Slashdot Mirror
Funding Open Source?
An Open Investment...
Luke asks: "Open Investment is a concept whereby Open Source principles are applied to making money. Open Investment is inspired by recent articles and diary entries, on Advogato, lamenting the lack of funding of strategic projects. Eric S. Raymond's 'Cathedral and the Bazaar' papers describe how Open Source projects get off the ground by starting as a programmer's itch turning into something useful to other people.
What if there are strategically important projects that just take too long to ever get off the ground, such as
an Open Exchange replacement? With the Economist's recent news on how users expect more and more from IT, how is the Open Source community ever going to keep up? Who is going to pay for it?
The principle behind the Open Investment Initiative is to
encourage the Open Source Community to take matters into
their own hands, by getting smarter about money. If that
happens to mean that programmers become part-time wheeler-dealers and happen to _like_ it better than programming, then good for them! Open source developers (or anybody else for that matter) could even band together to form investment syndicates, with the aim of gaining financial independence.
For the most part, the expectation is that several smart people willing to learn about investing, negotiating and making money get together, and succeed where they would be unable or unwilling to do anything on their own.
Who wants to give it a shot?"
...for a Common Situation?
Yaztromo asks: "I'm the project administrator and lead developer for an Open Source project that brings PalmOS handheld synchronization to Java-enabled platforms, called the jSyncManager.
I started the project back in 1997 for personal use (the full history of the project as available here), and in November of 2002 decided to make it Open Source under the GPL (although parts have since had their license changed to the LGPL to make using our API (especially our plugin APIs) easier for all kinds of developers). After about 8 months we're getting pretty close to final releases of the project for public consumption.
So I've been at this for 8 months, with some success, but am getting to the point where two things concern me:
- How do I best market my project?
- How can I raise funds to help continue the project?
How have you raised your Open Source projects public profile (particularly if it isn't something that is of general use), and how have you gone about obtaining funding to help take care of those annoying little costs that creep up along the way?"
I thought it was called OSDN. Or IBM. Or Red Hat, Suse, and Mandrake. Oh, and don't forget Paypal!
What's this Submit thingy do?
some god damn kiddie does the same thing it took you 4 years to do, in two months and gives it aways for free. Nope. Hobbists always win.
My $2.
So people will make investment decisions based on BSD mailing list flames, sourceforge bugs, and slashdot first posts? Yeah, that will be a big hit on Wall Street.
The article's idea of "Open Investment" doesn't seem to be about finding ways to fund open-source projects directly, but rather on educating developers on how to become personally wealthy so that they can donate their time to open-source. Or did I misunderstand it?
Anyway, I think Yaztromo just solved his problem #1 - by getting his question posted on Slashdot, I don't think he'll have any trouble marketing his project now, assuming it's any good. I'm interested in #2 as well, though - raising funds to accelerate development. I'm the lead developer of Audacity, and I've been thinking recently of various ways we might be able to raise money to pay a full-time developer:
1. Lots of small donations, targeted at specific features. Simple to set up, but how likely is it that any one particular feature would get enough funding to really pay for its development?
2. Corporate sponsorship - anyone out there successfully gotten a corporate sponsor for an open-source project before? How did you approach them? How much will they try to control how the money is used?
3. Non-profit grant - we could write a proposal to add a large, significant, but specialized feature, such as making Audacity optimized for blind users, or creating a version for kids, and then find an appropriate charityto fund it.
Anyone had luck with any of these approaches? Other ideas?
Here's another question. Is donating to an open source project tax deductible?
If you have a site with lots of content, say a knowledge base, or multiple language installation guides for your software, or a big forum.. then using Google Adsense might help bring some money into the coffers. I know quite a few people who get four figures a month rolling in.
The benefit of this is it doesn't infringe on any ethical issues.. such as.. this company gave me $1000 and asked for 'X feature' which might harm the program's reputation.. should I add it? should I not?
Some of the open source projects deal directly with hardware. One of the things that we as OSS users can do is to contribute money and/or hardware to the developers, so that they can afford the equipment that they need in order to develop modules.
