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[News] Discussion About Business Value of Free Software and GNU/Linux

  • Subject: [News] Discussion About Business Value of Free Software and GNU/Linux
  • From: Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx>
  • Date: Wed, 23 Jun 2010 17:45:09 +0100
  • Followup-to: comp.os.linux.advocacy
  • Newsgroups: comp.os.linux.advocacy
  • User-agent: KNode/4.4.2
Hash: SHA1

Can a FOSS Firm Hit the Billion-Dollar Jackpot?

,----[ Quote ]
| In any discussion of FOSS's potential to be 
| profitable, Red Hat  (NYSE: RHT) is 
| invariably held up as the poster child for 
| success.


The Economics of Open Source: Why the Billion Dollar Barrier is Irrelevant

,----[ Quote ]
| The explanation of why zero pure play open 
| source vendors have hit the one billion 
| dollar revenue mark has never seemed, to 
| me, particularly complicated. The economics 
| of open source are, as Glyn notes above, 
| fundamentally differentiated from the 
| closed source models that preceded it. Open 
| source as an application development model enjoys 
| many advantages over proprietary, in-house 
| development; distribution and usage among 
| them. But revenue extraction has not 
| traditionally been a strength, for obvious 
| reasons. When payment is optional, as it is 
| with most open source software, fewer users 
| become commercial buyers. Next up, a study 
| proving that objects further away are 
| harder to see. 


ZenCart Helps You Build Your Own Store Online

,----[ Quote ]
| The product I'm examining this week, 
| ZenCart, does have basic shopping cart 
| functionality, but through a series of add-
| on modules, it gives businesspeople many 
| more capabilities. The major thing that 
| sets ZenCart apart from the competition is 
| the fact that it is open-source software. 
| Open source means the source code is made 
| freely available to the user community. 



Does Open Source Suffer From A Glass Ceiling?

,----[ Quote ]
| But looking up today's market cap shows
| Red Hat with a 5.9B market cap. Not too
| bad for a company that is doing 750
| million in revenue.


There may never be another Red Hat but that is OK

,----[ Quote ]
| When you put it that way Red Hatâs success
| becomes even more remarkable. No one has to
| pay an open source software company for its
| code. If a pure open source company is only
| one that depends on voluntary code payments
| for its bread, then getting $800 million of| such
| payments a year is pretty amazing.

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