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If your business is to sell software, instead of services around it, which is not always possible, then the open source model does not work for a sustained business.
You have a gift for misconstruing what people say.
lemur2 was talking about companies that work with software, where software was not the product. Like Amazon, where they use software to provide a service. Or google, where they use software to provide a service. Or every other web-based business, where software is part of the business process, but isn't the thing sold to the user. For these people, working with open-source software vendors can make a lot of sense; they get a high-quality web server to build a site off of, or a high-quality operating system and platform to make a product out of (for example with Android and Valve's upcoming set-top), or a high-quality database system, or etc. And they get it for free, with free improvements from the community over time.
For these people, contributing to the health of the project can also make sense, as long as it allows them to keep getting otherwise free high-quality software (especially if the cost of the contribution is much less than the expense of hiring a team of software engineers to create an equivalent bit of software).
People selling software is just a small part of the business.
Most customers need 1 of both:
1. a commodity solution
2. a custom solution
The commodity software is already available from large open source projects or large proprietary software companies. Or a commodity webbased solution, like Salesforce.com
The rest need a more custom solution, for example the enterprises someone mentioned in this thread or small businesses.
This is the kind of work that gets payed by project or by the hour.
Or software for some specialty industry, it is commodity software but only applies to that industry.
Sometimes such industry specific software gets such wide use that the companies that build it have become very large. I assume that is what happend to Autodesk in the case of AutoCAD.
If you are trying to compete with the large companies you are probably doing it wrong.
You wouldn't try start a business for building a new office or desktop operating systems to compete with companies like Microsoft, right ?




Member since:
2007-02-17
How do you pay your bills?
Open source is economically the best option for companies whose primary business is NOT to sell software. Any business whose products incorporate software, but the product itself is not the software per se, has a great business case to use open source.
Hence open source Android for businesses which sell phones, not apps.
Hence Samsung:
http://www.pcworld.com/article/257063/samsung_gets_serious_about_li...
http://www.businessinsider.com/samsung-linux-foundation-apple-2012-...
Hence Toyota:
http://www.linuxfoundation.org/news-media/announcements/2011/07/toy...
http://www.linuxinsider.com/story/72867.html
Hence the scientific projects such as the Large Hadron Collider:
http://www.internetnews.com/skerner/2008/09/large-hadron-collider--...
Hence the OIN community:
http://www.openinventionnetwork.com/licensees.php
Hence Google:
http://code.google.com/opensource/projects.html
These companies and institutions all collaborate to invest in open source software, to the benefit of all of them.
This is how the bills are paid.
Edited 2012-09-16 12:17 UTC