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Commercial Activities and OSS - Success Stories and Failures

Explore various business models for making money with Free and Open Source Software (FOSS), including dual licensing, open-core licensing, and platform providers. Learn from success stories like MySQL and Zimbra, as well as failures like UIQ and Symbian.

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Commercial Activities and OSS - Success Stories and Failures

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  1. Commercial Activities and OSS - Success Stories and Failures Erkki Kerkkonen Pauli Paaso Ahmed Rafiq-ul-Islam

  2. Introduction What are learning objectives for this presentation? How do you make money with Free Software?

  3. A business model is nothing else than a representation of how an organization makes (or intends to make) money

  4. A business model is nothing else than a representation of how an organization makes (or intends to make) money

  5. How do you make money with Free Software? A business model is nothing else than a representation of how an organization makes (or intends to make) money

  6. OSS Business models

  7. Dual licencing model

  8. Dual Licencing business model

  9. Dual Licencing business model OpenOffice StarOffice is a commercial product TrollTech AS uses a dual-licensing model with its QT product, a C++ application development framework The world's most popular open source database MySQL Community Edition MySQL Enterprise Edition

  10. dual-licensing model seems to be serving the companies doing it - not only for financial success but to engender community support as well

  11. Open-Core Licensing Open core is a commercial open source strategy It offers core components for free, but charges licensees for additional premium products

  12. Open Core business model Vendor example Zimbra The Zimbra Collaboration Suite (ZCS) Open Source Edition is available for your download free of charge Standard Edition ZCS Network Standard Edition is an enterprise-grade email and collaboration solution with no cap on the number of mailboxes that can be licensed. It features Zimbra Mobile, Zimbra Advantage Support (upgradeable to Premium) and can have Zimbra Archiving and Discovery included as an optional service. Professional Edition ZCS Network Professional Edition is an enterprise-grade email and collaboration solution with no cap on the number of mailboxes that can be licensed. It features Zimbra Mobile, Zimbra Connector for Outlook, Zimbra Advantage Support (upgradeable to Premium) and can have Zimbra Archiving and Discovery included as an optional service.

  13. Product specialists business model Vendor example Acquia, OpenCascade 3D geometric modeling The main revenues are provided from services like training and consulting Customers ALCATEL SPACE, BMW, RINA, CEA, EDF, EADS, MITUTOYO, ARCELOR as well as numerous software editors and research centers.

  14. Platform providers business model Examples Red Hat Enterprise Linux Commercial clones like CentOS or Oracle Linux 20 October 2010 - Linux kernel 2.6.36 was released (13,499,457 lines of code) GNU General Public License (GPL) and is available for free download through Oracle EDelivery

  15. R&D cost sharing business model A good example is the Maemo platform, used by Nokia (-> MeeGo) In February 2010, Intel and Nokia merged their popular open-source platforms (Moblin and Maemo, respectively) into a unified Linux-based platform called MeeGo MeeGo is an open source, Linux project which brings together the Moblin project, headed up by Intel, and Maemo, by Nokia MeeGohas reached the 1.1 release and the first devices are out in the market

  16. Failures Swedish mobile software firm UIQ UIQ Symbian-based mobile platform single user interface for multiple device When Symbian was founded it was envisioned that it would provide a full software suite from kernel and device drivers to the user interface Failure of the UIQ platform January, 2009 No needs, no customers UIQ Technology, the company responsible for developing and licensing the UIQ user interface for Symbian smartphones, has filed for bankruptcy

  17. Symbian R&D cost sharing business model NOVEMBER 8, 2010 Board of the Symbian Foundation has today decided to transition the role of the non-profit organisation All Symbian Foundation public web-sites, wiki and code repositories will shut down on December 17, 2010 Future of smart phones OS: Qt + “own” symbian kernel Qt + MeeGo (MobileLinux kernel) Android The Android Open Source Project (AOSP) iPhone OS

  18. http://guide.flossmetrics.org/index.php/6._FLOSS-based_business_modelshttp://guide.flossmetrics.org/index.php/6._FLOSS-based_business_models

  19. Questions?

  20. References [1]http://en.wikipedia.org/wiki/Free_and_open_source_software [2] http://meego.com/about [3] http://www.opensource.org [4] http://www.gnu.org/licenses/quick-guide-gplv3.html [5] http://www.redhat.com/about/whysubscriptions/ [6] http://www.opensourcestrategies.org/ [7]http://en.wikipedia.org/wiki/Open_source_software [8] B. Kogut and A. Metiu, "Open-source software development and distributed innovation," Oxford Review of Economic Policy, vol. 17, pp. 248–264, 2001.

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