.11a was the goal, then the a/b chipsets were released. Then the b/g chipsets, and now the a/b/g chipsets. We still don't have an open .11a implementation, not to mention the others. Some of the projects, like the atheros chipset project, aren't terribly far off from .11a, but without more hardware, the variants won't be completed.
An example of this is the various 802.11* projects for different chipsets. Originally
Get together on your mailing lists, and buy the developer some hardware. That way, they have more of what they need to work with in order to make use of their programming skills.
Do not look into laser with remaining eye.
Dang, all these years I thought it was "Have compiler, will sit in basement."
Give them a percentage of the enterprise
Give them whatever support they need to raise money regardless of how stupid or irrelevant you personally think it may be
Don't confuse ownership with control
Focus on being rich, not on being king
"I'd rather be a lightning rod than a seismometer." -Ken Kesey
A lot of things like
- A commercial free based spin off
- form company for services etc, or total solution provider
- consultant
- books
I'm in a open source project, and nearly tried them all. While true that they are possible, they only tend to work for very high profile projects.
Moreover, you'll need several manyears worth of polishing to even qualify.
Several Open Source projects are nicely funded doing the same thing. Take for instance the OSS telephone project Asterisk. The software is made available to enable more people to buy and use a particular telephone line interface card. Other cards are supported in the software, but the sponsoring company's is obviously supported first.
So, one avenue is to partner with a hardware maker, in the case of the PC to PDA sync, partner with an up-and-coming desktop hardware manufacturer, or a similar PDA maker.
"How can I raise funds to help continue the project?"
One word: sponsorships.
No, I'm not talking about T-shirts with your project's name on them... although if you think that will help, go for it. I'm talking about finding companies that will actively sponsor your development.
For instance, my company has been in talks with both the PHP project and the PostgreSQL project about sponsorship. (We haven't officially contacted the Postgres team, but we will for our August advertising budget.) We're happy to sponsor open-source projects for two reasons: one, we use these projects to make money, and two, because people who are interested in a particular project are often looking for a company that offers support for that particular project.
There are lots of open-source projects out there that have referral links or sponsorships from companies that use that project to make money. For us, sponsorship is huge, since we want to become well-known in "niche" markets like PostgreSQL web hosting, as opposed to the generic and overblown "virtual web hosting" category.
So approach companies that make products that depend on your project and ask them to sponsor it. You may find a company that uses your project to make money is more than a little happy to kick back $50/month for a banner ad or text link on your project's website. Don't be afraid to ask!
Simpli - Your source for San Jose dedicated servers and colocation!
I had found this excellent article a few days ago:
0 OPBZCY--
http://linuxtoday.com/infrastructure/200104120062
It is about Open Source Economics, money from open source, and what are some economics-related myths about open source.
Though it is not "exactly" relevant to this topic, it talks about related issues.
I have found a solution to Riemann's Hypothesis, but have run out of spac
If you can offer service contracts on free software, you can really bring in the money. Sure it might not be a lot of money each time, but if you have 50 people, say, who need forum maintenance, and you provide free forum software.. even ten bucks a month from each of them adds up big time, giving you time to get on with more coding.
The real money is in recurring charges, not one offs. So offer consultancy and service contracts. Free software has the allure of being a low up-front cost, and this means you can actually sell them recurring costs which probably would have cost more than then buying decent proprietary software anyway!
Still, it's a good money maker.. just offer support on your systems/code/application.. and cash in on your hard work.
1. Write the code. Demonstrate it to people. Maybe distribute it as free beer software in binary-only form.
2. Offer to sell it for $XXXX to a buyer under any Open Source license they both agree upon.
3. Profit!
(Uh oh, something's wrong, where should the "???" go?)
This is actual big problem in certain area since programming skill is almost everywhere.
However the kiddie cannot go on site to install things, the kiddie cannot offer service contract, the kiddie cannot talk to the user professionally, the kiddie cannot document system properly...
If you show professionalism in your 'free' work you can turn it into money and not worry about the 'kiddies'.
-- Dr. Fu Ling-Yu, Internal Technology Consult; Tongji University, People Republic of China.
The problem with open source is that you can get the code for free. The great thing about open source is you can get the code for free!
Our company looked at developing and releasing open source products based on the "Tall Emu" public licence (for want of a better name).
