternatives. However, Apache is proof that the OSS model works; it is the BEST web server out there. I tend to believe that eventually, Linux will blow by Solaris, and mySQL will surpass Oracle. Or maybe not. =)

      --
      25% Funny, 25% Insightful, 25% Informative, 25% Troll
    4. Re:Why open source? by DaveHowe · · Score: 2

      What about using apache in a mission-critical environment ? Your example does not support a comparison of open vs closed source.
      Notice he didn't list a webserver at all in the second set - and in fact, Oracle's *own* webserver is now a modified Apache....
      --

      --
      -=DaveHowe=-
    5. Re:Why open source? by raurau · · Score: 1

      Most people are missing the point imho; esp in the case of small companies. Their main reason for releasing stuff to the community should be to improve the code's quality/functionality. Making money off the code shouldn't be a concern; you make money off the product and not the sideeffect (code).

    6. Re:Why open source? by RickHunter · · Score: 1

      We realize that if we do keep the source closed, but open the API or docs, someone will clone it because they don't want to pay for our work. Even with the typical no-quality clone, this makes the product life too short and the market too small to justify the large development costs.

      As you can see, the poster answered your question already. You do raise a good point though. The primary reason to open-source software, that I can see, is morals. You believe in open source, being a benefit to the community, etc, and see this as more important than any problems making money off software could cause you.

      As for a reply to the original question, I'd say the best way would be to sell your services customizing your product or building other products that use it. Since I don't know what your product is, I don't know how feasable this is. But it is a suggestion, all the same.


      -RickHunter
    7. Re:Why open source? by bigchris · · Score: 1

      Considering that mySQL is a subset of SQL (forget which version) - and Oracle is a full implementation of the SQL standard then I think that it is a little more tricky to compare the two.

    8. Re:Why open source? by xelah · · Score: 1
      Presumably we should be "punishing" Frustrated for even considering a proprietary sales model -- and yet half the respondants here seem to be advocating one!

      I've always considered Stallman's philosophy specious -- it explains how "free software" benefits society, but provides no mechanism through which society may fund the development of such software on a large scale. As such, it's a bit like a perpetual motion machine -- lovely for society to have one, yes, but providing no blueprint for its design.

      Apparently I'm not alone among Slashdotters in my my skepticism of the "free software" model?

      I doubt it. If you try to charge for support for your open source product then *either* you find a way of maintaining yourself as a monopolist for that support *or* you only get to charge an amount which pays to provide support (including the return on investment you need to pay your investors). If you don't set yourself up as a monopolist then you can't charge a premium and you have no way of cross-subsidising the software. Being a monopolist (or, at least, having a degree of monopoly power; being a mere oligopolist might help) isn't going to viable for everyone.

      I just can't see sufficient ability or incentive for companies to use support to fund development like that. The same argument applies to an extent to proprietary add-ons.

      The whole problem is a very well known problem in economics. Markets are just not able to cope well with so called 'non-rival' goods---software, books, TV, national defence, lighthouses or anything else where one person's consumption doesn't reduce the amount left for everyone else.

      Once a piece of software has been produced it is most economically efficient for the software to be given away to anyone who wants a copy (well, aside from charging the cost of making the copy). This is well known---if Software Inc charges 40USD for its product and someone is willing to pay just 30$ then you could make both parties better off by giving him the software for anything between 0 and 30. Markets just can't do that, though, they don't work that way. The only efficient market price under those circumstances is 0.

      At the same time, though, charging the efficient market price fails to provide the correct degree incentive to produce software. The software should be produced if the sum total value to every potential user exceeds the sum total cost. Once developed it should be distribution for free. Again, markets don't work like that, hence they just can't provide the right incentives.

      There is no just other than to just 'do the best we can'. Free software is a very good thing where it exists but it can never replace commercial software completely. We just have to accept that---short of government funding of exactly the right amount of the right things (yeah right, like that'd happen; and of course, it has ill effects elsewhere in the economy thanks to the taxes needed)---the software market will always be imperfect.

      In short both forms of software have a place. It's unreasonable and unfeasible for free software to take over completely; it's inefficient for commercial software to take over completely.

      Forget the dogma. You need to pay your developers---close the source (to non-customers, at least).

    9. Re:Why open source? by BeeJay · · Score: 1
      I mean I realise the open source community is fantastic but there is still no requirement for companies to open source things.

      At the end of the day, i'd guess, your company is in business to make money and I dont entirely see why you should be so keen to open source something if your livelyhoods depend on it.

      I agree that if the customers are happy with closed-source, then don't go open-source.

      But maybe the question here is not so much "Why should a company go open source?" as it is "Why should the customers be satisfied with anything less than OpenSource?".

  3. Open source not good for small companies by Jon+Erikson · · Score: 4

    As a consultant that has worked in the industry for some years now, I can say that your situation is not unique and all, and that there are quite a few companies in the same boat as you.

    Whilst excersing my new-found elite Linux skills using my Corel Linux box at home I have found an essay by someone called Eric S Ramond called "The Cathedral in the Bazaar" about the values of open source vs. closed source. An interesting read, if a bit naive, but it misses out one important point - people need money to live, and if their job is programming, they need to make money from doing that.

    Now the technical benefits of open source may be apparent, but the philosophical baggage that it brings with it means that do develop an open source product at work, you need to either a) generate revenue through secondary services such as support or b) be part of a large company that can support the monetary loss.

    This seems to me to be an unfortunate side-effect of the GNU Public License, and it means that the smaller players in the commercial sector will be unable to move to the open source model for financial reasons. Maybe a new licensing scheme is needed?



    ---
    Jon E. Erikson
    --

    Jon Erikson, IT guru

    1. Re:Open source not good for small companies by streetlawyer · · Score: 1
      I see you have no actual arguments, so you decide to just shout "troll". Well, I'm sure that this will help slashdot to keep its good name as a source of unbiased information.

      Thirteen-year-old zealots like you make the vast majority of thinking slashdot readers like myself sick.

    2. Re:Open source not good for small companies by Anonymous Coward · · Score: 1

      On the other hand, you could say that the cowboy era of IT is over, and that only real new software (techniques)
      are rewarded.
      Fullscale competition with Open Source will be a fact in the future. If you can't compete with it, stay out of the domain.

      So the only remedy is to start working, and really innovate. Release it to the open source,
      to get it supported and stabilized fast (from 1.0
      to 3.0 in half an year or so), and be the first
      one to lauch applications based on it.

      The original article writer made the fault to only make libraries together with open-source.
      He should focus on the applications he can build
      with that.

      >Now the technical benefits of open source may be apparent, but the
      >philosophical baggage that it brings with it means that do develop an open
      >source product at work, you need to either a) generate revenue through
      >secondary services such as support or b) be part of a large company that can
      >support the monetary loss.

      I'm a member of a Open Source compiler developper group. We don't make money
      ourselves on the compiler and base libraries (and don't intend to) but aquite some secondary projects are done by people that develop libraries,
      opensource them, use feedback etc to get them robust and proven in a
      relative short amount of time, and then use that to sell apps developped
      with that library.

      The problem with the example on Slashdot is that they only create a library,
      and then try to make money of it.
      They should develop the libraries, quickly get them robust and expanded using
      opensource, and then, being the one with an advantage in using the lib, sell a
      big full fledged app, well polished and userfriendly.
      (sometimes the problem of the OpenSource community).

      The concentration should be on the app, not the library.

      >This seems to me to be an unfortunate side-effect of the GNU Public License,
      >and it means that the smaller players in the commercial sector will be
      >unable to move to the open source model for financial reasons. Maybe a new
      >licensing scheme is needed

      I think the opposite. Specially the very small companies (1-5 people) tend
      to participate in our project.

      I think the big companies are loud exceptions.

    3. Re:Open source not good for small companies by Li0n · · Score: 1

      It's hard to think in this terms when the bills are piling up.

      ***

      --

      ~
      ~
      :wq
    4. Re:Open source not good for small companies by DaveHowe · · Score: 2

      "The Cathedral in the Bazaar" about the values of open source vs. closed source. An interesting read, if a bit naive, but it misses out one important point - people need money to live, and if their job is programming, they need to make money from doing that.
      Nope, he covers that as well in one of the later papers - see Th e Magic Cauldron for an example of when NOT to open source something.
      --

      --
      -=DaveHowe=-
    5. Re:Open source not good for small companies by rifter · · Score: 1

      It would seem to me that the source being open benefits small companies even more than large companies. First because they obtain benefits from the open source community in the sense of having many more developers than they could possibly afford.

      They should have little fear that their work would be stolen wholesale because of the way the GPL works, especially if their product is complex. A good team can keep ahead of copycats and forks through continuous innovation.

      The lone developer is even better helped by the GPL. After all it is much easier to land devel jobs when employers can see your code.

    6. Re:Open source not good for small companies by turbod · · Score: 1

      This is a rather niave view -- that an API will always be there to provide a "defacto standard" for a higher level application. I work in an industry where there is no default app for all jobs and can never be one -- each corporation knowingly buys our libs to right their own application -- ALWAYS!!! The only money can come from the library sale. They do not want customizations, etc. Now where does the money come from? David

  4. benefit analysis by streetlawyer · · Score: 5

    What benefit do you hope to get from opening it up?

    Do you want it to be debugged by the (purely hypothetical) "millions of eyes" of open source coders out there? No, you've already said that if it doesn't work first time, it's fucked.

    Do you want the open sourcies to be involved in developing it going forward, and extending the program? If so, then consider a restrictive licence which puts it in the public domain, but with limited rights. Anyone who really wants to be involved in extending your product will still want to be involved (if it's good); as for the rest, fuck 'em.

    Or do you want the deep satisfying feeling of being "part of the free software community", and "knowing that you Get It About Open Source"? Then go ahead, open it all up. But realise that this will probably be a costly luxury.

    Or indeed, have you not thought about this in any very great depth yet? In which case, now might be a good time to start.

    Oh yeh, and whatever you choose, software patents are almost certainly not going to help.

  5. Microsoft is ahead of the curve on this one by Anonymous Coward · · Score: 1

    The answer is very simple. Ready?

    How do you make money like this? You don't.

    Microsoft has realized this for years, and, in fact, Bill Gates was one of the first to point this out with his groundbreaking letters to the software community back in the 70's and 80's.

    So who says Microsoft doesn't innovate?

  6. Community by absurd · · Score: 1

    Build a community around your product, available to buyers only. Maybe companies have need for tailor-made version of the product, discussion forums about updates and development, next versions etc. Companies don't care so much about cost of buying, it is the cost of using they are interested in.
    If there REALLY is no room for this kind of support, try the donation-way. Make the product open source and tell the users (especially if they are compaines) that you would like to continue development etc. and some money would do good. It may work, Open Source IS the Buzz-word today.

    1. Re:Community by absurd · · Score: 1

      Well this just proves the greedy and savage times we are living. Little optimism, altruism and goodwill wouldn't hurt you, dear AC, either. But unfortunately it'll take lot more than hundred years for humans to truly rise above animals, to understand the possibilites of consciousness over instincts. Understandably, that miracle will never happen to you, dear AC. Anyway, what better way to use your "intelligence" than having a freshing war with you neighbouring nation, say Vietnam, or even Yugoslavia. Now that's the true spirit.

  7. Hard Topic to Resolve by hattig · · Score: 4
    Giving the source code away is fine, if they have paid for it. Just don't allow the end people to redistribute the software you sell them, i.e., don't put a clause in the license that allows them to pass on the code, like the GPL allows. So you will be selling a product still, but the product will include the source, APIs and docs. You don't have to give them away to everybody you know. Even the GPL only states that you have to provide the source code to the person who has the binary, if they don't have the source.

    Giving the code away is a good move in many aspect, it is good for marketing, and it is going with the current bandwagon. If your product is not that hard to replicate though, then it isn't worth much anyway - there is nothing terribly unique about it. Patents can be used to resolve certain IP issues - and they should be used if the IP is new, original and non-obvious. Of course, being a software only solution, you can only get the patent in America, which limits the power of the patent. You could give a free license for all free software, to avoid being badmouthed about it, but software patents are not desirable, as you point out.

    Make the product a solution. Corporate entities buy solutions - basically products that solve one particular thing very well. The support for a solution will be there, and you can make money from selling the product as a solution. Many companies will also like the fact that they get the source, not the majority of companies, as it will mean nothing to them, but some. These companies will like the power to amend small things in the codebase to meet their needs.

    Otherwise, you are hitting the nail on the head. What incentive is their to write easy, good quality software when you are trying to make money from support? Luckily most computer users aren't that clued up, and will need support whatever the software or hardware(Moving the Mouse for Dummies! etc).

    It just depends on the target audience for the product, which you haven't specified, so it makes it hard to assess your chances. I wish you luck.

    1. Re:Hard Topic to Resolve by ssclift · · Score: 2

      Not.

      Economically "public" goods are those where my consumption does not stop your consumption, and consumption does not diminish the supply.

      Economically "private" goods are those where consumption by me excludes your consuming the good, and diminishes the supply.

      Information is a "public" good, software is therefore also such.

      Money is a "private" good, as is your working time.

      In selling software you hope to set up an artificial economic inefficiency (I take your of "private" goods, i.e. your money, if you use my "public" good i.e. software) in the hopes of leveraging your expenditure in "private" goods. You want more money for developing the software than someone gave you for doing the development.

      It's hard to maintain that sort of inefficiency, especially against competitors who don't want "private" goods for distributing "public" goods (e.g. someone giving away similar software). Usually this inefficiency is maintained by preventing the recipient from understanding the software (e.g. providing an opaque, compiled form) and/or legal structures (licenses, legally enforced rules on behaviour).

      Unfortunately, if everyone decides they want a piece of information, legal remedies will disappear, since these remedies are just agreements about what everybody wants. If someone also understands your code (decompiles it, gets the source), you are left without a defense of the economic inefficiency. Furthermore, since you cannot guarantee that the software does what you say it does, (that's an NP complete problem) you face the problem of trying to sell someone something but being unable to guarantee that they actually get what they believe they are buying.

      Resolution?

      If you program for a living, then don't program unless someone is paying you for it. Sell your time, not your information. You can enforce selling your time because you can withhold the goods if payment is not forthcoming. You cannot do so with software.

      Remember, F=ma. You can't push a rope. Also laws of the universe... :-)

      This is also why 95% of software is written by people being paid to do so.

    2. Re:Hard Topic to Resolve by Zagadka · · Score: 1

      This is also why 95% of software is written by people being paid to do so.

      A significant proportion of that software that people are "paid to develop" is then sold by the companies that paid for its development. Walk into any computer store to see what I mean.

    3. Re:Hard Topic to Resolve by Zagadka · · Score: 1

      Not really true. Most of the lines of code written aren't part of a 'software product'. They're part of in-house stuff to control payrolls of large companies, operations of factories, etc.

      I said a significant proportion of that software. I didn't say all of that software.

  8. Qt license? by Anonymous Coward · · Score: 1

    Why not use the same license as the Qt libraries?
    It gives people access to the source code, and is free for non-commercial use.

    Users who use your product for profit, will have to pay a licensing fee.

  9. Another Wrench by Alakaboo · · Score: 1
    To make things stickier, what if you want to write it for an open source platform? What's your rationalization and justification at that point?

    How can you sell a product for $500 if it uses Unix, Perl, Apache, and mySQL?

    Alakaboo

    1. Re:Another Wrench by Jon+Erikson · · Score: 1

      So if you compile your program with gcc then you shouldn't sell it since it used an open sourced tool to compile it? Is this something you might like the GPL to cover - "If you have ever used a GPLed tool then all software you ever write must also be GPLed".

      What tools it uses shouldn't matter. Otherwise you'll see a vast dearth of commercial interest in Linux as they decide that it's not worth the hassle.



      ---
      Jon E. Erikson
      --

      Jon Erikson, IT guru

    2. Re:Another Wrench by pe1rxq · · Score: 1
      The fact that you compile something with gcc does not make it dependant on it, you could just use another compiler. If your program depends on a lot of free software it is different.

      Jeroen

      --
      Secure messaging: http://quickmsg.vreeken.net/
    3. Re:Another Wrench by pe1rxq · · Score: 1
      I don't think you read it well, A program compiled with gcc is not based on gcc but on your source code and is thus NOT covered by the GPL. Unless you compile the gcc source ofcourse.... The output off is based on your work and only processed by gcc.

      Jeroen

      --
      Secure messaging: http://quickmsg.vreeken.net/
    4. Re:Another Wrench by pe1rxq · · Score: 1
      Oops, gotta remember that 'b' and 'br' are not the same....

      Jeroen

      --
      Secure messaging: http://quickmsg.vreeken.net/
    5. Re:Another Wrench by Jon+Erikson · · Score: 1

      Why can't I use the decrypting program to decrypt the encrypted source?

      Because you don't have the encryption key? That'd make it quite hard wouldn't it?



      ---
      Jon E. Erikson
      --

      Jon Erikson, IT guru

    6. Re:Another Wrench by phaze3000 · · Score: 1

      But surely don't all programs depend on free software if they're written for Linux?

      By this token shouldn't products like Star Office and Corel Draw be GPL'd?

