Open Source Business Models - What Works and What Does Not?

Posted by tadelste on Sep 6, 2005 6:07 AM EDT
Onlamp; By Murugan Pal
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Many of you might have questions around successful business models. Recent Forbes article on SourceForge and the blog on SugarCRM's functionality differences between open source and pro versions raise interesting questions. If you are contemplating on a new open source venture - my recommendation is not to differentiate (functionally) between the commercial and open source versions, like in the case of MySQL's dual license. From my conversations with CIOs, enteprise architects and IT developers there are three major reasons for adopting open source: 1. No vendor lock-in and proprietary code 2. Freedom to change or enhance - free in libre 3. Cost effective - pay for tangible services and not for the software

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