The concept was basically to sell the product as a non-free solution until such time as milestones were met (revenue, units sold, whatever).
These terms were to be included in the licence.. something along the lines of "This licence will terminate and be replaced by the GPL licence once we have sold xyz units and you can see current sales at www.tallemu.com."
By thinking carefully about the licence, it is possible to "guarantee" that the company wouldn't be able to weasel out of it's obligations to release the source at some point, but also it could make money for a period of time.
The second part of the problem is to figure out a way that people just don't wait until your product becomes open source, so you wear all of the costs and non of the (financial) upside, or even worse, try and find a loophole in your licence.
I guess it also depends on your product. The Exchange Killer (TM) was the product that I wanted to write and use with the licence I describe above.
How have you raised your Open Source projects public profile (particularly if it isn't something that is of general use), and how have you gone about obtaining funding to help take care of those annoying little costs that creep up along the way?
:-)
Okay, I have a tiny open source project that no one's ever heard of, but I've been working on it for a few years and have tried various things.
Two parts to this, I guess. One, starting out, requiring a link back (or just asking for one) ends up with a bunch of sites promoting your work. This can raise the public profile of your project, because all the people who see the link and think the app is cool come running over to your project page. There are other ways to do it, of course. (submit to Slashdot anyone?) There's also Freshmeat and other free software directories to get the word out.
I'm really sad to say that the problem with funding, as I see it, is that a lot of the time, the funding just isn't out there unless you have something big and in wide use, like an O/S, or a popular server (Apache, Sendmail, MySQL), or something that is tending toward apps that would be used in a business environment. Also, a really really useful app where an equivalent doesn't exist has the potential to attract funding as well.
You can solicit donations, but my experience is, most of the people who are going to use the application in a serious commercial environment or to help them make a profit donate zip. People who will be using it for personal use and can't afford to donate often donate a couple of bucks. People who demand free technical support because they don't wanna read the manual RIGHT NOW DAMMIT don't generally donate anything either.
Donations aren't generally a good business model.
(Unless you can get tax exempt status...but I digress.)
Really, it seems that one needs a sales manager or an evangelist -- someone who really enjoys going out and *selling* the project. Not in the sense of "buy this software," but in the sense of, "Hey, Mr. Corporation/Investment entity -- if you invest in this it'll be really cool and people will love you and your stock will go up to the heavens! Yay!"
But most of us just want to sit around and code -- the sales thing just isn't attractive. One option I've explored is finding a salesy kind of person I can trust, and asking them to take on that kind of thing for a split of the "take." That has worked pretty well on a small scale, so I'm pursuing it more. If you're a coder who is also salesy, so are extremely lucky and talented. If not, find a buddy and make them do the evangelization.
In the meantime, get a day job and work on your project in your off hours. That's all the funding I've needed so far.
Errm... http://www.linuxfund.org/.
What about mixed licensing? Main project becomes a commercial project (with expected enhancments, gui, stability) and feeds back into the pool after so long.
Or the club. Mandrake or WineX style. Members get to vote on what features get more focus.
I've been thinking about this more and more from the other side of the coin, as a young OSS user who would like to support developers *and* would like to see more polished projects.
Audacity is a great example of a really cool open source project that could also use a little shine. One way or the other its a terrific project (if you haven't guessed, I'm a user).
Quack, quack.
The FSF groupies keep saying it's free speech not free beer. They keep saying that the GPL doesn't prevent you from selling the software. They keep saying Free Software can be commercial software.
So just sell the software! You'll go broke, but at least you can hang out with the FSF groupies in the unemployment line.
p.s. The FSF itself does NOT say this, only those who think RMS is their savior, but never bothered to read any of his writings.
p.p.s. And of course, if you're the typical slashdot reader, you still won't get it. So let me spell it out: you can't make a living selling Free Software by itself.
A Government Is a Body of People, Usually Notably Ungoverned
I might let my lack of knowledge show through here, but what exactly are these "annoying little costs that creep up along the way?" It seems to me that coding requires 2 things:
(1) Hard Work
(2) Free Time
I have a slight issue with funding Open Source because it's kind of like Why don't I just buy a license instead? How is donating any different?