      Actually, to be honest with you in a way I wish this were the case - if StarOffice were to be GPL'd something could probably be done to make it run acceptably. Unfortunately, according to my reading of the GPL a program doesn't have to be GPL'd unless it is a derivative work. The way I see it goes as far as this : if you writen arseware v1.0 and release it under the GPL, then completely re-write all the code for arseware v2.0 even if it looks pretty much exactly the same and does a lot of things the same way it doesn't have to be GPLd. Of course, IANAL.

      --
      Blaming GW Bush for the Iraq war is like blaming Ronald McDonald for the poor quality of food.
    7. Re:Another Wrench by luckykaa · · Score: 1

      if you writen arseware v1.0 and release it under the GPL, then completely re-write all the code for arseware v2.0 even if it looks pretty much exactly the same and does a lot of things the same way it doesn't have to be GPLd.

      Well, if you write it, then you can release arseware v1.0 under a proprietry licence. But yeah. There is no reason you couldn't write a closed source clone of gcc, or Linux as long as you were to make sure that you didn't copy any of the code. A clean room implementation would be the safest way of doing this.

    8. Re:Another Wrench by anatoli · · Score: 2

      One word: DeCSS.
      --

      --
      Industrial space for lease in Flatlandia.
    9. Re:Another Wrench by geekopus · · Score: 1

      You know, this isn't the first time that I've seen this argument on Slashdot.

      Maybe the Slashdot should solicit a couple of lawyers (one for both side of the argument) to argue this out legally, so that we could ferret out what is FUD and what is not.

      What do you say, readers?

      If the GPL is really not that restrictive, then we have nothing to fear!

    10. Re:Another Wrench by bellings · · Score: 1

      Because you don't have the encryption key? That'd make it quite hard wouldn't it?

      Well, of course I don't have the encryption key -- my computer has it. I doubt I'd have any use for 128 bits of gobbeldy gook even if I did have it.

      Or are you saying that my computer can somehow decrypt the source and compile the program without having a key to decrypt the source with?

      You should get a patent on that. Then, you should get a patent on that perpetual motion machine you have out in the garage, too.

      --
      Slashdot is jumping the shark. I'm just driving the boat.
  10. How about the Alladin Ghostscript model? by san · · Score: 2

    Alladin sells the latest version of their Ghostscript postscript interpreter, but open-sources the older versions. Of course the feasibility of this depends on the nature of the software, but it's still a fairly 'nice' way of making money and open-sourcing.

  11. five nines ? Support! by frost22 · · Score: 5
    Hi,
    We realize that if we do keep the source closed, but open the API or docs, someone will clone it because they don't want to pay for our work.
    Let me start with something obvious: there is no legal way to seprate somebody from his money who doesn't want to be seperated from it after having judged the alternatives.
    If a potential customer of yours sees more value in reimplementing your stuff than buying it from you then you have priced yourself out of that particular market anyway. So the debate is moot.

    As usual in business life, offer something of value to the customer he is willing to pay for.
    "We've looked at the common model right now which is to sell support and give the code away [...] since our product needs to operate in a five-9's environment, where if it doesn't work right it's never even allowed in the building.
    I work in a five-9s environment. This is the perfect place for high-end support contracts. Of course no 'we will help you on the phone if you happen to get us on a free line' type of support, but a 'yes sir, we will be on site within 30 minutes 7 days a week 24 hours a day and make it work again' type of support. Priced, of course, accordingly.

    90 percent of the support contracts of this kind are cover-my-ass contracts anyway, but in a five-9s environment you practically have to have these.

    f.
    --
    ...and here I stand, with all my lore, poor fool, no wiser than before.
    1. Re:five nines ? Support! by RedGuard · · Score: 1

      > If a potential customer of yours sees more
      > value in reimplementing your stuff than buying
      > it from you
      >
      I would have thought the problem would be with
      competitors free riding on the expense involving
      in creating a market for implementing these
      particular APIs.

    2. Re:five nines ? Support! by frost22 · · Score: 1

      > If a potential customer of yours sees more
      > value in reimplementing your stuff than buying
      > it from you

      I would have thought the problem would be with competitors free riding on the expense involving in creating a market for implementing these particular APIs.
      This is called 'competition' and is a good thing. There is no such thing as 'creating a market' anyway, nor is anybody entitled to 'own' some particular market niche.

      Aside from that the GPL is the perfect poison pill against that kind of free riders.

      f.
      --
      ...and here I stand, with all my lore, poor fool, no wiser than before.
    3. Re:five nines ? Support! by Zagadka · · Score: 1

      This is called 'competition' and is a good thing. There is no such thing as 'creating a market' anyway, nor is anybody entitled to 'own' some particular market niche.

      Aside from that the GPL is the perfect poison pill against that kind of free riders.


      The people who developed the software need to at least make back their investment in developing the software in the first place. Others can provide cheaper support contracts because they don't have the overhead of actually doing original development. If they can provide the same work at a lower cost, guess who gets the support contract? Not the original developers.

      The GPL is the perfect poison pill against people planning on making money by doing original development.

    4. Re:five nines ? Support! by RedGuard · · Score: 1

      Well a company can own the market for a copyrighted material like a particular drug. In the case of uncopyrightable material like software, they can raise the barriers to entry by
      keeping their sourcecode and API definition as
      trade secrets. If you publish APIs then competitors can enter the market with identical
      products and forego the marketing cost involving
      in differentiating the original product from
      similar but non-identical competitors. If you
      publish sourcecode (even under the GPL) then
      there are really no barriers to entry at all.
      Of course we in the large community might view
      this as a good thing because of the effect on
      prices. Alternatively it might be a bad thing
      because of the disincentive to invest in initial
      development of new software.

  12. This project remains half-baked by streetlawyer · · Score: 3
    You are thinking about this altogether too late. You've written the code, and done the documentation, so the product's complete, right? Wrong. A software product contains three equally important elements; code, documentation and license. The license is arguably the most important part, because it drives the profitability and economics of the whole shebang. But of course, code-monkeys always forget this because in their minds, they're back in Podunk U. CS grad school, and they don't want to deal with "suits" (strange isn't it how the whole "don't judge us on the way we look" geek crowd identify themselves by hating people for the way they dress).

    Now this is important, so I'm gonna repeat it twice, with increasing emphasis:

    If the legal work is not finished, the project is not finished

    If the legal work is not finished, the project is not finished

    If the legal work is not finished, the project is not finished

    You screwed up badly by your own admission, by not getting good legal staff incorporated into the development plan. Now you're trying to rescue the whole deal. All I can reccommend is, hire a lawyer. And don't try to cut corners, because you've clearly developed the whole thin in this lop-sided fashion.

    1. Re:This project remains half-baked by AndrewD · · Score: 1

      Without wishing to endorse Mr Montoya's tone (although I get like that sometimes) I think there's a valid point there.

      A properly-developed business budgets for the legal and administrative side of things: a business that tries to do it any other way is stuffed and mounted before it begins. The entire world of commerce works because it adheres to the rules of commercial law with its various local variations. If you haven't factored that into your planning - or hired someone to factor it in - any success you might achieve will be more by good luck than good management.

      You might consider selling your product on a one-to-one basis as a consultant or team of consultants, charging for the service of going in and setting up the system with whatever modifications the client needs.

      But before you do it, go back to your business plan (you have got a business plan, haven't you?) and reworking it to include some good advice.

      How to get that advice? Well, most places there are small business advice centres (get in touch if you're in the UK and I'll give you some phone numbers) who offer free advice and sometimes grant funding. Use that to get yourself off the ground properly.

      Otherwise, your local lawyers' professional association (state bar association in the US, Law Society in the UK, don't know about elsewhere) will be able to draw up a shortlist for you. Get competing quotes for prices from the lawyers, and take the decision based on how much the lawyer impressed you at first meeting rather than on price alone.

      Or you could try yellow pages...

      --

      -- AndrewD

      A Maze of Twisty Little Laws, All Different.

    2. Re:This project remains half-baked by streetlawyer · · Score: 1
      the fact that the posting is a troll nonewithstanding, since it is actually an interesting point

      thank you; I try to achieve this effect

      Geeks hate suits not for the way they dress, but for the way they think.

      thank you once more for clearing that up. Of course, hating people for the way they think is a far more reasonable and tolerant attitude than hating people for the way they dress.

    3. Re:This project remains half-baked by -brazil- · · Score: 1
      A properly-developed business budgets for the legal and administrative side of things: a business that tries to do it any other way is stuffed and mounted before it begins.

      Perfectly, true, but there is no base whatsoever for the claim that the license is more important than the product itself. Don't bother citing Microsoft, what made them successful was neither the quality of their product nor the license, it was the marketing.

      A crappy product will most likely fail, and the license is definitely not going to prevent that.

      Finally, license consideration are almost totally separate from technical aspects; there's no reason why you can't write the code first and worry about the license later. Ideally, you should, of course, do both at the same time.

      --

      The illegal we do immediately. The unconstitutional takes a little longer.
      --Henry Kissinger

    4. Re:This project remains half-baked by streetlawyer · · Score: 1

      try "the way they act".

    5. Re:This project remains half-baked by Spudley · · Score: 1

      Finally, license consideration are almost totally separate from technical aspects; there's no reason why you can't write the code first and worry about the license later. Ideally, you should, of course, do both at the same time.

      I have to disagree with your last point there. There is definitely a case for considering the licencing before or during the coding phase.

      You need to consider the licence implications of whatever development tools, utilities, and so on that you use.

      For example - you may use a development language which requires annual run-time licences for all your users...
      or you may want to use a third-party graphics library which requires that any project using it has to be entirely open source...

      The point here is that you really do need to consider the licence implications of everything you use for development, from languages and APIs to editors and operating systems. Of course, not everything will restrict you, but you'd be suprised at some of the things which do.

      --
      (Spudley Strikes Again!)
    6. Re:This project remains half-baked by tofus · · Score: 1

      Geeks just hate people and people just hate geeks. It's like that, it's been like that and it will be like that until slashdot.org gets a higher hit-count then, for instance, microsoft.com.

    7. Re:This project remains half-baked by anonymous+cowerd · · Score: 3

      Surely, JSM, you will have permitted me to hate Herr Hitler way back at the original publication date of Mein Kampf rather than withholding judgment until he began to transform those lurid thoughts of his into concrete actions.

      (Don't you dare give me that "Godwin's law" crap. I won't put up with it; it censors out discussion of mid-twentieth-century history and politics unconditionally.)

      At any rate, the true reason "geeks" hate "suits" is because whenever unopposed, "suits" eventually start to insist that the "geeks" must dress themselves in "suit-wear," to be specific, neckties. And neckties are evil. They strangle your respiration, they appreciably choke off the vital circulation of arterial blood to the oxygen-hungry brain, and insensibly but surely they misalign one's delicate neck vertebrae. You all legal hotshots and rich execs can afford weekly therapy at chiropractors or massage parlors, but the rest of us, if we do not vigorously resist the abomination of neckties, eventually end up hopping crawling and limping like Igor, decerebrated to the tragic point where all we are capable of is watching TV.

      A fate worse than death, I tell you! Burn those neckties, burn them all! If the "suits" refuse to take theirs off, no matter, burn them as well! You tight-squeezed and breathless ladies are welcome to throw off your garments of oppression and fling your brassieres into the bonfire as well.

      Yours WD "hack in the nude" K - WKiernan@concentric.net

    8. Re:This project remains half-baked by Jon+Erikson · · Score: 1

      As a professional consultant working for a top IT consultancy, I've worked with and advised any number of companies, from Fortune 500 giants to small startups in the b2b and b2c sectors. And, I can tell you that your attitude smacks of the childlike inability to deal with the "real world" that is a key element of the geek psyche.

      The simple fact is that smart dress, especially a tie, is essential for productive work. Wearing a suit clearly delimits your work from your home lives, and this differential means that you are always aware of what you are at work for - work! Not, as the average geek seems to think, to browse the Internet and read /., not to listen to MP3s, not to watch streaming video clips of Brittany Spears and not to chat crap on ICQ. When you are wearing a suit, you know what you're there for - hardcore money-making!

      This is the real reason that so many of these Internet startups have failed - they let their workers dress how they wanted! How can you work surrounded by a group of unwashed coders whose conversation is limited to discussions of which pizza to order? Without the honest work ethic that a suit conveys, there is no hope for productivity.

      Just look at RMS - looks like a bear, probably smells like a bear and what is his major gripe? The hard work that people like myself put in to make companies work, because we get paid for it. Basically, he doesn't like working and luckily enough he has found a way to avoid doing anything apart from keynote speeches. When was the last time he did any real work? 1984?

      If only more people wore suits then we'd see productivity go up by a factor of two, at least. But while people like you insist on "comfort" over results, this industry will remain full of lazy, irresponsible "geeks".



      ---
      Jon E. Erikson
      --

      Jon Erikson, IT guru

    9. Re:This project remains half-baked by Anonymous Coward · · Score: 1
      quite frankly, making me pay up hundres of bucks for a crappy uniform gets my goat

      I seem to remember that this was one of the main complaints from the earlier chapters of Mein Kampf. But, of course, I may be trolling.

    10. Re:This project remains half-baked by Snocone · · Score: 1

      But while people like you insist on "comfort" over results, this industry will remain full of lazy, irresponsible "geeks".

      Speaking as one of these Lazy Irresponsible Geeks(tm), I have to ask ... since I have a salary in the top 3% of tax filers nationwide, while dressing worse than street panners and fitting your description perfectly (heh, posting on /. at 11:03 AM, for starters ;) -- why the HELL would I want to change a damned thing?

    11. Re:This project remains half-baked by Jon+Erikson · · Score: 1

      Hey, it was a joke... I was just replying to anonymous cowerd's over the top post with an even more silly one :) For the record unfortunately I do wear a suit to work, and I fucking hate it with a passion. And unfortunately I'm not being paid enough (yet)... But I do get to read /. at work.



      ---
      Jon E. Erikson
      --

      Jon Erikson, IT guru

    12. Re:This project remains half-baked by FigWig · · Score: 1

      Luckily thinking and action have no connection at all when it comes to lawyers.

      --
      Scuttlemonkey is a troll
    13. Re:This project remains half-baked by Snocone · · Score: 1

      ...with an even more silly one :)

      That was my first reaction...

      ...then I realized "wait a minute, he's RIGHT! Ain't it GREAT!??!!?" ;)

  13. dot-net your application by drnomad · · Score: 1

    Lease application usage to your customers in a C/S system over the net (dot-net economy). Make client application open source, keep server-side closed or just-about-opened.
    Keep potential patentable techniques on server side (as much as possible).

  14. I agree by orblee · · Score: 2

    The above is a good comment. If you visit the GNU website then there is a page off there somewhere listing all (or many) of the other open source licenses. Find one that roughly fits the above model and change it to suit your needs.

  15. make money ! by collin.m · · Score: 1

    I'm a programmer, I also use open source stuff for
    my work. But it's my job to write programms and I
    need the money I get for this. I would like to
    put all my stuff under the GPL (or any other open
    licens...) but for this I won't get any money ... so f**k, you have to pay for using my stuff. You should do the same, make it cheap and everything is ok!

  16. Have a look at www.novashare.com by stx23 · · Score: 1

    which is the engine that powers wonko.com, similar to /. but running on NT. If nothing else it should give you pointers as to what to do, as it has an interesting license for usage.

    1. Re:Have a look at www.novashare.com by pe1rxq · · Score: 2
      Neat, a site like slashdot that gets slashdotted when more than one person are trying to access it at the same time....

      Jeroen

      --
      Secure messaging: http://quickmsg.vreeken.net/
  17. OSS Benefits vs Profit by Anonymous Coward · · Score: 1
    The strange thing about software is that we are starting to expect that we CAN have the background to the end product.

    If I bought a house, I wouldn't expect the architectural blueprints, if I buy a car, I don't expect the concept sketches or design drawings, if I buy a CD player, I don't need the circuit diagrams and so on.

    I do work in this area of business and can only add this to the discussion. Most IT managers that I know have a whole mix of solutions. They will buy closed products to fix specific tasks, they'll pay the Microsoft Tax for their workstations because everyone (generalisation) knows how to use Windows, they have a Sun E10000 for their ERP system.

    As long as they have the budget to fix a problem, most large corporations don't care whether it is open source or not.

    If you are playing to the smaller market where cost is a huge issue, but your product is the only one that will do the job, then market and price it appropriately (no point having an enterprise license at $250K a year for a 5 man set up in Ohio).

    Open source is not necessarily the answer. Precise pricing and marketing is. If that means OS, then do so, if not, make the cash on single license sales.

    Good Luck.

    Does anyone have any fuel for my Monkey Spunk Moped?

    1. Re:OSS Benefits vs Profit by khog · · Score: 1

      If I bought a house, I wouldn't expect the architectural blueprints...

      Actually, when you buy a house you do get the blueprints. Access to them, rather. There's a city department (Zoning? I dunno.) that holds the blueprints of all of the buildings, and you can ask them for yours. Do it, it's fun!


