Open Source Business Models: FET B.Tech Quiz
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Questions and Answers

What is the purpose of an open source business model?

  • To keep companies financially viable and successful (correct)
  • To attract investors to the stock markets
  • To compete with traditional proprietary software companies
  • To provide free software to users
  • How do creators of open source software earn a living?

  • By selling the software at a low cost
  • By leveraging different business models (correct)
  • By attracting investors to the stock markets
  • By providing free lunch to users
  • What do companies using open source business models compete for?

  • Exclusive rights to open source software
  • Users' loyalty
  • Patents for open source software
  • Stock market investors' money (correct)
  • What is the relationship between open source business models and traditional proprietary software companies?

    <p>They compete for users and investors' money</p> Signup and view all the answers

    What makes open source business models different from traditional proprietary software companies?

    <p>They use different business models</p> Signup and view all the answers

    What is the main focus of open source business models?

    <p>Financial viability and success of companies</p> Signup and view all the answers

    Which of the following accurately describes the business models for traditional software?

    <p>Monetizing software by selling software products and providing software development services</p> Signup and view all the answers

    What were the initial roots of open source software, as mentioned in the text?

    <p>Community projects (GNU project)</p> Signup and view all the answers

    Which type of companies emerged, focusing on the development and promotion of the Linux open source software?

    <p>Commercial open source companies (COSS)</p> Signup and view all the answers

    What is the primary way in which a POSS company generates revenue in the Dual Licensing model?

    <p>By selling the open source software under a commercial license</p> Signup and view all the answers

    Why would a consumer need to pay for obtaining the same open source software available free of charge?

    <p>To avoid linking proprietary software to the open source software</p> Signup and view all the answers

    What is the purpose of obtaining a commercial license for open source software in the Dual Licensing model?

    <p>To avoid linking proprietary software to the open source software</p> Signup and view all the answers

    What is the main focus of startup companies like Red Hat in relation to open source software?

    <p>Developing and promoting commercial open source software</p> Signup and view all the answers

    Which economic models have been studied with respect to companies involved in the development and promotion of open source software?

    <p>Various economic models employed by these companies</p> Signup and view all the answers

    What are companies that develop and promote open source software sometimes referred to as?

    <p>(COSS) or Professional Open Source Software companies (POSS)</p> Signup and view all the answers

    What does T. B stand for in the text?

    <p>Traditional Software</p> Signup and view all the answers

    Study Notes

    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.

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    Description

    Test your knowledge on open source business models, dual licensing, platform providers, and the relationship between business model and open source software. This quiz covers important concepts from Chapter 2 of the Open Source Software course for FET B.Tech (CS & E) students.

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