As for getting your name out there, make sure your product fulfils a needed gap. If it's a "free" alternative to an expensive product, make sure people who need to use the product are aware of it.
But most of all, if your project was originally merely because you need it, don't let it get out of hand in size and scope. Keep that goal in your mind, and remember that that is your purpose.
As an example, I'm working with a group right now that started out fulfiling a needed gap in the education at my college. But now they're trying to move to being a non-profit company, and raising "investment capital." Don't ask about the how some people on the project think those entities can co-exist. The truth is, it's tough for them to. And the project is starting to grow exponentially before it's ready, and the original goal of fulfilling the gap in the education is now second priority to making money.
Just my little experience from the POPFile project.
1. Money
All the money I get from POPFile is through donations made through Amazon.com or PayPal. This brings in enough money to keep me *very* interested in the project, although it does not cover the rent at this point. However as POPFile's user base grew I saw donations grow with I would estimate around 10% of users donating an average of $20.
2. Marketing
I spend no money on marketing, but I am *very* nice to any press that want information on POPFile. They are your friend since they will advertise your product for free if you can get them to write about it. The key to getting them to write about it is to think of the "hook" that they will use. All writers have a "hook" or key idea in the story that they are writing about. If you can relate your product to a hook then you can get them to write about it. In the case of POPFile the hook is spam. Although POPFile is designed for generic email processing it's good at fighting spam too and so I work with writers who deal with the spam problem and they in turn mention POPFile.
On a related note I'd say that the free (as in beer) nature of free (as in speech) software is also a big plus for journalists. There's nothing like recommending a product to their readers that is free.
3. Be Nice To People
Word of mouth is very important to any product (commercial or not) and that means answering every single email you get. I read every message in the POPFile forums and answer every email sent directly to me. This is vital because people then realize that the community around POPFile is welcoming and they feel more comfortable using the tool.
John.
I am working on the specification for a suite of programs called "OpenDemocracy" consisten for now of "OpenPolicy" and "OpenVote"...these programs will allow for the distributed discovery of policy and for Internet based voting.
I am certain slashdotters see the future of democracy is the net...and that open source software is the key to increasing the amount and quality of democracy [I posted an article about the first use of Internet voting in an election in North America which will take place in Markham, Ontario - just north of Toronto - in November, in my slashdot blog - the software is from Elections Systems and Software which raises very serious concerns as this is a private, for-profit company and the source code is unavailable for scrutany]].
I am also certain that the high-tech companies who create and maintain the infrastructure that is the Internt would be interested in supporting such an effort. Here's my plan so far [read my blog here to get the latest updates.]
1. A white paper describing OpenDemocracy.
I am working on this now, and I will table it at the next slashdot meetup here in Toronto at the end of this month.
2. Start a sourceforge project.
I will do this after I have gotten initial feedback about the white paper.
3. Start speaking about the project.
I will contact all the high-tech groups here in Toronto [there are more than 30] and ask to speak to them about Internet democracy.
4. Speak to potential sponsors.
I will contact all the high-tech firms with offices in Toronto, and give them the same presentation and ask for money. Money to form a non-profit corporation and to pay a small core of programers to work on the project fulltime.
5. Seek government money.
Same as #4, but government instead of industry.
Also, by the time you have become 'independently wealthy', you will probably be old, decrepit and be only be able to use the money to pay for a better funeral (or leave it to a bunch of spoilt brats who will spend the rest of their lives fighting each other over the inheritance).
Forget about all this crap. Just get on and live the life you want to live *NOW*. If you want to put more time into developing opensource stuff, just get on and do it, even if it means compromising in other, less important, parts of your life (like being enslaved to becoming financially independent). While you figure out all those complicated plans, your body is busy dying.
3.) bandwidth
4.) domain names
5.) server hardware
For some people, $50+ per month can be quite a pinch.
Frequently, the need for money comes when some developer has a financial crunch and is faced with the need to work more paid hours. He can either resign from the project or ask for money.
Another common case is that the user and developer base grows and bottlenecks appear. Examples include mailing list moderation, design lead, and software repository moderation. Sometimes, these bottlenecks require someone to commit a significant chunk of time to the project. When this happens, the developers as a whole fish around for both money and someone gullible enough to drop their real job and work on the project full time.