      Mike Greenberg
      --
      http://www.yourmothernaked.com
  18. Services by debrain · · Score: 2
    Sell your product, or do what the company I am working for does, give it away, then charge a marginal fee per customer for support, security fixes, customer feedback and enchancement requests. This is a much more proactive model than the charge-once-and-forget all-so-often abused model. But it does reap huge benefits, in that for one, you receive a monthly or annual fee from every customer, you have more loyal customers, and you are supporting an existing producting, rather than repairing one that's been considered out-the-door by the people who made it.

    There are probably downsides to this model as well, and I'm sure someone will point them out here. One of the chief benefits of this model, which I have not mentioned, is that the organization that supports the software need not be the one that made it (although there would be benefit to having made it), encouraging competition for support. Case in point where this model succeeds: IBM's Global Support Branch.

  19. Why we switched to Open Source by Simon+Brooke · · Score: 4
    My company develops data driven, web delivered applications mainly for corporate intranets. Our products are based on an in-house Servlet toolkit, Jacquard. The board paper I prepared which lead to us putting Jaquard Open Source (actually BSD licence) is here.

    Brief summary of the argument: our customers are not the people who buy toolkits and components, they're people who buy completed applications. But in order to deliver completed applications we need a toolkit to build on. If we try to keep our toolkit proprietary, it will fall behind competing toolkits (such as, e.g., Enhydra) because we don't have, inside the team, enough people to develop it and debug it fast enough.

    We could adopt another toolkit (such as Enhydra) but if we do we become just another user of the toolkit, with little control over its direction and no particular reason for people who want things built with it to come to us. By being the core of an Open Source project we get potential for kudos, the ability to steer the project, and, hopefully, a wider user base for the toolkit contributing patches and extensions.

    --
    I'm old enough to remember when discussions on Slashdot were well informed.
    1. Re:Why we switched to Open Source by scann · · Score: 1

      You could adopt another open source servlet-based toolkit such as the Expresso Framework at http://www.javacorporate.com/ which has a commitment to offer developers control over its direction through a full featured collaborative infrastructure - includes a Task List of those things developers want in the solution. It also has the benefit of being a mature tried and true solution. Rather than create another solution - let's embrace the advantage of open source and collaborate and build together!

  20. Support Contracts are not Evil by The+Famous+Brett+Wat · · Score: 5

    Without knowing the specifics of your case (how small the market, etc), it's a bit difficult to give a detailed answer, but probably the most important thing to realise about software is the following.

    In my experience, most companies who are putting software into a mission-critical situation would prefer to pay for their software than have it for free. And what they perceive they are getting for their money is not the software itself, but rather a committment from the seller that the software will be supported. Your software doesn't have to be unreliable in order to justify a support contract; nor does it have to be heavily burdened with various flavours of intellectual property rights in order to persuade companies to part with large wads of dosh in exchange for it.

    My suggestion would be to not make a big deal of the software license terms. Put it under a GPL or BSD style license, or even in the public domain, but just don't make a selling point out of it. Those who are interested enough to care will ask and be happy with the answer.

    Make it available for download on a website, since it will be too small to justify the pricey-CD thing, but dress it up a bit like an evaluation copy -- probably best done by making it say "THIS IS AN UNSUPPORTED EVALUATION COPY", but it depends on the specifics of the case. Remember: the suits want to buy your committment, not your software! Do have a CD, though: make it part of your support contract, just so they have something physical and professional-looking to put on a shelf. Heck, if it's a small market, you can customise it by changing the "unsupported" message to indicate their name and the fact that you are supporting them. Such a comforting reminder! :-)

    The benefits of this approach are many. One is that you can skimp on lawyers. You'll still need them for your support contract terms, for example. [Reminder to those who aren't catching on: support contract does not mean unreliable software; indeed, the ideal case is where you sell a support contract and never have a call from the customer because the software just works all the time. You think they'd be unhappy with paying for that level of service?] The customer is also happy because they don't have to count licenses or install dongles or do other obnoxious things associated with restrictive licensing. You can review their support contract service level agreement at regular intervals based on their usage, however.

    Once you've got some suits paying you for your support, you should then aim to delight them with your responsiveness to their questions. You might want to hire a suitably talented monkey to handle the trivial stuff, but always be available to address the concerns of those you are being paid to support. Most proprietary houses set such dreadful standards of support that they shouldn't be hard to outdo. So long as they feel you are always poised and ready to answer your email or phone calls, they'll be happy and keep forking out the support contract fees.

    Of course, there's the other class of people: the ones that don't pay. They are your friends too. Anyone with a clue who is using your software and providing you with bug reports is an ally. Be responsive to people who aren't paying you but who are doing you a great service by reporting real bugs, or simply providing ongoing testing (particularly for new releases). People without a clue who can't get it to work can be foisted off on some "users" mailing list or newsgroup: nobody should expect Linus to help them install their kernel.

    I could go on, but I think by now you can see the pattern that is emerging, and decide whether it is appropriate to your situation.

    --
    proof, n. A demonstration that a conclusion is implied by certain premises and axioms.
    1. Re:Support Contracts are not Evil by denominateur · · Score: 1

      You're delivering pretty good points here. I like the idea with the name :) Also the fact that having a CD is (mentally) helpful for commercial customers is entirely true. When somebody pays you the person wants to hold something in his hands.

    2. Re:Support Contracts are not Evil by Steeltoe · · Score: 2

      This is great advice you bring forth, food for thought etc. However, you have to think further to see the implications of Open Sourcing your product: Okay, in the beginning you will have a product that companies will pay for. They want your support, dedication, bug-fixes, security-fixes, a smile and pat on the back when they do it right. Initially they don't really know this is Open Source at all. They pay, and request new features and bugfixes as they need'em. However, they will become more and more knowledgeable with the software, especially from the user-side. This will extend codewise if they can get the source easily. There'll be situations where they want to fix stuff themselves, in order to meet deadlines and other things.

      It takes no wizard to see that they will find out they're paying the price for every freeloader that you have on your product. Now, if the bugs in your product gets fixed, they will have no incentive to further support you. Especially when they got all the features they need. The companies will review their budgets and find what to cut down, and believe me, they'll cut whatever they can in bad financial times. Regardless if they "support" the Open Source movement or not. Note that this will only happen if your customers see your product as "finished". (Side-note: Quite the opposite is why Microsoft and other companies is such a big success. With a big enough smirk, you can fool anyone into buying glory promises, and forget the gory truth.)

      So, all in all, there is money in this. You just can't expect to live on it forever. There's also less money than if you make it big proprietary. On the other hand, you may get support from freelance coders, and you will get good PR through the geek community.

      Successful Open Source projects tend to start living lives on their own. Proprietary projects tends to get cloned by a competitor, though this is more costly and difficult. There's no guarantee for making money either way. To make sure your code is not used by competitors in their proprietary applications, I would recommend a license aka GPL. Public domain or BSD-style licenses is not something an egotistical company should use on software they have developed.

      On the other hand, if the initial code or concept is so simple it can be cloned or extended by any competitor in the market. You're in big trouble from the beginning on. As a small company you don't really have much to say, and a big competitor may use lots of more money than you just to catch on and get in the leading position. So I would make sure I had plenty of deals with companies before making the bold decision to Open Source the wares or even go public with your products.

      It would also be wise to patent whatever you can, otherwise you may very well find yourself in a patent-infringing lawsuit. Don't listen to people who tell you not to patent, because the system is just not willing to listen when you complain afterwards.

      - Steeltoe

    3. Re:Support Contracts are not Evil by Steeltoe · · Score: 1

      I'd recommend a box, not just a CD. And manuals, and, and, and... There's lots of things to put in a box :-)

      - Steeltoe

    4. Re:Support Contracts are not Evil by stripes · · Score: 2
      It takes no wizard to see that they will find out they're paying the price for every freeloader that you have on your product.

      What makes you think there is a price to pay for the "freeloaders"? The non-payers won't be using valuable support time. There might be staff time spent looking over the "unsupported users mailing list" for real bug reports and fixes, but if you get any reports or fixes then that has more then payed for itself (for a low volume, this is a single intern's job, almost free by corprate standards). If you don't seem to get any reports or fixes, you don't pay anyone to do that job.

      The other "freeloaders" frequently would not pay for your product anyway, they are poor studants, super cash straped start-ups, and places where you product is super-over-kill. Those cost you nothing, you wouldn't have lost the sale, but by giving away the software you get free training, free bug reports/fixes, and free advertising if any of those studants should graduate and go somewhere that needs your software, or if the cash-strapped startup gets a big contract and suddonally needs your product to be gaurenteed to keep their cash flow!

      There are a vanishingly small number of customers for a corprate product that would choose to have no support. They buy Red Hat at $60 a box, not the identical CD from cheep bytes for $1.99 with no support.

      My guess is that this vanishing small number will be ofset by the extra sales your "marketing" move of giving away free copies with source will bring in. Plus bug reports/fixes (if any).

      . Now, if the bugs in your product gets fixed, they will have no incentive to further support you. Especially when they got all the features they need. The companies will review their budgets and find what to cut down, and believe me, they'll cut whatever they can in bad financial times. Regardless if they "support" the Open Source movement or not.

      Depends strongly on the product's market. Componies will pay for support on mature products that havn't been observed to break if their breakage will cause a large loss of money, or if the support contract is quite cheep. How many places that have never had a disk failure buy RAID arrays? Or support contracts on new hardware? Support contracts on the RAIDs even?

      Think of it as the software equivolent of an extended warrienty. They may normally be crap, but most people buy them. Componies arn't any smarter then people. In fact they are a lot lot dumber sometimes.

      So, all in all, there is money in this. You just can't expect to live on it forever. There's also less money than if you make it big proprietary. On the other hand, you may get support from freelance coders, and you will get good PR through the geek community.

      I don't see where there is clearly less money involved for a bisness targeted product. You are right that you can't count on getting free bug reports and fixes just by open sourcing something. But you definitly increse the chances from 0% to something possable (for bug fixes/free new features).

      It doesn't make sense for some products. I don't see any way a OSS family tree product could make signinfigant money. That would have to be done to "scratch an itch", or for the "glory". But that doesn't mean all OSS trades dollars for glory.

    5. Re:Support Contracts are not Evil by Zagadka · · Score: 1

      The other "freeloaders" frequently would not pay for your product anyway, they are poor studants, super cash straped start-ups, and places where you product is super-over-kill.

      Sometimes they wouldn't have paid for it. Some would have though. While there is a myth created by many proprietary software companies that "every pirated copy is a lost sale", many in the open source community like to spread the inverse myth, that none of these unpaid for copies are lost sales.

      Fact is, some of them are lost saes, and some aren't. The exact proportion is hard to determine, and of course depends upon the product. With virtually any product though, some of those peopl who would have obtained it for free would have paid for it if that was the only way they could get it.

      I think ultimately, you have to try and determine whether it balanaces out. In some situations, it might be acceptable to have some copies "get away for free", given that you'll occasionally be getting bugfixes "for free", plus there's the good PR. For some (most?) software, the lost sales might outweight the benefits of open source.

      Componies will pay for support on mature products that havn't been observed to break if their breakage will cause a large loss of money, or if the support contract is quite cheep. How many places that have never had a disk failure buy RAID arrays? Or support contracts on new hardware? Support contracts on the RAIDs even?

      I think you're right that many companies, especially for mission-critical applications, will pay for support contracts even if they don't need them. The question is, will they buy them from you, the small-time developer they've never heard of, or will they by their support from something like Red Hat/Cygnus or Linuxcare? Those companies can support your software too, if it's open source. They might even be able to support it better than you can, since they've got more resources at their disposal. They also don't have the overhead of developing your product, so they can potentially charge less, while still making a hgher profit than you would.

  21. It seems that... by dehora · · Score: 1

    ..you've answered your own questions. That is, the open source model (and it is only a model after all) is not the way to go for your company in terms of the product you are making. This is ok, software does not have to be open as a matter of course.
    --

    --
    I saw that ...to search was not always to find, and to find was not always to be informed -Sam Johnso
  22. A classical closed-source case... by pnambic · · Score: 2

    Let me reiterate what you have:

    • niche market
    • easily cloneable
    • no need for extensive support

    Given these factors, I'd suggest you simply stay closed-source. You'll have a hard-enough time making money from this anyway, even then.

    If your customers demand source, sell it to them, but don't give it away. If you feel you need to give back to the community, there might be other, better ways - how about sponsoring development of free software you use, for example?

    To wit: the company I work for makes extensive use of MICO, Xalan, Xerces, and Apache. We're closed source, but we contribute fixes, fund MICO-MT development, and will soon sponsor standardization committee activities for XML-Apache. In the end, everyone's happy. Maybe that would work for you, too?

  23. There are several ways to make money.... by Army+No+Va · · Score: 1

    It depends on what this SW is and does though. Sounds like server-side SW, probably in an HA cluster environment?

    1. Subscriptions to enhancements
    2. Technical and how-to support
    3. Consulting
    4. Add-on or related products...e.g. hardware, other SW, books, etc...
    5. Build a total solution around the OSS
    6. Advertising revenue on the web site (assuming volume traffic of course)
    7. Use the old MySQL model of keeping the newest release closed or gated and fully open sourcing the previous release

    Good luck!

    Army No. Va.

    --
    Aide: Grant drinks too much to command an army. Lincoln: Find out what he drinks and give it to my other generals!
    1. Re:There are several ways to make money.... by rmpotter · · Score: 1

      Just SUPPOSE -- they have written a great piece of software that does not require many ENHANCEMENTS, needs little SUPPORT and less CONSULTING. Suppose they down have the time or resources to GOUGE customers with related hardware and books. And they certainly don't want to waste users time with banner ads! Or confuse and screw users by dangling closed releases in front of their eyes and letting them have older "free sample" releases.

      Taken together ALL of these "solutions" sound like a lot of work and seem very odious to me. Why not let them just write great software and sell it! Honestly! -- hopefully for a fair price.

      Just my $0.02

      --
      Is this sig nificant?
    2. Re:There are several ways to make money.... by Army+No+Va · · Score: 1

      Given we don't know what the SW is or does...

      However, if it is HA clustering related as one can glean from the note, then there are probably multiple opportunities as I mentioned, unless it is a solution to a trivial problem that requires none of that... in which case, use the MySQL business model.

      --
      Aide: Grant drinks too much to command an army. Lincoln: Find out what he drinks and give it to my other generals!
  24. GPL4F (GPL for Friends?) by TicTacTux · · Score: 1
    I was pondering over a similar question as well and I was even inclined to ask /. about this:

    I was thinking of something like "GPL for Friends", i.e. make the code publicly available for a) personal use, b) for companies that made significant ('hello world' won't count) contributions (either in code or financial) to the Open Source Community, c) for organizations that are commonly known as to be of non-profit nature (no, COS doesn't fall in that category).
    All others are required to pay if they intend to use that code.

    Another possibility would be to require the user to register the code (which then could be downloaded without further charge). That way you'd at least know who your 'customers' are.

    --
    Use The Source, Luke!
    1. Re:GPL4F (GPL for Friends?) by Jimithing+DMB · · Score: 1

      Ummm.. why... if you are going to use a GPLed piece of code, you need to GPL the program you are using it in, so that prety much already takes care of all of those requirements.

      Of course it seems that you don't want to even make it available unless those requirements are met, unlike the GPL which would let you see it, but not use it in something.

      Or maybe you would like to allow companies that meet those requirements to use the code in a closed-source project... definitely not going to happen, not my code anyways.

      If I release something GPL I am letting anyone use it so long as they grant everyone else the priviledge. That is fine by me. I have also released code under the X11 license (basically free for all). That is also fine for me, and I actually would prefer to see more X11 licensed code, especially for really simple stuff.

      Honestly, I don't exactly see the point of what you are proposing (and it almost seems like you are just trolling, but I'll give you the benefit of the doubt that you are just ignorant).

    2. Re:GPL4F (GPL for Friends?) by TicTacTux · · Score: 1
      Maybe I'm ignorant, but here's what:

      I develop some code, say some administrative utility. It does not base on GPLed stuff. (ie completely homebrewn). I want to share it with the community with the exception of companies in the banking business, because I plan to sell it to them and make a fortune. The Banks presumably would only use that code for internal projects so they'd never sell it and possibly break any GPL terms. Unless these company support Open Source stuff in some way or the other, I want them to pay for it.

      That's it about the GPL4F. Zat so stupid?

      --
      Use The Source, Luke!
  25. Contact a VC by SnailKiller · · Score: 1

    This is precisely why people approach VCs. If you're product's good and you believe in it, then you need capital to start the ball rolling and pay your in-house developers. This model only works if there's a market for support. Zope is a good example and is used on OpenSource.org's business person's case for open source. Paul Everitt of Digital Creations was told to go open source by their VC Verticality, and it looks like it's been a success. Everitt makes a very eloquent case for his open source business decision.

    1. Re:Contact a VC by SnailKiller · · Score: 1
      We have a product in development and we want to make the APIs, docs, and source public, which is what we've announced, but we have to be able to make money on the end results or we'll just abandon the project.

