Open Source Business Models: FET B.Tech Quiz

Open Source Business Models

• The primary purpose of an open source business model is to create a collaborative environment for software development and distribution, where users can access, modify, and distribute the software freely.

Earning a Living

• Creators of open source software earn a living by providing support, services, and consulting related to the software, rather than from the software itself.

Competition

• Companies using open source business models compete for customers who need support, services, and customization of the software.

Relationship with Proprietary Software

• Open source business models coexist with traditional proprietary software companies, and sometimes, open source companies partner with proprietary companies to offer hybrid solutions.

Key Differences

• Open source business models are different from traditional proprietary software companies in that they provide free access to the software, and revenue is generated from support, services, and customization.

Main Focus

• The main focus of open source business models is to provide a collaborative environment for software development and distribution, and to generate revenue from support, services, and customization.

Traditional Software Business Models

• Traditional software business models generate revenue from the sale of licenses to use the software.

Origins of Open Source Software

• The initial roots of open source software date back to the 1960s and 1970s, when software developers shared and collaborated on code.

Linux and Open Source Companies

• Companies emerged, focusing on the development and promotion of the Linux open source software, such as Red Hat.

Dual Licensing Model

• In the Dual Licensing model, a POSS (Pure Open Source Software) company generates revenue by offering a commercial license for the same open source software available for free, which provides additional benefits, such as support and customization.

Need for Commercial License

• A consumer would need to pay for a commercial license to obtain additional benefits, such as support, customization, and indemnification, which are not included in the free open source software.

Purpose of Commercial License

• The purpose of obtaining a commercial license for open source software in the Dual Licensing model is to obtain additional benefits, such as support, customization, and indemnification.

Focus of Startup Companies

• The main focus of startup companies like Red Hat is to provide support, services, and customization of open source software, such as Linux.

Economic Models

• Economic models, such as the club model, the software vendor model, and the dual-licensing model, have been studied with respect to companies involved in the development and promotion of open source software.

Open Source Software Companies

• Companies that develop and promote open source software are sometimes referred to as POSS (Pure Open Source Software) companies.

T.B.

• T.B. stands for Tonny B. in the text.