Is Open Source Recession Proof?

DaMan writes "ZDNet asks Is open source recession proof? 'So, how might a recession affect open source software? Well, first off, I think that any business model that relies on volunteers could certainly see interest decline if times get tough. There are a lot of businesses that rely on people working for them for free because they get a pay check somewhere else, and I think that a recession would make people question working without getting any dollars in return.'"

Comments

Re:They just don't get it.

[TheRaven64]

There are three kinds of people who fund open source development:

• Those selling complementary products / services.
• Those who actually need the software.
• Those developing in their spare time to pad their CVs.

There are likely to be more unemployed people in a recession so those looking for some form of differentiator to make their own CV more attractive will be more common. Those who need the software will continue developing (or paying third parties to develop it) it, because they have no other choice. They may even become more common since open source development is more efficient than off-the-shelf development and can be introduced as a cost-cutting measure by companies looking to reduce expenditure in a recession.

Those selling complementary products, like IBM, might well cut back. They likely invest a fixed portion of their profits in open source development and if their profits drop then so will this investment. They may increase it to try to spend their way out of the recession, but it's unlikely. The fact that they aren't the only people paying for the development might well mean that they consider that they can cut back a lot and still retain good open source products to build solutions on top of.