In the end, its a developer's dream to nurture his project that leads to the desire to let it grow and the consequent need for more funding.
Another way that you can make money off open source is by leveraging the reputation you get from being an open source developer. In my own case I created POPFile an open source email filtering/sorting tool which some people use for spam fighting.
Because the project is open source many people are using it and my knowledge of spam went up, because of that I got invited to the MIT Spam Conference. Because of that I'm now a paid consultant for ActiveState on their Anti-spam Task Force. I never would have been given that job or money if it weren't for the credibility of the open source tool I created.
In fact it's clear that ActiveState *likes* the open source part of the equation because having me there buys them credibility. (No they are not paying me to write this entry).
In addition to ActiveState I got other offers to consult for people on spam and email. This is a good way to make money without affecting the open source project. Nothing in POPFile has even been done for cash.
John.
I guess I will add the to troll and take another karma hit.
The very nature of an investment means that you are buying an asset that has a positive financial return.
A software project magically becomes a good investment when it starts returning money. The idea of asking for investment before you have a financial plan is guaranteed loss. It is no different than asking for alms.
I hate it, but those stupid affiliate web sites that clutter cyberspace have investment value, even though they really don't add much value to the net, while good OSS projects don't have investment value. This happens even despite the fact that the OSS project is adding a great deal of value to the planet.
Unfortunately, the economic thing is too often hidden from the IT staff. Yet, the whole investment thingy has driven software and IT development since its inception. The IT jobs existed because we were all building a capital asset, not because we were making interesting things happen on a screen.
The last tech boom, where people no longer had to show a return on investment messed up our minds, and we have to get the financial end back intact to thrive. That means programs that actually produce financial transactions.
I am a troll because I believe the value of OSS is in its being open, and not in its being free.
I believe with all my heart that software should be creating a capital asset.
When programming, I ask myself both about what I am adding to the technology as well as the financial assets of my employer.
This does not necessarily mean that we need to work for the productization of all computer code, but I really wish the OSS community would spend a little more time thinking about getting cash piped through its pipes.
As such, I found the shareware ideal much more appealing than pure OSS. The shareware concept essentially lets people learn from software, but demands payment when the software is used in a business setting.
I always felt proud when I managed to convince a company to buy a shareware program, because I was contributing to the software economy.
The Oracle approach has been quite successful. Students and schools can get the software for free, but businesses must pay for it.
In some ways, my ideal would be that the code is open for review and tweaking, but there is a license to use the material.
One possible mechanism for funding technology would to include a licensing layer in the technology. Basically each object in a build would record its source. Imagine a database filled with the names of individuals that contributed objects to a code. The company could then pay a license through a mechanism that distributes cash to the object owners.
With such a mechanism, OSS developers would have a cash flow. They would then find that they could invest in more code to increase that cash flow.
It really seems to me that the goal of a community should be the enrichment of the people in the community. It's never bothered me when a company has to pay for a computer license as that money goes into the community.
I have been thinking on this problem quite a bit lately.
.. ad infinitum (until we cannot split anymore [1 penny] or dependencies run out).
Consider the following:
Company XYZ launches an OSDN like websight that maintains a dependency graph of open-source projects (e.g. FOO project depends on code from X,Y,Z and libraries V,W).
The community can vote on and manage those dependencies and their relative importance. Any entry in the project database only lists it's direct dependencies (which themselves may have others). The system will self-organize and may require some interesting checks and balances but could be done.
The system perhaps begins as a donation website to "donate" to projects that you want to support, but could very quickly mobilize marketing to lobby companies that use projects to donate to those projects, etc...
The company running the website takes a commission from every "donation" or payment. We want this. This incents that company to continue and keeps it in business.
The balance after the commission is split 50% / 50% between the project principals and the dependencies. The 50% going to the dependencies is split according to the voted importance of those dependencies on the project. For each dependency, 50% is taken for that project and the other 50% split amongst it's dependencies,
All proceeds that go to project principals are really just numbers in accounts on the website associated with open-source projects, and while eventually it may make sense to do further breakdowns according to project members, in the beginning, the company running the website could just issue a check on a periodic basis to whomever the agreed-upon organization or person is that is associated with that project.
