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[News] The Economics of For-profit Free Software

The Best Things in Life Are Free

,----[ Quote ]
| The problem for many software companies is that free and open source is
| not some special characteristic of software. It's a development and
| deployment model and it stems from both ideology (e.g., the Free
| Software Foundation) and the economics of commoditization, with the
| economic factor being the bigger force. Because the economics of
| commodities are driving the industry, you can expect to see the market
| share of mature software businesses erode as open source expands.


Related article:

Microsoft and the Broken Window Theory of Economics

,----[ Quote ]
| While we don't usually report on anything Microsoft related (as it's
| outside PCBurn's perview) this tidbit was too good for me to pass up.
| Microsoft is reporting (at El Reg) that by releasing an operating system
| it will magically create $40 Billion dollars rather than simply suck
| money out of Europe. They've done this by positing a story somewhat
| similar to the theory of "broken window" economics.
| [...]
| In short form, a boy breaks a window and his father, the shop keeper,
| then has to have it replaced. It is a given to the people looking on
| the scene that this is good becuase it keeps the glazier employed in
| making windows. 


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