      Sounds like they want to make money too. If they get a VC on board then the VC has a vested interest in their success - for a cut, of course. In addition to cash they provide other kinds of help, such as legal advice and business advice. I'm just reading Under the Radar by the CEO of Redhat, and it seems that major VCs such as Benchmark Capital bought into the open source idea. Redhat couldn't have grown fast enough without their help.

  26. What's the difference ... by LL · · Score: 1

    ... between your client hiring in-house dev team (ie just buying you out) and outsourcing to you? This is IMHO the real deciding factor in calculating the value proposition. Answers that I can think of:
    - you can amortise the development costs across many companies (ie fairly large client base)
    - the software is NOT their core business
    - you offer a faster growth/development/debugging rate than they can do in=house
    - the collective feedback and user support base cuts down on internal costs
    - the software creates productivity but requires serious training (e.g. certain financial trading packages) in which case you put on courses and charge real-line (same time/place) help (ie charge out rate)

    If it is a once-off, work many times without fault then perhaps you may wish to offer it as an embedded device. Ie get a small linux kernel, compact in your software, database logs, management tools, etc and sell it as an item with remote monitoring on a long-term on-going basis. If people can recognise the service of 24 hour monitoring, then they should be able to cost it.

    If it is a specialised area, requiring specific domain knowledge, then offer it as a leader to your professional services (a la lawyers doing pro bonum work).

    If it is something so trivial that anyone can recreate it then why are you trying to charge above market rates? Ie buy vs build argument. People forget that the main function of a market driven firm is price discovery, finding an appropriate market value for their goods/services. If you think you are worth $100K+/person, but the market doesn't share your sentiment, then we've got a serious reality discontinuity here. This leads to a rather interesting angle on venture capitalists as what are they really investing into? A collection of intangible goods which may have fluctuating value depending on what other people don't know?

    The open/close source is just a distribution mechanism. You still have to think about what business you are in, who are your clients, and how you can align your specialised resources with their objectives.

    LL

  27. Open Source and Market Makers by dpm · · Score: 1

    A big advantage of open source is market-making: open-sourcing a product might build up a large community of users and integrators, and even if only 5% of users buy the fancier commercial version of a product, 5% of a $100M market is much more interesting than 100% of a $100K market.

    In fact, a lot of companies will buy the commercial version if it's easier to integrate into their systems: skilled engineers are expensive and rare, so they have to be rationed carefully among projects. If the commercial version of your product can be installed and integrated by a junior person alone (i.e. installation GUIs, custom adapters, etc.), then it's easily worth $20K-$50K to a company; it would be stupid to try to install the Open-Source version if it meant pulling a good techie off an important project, and maybe delaying a major lauch, just for the sake of saving a few thousand dollars.

    After all, $20K is the cost of sending, say, 8 engineers to a single trade show.

  28. Prey on closed-source minds! by xtal · · Score: 2

    There is a way to make money off GPL'd code, and it's been used by at least one product already, FFTW. FFTW is a high-speed fast fourier transform library, "Fastest FFT in the West", and it is distributed under the GPL. This means that it is available to anyone that wants to use it in their own GPL products.

    So, I'm working on a project that uses this fourier transform to calculate derivatives of shoreline for calculating boundaries. I need FFT code; I go looking, boss man says write your own. I do, preformance sucks, no suprise. This stuff is at least one order of magnitude faster! But, boss man doesn't want anything to do with that communist open source code business.

    Hence the magic. The author of the code can put whatever liscence he wants on it - or as many liscence as he wants. In this case, if you want to use it in a closed source commercial project, you can get a liscence for $5000 smackers, which is what the company ponied up - of course, they still made (much) more than that back.

    Thus, this allows the two worlds to live together - if you want to get support, etc etc, pay the big money for the commericialized version. Or get the free version, with no warranty, as outlined in big letters in the GPL.

    kudos!

    --
    ..don't panic
  29. Act like a Troll by GeZ117 · · Score: 2

    I mean, one of Troll Tech.

    All you have to do is to release your software under two different license: one open, that benefit from the Open Source development model, and one closed, whose you sell license to those that want to create (or use) closed-source stuff. This way you can combine best of both worlds.

    Note, however, that it's not possible if you use free software code that you don't own. You may need to workaround this by spliting your programs in different parts, to isolate those you don't own and this way always release them under their original license without putting the rest of your work under the same licensing term.

    Support means also hot-line and warranties. The "commercial release" will include them in your offer, and the "free release" will just have a disclaimer. Some people wants warranties, even if you swear your program is bugfree. These people will buy your stuff. "Service" dosn't mean you have to obfuscate on-line manuals and add bugs, just that your customer can ease his mind by thinking if your program crash his data, he can sue you.

    --
    sigmentation fault
  30. Use a time-delayed open source licence by cabalamat · · Score: 4
    You could sell the software with a non open source licence but with a provision that it becomes open source under the GPL after a time delay of say 3 years.

    The product you sell could include the source code under a disclosed source licence (but a user would still need to pay your company to use the product). Furthermore, you could permit registered users of your product to develop modifications and send each other patch files, as long as you are permitted to put the patches in your future releases.

    1. Re:Use a time-delayed open source licence by nealmcb · · Score: 1
      This is an option that should be considered more often.

      The Fortune 500 firm I work for has to look at both the short term and the long term. Many of us focus on the long term, where it is important to avoid becoming locked into proprietary systems which may lose support when the original owners either go out of business or decide to force us into costly upgrades by designing in incompatibility.

      Others are focussed on the short term where active support is more important because the software is new/buggy and is being integrated into other systems.

      So for situations where traditional reasons for going Open Source don't look attractive to you, consider something like a contract with FSF that in a few years a given body of source becomes assigned to them and GPL'd. This would help sell the original product to folks like us so it would be a win for you also. And in n years you could leave the support headaches to the community and embark on your next cool idea.

      --Neal

      --

      --Neal
      Go IETF!

  31. Sell peace of mind ... by jacoeras · · Score: 2

    It depends on the project,

    But basically two models immediatelly comes to mind. Sell the peace of mind aspect, garantee (Don't have a clue how to spell this and no time).

    And the other possibility is the expertize, people are willing to pay because they trust the person that sell's or supports the project.

    Again it all depends on the project and the market. Make a deal with another company that have a complementary project let them pay for the development or alternativelly sell bundles with your stuff included.

    Eg. Development project sell a Redhat CD with your product included a nice smile and support for the whole set of product for 6 month with direct access to experts in the field. Keep a constant contact with your customers ad I promise you they will be hooked. Add to that the possibility that you can sell the installation and the training for the product (training is kewl because even if the product is very easy to use people will still pay for it.)

    Suffice it to say it is possible to sell alsmost anytnhig related to the product. Just think of it as a service industry and your home free. Sell your time your services.

    Cu
    jacobus@firsttech.net

  32. Re:Obviously you are not a GPL expert by anatoli · · Score: 3
    Nice FUD (or else your lawyers are incompetent, to put it mildly). Compiler output is not a derivative work of the compiler.

    Imagine that it is. Then no one can use any compiler that does not give an explicit permission to copy compiled binaries in its license. Now check out any compiler license from Microsoft, Borland, or Sun. Is the permission there? Check out your Notepad and Word licenses too. Do they give you an explicit permission to copy text files that were processed with these tools? No? You're SOL.
    --

    --
    Industrial space for lease in Flatlandia.
  33. Random thoughts by Evernight · · Score: 2

    We could answer your questions better if we knew more about your software.

    If you are aiming at a large enough market, it is quite possible to get the benefits of open source without giving up the benefits ($$$) of non-free software. Put the source on the CD, shrink wrap the box, and stick it on the shelf in all the chain stores. It'll sell same as any other commercial product. After all, source code's only useful to programers, and we're a very small slice of the pie.

    Likewise, if your taget market is very narrow, what do you lose? Chances are you were only going to make a few hundred sales, and in most cases those would be from larger businesses. In this case, you go on a support model.

    Will some unscrupulous bastard give it away online? Sure. That'll happen with or without you opening the source. But by opening the source you've developed a rapport with the Open Source community, with all the benefits therein.

    The only place I can't see Open Source non-free software working is in the mid-sized markets, but those are rarely where you find big money anyways.

    Neu

    1. Re:Random thoughts by Anonymous Coward · · Score: 1

      Put the source on the CD, shrink wrap the box, and stick it on the shelf

      I've been tempted to use this method with GCC for windows port. Write a quick and dirty IDE, and throw in Java, and you can undercut anyone. Except other people who copy your strategy.

  34. similar question by buti · · Score: 1

    ok, to join this interesting discussion i have a very similar question that bugs me for ages already:
    a company (publishing house) wants me to write a program for them. i told them i wanted to gpl it, when it is finished. and they seem to have no problem with that.
    there are multiple reasons why i want to gpl it. anyway... the question is: can i get paid for writing the program, while still making it free software and open-source (gpl)? so what i want to do, is selling my time, not selling the program.
    especially i would like to know if this is ok with gpl, since i really don't want to violate this important license.
    even if my program is not very usable for others as a whole, there are big parts in it that could be "recycled" in similar programs.


    the answer is out there -- it's looking for you -- matrix

    --
    neither do i
  35. Alternative models by evilj · · Score: 2
    There are a couple of suggestions that I have:

    • Why not release it as open source, but as shareware, so that if people want to use it they can and it is up to their conscience to register and send you the $50 or whatever you feel is appropriate. Remember, though, the more you ask for, the less registrations you'll get.
    • You could offer rebates for people who have registered and then send in bugfixes.
    • Alternatively, release as open source, but only charge for commercial use (like MySQL - http://www.mysql.com), so again, it is up to the company's conscience to send you $100 or whatever you think a company will think it is worth. Non-commercial users don't have to pay, but will quite likely contribute bug fixes and improvements.
    • You could have a stable, bug-free version, and a development version that the contributors will help iron the bugs out of.
    • Combining these approaches further, you could charge for the stable version (maybe release as binary only?), but allow free use of the development version to encourage bugfixes.
    Well, you may agree with some or all of the above, or even none of it. I am interested in what others think.

    J

  36. Open Source and Guilt by rmpotter · · Score: 3

    Here are some rather obvious observations, though I seldom see much reference to them during the time I've been reading /.

    Seems to me that most OS code has been developed by coders who have been supported in whole or in part by universities, benevolent corporations (large enough that they can't keep track of what some of their employees are doing, perhaps ;) -- and of course programmers who still live at home and are supported by their parents.

    Because circumstances allow this code to be developed for "free" -- it seems right that it should be released (with source) for free.

    Code developed in the marketplace -- where the software developer assumes all of the risks and costs of development should have some rewards. Developers should not have to ask for remuneration by dangling support, upgrades or plain old begging. Whether or not the source can or should be released to the end user depends on the application/cost etc.

    In any case, why should programmers feel guilty about selling a good piece of code?

    What about the "millions of eyes" benefit of Open Source? No question that a large number of programmers have helped turn Linux into a viable server platform (I think the jury is still out for widespread desktop use).

    I submit that for some applications, software is best improved by setting up a feedback loop with millions of CUSTOMER eyes -- not PROGRAMMER eyes.

    So, if your company can muster the resouces to sustain the development of its software, then setting up a feedback loop with customers to further development seems like a good strategy. Let your customers "direct" the development by providing feedback on the features and functionality they desire.

    Depending on the product, opening up APIs or code (with some reasonable restrictions) may turn out to be a requested "feature" -- or not.

    --
    Is this sig nificant?
    1. Re:Open Source and Guilt by cowscows · · Score: 1

      I agree with this completely, and have sort of been using it as my defense whenever a friend gives me a hard time about my refusal to use pirated software. I'm a poor college student who can hardly afford the photoshop upgrade, but I put out the money because I think Adobe deserves it.

      I'm not really a programmer, but I've dabbled in it a little, enough to realize that it can be difficult, very time consuming, and very very frustrating. I've done it enough to be glad that there are others doing it for me.

      And if you're sitting in front of that computer and putting all those hours down writing out that code, you should by all means be allowed to charge whatever you want for it. If your price is unreasonable, and/or there are better alternatives, the marketplace, in theory should go against you.

      I guess that it can get a little hazy when a particular program has such a monopoly over a genre. I think I read somewhere that photoshop is the single most pirated application out there. I'm not going to cry for adobe, because they've made plenty of money, a signficant (at least to me) amount from software I own; but they've made a great program, and deserve to be paid for their time.

      --

      One time I threw a brick at a duck.

    2. Re:Open Source and Guilt by MikeBabcock · · Score: 2

      I think its important to note that although some people refer to "giving away the software and the source" they don't always mean giving it without a price tag. In fact, the GPL (et. al.) does not keep you from selling your product. If you wish to make a license that has the same viral effect as the GPL (all future persons must receive the same rights as the original license), you could do so by including a clause preventing redistribution except by returning modifications to the Copyright holder. Its very important (as one person pointed out) to consider how much software piracy there is these days and how offering the source code to a project does not change the licensing (free or cost-for-commercial-use) at all. It doesn't change whether anyone will copy it or not, or reverse-engineer it. Those are all dealt with in court, not with the open or closed-ness of your source code.

      --
      - Michael T. Babcock (Yes, I blog)
  37. Look at the Embedded scene! by Hougaard · · Score: 1

    Take a look at OS'es and stuff in the embedded scene, there are tons of commercial packages that are "you pay for our source" driven, cause when people build custom hardware they have to patch/modify/change/enhance the product in order for it to run on their hardware.

  38. oh god, not this old chessnut again. by redd · · Score: 1

    1) support
    2) advertising revenue
    3) "gold" packs with better features
    4) market capitalization (must assume your product is worth something)
    5) consultancy.

    *yawn*

  39. Why not just use a regular license? by anonymous+cowerd · · Score: 2

    I don't understand why developers who feel secure releasing binaries are always so anxious to accompany the binaries with source. The assumption seems to be, "If I ship the source, some nasty bootlegger will come along and copy my stuff." But obviously it is considerably easier, rather than copying the source and recompiling it, to simply copy the binaries, or even to make a perfect duplicate of the entire install CD.

    Look at Microsoft; they do not copy protect their software. Technically speaking you can duplicate, for example, the Office 97 CD. Has Microsoft gone broke? Hardly! They're the richest software vendors on the planet, but the only thing that prevents them from going broke is the respect end-users have for the terms of the EULA, or their fear of liability should they get caught, or whatever.

    If a simple EULA is good enough to make Microsoft as rich as they are, why isn't it good enough for you? Simply draw up a license that says "you, the end-user, are only allowed to install as many copies of [your product] as you have acquired paid licenses therefore" and put it on the sleeve of the disc with the binaries and source. Yes, it doesn't protect you from a determined bootlegger, but then neither does withholding the source code - that bootlegger will simply copy the binaries, which are all that ninety-nine percent of users want anyway. If you're still upset over the possibility of a handful of illegal copies, then the only realistic solution is to close your code and ship your product with a parallel port lock or something like that - and even that will probably be cracked by some warez d00ds somewhere.

    Yours WDK - WKiernan@concentric.net

  40. VC's also want to earn money by Otis_INF · · Score: 1

    If you want a VC to invest in your project, you have to convince that VC that the project will turn into a profitable project so the VC can earn his money back plus extra. Otherwise, why would a VC invest in the project? Unless it's a filantrope of course. ;)
    --

    --
    Never underestimate the relief of true separation of Religion and State.
  41. Don't get hooked on Open Source by Bozovision · · Score: 1

    You are facing a very similar dilemma to the one I face. I've come to the conclusion that for the stuff I am working on Open Source is a lovely idea, but impractical.

    Firstly - the GPL is designed in such a way to guarantee that if you try to sell your software as a product, and are making good profit margins, that someone will undercut you, using your own work; it removes barriers to entry.

    Secondly - there are very very very few OS companies whose primary product is a software package that are making money. If you know of one, tell me so that I can offer their software at a cheaper price than they do.

    It seems that if you are a software developer hoping to make money by selling a product that you are dead in the water.

    The standard suggestion is that you offer services rather than the software. For you that's an option, since you are selling into a 9's situation. For small or medium sized packages software designed for ease-of-use this does not seem to offer much hope.

    (However I do think that packages with very small and larger scale user base can benefit by going OS. So Zope works because it has a large enough user base to generate service needs. Of course if there is a sinificant amount of code the demand for the original author increases.

    There are a bunch of other models - I don't see many of them offering much hope...

    Personalisation. Performance. Sponsorship. Last version is Open. Non-Open, with access to Source.

    My advice - the Closed Source model has a history of making money, be cautious and stay with it unless there very very good financial reasons (not warm fuzziness) for going Open.

    Jeff veit

    1. Re:Don't get hooked on Open Source by cyber-vandal · · Score: 1

      someone will undercut you, using your own work As if such a thing never happens in the closed-source world, except then it gets called innovation.