If you allow this model to evolve over time and provide the company running the website with enough financial motivation (e.g. good commissions), it is highly likely that it would become a mobilizing force for raising funds for projects.
But the best part would be that open-source authors could collect royalty checks for many years for their work, much like book-authors do.
This model may not be perfect, but I think with the right company and a willingness to evolve this basic model into something that fits with community needs, it could become a powerful force for rewarding and compensating open-source contributors.
It is your personal duty to fight for what is right on a daily basis. Ignoring injustice is identical to approving
Word of mouth advertising is the only real way for an independent project to get off the ground. If you have a good product, then people will use it. You can add lots of momentum by getting hosted by an organization like Apache or Tigris.org.
What it comes down to is having a stable product with a good user-interface, if applicable, good support, good distribution (not just makefiles, but rpms or installer software), good logging, etc.
The perfect book to describe all of this is Luke Hohmann's latest book Beyond Software Architecture, which I would highly recommend. It goes into great detail to explain how to develop software that people will want to use, open source or not.
Anyway, the quality of the product is first and foremost in open-source because advertising money is just not there. Most IT management are not tech-savvy and pay more attention to colorful ads than what the gurus are saying-- which makes it even harder to get the product used. The products that do get used in businesses are typically only the 'standards' like Apache or Sendmail, which have gained industry-wide acceptance.
Computer science as a scientific discipline hasn't exactly been underfunded or anything. This question is a bit naive in that regard. All this boils down to is private and public funding of basic software research and development. As such the usual sources are government entities and large corporate interests. DARPA anyone? IBM, sun, apple, etc all have financial stakes in "open source". Probably what is needed is a streamlined mechanism for applying and receiving these funds but isn't that what CollabNet(sp?) was supposed to be doing? A recent look at their web site reveals them to be nothing more than shills for offshoring/outsourcing though.......
Hi Everyone:
I'll probably try to get around to replying to many of your posts directly (will, the really useful ones at least :) ), but I wanted to take a moment to thank everyone for their input thus far, and reply to some of the recurring ideas and themes.
The jSyncManager has, in fact, been around for quite a while. I started working on it back in 1997. It eventually became my thesis project. Shortly after graduating from Brock University, I joined up with IBM, working at their Toronto Software Lab.
At this time, the project was closed source (a bit of a mistake on my part). As with many big software firms, I had to sing the restrictive "IBM owns everything you develop" employment contract, which made continued work on the jSyncManager difficult (this was at a time when IBM was still formulating its rules for employees participating in Open Source projects).
As an in-between solution, I entered into an agreement with my local legal department to offer the jSyncManager through IBM in a co-copyrighted manner, where I retained the copyright to everything as it existed prior to joining IBM. Due to some problems IBM had with the name, it was changed to IBM ManplatoSync for Java. My original agreement was that the project was to be released as Open Source under the IBM Public License -- but while I kept working on the project (in my own time mind you, and for no money), the IBM lawyers kept passing the buck, and permission to actually release the project source to the public was never granted.
After leaving IBM early last year, I decided to dig up the pre-IBM source, fix it up somewhat, and make the jSyncManager Open Source myself.
In the time I've been working on the project, we've had several mentions in the press (Chapter 11 of O'Reilly's "Java Cookbook" mentions the jSyncManager in passing, the May 2000 issue of Java Pro reviewed us against Palm's own CDK for Java (very favourably I might add :) ), and we got a mention in "Assistants", an Australian publication for Chartered Accountants), and I've spoke about the jSyncManager at a few conferences (Wrox Wireless 2001 in Amsterdam, WarpStock 2001 in Toronto, and CASCON 2001 (sponsored by IBM and the National Research council of Canada), also in Toronto). Unfortunately, all of these happened before I released the jSyncManager as Open Source. Things since have been pretty dry (even though IMO we have a much better product now!).
So, we're in a good position to attract attention and funding -- we're a mature project that is rock-solid (we do have to work on our initial setup a bit, as getting end-users to grab all of the necessary third-party libraries we rely upon is curruntly an issue, but it's something we'll work on by creating installer versions that include the necessary libraries once we get closer to our next GA release), and has been received favourably in several communities.
