Determining the Value of Open Source Software @ JAVA DEVELOPER'S JOURNAL

Open source technology is a boon to companies that want to add features and functionality to their applications without the overhead. It eliminates the cost of databases, operating systems, and other infrastructure components, enabling quick and cost-effective access to new features. According to a survey conducted by IT research firm Optaros, companies with more than $1 billion in annual revenue reported average savings of $3.3 million in 2004 as a result of open source technology (September 2005). A similar survey conducted by IDC showed that open source databases are used by 33% of the 600 companies it surveyed.

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Barry Klawans commented on the 6 Nov 2007

Hi Sean,

My aim in this article is to discuss models that the original developers or project members are using if they decide to monetize their effort. It is not meant to be an exhaustive list of all business models around open source, so the various models that aggregators, SIs, etc. are using was purposefully left out.

-Barry Klawans

Sean Tierney commented on the 6 Nov 2007

You left out another possible business model: #4- packaging existing open source apps for easier consumption and selling premium features in the app container. This is in fact what we do with JumpBox.

By removing all the deployment headaches associated with running open source server apps we give people an easy, free way to evaluate and deploy them on any OS in under a minute bringing these typically-complex apps within the reach of non-technical users. Check out our growing library-> [visit link]

This exposes the apps to a larger audience that would otherwise be precluded them from using them and opens up more opportunities around consulting, training and hosting.

sean

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