Linked by Thom Holwerda on Fri 14th Sep 2012 22:30 UTC
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Member since:
2006-06-18
This question has been answered many times, and a number of business models exist to subsist on free software.
1) You can offer support by the "gurus" of the software
2) You can dual-license your software, asking money for the commercial license
3) You can sell non-free add-ons to your software
4) You can enter contracts for implementing customer desired features
5) You can lure users of your product into consuming your content/visiting your websites/etc.
6) You can create entirely new markets or overtake existing ones
Red Hat employs a number of kernel developers for the first reason. Also they do #4.
Digium (Asterisk) does at least #1, #2 and #3.
IBM, when they invested $1 bln in Linux certainly had #6 in mind.
Trolltech, before they were bought by Nokia, did #1, #2, #3 and #4, and after being bought stopped doing #3.
Mozilla Corporation, the for-profit subsidy of the Mozilla foundation, does #4 and #5