(I do want to note that when I wrote up my story submission, I was quite aware of the potential marketing implications of getting such a story on Slashdot, as some readers here have observed. This wasn't really my intention, which is why I'm trying to ask generic questions to see what ideas every has -- I'm hoping other projects can benifit from this discussion as well. Getting our website /.'ed is an unintended side benifit :) ).
Something I've learned in the six years I've been developing the jSyncManager is that while I'm an excellent coder (well, at least I think so ;) ), and a good project administrator, and while I don't mind blowing my own horn somewhat, I know that I am _not_ a sales/m
The only other thing remaining is to find muses for all the developers. That could be a tough one!
--
Luck is just skill you didn't know you had.
The fact that you just can't turn a pretty penny on the production of Free Software, like you can with proprietary software, does not make it an economist's nightmare.
The way some people seem to perceive the threat of Free Software reminds me very much of a passage in Robert Heilbroner's book "The Worldly Philosophers" on Frédéric Bastiat. In Chapter 7, "The Victorian World and the Economic Underworld", Hielbroner reproduces Bastiat's satire of a manufacturers petition to make an ordinance against the unfair competition candle makers face. Not only could Bastiat work for the the Onion, the writers of the Simpsons episode "Who shot Mr. Burns", must have been inspired by this.
Almost immediately after reading the above quote this scene from the Simpsons plays in my mind:I make the analogy: proprietary software is like a candle, Free Software aims to be the sun.
The important thing to think about is that once an effective Free Software aplication has been created their is value, in the terms of cost of production, labor, in the code. It is hard to figure ROI or TCO in something that has intrinsic value.
If everyone can get access to tools that make their lives easier and grants them access to information, it goes to say they may lead happier and more productive lives.
These are exactly the sorts of little costs that have currently cropped up -- internet costs.
We've done well for some of these things -- we're using the webspace SourceForge provides for our project, for example. But domain registration still costs, as does our mailmap system.
And the project has become big enough that I can quite easily spend an entire 8+ hour day working on it, and I frequently do. As the lead developer and the project administrator and the primary project evangelist and primary technical support person, I spend my days replying to e-mails, providing end-user technical support, writing press releases, writing code, debugging code, trying to advertise our project, writing documentation -- etc.
It's all a big job. Thankfully, I have a good team of developers that has helped take some of the pressure off. Our build manager does a fantastic job, as does our webmaster (my efforts at both of these jobs in the earlier days was terrible :) ). My backup project administrator has done a fantastic job of managing bug and feature requests, and one of our testers/plug-in developers who knows CVS better than anyone else has been invaluable in helping me whenever I run into something odd with CVS (and has been a huge influence in how our CVS tree is currently organized, with more to be done after our next GA release).
But that still leaves a ton of work to do. And we're at that jumping-off stage where we're building up more and more "true believer"-type users, who are using the project in some serious projects of their own, and I'd hate to be forced to _decrease_ my participation (at least before our next GA release) because of finances.
Yaz.
An interesting idea -- but it's a bit hard to use for a Java-based project (like the jSyncManager), which doesn't require porting to different hardware or OS platforms :).
Yaz.
SPI is a well run non-profit with tax exempt sttus from the IRS that supports several projects including Debian and the Open Source Initiative.
Read, L
Yes. If you fund your project through the Public Software Fund, anyone who donates money can take a tax writeoff on their US taxes.
-russ
Don't piss off The Angry Economist
Every kid and their little sister is writting games these days and the big companies certainly aren't sweating it.
I think the OP was being drastic about "script kiddies" but I often find myself looking for Open Source solutions to replace expensive alternatives.
I think the point he was trying to make was that:
We complain about the lack of jobs available and then go on and on about how great FREE software is. Hypothetical situation Linux takes the desktop by storm, Windows goes down the tubes. Thousands of workers are out of jobs at Microsoft. Not only did thousands of job positions disappear but now you have thousands of people looking for new jobs.
1000+ more people out of work 1000+ less job positions to be filled.
