opensource.com: Making money from open source, it can be done

Jim Whitehurst of Red Hat writes:

I believe one of Red Hat’s most valuable contributions to the open source way is our profitability. We have clearly demonstrated that a company can be a good steward and catalyst in open source and be a profitable enterprise as well. I hope this serves as an example and inspiration to others to enter and participate in open source.

I don't think most people appreciate how important this aspect of Red Hat is. It's about every week that I'm in touch with one or another business manager who believes that the best way to profit from open source is... *cough*, selling closed source software. The thinking is that you cannot make money from open source, so it's the only way.

Red Hat is a very important counterexample. In fact, it is great that Red Hat is more profitable than many of the smaller shops that are increasingly betting on the so called open core business model. (Which is: adding closed source modules as "differentiation" into an open source base product.) Similarly one could point out that it is great to see Ubuntu thriving over other competitors by essentially being more open.

PS: There was one conversation I had along these lines, where the other party eventually conceded: "Ok, I agree with you. It is possible to make money from open source, in fact making money from religion is one of the most profitable schemes ever." Sure, whatever works for you man :-)

Add new comment

The content of this field is kept private and will not be shown publicly.
  • No HTML tags allowed.
  • External and mailto links in content links have an icon.
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
  • Use [fn]...[/fn] (or <fn>...</fn>) to insert automatically numbered footnotes.
  • Each email address will be obfuscated in a human readable fashion or, if JavaScript is enabled, replaced with a spam resistent clickable link. Email addresses will get the default web form unless specified. If replacement text (a persons name) is required a webform is also required. Separate each part with the "|" pipe symbol. Replace spaces in names with "_".
About the bookAbout this siteAcademicAmazonBeginnersBooksBuildBotBusiness modelsbzrCassandraCloudcloud computingclsCommunitycommunityleadershipsummitConsistencycoodiaryCopyrightCreative CommonscssDatabasesdataminingDatastaxDevOpsDrizzleDrupalEconomyelectronEthicsEurovisionFacebookFrosconFunnyGaleraGISgithubGnomeGovernanceHandlerSocketHigh AvailabilityimpressionistimpressjsInkscapeInternetJavaScriptjsonKDEKubuntuLicensingLinuxMaidanMaker cultureMariaDBmarkdownMEAN stackMepSQLMicrosoftMobileMongoDBMontyProgramMusicMySQLMySQL ClusterNerdsNodeNoSQLodbaOpen ContentOpen SourceOpenSQLCampOracleOSConPAMPPatentsPerconaperformancePersonalPhilosophyPHPPiratesPlanetDrupalPoliticsPostgreSQLPresalespresentationsPress releasesProgrammingRed HatReplicationSeveralninesSillySkySQLSolonSunSybaseSymbiansysbenchtalksTechnicalTechnologyThe making ofTungstenTwitterUbuntuvolcanoWeb2.0WikipediaWork from HomexmlYouTube

Search

Recent blog posts

Recent comments