    2. Re:Don't get hooked on Open Source by be-fan · · Score: 2

      Firstly - the GPL is designed in such a way to guarantee that if you try to sell your software as a product, and are making good profit margins, that someone will undercut you, using your own work; it removes barriers to entry.
      >>>>>>>>>>>>>
      This is a very important point. Open Source is meant for the common good of software users. As such, it enables anyone to take a piece of work, and improve on it. However, this very fact makes it impractical for a business. Consider this. RedHat spends time gussying up Linux for the mass market. It spends actual money make these additions. However, if they release them under the GPL, a competitor can simply come, take their changes, add something little to it, and end up with a better product. This isn't seen much in Linux, because the product is essentially already developed. However, say I write an application. I GPL it and make money by selling technical support. A competitor can immediatly come and make some improvements, and sell the resulting product. He now has a better product, and thus gets the sales. However, he did very little to "create" his product. This doesn't happen in the closed-source world, because instead of just taking your code, your competitor actually has to do work to create a competing product. It takes a lot less work (read: money!) to make small improvements to a product than to create a better product.

      --
      A deep unwavering belief is a sure sign you're missing something...
  42. Re:Obviously you are not a GPL expert by Chops · · Score: 1
    However the fact is that a binary produced by gcc must be licensed with the GPL
    This got me thinking... it's high time slash supported typing in your own moderation comments. Just think about it:

    (-1, hilariously misinformed)

    (-1, obvious MS shill)

    (-1, software bigot)

    (+1, unintentionally funny)

    (+1, good haiku)

    or, in this case,

    (-1, total nonsense)

  43. Open Source Software + Hardware by TNN · · Score: 1
    Can you team up with a hardware manufacturer so as to offer your software pre-installed + support?

    It would make the hardware better and provide an initial source of financing. Can your software be useful or expanded for slightly different applications (Arsdigita Community System is on my mind)?

    Although many large companies have the talent to install and expand Open Source stuff the suits who work there are allergic to free stuff, especially if it comes from small companies.

    So I would first find a BIG industrial partner to establish a strong backing and then go after customers by pretending to be a spin-off of your partner. A few months later, once you have decent credentials, make your stuff available on the web so as to promote your brand.

  44. Re:Obviously you are not a GPL expert by anatoli · · Score: 2
    Oh, I forgot. Borland does, and always did. Others don't.

    I'm too lazy to type Sun's license agreement, but apparently it seeks to regulate distribution of compiled binaries only if the binaries happen to use "Tools.h++". This makes perfect sense to me. Tools.h++ is a library distributed as source code (by Rogue Wave I think). Software that uses Tools.h++ is a derivative work of Tools.h++. Compilers have nothing to do with it.

    Oh well. Apparently all those companies that release closed-source stuff for Linux don't have legal departments, or use some super-sikr1t non-GPLed compiler. And the whole *BSD family is screwed, too.


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    Industrial space for lease in Flatlandia.
  45. Making money in software by homebru · · Score: 3

    Ways to make money:

    Sell add-on modules to the basic package.
    Sell interface programs (from your package to other software packages).
    Sell pre-loaded database of industry-standard (non-copyrighted) data.
    Sell pre-loaded database of specific (licensed) data.
    Sell pre-loaded database/catalog of vendor-specific data with an agreement from the vendor paying you a comission on product sales due to your software. (Major opportunities here.)
    Sell custom code modifications.
    Sell installation and training.
    Sell services (remote application/data hosting).
    Sell the associated (and required) big-buck database package (i.e., be an Informix, or Oracle reseller).
    Sell software upgrade contracts. (Send notice/cd-rom when software is updated.)
    Sell software support contracts. (Dial-in and telephone.) Assumes basic package is limited or no support.

    OK, that took less than five minutes to come up with.

    Thing is, figure out which you can do for least up-front outlay. Then offer that product/service. If it costs you nearly nothing, you don't lose big if nobody wants to buy, and you still have an impressive product/services list. The fact that not everybody will buy a particular product/service does NOT mean that NOBODY will want it.

    Add to your product list. Keep adding to it. Don't let people think that you are a "one-trick pony". There's a world of folk out there who only want (for example) general ledger and accounts payable but who will not buy unless your product sheet shows payroll also.

    I spent over eight years learning these lessons. If the moron who owned the company had learned any of them, we'd have made big bucks. He didn't; we didn't.

    Good luck.

  46. RIGHT ON! by Jimithing+DMB · · Score: 1

    Right on brother (or sister)!

    This is exactly how I am planning on making my money (so please god tell me this is gonna work!).

    Fortunately I am in College still and am planning on writing some software in my free time that I plan to sell. It will be GPLed because I refuse to write a piece of proprietary software (my ideals getting in the way of my wallet there).

    The way I figure it, if I price my service decently, I will be the author of the program and the one person who will know the code the best. If people are cheap and want to go to someone else, that is fine, because I only want the big money-making customers anyway!!

    Hey, it might not mike Microsoft-like profits, but it oughtta make a living.

    -Dave

    P.S. I'd like to moderate you up but I already posted :(, so hopefully someone else will take the hint ;^)

  47. Stuff and nonsense by streetlawyer · · Score: 2
    Nonsense and rot -- this is almost tantamount to liberalism! Need I remind you that God created man in his own image? Which part of "in his own image" do you not understand? We were put on this earth, not to imitate the animals, but to live a godly life in modest, civilised dress.

    Which is to say: a suit (dark grey, navy blue, or pinstripe), a shirt (white, windsor collar, or button-down for Yanks) and a tie (regimental, polkadot, or City silver). Black brogues and socks.

    Pop quiz; where is the greatest concentration of suits and ties? Japan, that's where. The reconstruction of Japanese society after the war can be directly traced to their adoption of Christian dress codes. Meanwhile, the decline and fall of America, Britain and practically everywhere else into a moral cesspool of drugs, casual sex, guns, and liberalism can be traced to the 1960s decision to shun the tie.

    I think of the open collar as a "gateway drug", leading on to harder substitutes. From the open collar, it is but a small step to being jacketless; thence to the round neck; then the (shudder) short sleeves and than (I can scarcely bring myself to say it) "Genoese cut trousers of Serge de Nimes"

    You will note that your own Mr. Hitler, while often seen in competent (if ugly) German tailoring, could never get a really good four-in-hand not to stay in his tie (often resorting to vile swastika tie-pins). Indeed, at the first chance they got, the whole mouldy bunch of them trooped off to the Black Forest, collars flapping open like so many deaths' head flags! Lederhosen! And the Tyrolean hats were hardly bowlers. You were quite right to hate them on sartorial grounds alone.

    Remember, (if I may be permitted to avoid the invocation of Godwin's Law as well), that history has shown us that those who begin by burning foundation garments will later burn people. And the necktie is a foundation garment. It is the foundation of honesty, morality and decency.

    On a more practical note, a well-cut suit conceals a multitude of sins, from a too-much-Chinese-food-and-Mountain-Dew belly to a pair of too-much-Quake-and-not-enough-rowing sloping shoulders. Geeks and coders are precisely those who are most in need of them.

    thank you.

    1. Re:Stuff and nonsense by Zurk · · Score: 1

      damn...this is the first time i'm actually agreeing with you rather than flaming you alive. im impressed...you've hit on some valid points in this thread.

  48. Re:Obviously you are not a GPL expert by pe1rxq · · Score: 1
    Please buy a dictionary (a lot cheaper than a legal department) and look up the word 'derive'.

    On the other hand, your program probably is under the gpl if you are right anyway. Ever send a binary over the internet? chanches are you will encounter some server running linux. And since the ip packets are being processed by it they are under the GPL, right?

    Even your posts here are under the gpl since the slashdot servers processed it.

    Does your point sound ridiculous yet???

    Jeroen

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  49. I'd wait if I were you. by be-fan · · Score: 2

    If this product is in anyway a central part of your business, I would wait. Open Source is a business model, and just like any other business model, it has its risks and advantages. Importantly, Open Source is still an unproven business model. It reminds me of the whole free craze on the internet. The business model there is that you give stuff for free, and advertisers pay you for it. However, it turns out that that really doesn't work, and companies that give stuff away (like bigger.net or other free ISPs) are dissapearing. OSS still hasn't proved that it is a viable business model. Major companies like RedHat are still not making money off it, even tough they are in a strategic position in their market. Because of these reasons, I suggest you treat it like any other business model. Weigh the benifits and the risks. If it sounds like you can't stomach the risks, then OSS is probably not appropriate. Of course, as they say, nothing risked, nothing gained, eh?

    --
    A deep unwavering belief is a sure sign you're missing something...
  50. Service is what you Sell by Ozric · · Score: 1

    It is all about service not software. A SOHO can buy NT, W2K, or Linux and to him it is just as usefull as a brick. Even the magic outta the box solutions take some work to intergrate. The person that can set those systems up and make them jump and do tricks for them is were the value is. It is really the customers choice as to what type of license his software is under and the fact they have a choice at all. To most I think, the license is just an after thought. They just want to get their work done and are happy to pay so long as it does not cut into the bottom line.

  51. The tools of production, not the products by ToughRat · · Score: 1

    An underlying thread of the GNU folks, all denials aside, is that the tools of production should be free (thank you, Karl Marx). I agree half-heartedly with this. The logical behind this, and it is actually Capitalist logic, is that freeing the tools of production from the need for capital allows the best talent, not the best marketing or financing, to rise to the top.

    For one or a few-person shops like myself, writing primarily for small businesses, spending thousands of dollars for an OS+database for each installation, and thousands of dollars for tools (the Universal Subscription is about $2000 now, per year, but I can see it rising, just as OS prices are rising), is a drag on profitability, which in turn places on emphasis on marketing hype to clients, rather than quality of product.

    However, what the original poster has here is not a tool of production, but a product. Copyright it, encrypt the binary, and sell the heck out of it. If, on the way, you develop some tools, make those available with sourcecode to the community, preferably with a license that doesn't confuse the tools of production with the products of the tools.

    My $.02.

    Hank Fay

  52. Promise GPL after _X_ years? by Booker · · Score: 4

    Perhaps you could release it, and the code, but with a restrictive license that doesn't allow redistribution... for the time being.

    You could put something in the license, though, that says "in 2002, this license will be null and void, replaced by the GNU General Public License (see Appendix A)"

    That way, people have a warm fuzzy that the product has a life even if _you_ choose to move on to other things, they get the source right up front if they need it, and it still looks like you "get it." :)

    What do you think?

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  53. Why did you write it? by slim · · Score: 2

    As someone has pointed out, it's too late to be thinking about this.

    Why did you write a product, before thinking about what you were going to do with it. The best fit for Free Software is stuff which you do not intend to sell -- for example, you may have been contracted to produce a POS system for a retailer. Once you have fulfilled that contract, and got paid, *then* you are in a position to GPL the source (unless the contract forbids it).

    If you "just wrote it" with no real use for it yourselves, then selling it, closed license, is probably the only way you'll make any money. The best Free Software products were written because the author needed the software to do their job: take Apache; writing software was not the author's job description -- running a tight Web server was. Writing Apache made their job easier; giving it away (and developing an Apache community) made their job easier still.
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  54. Open Source may be nice, but GPL won't work. by be-fan · · Score: 2

    There are many reasons why I think the GPL is really not going to work for commercial applications. It doesn't mean Open Source won't work, but the GPL in its current form allows too many opportunities for a competitor to take your code, mainly because that's exactly what the GPL was designed to do. The main reason is that it takes very little effort for another company to simply add on to your product. Thus, they end up with a superior product, at the cost of almost no R&D. This not only stiffles the development of the product (whose going to develop it if the other company will just steal it?) it takes sales away from the creator because the other company now has more resources (after all he spent very little "developing" a product!) to go after marketing and offering higher quality support. Maybe better for the consumer, but businesses won't like it, and in the end, they're the ones making the choices of what licenses to use. A more closed license (like the SCL) makes a lot more sense for businesses. It retains many of the advantages of Open Source, in that a consumer can fix bugs in their programs, and development speeds up, but it prevents another company from simply taking your work and adding to it. In the end, however, I think that commercial Open Source applications will be mostly second-rate. Put down those torches and hear me out. From a business point of view, Open Source is mostly a marketing gimmick. It is something that attracts users to your software. Unless the company is run by individuals that genuinely want to help users (rare, those people tend to set up projects instead) then OSS will be used as such. Usually marketing gimmicks are reserved for second-rate software. I think it is agreed that closed source allows a company to make a bigger profit of a high demand product. However, if the product is in low demand (read: low quality) then it may just be a way for a second-rate company to get some market share. Of course, there are exceptions to this, for example in system software and when facing software that is an entrenched power, even though superior solutions exist (read: Office). However, most popular software tends to be the higher quality ones, and I really don't think OSS is much of an incentive for companies making high quality software. If you doubt this, take a look at the current graphics market. NVIDIA is currently the market leader. There is nothing keeping them there (no propriotary APIs like Glide) except the sheer power of its hardware. (And good marketing to boot.) Now, second tier companies (like 3DFx and ATI) sieze this opportunity be releasing specs/open source drivers. This is the principal of using Open Source as a marketing gimmick for a product. I seriously doubt that anybody in 3DFx-land really wants to make the computing world a better place, (the original revolutionaries in management were mostly replaced, as was the original CEO), they are simply trying to regain market-share. This concept seems like it will progress to other companies in the software market as a whole, and unfortuneatly, OSS may not catch on in exactly the way you thought.

    --
    A deep unwavering belief is a sure sign you're missing something...
    1. Re:Open Source may be nice, but GPL won't work. by MikeBabcock · · Score: 2

      Your argument is interesting, but not sound. There is no necessary corelation between a product using open source as a marketing tool and its quality. In fact, there isn't any statistical evidence to hint toward it either. Your comment about companies genuinely wanting to help consumers is a big one -- and one I wish were true of more software companies, but which I don't think is true.

      PS, the GPL does not allow another company to take your R&D and resell your product out from under you; you're mistaking licensing for Copyright.

      The license may allow them to use modify your code, but not to copy it without credit -- which gives your company what it needs to say "our product being sold by 4 competitors -- get your support from the people who created it" ...

      ... I can name a lot of companies who buy MS support directly from Microsoft instead of independant MSCE-based companies for that reason.

      Note: I hope your product doesn't require as much support as MS's do ...

      --
      - Michael T. Babcock (Yes, I blog)
  55. Keep It Open But Charge A Lot. by istartedi · · Score: 2

    After someone on USENET mentioned some version of gcc that was modified in a very specialized way, and sold for $5000, that got me thinking. Under the GPL (and many other open source licenses), you don't have to reveal source unless you distribute. If the price point is really, really high, the fact that you are giving the product away (after the sale) won't matter.

    Think about it. Sure, people burn red-hat CDs and give them to their friends all the time. It's only a few bucks. Pizza money. What's a pizza among friends? OTOH, some business that payed $5000 for a system is not gonna just burn it and give it to a friend.

    This obviously only works if the system you are selling is worth that kind of money. What you are describing sounds like a fairly specialized mission-critical business application--the niche for which I've anticipated that this business model for open source could be successful.

    This model obviously fails for small, general purpose, consumer applications (drawing programs, spreadsheets, word processors and the like). Nobody will pay $5000 for that kind of stuff.

    I have also toyed with the idea of anouncing that all my software will be Open Source. But it will cost you $200,000. Hey, Free Speach is what matters, not Free Beer, right? :)

    As a salesman for your company, I'd approach customers and sell them a system which includes software that they will be allowed to modify and customize without legal restrictions. Sounds like a good product now, eh?

    --
    For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
  56. Re:Why is *BSD screwed? by anatoli · · Score: 2
    Why is *BSD screwed?
    According to the AC with an inept legal department, if you compile something with gcc, your binary must be GPLed, and so must be your source. *BSD people use gcc to compile their wares (not warez) and distribute the compiled binaries. Therefore (again, according to that AC) *BSDs are GPLed. Which would be a major screwup, if only what the aforementioned AC was saying were true.

    Oh wait...you probably are that AC. Must be pretty hard to troll without contradicting yourself, eh?
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    Industrial space for lease in Flatlandia.
  57. This is completely tangental by ^chuck^ · · Score: 1
    Perfectly, true, but there is no base whatsoever for the claim that the license is more important than the product itself. Don't bother citing Microsoft, what made them successful was neither the quality of their product nor the license, it was the marketing.

    I would have to say none of those was the reason why. Either you have bad long term memory, or are a 15 year old troll. Microsoft didn't market their product [talking about DOS baby], PC's were bought in large numbers simply they were cheaper than macs and could get the same stuff done. Anyone could have done it... Move on four - six years and microsoft is now in the luckiest position in the world, now they try to market and advertise, god knows why, they hardly need to bother.

    --

    Lemure, wtf! Don't you mean Lemur?
  58. You can open just part of it by MongooseCN · · Score: 2

    I was looking at this same idea for a game I might be developing. The way I see it, is you can just open part of the source, like the Quake engines do. Quake keeps the main engine closed source, since that's where the major competitive technology is. Everything else that uses the engine is open sourced. This way you can hide your "money making" parts of your source and still allow users to edit some of it. It may not be fully open source but it's a proven option that has worked immensely.

  59. Re:Obviously you are not a GPL expert by pe1rxq · · Score: 1
    Duh! Are the ip packets altered in any way when passing through a node running Linux?

    Yes, MAC address, ttl, etc

    Is the output (binary) of gcc the same as the input (source code)? No. It is derived from the input.