Open Source replaces paid jobs that are covered by the profits created by the product with jobs that need some other way to cover the bills.
Here's the trade-off:
Closed source = few developers but cost of production is distributed over many customers
Open source = many developers but cost of production is distributed over a few wealthy friends
There's plenty of free software floating around but there's not much free money.
If the Open Source model isn't supporting your costs, then you need to start charging the customers. Companies tend to make investments, not give grants. And both are very difficult to get.
Open Source software needs to plan in advance for the possibility that they will need to charge for their product to cover costs. Going out whinning that nobody donated isn't going to fix things.
I liked having a totally free huge web-site that many many people utilized but there was no way I was promising it would stay that way. And of course it didn't. Free is nice but free don't pay the bills.
Project needs money? Charge for the download. Problem solved. If someone else wants to host it and not charge the fee, great. The idea of the charge is to cover bandwidth. If it's not costing you bandwidth then you don't need to get a return on it.
If the problem is more than the cost of bandwidth then you need to find a job that pays real money and work on the project that doesn't pay you on the side.
Ben
Work Safe Porn
I think that a non-profit organization that has the specific goal of raising money to support the Open Source community would do a great service. It would collect money and pay for expenses of certain projects. Companies could donate money and get tax write-offs for it. The non-profit could also allow companies to earmark a certain percentage of the funds to go to a certain project. If the company wants to switch entirely to open source, they could donate to the project(s) they need the most for the switch. The companies would be more willing to contribute to open source as they are getting tax write-offs along with something useful to the company.
IANAL, but this seems like a viable plan to me.
-hoch
2*31*37*263
- The escrow balance provides a clear marker as to where the donations are, and can have a positive effect on contributions. Consider the Blender situation.
- Contributors can give what they think it's worth to them to have a project (or project milestone) completed, without doing a calculus as to how their donation fits into the overall picture of getting work done.
- Contributors are assured that they will receive their cash back from the escrow account if the project is not completed.
- Developers are relieved from the burden of managing contributions
- Talented developers in developing countries with a spotty track record wrt respect for contract law are not impeded by this reputaton.
- Developers see a concrete pile of cash in an escrow account just waiting for them if they complete the project. There's no ambiguity about getting paid or not.
Funding for Open Source projects is a very interesting subject, IMO. As Free/Open Source software continues its inexorable march into the mainstream, I think it will be crucial to find GRASS-ROOTS methods of funding so that development is not overly influenced by corporate interests and "IP" issues.pr0n - keeping monitor glass spotless since 1981.
Crossing the chasm, whilst it's intended audience is proprietory IT firms, makes the point that consultancy is often *the* cash generator in the early market.
A viable Open Source project will almost *always* require consultancy at the firms who choose to use it. If there's a better marriage between the commercial sector and Open Source projects I couldn't think of it. The challenge is to make sure there are 'no strings' and that each side thinks the share is fair. It strikes me that the 'best' Open Source projects are alread doing this (think MySQL, apache, etc).
As a further example, the company I work for sets aside a percentage of its turnover for project funding, our most recent being joining the FSF corporate sponsor programme (try and encourage your own companies to do this - they need waaaaaaaaaaay more than they've picked up so far - companies who use Open Souce *should* fund it!).
Implementors in the 'trenches' at Open Souce 'early adopters' should make the ideal funding partners for coders who, let's face it, made all this possible in the first place...
Just my £0.02
Just write and sell documentation and you'll make good money for the project. If you don't know how to do it, ask these guys.
I've been a long time Open Source fan and I have noticed one trend that the movement lacked and still continues to lack on a major scale (although its improving); that is quality assurance. There are many great ideas and excellent programs that I would use, like KOffice, unfortunately it seems that there are very little resources invested in quality assurance. As far as I know, most of the Open Source projects rely on user who submit bug notifications; then these bugs are fixed in future realeases. What about dedicated quality assurance teams that treat any Open Source project like if it were a commercial program? Also, I think that the movement needs more release engineers and testers to ensure less painful installations for people who have very little or no experience with Linux. Do that and watch the numbers of potential users grow.
If a company contributes software to open source there should be a tax break. This will encourage companies to donate products they plan to withdraw as well as fund people in the company to work on open source.