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[News] 'Open Core' is Like "Dual Licensing", "Not a Business Model"

  • Subject: [News] 'Open Core' is Like "Dual Licensing", "Not a Business Model"
  • From: Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx>
  • Date: Sat, 03 Jul 2010 16:40:56 +0100
  • Followup-to: comp.os.linux.advocacy
  • Newsgroups: comp.os.linux.advocacy
  • User-agent: KNode/4.4.2
Hash: SHA1

Open Core is the New Dual Licensing

,----[ Quote ]
| Which is to say an open source business 
| model that will generate marginal revenue 
| improvement for firms that employ it, at 
| the cost of developer goodwill and 
| participation. And, potentially, 
| distribution. What open core is not is a 
| model that will mitigate the commercial 
| limitations of the model sufficiently to 
| produce outsized returns similar to 
| historical software producers. Nor is it a 
| model that ideally aligns customer and 
| vendor interests.
| Which is not to say that there is much 
| profit in debating its relative merits. 
| Curiously, precisely zero of the modelâs 
| critics â smart people, all of them â have 
| put forward potential remedies for the 
| threat they perceive in open core. This is 
| because none exist. 


Open Core is not a Business Model

,----[ Quote ]
| âOpen Core is the New Dual Licensing 
| Modelâ is the last of a chain of 
| interesting posts against or in favor of 
| open core, coming from different realm of 
| experience: the analyst guy Stephen 
| OâGrady, the free software evangelist 
| Simon Phipps, the hacker Brian Aker and 
| last but not least the entrepreneur MÃrten 
| Mickos.
| Letâs dig now deeper into what is open 
| core to business, and why it is not a 
| business model.



Open Core: The worst of both worlds

,----[ Quote ]
| In the end open core software is driven
| by the same incentives as proprietary
| software is. Therefore it suffers from
| the same problems: too much focus on
| features and too little on quality.
| Thatâs the downside of proprietary
| software. But it also inherits the
| problems of open source software. Because
| of the open source community editions you
| have to worry about forks taking your
| customers (e.g. vtiger). To top it off
| they also need to compete against their
| own developer community who will
| reimplement the closed enterprise
| features as add-ons for the open source
| edition. This magnifies the problems
| caused by the feature treadmill and leads
| to a rapid decline in quality.

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