    Then what the hell are you talking about, first it is derived from gcc now from the source? It looks like you just killed your own argument. Make up your mind!

    Jeroen

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    Secure messaging: http://quickmsg.vreeken.net/
  60. Troll Tech got it right ( with a few bugs ) by Forge · · Score: 2

    Look into the Troll Tech model. Depending on what your product is you may be able to sell it for profit while making it free and open source for those who honestly prefer this.

    If your product is a software library that can be used as part of other products then do exactly what Troll Tech dose with the QPL license too.

    If your product is a server that dishes out content over the web ( AKA Real Player ) You make provisions that people must pay you or fully allow wholesale copying of all the content they distribute.

    There are other solutions for other situations the key thing is to make your software free for those dealing in free content and free software. If it is done that way while remaining open source there will never be enough incentive for competent people to produce a free ( bear and speech ) clone.

    You see people who live by copyright will find it simpler and perhaps cheaper to pay your license fees. Meanwhile those who live by Free Software and Open content will have no need to clone your stuff once the original works OK and you accept patches.

    For proof of this just read of on the QT history. Ohh.. and try not to have any GPL compatibility issues even if it means saying "Thou shalt not write GPL code with our software"

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    --= Isn't it surprising how badly I spell ?
  61. Customers fixing code by Kipli · · Score: 3
    You write:

    However, they will become more and more knowledgeable with the software, especially from the user-side. This will extend codewise if they can get the source easily. There'll be situations where they want to fix stuff themselves, in order to meet deadlines and other things.

    I don't quite agree. The time it takes to determine that a bug exists, locate the bug in the code, figure out what the fix should be, test the fix to make sure it works, test the fix again to make sure it didn't break anything else, then to implement the fix, is just too much for most people.

    It's not that they aren't intelligent enough to read code and see the problem -- I can usually do that, and I'm not a professional programmer -- it's that it often requires a significant amount of time and mental energy to wrap your mind around a problem. I don't want to take *my* time fixing *your* code, even if it's something that I need done quickly. I have more important things (to me) to do. Instead, I would prefer to call you up, describe the problem, perhaps give a rough explanation of what I think the bug is, and then be able to say "Our service contract says you'll take care of this. When might I expect an updated version?"

    I don't think that open sourcing would drive companies away, unless they had enough resources to dedicate people to understanding and maintaining the code in-house. In that case, they're not buying the product anyway, and wouldn't be interested in a service contract either. However, it may pull in some people who would like to know what's going on inside that box on their desk -- people like me who like to tinker around with the code, but don't want to have to rely on my own skills to get some jobs done.

    kipli

  62. An exercise in complexity bull shit. by 3seas · · Score: 1

    Alot of interesting responses and suggestions, but from my scanning them,
    all I could see is what is an endless loop that thru time shows a sine wave.

    It doesn't have to be this way. There are other successful business models
    that such problems won't "need" to exist.

    Only playing the king of the hill game must end.

    3 S.E.A.S - Virtual Interaction Configuration (VIC) - VISION OF VISIONS!

  63. Re:Obviously you are not a GPL expert by anatoli · · Score: 2
    Erm. Compiler output is derived from its input, that's for sure. How it is derived from the compiler itself is beyond me. It's like saying your ./ posts are derived from Netscape (it transforms keystrokes to characters) and from Lynx (it transforms HTML markup to terminal escape sequences) and from xterm (it transforms terminal escape sequences to X protocol requests) and from X (it thansforms X protocol requests to pixels). I'm not even talk about the software that's inside modems (they compress, you know).

    Thank you.
    Doh! This is a troll .sig! Why I'm responding to trolls? Must...resist...temptation...
    --
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    Industrial space for lease in Flatlandia.
  64. Re:Obviously you are not a GPL expert by pe1rxq · · Score: 1
    Yes, but that is not my data. I could care less if some decided to GPL the ttl of an IP packet I sent. My data is not altered in any way so such a claim would be absurd.

    So is your claim, the data you put into the compiler is not altered to, so it is not under the GPL. And the data comming out is made out of both your source and data generated by gcc. So only the data generated by gcc is covered by the GPL, and that data is already opensource.

    BTW ever thought about the interprater you use for your script, is it GPL'ed????? And the encoding/decoding program????

    Jeroen

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  65. Re:Obviously you are not a GPL expert by anatoli · · Score: 2

    Any evidence to support your claim? Name names, cite cases.
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    Industrial space for lease in Flatlandia.
  66. Still it would be an interesting precedent.... by luckykaa · · Score: 1

    Since we're on the subject, I can believe that most modern software is eventually derived from gcc. A lot of CPU manufacturers will generally just port gcc (For obvious reasons). As a result, most operating systems are descended from gcc. Therefore, programs were compiled either by gcc, by a compiler compiled by gcc, or by a compiler running in an OS compiled using gcc, or descendants therof.

    Therefore, by this argument, all software is GPL'ed. Shame that the GPL DOESN'T apply to prgrams compiled using it.

  67. Re:Obviously you are not a GPL expert by anatoli · · Score: 2

    Childish tactic. He said that IF the data generated by gcc is covered by the GPL THEN YOUR data is screwed, because data that is generated by gcc is everywhere. You say "great, now you see that the data generated by gcc is covered by the GPL". Unimpressing. I've seen trolls that are orders of magnitude more consistent than you.
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    Industrial space for lease in Flatlandia.
  68. Re:Silly Question.... by psykocrime · · Score: 1

    CMM is the Capability Maturity Model. It's a system for rating the processes used by a software engineering organization. Higher levels of the model indicate higher proficiency at developing software in an efficient, consistent manner. I think the levels go from 1 to 5. If you're really interested, here's a link. http://www2.umassd.edu/SW PI/processframework/cmm/cmm.html

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    // TODO: Insert Cool Sig
  69. Re:Obviously you are not a GPL expert by anatoli · · Score: 2

    d. To procrastinate at work.
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    Industrial space for lease in Flatlandia.
  70. Making Money by poet · · Score: 1

    There is a couple of things I could see.

    1. Release the documentation under the OPL (http://www.opencontent.org) with option B. This will allow the free distribution of the docs but only you can print them. This will not generate ALOT of revenue but there is some. Many programmers prefer dead tree docs.

    2. Charge for "ANY" support. Use a call base for example, 35.00 per issue (may be a little low). Many people will use your product and be happy but there is always something you just can't quite get and need help with.

    3. As another individual mentioned, offer customizations and charge by the hour. If the product is truly OpenSource any customizations that are made "out of" the actual development path can be used to enhance the product and you will get paid for it.

    Joshua Drake

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    Get your PostgreSQL here: http://www.commandprompt.com/
  71. No middle road by caucho · · Score: 1
    In practice, you can't use a more restrictive license. Anything that's not quite open source will confuse everyone. You'll waste half your support time answering questions about the license. MySQL could get away with it because they had already established sufficient market share.

    Unfortunately, "open source" was created by the distributors and is clearly biased towards Debian, RedHat, and VALinux.

    So you've got the following dilemma, either go closed source, or use an open source license and let the distributors make money from your work without paying you.

    It's like the music industry. The artists make diddly and the distributors clean up.
    Scott Ferguson

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    Scott Ferguson
    Caucho Technology
    1. Re:No middle road by Anonymous+Commando · · Score: 1

      Huh? Sorry, but the GPL and BSD licenses (the original "Open Source" licenses) have been around longer than Debian, RedHat and VALinux. The licenses were originally created by the developers, not the distributors. And the developers have chosen to make their work available under these licenses, usually out of idealism, not necessarily to make big money, and not by pressure from the distributors.

      Not at all like the music industry, where the artists are pretty much forced to play by the label's rules if they want any hope of so-called "success".

      I agree with your point about confusing licenses, but I think you're way off on the rest of it.
      ________________________

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      Corporate Jenga: You take a blockhead from the bottom and you put him on top...
    2. Re:No middle road by Louis_Wu · · Score: 1
      Caucho may have been referring to the 'definition' of Open Source by the distributors, as seen at OpenSource.org. GPL & BSD were first, but some think that they are now sub-sets of the larger class of 'opensource' licenses.

      Louis Wu

      Thinking is one of hardest types of work.

  72. Suits are overrated. by Phaser777 · · Score: 2

    I don't believe being forced to wear something uncomfortable aids productivity at all. At least with me, being forced to do something, regardless what, destroys my productivity.

    I see no problem letting people dress the way they want- as long as they get work done! Would you rather have an office of slightly agitated coders or happy, relaxed coders, assuming both groups get the same amount of work done? If someone isn't working, fire them. If they won't work without a suit, they won't magically be motivated to work with one.

    Before you start complaining about our style of dress having such complete control over productivity, give us some facts. Prove to us you are right.

    I seriously doubt that a particular style of dress is the "real reason that so many of these Internet startups have failed." It may have a slight effect, but I'm guessing there are other, more significant things that cause the failure of a company.

    You are probably right that a suit conveys the idea that you are there to work, but the lack of one does not mean that you cannot work.

    Not wearing suits does not mean "insisting on comfort over results." No one ever said the two can't coincide. No one ever said that this industry was full of lazy, irresponsible geeks, either. If it was, the internet would work as well as a Microsoft application, and all the cell phones, pagers, videoconferencing equipment, office computers, and other office equipment used by who the geeks call "suits" would be about 10 years behind what it is now. I'm not saying there aren't lazy, irresponsible geeks out there, they're just not the ones running the industry. And wearing a suit has never been proven to turn a lazy, irresponsible geek into a stress-free, higly productive worker.

    1. Re:Suits are overrated. by streetlawyer · · Score: 1
      . If it was, the internet would work as well as a Microsoft application

      What, you mean that all the parts of the internet would work well with each other, and there would be no constant problems with incompatible standards? Sounds like "hurray for suits" to me!

      At least with me, being forced to do something, regardless what, destroys my productivity.

      I'm assuming that you have a normal job; apologies if you are, in fact, a professional Quake player. You may be surprised to know that the touchy-feely gurus of personnel are wrong, and that common sense is right. Recent articles in the Harvard Business Review have shown pretty conclusively, that fear is a better motivator than love, and that forcing employees to toe the line is better than allowing them to slack off. Even so-called "creatives" are employed to create to order; if they want to be creative when the muse strikes them, they ought to give up work and follow their dream. Being nasty to employees is what works. Suits work. I thought geeks were meant to be in favour of "what works"?

    2. Re:Suits are overrated. by FigWig · · Score: 2

      Harvard Business Review have shown pretty conclusively, that fear is a better motivator than love

      And it works great until all your smart employees quit, or rise up against you and crucify you against a cubicle wall.

      Discipline and a clear delimitation of duties are vital, but the respect and well being of employees cannot be abandoned in the quest for the bottom line, or else all gains will be very short term.

      As far as the fashion issue goes, I can only sneer at my fellow employees who wear unwashed T-shirts that they got for free with their dirty jeans and sandals. It's ok to dress decently and have taste.

      --
      Scuttlemonkey is a troll
  73. Making money by rogue999 · · Score: 1

    Having all these wonderful suggestions to deal with the problem at hand it is the next step that may be more important. My dad always says: one good lawyer is worth a whole bucketful of warm-fuzzies. Regardless of the decision get one of those hungry young suckers that will take a little stock for a fee to engineer the best way to do what ever is decided.

  74. Not a moral imperitive... by Frymaster · · Score: 2
    I think the biggest crippling blow to the open source movement is that it's often peddaled as a moral imperitive. It's the "Right Thing To Do" and those who question it do so with trepidation and caveats. Here's the bottom line: OSS is not an ethical concept, it's a development/business model. This model has two main advantages:

    1. The Million Eyes. If you compile it they will come. If you open source it they will come... and fix it. At least that's the plan. Naturally "sexy" products get more attention in this model.
    2. PR. Ugly, but true, a big chunk of OSS's benefits come from the PR boost it gives. Sure the stock-frenzy has calmed down a lot in the last while, but investors and customers still think that those of us in the open source camp know something they don't. Gosh, they say, they're giving their stuff away as a business model... they obviously know something we don't... buy their stock/product.

    If you need a dose of 1 or 2, open source is for you. If not, open source is still an option as long as it doesn't put you out of business (or if you were never in business in the first place).

    So, let's look at both: Number one (million eyes) can be an advantage. If your clients are 5-9s systems (I hear they exist, but working in a system rated as "an 8, a 5 and two 9s" I have a hard time imagining it) a million eyes may be regarded as a bonus. However, if your software is highly priced (as 5-9 stuff tends to be) you may be shooting yourself in the foot. Keep in mind, however, people will pay for the package to appease their boss. Witness my network. We run 250 Mac clients off several Solaris boxen. We use ethershare (about $12k). Netatalk is free. Fortunately for Helios (makers of ethershare) our uberboss would have an aneurism if he thought our workflow was entrusted to "something we downloaded off the net". It's not even a support issue... 80% of support is available in German only. Zum tuffel! ich ein komputererror! The question is: do the number of customers who will pay for peer-reviewed software outweight those who will download it for free. Get out the ouija board.

    Does OSS PR matter? The question here is, do you believe that putting the GPL stamp of approval on your company brochure will move it closer to the top of tbe in box on the customer's desk. The PR game is tricky because you have to account for positive and negative publicity. You can have a great product, but if it's not open then all certain reviewers will discuss is your license.... not your software. Open sourcing avoids this bad PR. The good PR is trickier. For some customers it has a strong positive effect. For others, none at all... and for some it's a Bad Thing. If my Dad was shopping for serious corporate software (and god forbid he may one day...) he would definitely be adversely effected by open source. Sure he knows almost nothing about computers, but the vast majority of corporate budget-holders don't either. FUD is reality.

    The bottom line IM(sometimes)HO is that you need to poll your customer base. The question is not "do you want open source" but do your customers want open source?

  75. embedded system royalties, other.... by coyote-san · · Score: 2

    Compiler output is not a derivative work of the compiler....

    Then why do many embedded system compilers charge per-customer royalties? Why did (does?) Microsoft include restrictions on the use of its compiler, e.g., you couldn't use MS C to develop a competing operating system or compiler?

    This is one of those questions that can only be definitively answered by case law, but as I understand copyright law there is absolutely no doubt that the output of a <b>compiler</b> (but not assembler) is copyrighted. That's because compilers involve a significant amount of creative expression - do you unroll or optimize code, color registers, eliminate dead code, perform keyhole optimization, etc.?

    A standard analogy is that assemblers are akin to transliteration of text, while compilers are akin to translation of text. Unless your lawyers are incompetent, they'll assure you that translators *always* have a copyright on the translated text.

    (Historical sidenote: sometimes the translator's rights can exceed the original authors! In the 30's someone published an honest translation of _Mein Kampf_ and Hitler sued to cease publication. For some odd reason he wanted English speakers to see only a gutted version of his ravings. :-) The unofficial translator won. It's been a while since I read about this case so I can't recall the details, but the translator was someone easily recognized today. Perhaps William F. Buckeley...)

    Even if we posit that all of this work is unworthy of protection, there's the pesky fact that compilers rarely stand alone. Even if *your* code is unencumbered, you're gonna link it to startup code, standard libraries, etc.

    Finally, your argument seems to come down to the compiler company's lawyers writing licenses that benefit the consumer. This is an... interesting idea. In the real world I doubt any of these lawyers would lose sleep over the fact that, *oops*, they forgot to include that clause and the customer needs to send in a check to get a license to distribute their own product. The major customers will always negotiate their own license terms (instead of being forced to accept the offered one or get lost) and I'm sure *those* licenses included the right to redistributed derived work.

    (P.S., any usable text editor or word processor should give you back exactly what you put into it, so copyright law is not an issue. However, if you print to a file look at it carefully - you'll probably find a copyright notice in generated PS, PDF, or any other format that allows comments.)

    --
    For every complex problem there is an answer that is clear, simple, and wrong. -- H L Mencken
  76. endless loop & timeline sine wave - is it AC? by 3seas · · Score: 1

    Considering the mix of open and closed source direction of Amiga Corps....

    On 03-Jul-00 08:18:14 Pyloo wrote:
    > Timothy Rue wrote:
    >>
    >> On 01-Jul-00 16:05:45 Steve Duff
    >> wrote:
    >> SD> Jason Compton wrote in message
    >> SD> news:8jl1ja$1km$4@flood.xnet.com...
    >> >> Steve Duff wrote:
    >> >> : Oh, Bill made a bit of a slip when he bragged about the
    >> >> : 'installed base of 7 million' Amigas.
    >> >>
    >> >> An ORDER OF MAGNITUDE isn't a slip, that's a bald-faced lie.
    >>
    >> SD> Well, I was putting a positive spin on it ...
    >>
    >> SD> Then again, lies are like oxygen in the computer world --
    >> SD> companies seem to need them to live. Like Apple and its
    >> SD> 'installed base of 25 million' Macs. Or like Bill Gates saying
    >> SD> that Microsoft 'innovates' and makes 'great software.' One
    >> SD> could quibble about which of these lies is closer to the
    >> SD> truth, but they all stretch the long arm of credibility right
    >> out of its socket.
    >>
    >> SD> It would be nice if the Amiga world could set a better
    >> SD> example, but I understand Bill's desire not to seem like such
    >> SD> a small-fry.
    >>
    >> SD> --
    >>
    >> SD> Best;
    >> SD> Steve Duff Team *AMIGA*
    >>
    >> SD> A3000T, A4000T -- very nicely equipped
    >>
    >> I thought your post was worth repeating!
    >>
    >> Cept one small things or two. Something about tired legacy and
    >> *not* being a small-fry only by getting on the band wagon everyone
    >> else is on, called dishonesty. The term oxymoron comes to mind.
    >>
    >> Desert of the Real, is because of why?

