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"FOSS Business Model Broken" — Former OSDL CEO

Posted by kdawson on from the who-needs-support-anyway dept.

liraz writes "Stuart Cohen, former CEO of Open Source Development Labs, has written an op-ed on BusinessWeek claiming that the traditional open source business model, which relies solely on support and service revenue streams, is failing to meet the expectations of investors. He discusses the 'great paradox' of the FOSS business model, saying: 'For anyone who hasn't been paying attention to the software industry lately, I have some bad news. The open source business model is broken. Open source code is generally great code, not requiring much support. So open source companies that rely on support and service alone are not long for this world.' Cohen goes on to outline the beginnings of a business model that can work for FOSS going forward."

2 of 412 comments (clear)

  1. Re:Here's a great paradox for ya.. by timmarhy · · Score: 0, Troll

    haha

    --
    If you mod me down, I will become more powerful than you can imagine....
  2. Fixed that for you by ToasterMonkey · · Score: 0, Troll

    "Open-source code is typically not complex enough to make money selling support."

    Go look at the kind of software that is SUCCESSFULLY sold as solution bundles, or with professional services. Cost aside, does it look anything at all like free software? Make free software look like it came from the bargain bin? Well, it did.

    If you want to sell support or solutions, free software developers are going to have to start coding a lot harder, and learn some very specific business needs (while still turning it into code for free).
    Basically, you need FOSES, free open source _enterprise_ software. This market is not nearly as big as many of you think. I think it might have 1.5 players in all.

    FOSS business model.. hah.
    "Switch to free software, saving money in licensing and staffing" ... but continue to buy software support agreements and professional services for software a college intern can babysit. Shit, he wrote part of it.

    I want some of what they're smoking.