    > It is said that it is the ability to lie which allowed us evolve
    > beyond our cousins, the apes...

    > What do you expect from the human species, this being the case?

    > Pyloo.

    It was also said and published that traveling faster than 35 miles per
    hour you would sufficate.

    and I believe someone even published something with loads of errors in
    what people said.

    I recall something about computers being said by one well known in the
    computer industry.... Something that in hindsight is obviously in great
    error....now if I can only remember what it was...

    Perhaps you or somone else here can help? Do you know of anything such as
    this?

    Hmmm, then there was someone at the patent office who said everything that
    can be invented has already been invented. I believe their position was
    that of director of the Patent office. This was before the advent of the
    computer I believe.

    Hmmmm, and about the missing link between ape and man..... Do you know
    what this is?

    Perhaps the ability to lie and chosing to is only a symptom of not
    advancing enough.

    Thomas Edison (General Electric) said AC power would kill. So the
    governing system wanted to execute a prisoner and tried to with AC power.

    The reason Thomas Edison said this is because He believed DC power was
    better but that Westinghouse was competing with his more limited DC power
    plants, by using AC power plants that could be wired for much further
    distance.

    It's true that AC power can be more dangerious than DC but the execution
    attempt backfired on Thomas Edison intent to show AC was deadly and to
    risky for public use.

    They had to electrocute (AC) the guy twice.

    Most remember Thomas Edison for the light Bulb, not the phonograph or
    motion picture. And even fewer know about this execution history.

    But as DC is oneway current, much like the oneway feeding of the computer
    industry. AC is beginning to challenge it enough that DC has become
    defensive and even attempts to make illegal the AC of open source and free
    software.

    Some are even trying to mix the DC with AC......using diodes to block what
    they don't like while accepting what they can take for free themselves.


    3 S.E.A.S - Virtual Interaction Configuration (VIC) - VISION OF VISIONS!

  77. err... Apache, SendMail, by EdlinUser · · Score: 1

    Not the original developers? Yeah, I'm gonna trust my 5 nines environment to someone who says they can do the support a little cheaper?

    1. Re:err... Apache, SendMail, by Zagadka · · Score: 1

      Not the original developers? Yeah, I'm gonna trust my 5 nines environment to someone who says they can do the support a little cheaper?

      Think of Red Hat/Cygnus or Linuxcare. They can provide support for pretty well any open source software that runs on Linux. You've probably heard of them, but you've probably never heard of Joe Developer. Think about it, both of these companies base their entire businesses on providing support for software that other people wrote.

      They can do this for numerous reasons. They're reasonably well known and well established than the typical open source development team. They've also got a lot more resources at theire disposal. To top it off, they can either charge less, or throw in support for additional software (like Linux, the database you're using, whatever) "for free", because they don't have the overhead of doing the original development.

    2. Re:err... Apache, SendMail, by Anonymous Coward · · Score: 1
      Redhat actually does do a lot of development. Also, they provide support to a certain level, but they can't answer really difficult technical questions about the non-Linux open source software they support, nor AFAIK do they pretend to be able to do so.

      So I think the original poster's point on this thread is valid: if you are selling into a 99.999% environment, you shouldn't have trouble getting people to buy support contracts from you, and if you do, it may be that you need to look at your support infrastructure and your sales force to see where the problem is.

    3. Re:err... Apache, SendMail, by Zagadka · · Score: 1

      Redhat actually does do a lot of development.

      The amount of development they do is fairly insignificant when compared to the amount of development effort required to produce all of the software on the CDs they sell.

      So I think the original poster's point on this thread is valid: if you are selling into a 99.999% environment, you shouldn't have trouble getting people to buy support contracts from you, and if you do, it may be that you need to look at your support infrastructure and your sales force to see where the problem is.

      My point is, having the development staff work for your company isn't much of an asset, except perhaps from a PR standpoint. A company that's totally dedicated to providing support can do so better than a company that is paying for developers who give their work to the competition.

  78. Let them download it free, but charge for CDs.. by krogoth · · Score: 1

    Let anyone download the program & source for free, but if they want a CD or printed manual, they buy it from you.

    --

    They that quote Benjamin Franklin on liberty and safety deserve neither.
  79. Not all companies like Open Source Software by Anonymous Coward · · Score: 1

    I know many companies that will not allow open source softwares to be installed on machines. I work at one of them. Their reason for not allowing open source softwares like ssh, apache, linux, etc... is they can't trust to have the source code for their softwares in the hands of their enemys. (ie. hackers) I agree that open source software has MANY eyes looking at it and making it more secure than many many close source software, but I can see also that having the source code of a machine you are trying to hack could help VERY much! Not to 'bag' on open source, but even though MANY eyes look at open source softwares, there are still holes found every day not because of someone looking at it and found it, but because a box got hacked from an exploit or whatever. So it's a tough decision to make. Many big companies that deal with Government projects, credit card companies, etc.. they probably would rather have it close sourced .....

  80. Very interesting page on the opensource.org site by Pierre+Phaneuf · · Score: 1

    Check this out:

    http://www.opensource.org/secrets.html

    --
    Pierre Phaneuf
  81. Open source doesn't have to mean widely published by raindog2 · · Score: 1

    There always seems to be the assumption that if you make something free-software or open-source, you're required to throw it on your web site, announce it on freshmeat, and whatever else. There seems to be a suggestion that if anyone comes knocking at your door asking for your software, you've got to hand it out to them.

    I've looked at the GPL in particular, and I don't think this is the case. It seems to me that the GPL prevents you from restricting *further* distribution of your code, once you actually distribute it. Meaning you have to give the source code to your clients and they, at their option, may distribute it further without paying you as long as they respect the same restrictions.

    But so what? If you're selling something into an obviously vertical market, who says you can't charge $2,000 or $10,000 or $500,000 for the GPL'ed code? Do you really think Client A is going to turn around and give what they paid for to Potential Client B, who happens to also be Client A's competition? Do you think they're going to put it up on their website with a big notice saying "Here's what we blew our IT budget on this year, knock yourselves out?"

    It seems like the GPL is better suited to this sort of thing than other licenses because it prevents your clients from turning the product into a proprietary package which it then uses to compete against you. You could write a non-compete clause into the support contract easily enough, though, which would probably be a good idea even if you do GPL the code.

    There are the other XPL's too (Netscape et al), which seem to provide some of the benefits of open source to the squeamish, and you could always roll your own since everyone else seems to anyway.

  82. Is there any demand for your software? by Ars-Fartsica · · Score: 1

    Frankly, if your product isn't selling, its unlikely that changing some aspect of its licensing is going to make much of a difference. Perhaps if you told us more about the product, you would get some more useful advice. Open sourcing will not fix a unwanted or poorly marketed product.

  83. Mass-market busking is the answer. by TheDullBlade · · Score: 2

    The basic idea of mass-market busking is that you give stuff away and just ask for donations (and make it convenient for people to do so).

    The theory behind it is that groups which pay more will have more buskers trying to please them and get their money, so there is a direct benefit for paying.

    It makes the whole process open and honest. You can tell people "I want your money" because the only way you're going to get it is by making something they like well enough to pay for after having tried it. "I want your money" becomes equivalent to "I want to do something which benefits you", because you can't get their money by tricking them into paying for a bad product sight-unseen or slipping in bugs and making them pay for the fixes later.

    Paying is effectively saying "I appreciate your work, and I want you to continue with it, but I'm also willing to make similar payments to others who do useful work for me". Instead of hearing about a great company going out of business and thinking "too bad, I wish they could have found some way to force us to pay them the money they needed, I guess they just had a bad revenue model" you can think "hmm, I value their services, how much am I willing to spend to keep them going?".

    I think a lot more people will pay if it's okay for them to pay $20 or $5 or $0.50, instead of paying $50 or nothing. I think this article from the mushroom makes my point fairly well. And, of course, it makes sense to pay more than once, depending on how long you use the product.

    It is efficient, because there are no middle-men involved. Product goes directly to customers, payment goes directly to producers. Forget advertising costs, the customers seek out worthwhile free stuff and tell their friends about it. No distributors, no salesmen, just programmers, artists, writers, and other creative people. It will probably only cost about a third, and in many cases less, to make and release products of the same quality.

    And, of course, it allows you to open-source your product. The users will make it their business to pay only those people who are really responsible for the development, so anyone who puts a stupid little wrapper around your product might get a small amount of payment appropriate to his own effort, but generally won't manage to usurp the rewards for the bulk of the work.

    Right now, there are two good services for buskware payments: e-gold and paypal. Paypal is extremely easy to use but only available to Americans; e-gold is less efficient, but internationally available (and, being a gold exchange rather than a dollar exchange, is more suitable for international trade). Both allow all accounts to both give and receive. They are compatible, because you can buy e-gold with paypal, and then send it out of the country, very simply.

    Yes, it will probably take some time for everyone to come around, and get used to paying for some future benefit, rather than to access things they would otherwise be cut off from, but somebody's got to start it.

    --
    /.
    1. Re:Mass-market busking is the answer. by axlrosen · · Score: 1
      (FYI for those in the States - a "busker" is a street performer.)

      What you're talking about is shareware. Of course, you've overlooked the big problem with this model - there's little penalty to take without paying. I get the benefit of watching the street performer, whether I pay or not. In the real world, actual busking works because for many people, the guilt of not paying outweighs the loss of a small amount of money. For some software projects this works, but for most it doesn't. Only the projects with the broadest appeal can survive this way, because only a small percentage of people who use them will pay.

      This is the same reason that even most libertarians agree that we need to have some taxes. There are certain services (e.g. police, fire department, national defense) that we all agree are necessary, and they must be paid for somehow. If it was left to a voluntary donation, then there's no incentive for any one person to donate. If *I* don't give money to the fire department, that won't cause them to "go out of business", but of course if *nobody* gives money, they won't exist.

  84. support! by austad · · Score: 1

    Give it away for free and charge for support. Sell support contracts, charge a set amount for an "incident", just charge for support of any kind. Decent documentation for it should still be available for free though, or no one will use it.

    70% of Oracle's profits come from support contracts.

    --
    Need Free Juniper/NetScreen Support? JuniperForum
  85. I've given it lots of thought over the years. by Palisade · · Score: 1

    There are many ways to make money off of something that you make available as free software. Few of them are very profitable, and usually when they are profitable they involve proprietizing some or all of the source.

    It all really depends on who your target market is.

    id Software released Quake 1 under the GPL and will license it proprietary to companies who want to make games with it since these companies do not want people to be able to freely redistribute their games.

    Namesys released ReiserFS under the GPL and requires sponsership from companies to continue development.

    Helixcode requires that anyone contributing code to their project release under the GPL and hand any copyright over to Helixcode so Helixcode has rights to the entire work. This means that Helixcode can license the code as they wish to anyone they wish. Eazel is working with Helixcode so I am assuming that their joint relationship is based on this.

    Sun Microsystems is releasing Solaris 8 under a non-redistributable "open source" license.

    The fact is that there are always going to be trade secrets, something you don't want your competitor to get the upper hand on you with. If your need to release the source is a stronger edge for you than your need for trade secrets, then this is what you should do.

    But, I think there are two sides to this coin.

    1) Releasing source code.

    and

    2) Freely redistributable.

    If you release source, and disallow free redistribution then the source really is little use to anyone. At the least it is an educational resource for programmers.

    If you release the source, and require that any modifications not be redistributed but may be given back to the original author/company then this may prove useful to you.

    However, it will not prove useful to hackers, since they are not receiving anything in return. Free software works so well because these hackers can get free software and then feel obligated to help free software in return. This causes a massive build up of reward for free software developers. It is essentially exponential.

    If you release your work as freely redistributable but not as free source then you aren't helping software developers.

    If you release your work as both freely redistributable and free source then hackers love you and end users "pirate" more than usual.

    But, as we have seen with software distributions, this is still profitable. But then, they are providing an ongoing service. So it really depends on what line of business you're running and what your product is.

    I don't know what the right solution is for you. But, good luck.

    Happy fourth of July everyone. ;-)

    Sincerely,
    Nelson Rush

    --
    "God prevent we should ever be twenty years without a revolution." -- Thomas Jefferson
  86. Nonsense. Selling copies is perfectly valid. by TheDullBlade · · Score: 3

    Now this is important, so I'm gonna repeat it twice with increasing emphasis:

    You don't need to license software you sell.

    You don't need to license software you sell.

    You don't need to license software you sell.

    If you own the copyright, and don't give out any licenses, only you can make copies. Copyright law allows certain uses by anyone who buys a copy of software: installing it, running it, and making a backup. Very simple. No need to involve vicious packs of lawyers who piss off your customers and chew your profit margin to bits.

    The standard practice of shrink-wrap licences is both unnecessary and legally questionable. Go ask a lawyer and he'll tell you that you should pay him more, every time, as long as he thinks you can make the payments (here's a hint: they ain't in it for the satisfaction of helping their fellow man). That's why everyone ends up with license who asks a lawyer, not because it's in their interest to have one, but because it's in the lawyer's interest to tell you to pay him for one.

    Study the damned law yourself! Trust lawyers to tell you how much you should spend on lawyers, and you'll end up watching them suck you dry. (definitely don't trust me to tell you what to do. go check it out yourself. I could be lying, but I'm only telling you things you can easily check yourself)

    --
    /.
  87. The missing link (open source paradox fades away) by Shane · · Score: 1
    I believe the ideal solution to this perceived 'paradox' in which open source programmers are not rewarded for their 'services', is for the open source community (both individual's and businesses alike) is to pay OSS programmers of thier own free will.

    In this system those who use open source software would freely (if they choose to) donate money to those OSS software projects which they wanted to contribute too.

    The problem is not that there is a fundmental problem, but rather that the community at large fails to understand their role in the community. Educating the community on their role is therefore of exteam importance.

    No one should be forced to donate to open source projects. It should be an act of free will (just like its an act of free will to release open source code). Rather it should be an exchange, of life energy. The user gives a programmer (or a group of programmers) money not because the programmers are 'owed' money, but because it's in the users own self interest to do so.

    Imagine a community where programmers worked on what they wanted and then gave it away for free. Users who found value in that 'gift' would choose/or not to donate funds to that software project.

    I believe this would have a number of benefits.

    a) The programmer(s) would have an added modivation to write software that fits the users needs.

    b) Useful/Popular projects would be well funded while unpopular projects would not be.(modivating people to work on what was useful).

    c) Projects that are well funded would have a greater supply of programming talent, as there would be increased resources to distribute.

    d) New projects would be inspired as people with new ideas would be able to start a project with the knowelge that if it is useful they will be rewarded.

    d)The process would be self increasing. As a project became more popular, it would get more funding, and thus more programmers, and thus have more features, resulting in it becoming more popular, resulting in more funding ect.. ect..

    I think our community is ready for such a shift as what I have suggested. I think the ideal situation for this would for a company like VA Linux to build a Donations section into their sourceforge site allowing users to distrubute funds to the projects they wish to help fund. For example John Doe, decides to donate $20 a month to opensource as a whole. (most people spend alot more on commerical software every month).

    John sets up a donation profile which allocates $5 to the Linux Kernel team, $5 to KDE and $5 to GLIBC and $5 to be distributed amoung 'base' os compoents like gcc, binutils ect..

    He could of course modify his profile at any time. It would be up to the copyright holders of the OS project to determine how to distribute the funds. Most likely they would create a non profit organization to handle fund distribution.

    If there are 20,000,000 open source users in the world, and the average donation per month was $10.

    That would come to: $200,000,000 per month in development funding. Not including any donations being made by Busineses that are users of open source software (like IBM?).

    And of course, as our community grew.. our development fund would increase and thus attract more users :).

    Just my 2 cents.

    --
    -- You can be a geeklord too :)
  88. Re:Obviously you are not a GPL expert by pe1rxq · · Score: 1
    Damn giving up already, I began to like this thread :)

    Jeroen

    --
    Secure messaging: http://quickmsg.vreeken.net/
  89. From each according to his abilities... by david_goldstein · · Score: 1

    ...to each according to his needs. I believe Karl Marx sumemd it up best. If people need your software, and you have the ability to provide, just do it. Things will balance out in the end. If you insist on playing in the Capatalist scheme of things, then you can make money off of support consulting services (as in the redhat model) or by selling hardware. If you sell hardware, of course your best bet is to make your free software use lots of CPU cycles so that you can sell more hardware. If you make money from support services, you will need to become clever at making your free software difficult to use. That way they will have to keep coming back to you for services. -David

  90. Apache is a bad example by david_goldstein · · Score: 1

    Sorry to take issue, but this mythology that Apache as it is today was somehow a community free source victory is silly. IBM and Sun get 99% of their revenue from hardware and services. Almost none of it comes from software. Both have donated code to Apache to prop up its viability. Apache most certainly would not be a viable tool without the assistance of paid programmers from Sun or IBM. It is also common knowledge that the interest hardware vendors have put into propping up free software is simply a strategic move to bleed Microsoft's revenues.

    1. Re:Apache is a bad example by slim · · Score: 2



      Sorry, I don't buy that. Apache was a great free software success before Sun and IBM leapt aboard -- indeed, it was Apache's ubiquity that led IBM to go with Apache rather than continue developing their own proprietary http server.

      Yes, Apache would lack some key functionality without IBM/Sun's input, but without them, someone else would have done it.
      --

  91. No one has mentioned releasing "source-availible" by loren · · Score: 1

    No one has seemed to mention releasing this as a "source-availible" product. Especially in a 5-9s environment I would expect consumers to demand source-code so that they can verify what they're getting, but that doesn't mean that you need to give them the right to freely redistribute it if your livelyhood is on the line. There is no reason a traditional copyright can't cover source-code. You can even adopt a licence or policy that encorages people to submit patches to you, and maybe even defaults to GPL after a particular version of the product hits a certain age. I think this would provide a happy medium between people who want source-code, and your desires to make your product profitable.

    --

    Loren Osborn

    Software isn't software without source code. -- NASA
  92. The missing link (opensource Thparadox fades away) by Shane · · Score: 1
    I believe the ideal solution to this perceived 'paradox' in which free software programmers are not rewarded for their 'services', is for the community (both individual's and businesses alike) is to pay Free Software programmers of thier own accord.

    In this system those who use Free Software would freely (if they choose to) donate money to the Free Software projects which they used.

    The problem is not that there is a fundmental problem, but rather that the community at large fails to understand their role in that community. Educating the community in what they receive by giving freely back to the community is then of great importance.

    No one would be forced to donate to Free Software. It would be an act of free will (just like its an act of free will to release free software). Instead it would be an exchange, of life energy (money exchanged for the programmers time). The user gives the programmer (or a group of programmers) money not because the programmers are 'owed' money, rather it's in the users own self interest to do so.

    I believe this model would have a number of immediate benefits:

    a) The programmer(s) would have an added modivation to write software that fits the users needs.

    b) Useful/Popular projects would be well funded while unpopular projects would not be.(modivating people to work on what was useful).

    c) Projects that are well funded would have a greater supply of programming talent, as there would be increased resources to distribute.

    d) New projects would be inspired as people with new ideas would be able to start a project with the knowelge that if it is useful they will be rewarded.

    d)The process would be self increasing. As a project became more popular, it would receive more funding, and thus more programmers, and thus have more features, resulting in it increasing in popularity, resulting in more funding ect..

    I think our community is ready for such a shift as what I have suggested. I think the ideal situation for this would for a orginization like VA Linux (or even the FSF) to build a donations section into sourceforge site allowing users to distrubute funds to the projects they wish to help fund. For example John Doe, decides to donate $20 a month to opensource as a whole. (most people spend alot more on commerical software every month).

    John sets up a donation profile which allocates $5 to the Linux Kernel team, $5 to GNOME and $5 to GLIBC and $5 to be distributed amoung 'base' os compoents like gcc, binutils ect..

    He could of course modify his profile at any time. It would be up to the copyright holders of the OS project to determine how to distribute the funds. Most likely they would create a non profit organization to handle fund distribution.

    If there are 20,000,000 open source users in the world, and the average donation per month was $10.

    That would come to: $200,000,000 per month in development funding. Not including any donations being made by Busineses that are users of open source software (like IBM?).

    And of course, as our community grew, our development fund would increase and thus our user base would grow even more.

    Just my two cents.

    --
    -- You can be a geeklord too :)
  93. Re:The missing link (open source paradox fades awa by Neo(Utopian) · · Score: 1

    I love this idea. Imagine it as the base of economics in years to come.

    If a Gift economy existed there would be no big companies like microsoft(example - could of used IBM) because all companies would be owned by the labour that works there.
    We gift our labour becuase it is advantageous to us to produce for our consumption.

    All essentials could be provided to people. Already there is no reason for people starving etc EXCEPT GREED

    Poor people could donate less, gift less. But often their less in comparision to what they have is more that what non poor people would give.


    I believe an economy like this could work.
    It just doesn't because there are a few powerful people who are too fscking greedy.

    I know this is off topic, but before moderating it so THINK it may be offtopic but how important is it?

  94. Open Source Models by jeffry_smith · · Score: 1

    First, check Eric Raymond's the Magic Cauldron, pointers given by others.

    Second, you state:

    We're also doing development in a CMM-3+ environment, so there is no need for someone to buy support unless we purposely start adding "features" (i.e. bugs) or make it so complex no one can use it without calling us on the phone. That's just not an acceptable option since our product needs to operate in a five-9's environment, where if it doesn't work right it's never even allowed in the building.

    Having worked in these environments, they want a support contract. I don't care what CMM level you work at, if something goes wrong, they want to call someone, NOW (especially if you literally mean 99.999% uptime, which is 5 minutes of downtime a year). More importantly, they want the assurance that they CAN call someone NOW.

    Also, how much customizing is needed to get your product working in an environment? Unless it is a drop-in widget, they're going to want your expertise in configuring it to work in their environment.

    Sure, they could do it themselves, but why pay their employees to learn the system, when they can hire your expertise whe needed?

    You also state:

    We realize that if we do keep the source closed, but open the API or docs, someone will clone it because they don't want to pay for our work. Even with the typical no-quality clone, this makes the product life too short and the market too small to justify the large development costs.

    So, you will be facing open source at some point - better start now thinking about how you will make money when this does happen - it's not an if, it's a when. If you can make money then, why not now?

    BTW: for a look at a company that has open-sourced a HA solution, visit Mission Critical Linux who are giving away (GPL) their Kimberlite clustering solution, but also selling services and support around high-availability linux environments (as well as other mission-crtical linux environments).

  95. Only works for libraries by Micah · · Score: 2

    I believe that's only a valid model if the product is a library. Qt does fit the open source definition and can therefore be used for just about anything. But it can't be used for commercial software because its license prevents linking to it (which is NOT prohibited in the OSD).

    If your product is a program and is open source, then you cannot prevent its free use in for profit applications.

  96. I don't rule with fear. by Phaser777 · · Score: 1

    I only wish I was a professional Quake player. ;) I'm actually just a high school student, so I'm not the most qualified person to comment on this issue. But I do think I have a few valid points to raise.

    You seem to think I'm advocating letting employees slack off and do whatever they want. I'm not. Let them find out what works for them, not what you say works for them. Geeks are in favor of what works. They also acknowledge (correct spelling?) that the same thing may not work for everyone (if you can find a Harvard Business Review article saying all people are exactly the same, that geeks are the same as average people, go ahead and prove me wrong). Geeks are also in favor of freedom. If they find a job where they don't work in fear, they'll probably go there (unless they're paid tons or have a job that really interests them). I'd think it would be better to keep employees, but I may be wrong.

    BTW, what common sense are you referring to? I didn't know common sense meant to make everyone fear you. But, my idea of common sense is probably different than yours.

  97. Re:Obviously you are not a GPL expert by Billy+Donahue · · Score: 1

    > > Yes, MAC address, ttl, etc.
    >Yes, but that is not my data.

    Ahh. Now we're getting somewhere..
    The optimizations and other _transparent_
    processes that gcc performs on your source
    do not modify your data. The output is a direct
    consequence of exactly what you put into the
    compiler... If you put it into another
    compiler, you'll get the same application.
    This is ridiculous.. Your lawyers suck.

    --
    -- The Funk, The Whole Funk, And Nothing But The Funk
  98. Re:Obviously you are not a GPL expert by aeaeae42 · · Score: 1

    In the words of my old IP law lecturer: "your lawyers are stupids!"

    Output of a compiler is not a derivative work of that compiler. Not not not. You must understand how that word is used within the context of the Copyright Act. But first, some definitions...

    Copyright is a bundle of rights. The right to reproduce (copy). The right to translate. The right to hire. The right to produce a derivative work. Remember that copyright for literary works was intended to cover literature -- not source code. Coverage for computer code as literary works is legal hacking of the copyright act.

    An example of a derivative work is a screenplay derived from a novel. Or a second edition derived from a first. You must start with the original work and derive from there. Note that compiler output does not fit this model at all. The lawyers who said otherwise were either poorly informed about the law, compilers, or both.

    It's also important to remember that the Borland licence agreement was drafted at a time when some of these issues were being seriously debated. For some there is still uncertainty and, in any event, you can often over-ride provisions of an act with contract terms (unless that legislation explicity prevents this). So, as awlays, RTFL (read the friendly licence).

    "So I think you will find that I have a bit more knowledge in this area"

    But your knowledge is based on error!

  99. It's hard for competitors to steal your work... by bastia · · Score: 1
    [Open Source] enables anyone to take a piece of work, and improve on it. However, this very fact makes it impractical for a business.

    While I agree that the goal of Free Software and much Open Source software is the common good of the users, I disagree that this one aspect makes all Open Source compliant licenses impractical for business. In fact, the GPL defends the original producer quite well in this case. If a competitor steals my GPL'd product, adds a few features to it, and tries to resell it as an improved version, the GPL forces him to distribute his changes under the GPL too. Thus, if his additions really make a better product, I can easily incorporate them into my product, too. If I used the BSD license, for example, then my competitor could distribute modified binaries without source, and I'd be dead.

    The fact that he can start with a large code base does reduce his barrier to entry, but unless his changes diverge from the direction I'm taking my GPL'd product or include other changes that I'm not willing to incorporate because of my target market, then I can just incorporate his work into my product. If so, then perhaps he's chasing a different market segment, which won't hurt my sales unless I'm completely wrong about who buys my product. In any case, I'm always free to grab his changes and put them in my product later. Finally, I can claim superior knowledge and understanding of the product since my company wrote it.

    A good example of changes that were not merged and premitted a competing product would be the Mandrake Linux distro, which was originally Red Hat + KDE, recompiled from source with Pentium optimization. Red Hat was originally unwilling to incorporate KDE into its distro because of the Qt license. It also didn't compile with Pentium optimization, presumably to reach a broader audience. Thus, Mandrake could more easily create a distribution, and Red Hat did not incorporate Mandrake's improvements because Red Hat didn't need/want to make those changes in its distribution.

    There is some fear that a competitor would resell your product for half the price since it doesn't have to pay the developers. (For example, cheapbytes.com) Of course, you have to educate your resellers and other users that putting you out of business this way will leave them with a dead product line. A former co-worker paid for his Qt license as soon as we determined that we were going to use it for a product. We could have continued to use the free versions during development, but his words at the time were something like, "It wouldn't help us if Troll Tech went out of business."

  100. Dumb Solution by UnkyHerb · · Score: 1

    If your product is for businesses, or is very applicable towards them, simply sell support, and use redhat's idea. Do something like make the program open source and API's open source, but sell support. Business support could be like if they can't figure out why it doesn't work, let them call in for help. You could also have support for programmers for help with the API's, and sell a nice manual for the api's. Maybe try having business input, they tell you what's wrong you adapt it in the next version, so the businesses felt like they bout the programmers effort......OR something.?

    --
    Your Momma's so fat she makes emacs look like nano!
  101. Open Source can't FULLY coexist with Capitalism by azteca79 · · Score: 1
    In a society with an economic format like capitalism using Open Source to it's fullest can't be done. Capitalism, by definition, is always looking to gather money, capital, etc. It's not about helping the communuty (like Open Source) but it is about helping ME AND ONLY ME.

    I like the Open Source philosophy because it gives all freedom to all society to use the software so it helps EVERYONE and not ONLY ME.

    Like this paragraph taken from gnu.org:

    Free software is a matter of freedom: people should be free to use software in all the ways that are socially useful. Software differs from material objects--such as chairs, sandwiches, and gasoline--in that it can be copied and changed much more easily. These possibilities make software as useful as it is; we believe software users should be able to make use of them.
    It states socially useful, so until a society uses a communist, democratic system Open Source will only be a hobby practiced by us geeks with another full time job to pay other persons so they amass their fortunes and to amass our fortune, and fighting between ourselves.

    So, answering this question, I recommend you DON'T go with open source now, maybe some day... hopefully one day!

    --

    --
    EHC
  102. Sell Custom by Erik+Hollensbe · · Score: 1

    Well, if you're working in a high end environment, people are going to want modifications. Not everyone in your market is going to either have the manpower or the knowledge to get this done.

    Sell MODS. In all environments that I've worked in or consulted for, people are always wanting 'this little feature' and 'that little extension that the competitor has'. No firm wants to pay for both, especially in a higher end environment where 5 digit (or higher) price tags are found.

    Use your programmers as the moneymakers, not the code that they produce. Nothing requires you to release these changes as well, so a code base that 'does the job', and addons that are customized for various business use would be an ideal solution.

    Alongside this suggestion, would be to take programmers who aren't working on a current project to provide API and development support for the sourced program, at a fee. Obviously, despire the documentation, the programmers are going to be able to provide even better support for their own code that they write.

    I got this idea from a company that sells business software (their software blows, but that's another story). I had to support this, written in COBOL (yech), for a business that used the softare.

    Original price tag for distribution - roughly $7k for it and a 10 user license.

    Technical Support - $4k per year

    Modifications to translate custom price files used by their distributors - $3k

    They handle multiple companies and seem to make a decent living while doing it. The fact that they have the programmers who develop the actual software write the modifications makes it a big plus to hire them to do the work in spite of the fact that hiring a 'y2k is over' out of work COBOL programmer is significantly cheaper.

    -Erik-

  103. Easy enough by cdegroot · · Score: 1

    Build a brand. Give away the source, but sell the binaries for a lot of money by branding them. When you brand the binaries, it means you compiled them (no viruses or trojans), you tested them, and you will support them. Essentially you are asking money for your reputation - as you were the original coders, you are the best experts, thus stand the best chance to build a brand around it.

  104. Use your strong points by Daniel+Vainsencher · · Score: 1

    Your confused - high quality, documentation, small footprint and innovation (you did mention patents, right?) are not shortcomings.

    These sound like good reasons you should conquer your market.

    Depending on the end users and market size, various levels of training will be viable. Other people mentioned other routes to money.

    Just remember that if you're selling support(/training/favorite service here), you will be doing support. The "How do I make money writing code I give away" is not trivially solved this way. Think custom coding and constant improvement.

  105. Why do you need to make money out of it? by Hylander · · Score: 1
    OK, So it sounds like you've finished this particular product - it goes, it's documented.

    So why not go and make money doing something else?

    Open Source it, and go and do something more interesting!

  106. Customers first. by jamused · · Score: 1

    If you've gotten this far in your project without actually figuring out who your customers are, and what they would be willing to pay for, I'd say you're in more trouble than fiddling with the licensing will solve. Maybe it's time for you to actually go out and talk to some potential customers.

  107. Not shareware. by TheDullBlade · · Score: 2

    Shareware sets a price, often a ridiculously high one chosen on the premise that only a tiny percentage of users will pay ($50 for a simple utility with a nice interface is pretty typical; I don't know about you, but I rarely have $50 just kicking around to give away). If people are willing to pay a little, but not that much, you get nothing. If people are willing to pay more, you lose out on the extra they would offer. Also, most shareware in the past (and present) doesn't have a convenient way to pay.

    I suspect that pretty much everyone who uses the software wouldn't care about parting with a quarter or fifty cents, and most would give several dollars for a product they use often. Wealthy individuals or companies would likely be willing to pay a lot to get special attention paid to their bug/wish lists (look, here's a wad of cash, there's more where that came from if you make these changes).

    There's pretty much nothing to make people pay for any software. The risk of being caught and punished is virtually nonexistant. Copying is easy and cheap.

    Those who pay do so because they believe that it would be wrong not to, ultimately because if everybody did it, the products wouldn't exist. I believe that if you give people more freedom and control in this process, they will respond appropriately, and protect their own interests.

    The penalty for not paying (or paying too little) is: being ignored by the mass-market buskers when they choose what to make. Broad appeal isn't always necessary, appeal to a profitable market is.

    Mass-market busking is not appropriate for non-reproducable products and services, for obvious reasons. Things like HTML text, computer programs, and recorded music are special products that have unlimited supply once created. The only influence the user needs is over what is produced, and they could gain this influence by rewarding (with donations) the behavior which benefits them, effectivly training the system to serve them.

    --
    /.
  108. Re:FUUUUUUUUUCK SLASHDOT by Soch · · Score: 1

    HEY! I LIKE AL GORE!

    I'm just kidding. WTF, to hell with him too...

    (please don't mod me down for this - It was just too tempting! I doubt many people will come across the post anyway. Would it help if I said I've recently decided to learn to use linux because I'm just sick and tired of this M$ Windoze BS?!? You know you LOVE Linux users, right? whimper whimper...)

    --
    Everything and everyone is an aspect of Gd. So remember to show proper respect!