Commit af30de37 authored by Tim McNamara's avatar Tim McNamara

Add open-source-business-models.md

parent 7929d734
Open Source Business Models
---------------------------
Thesis: Every model is a variant of the open core model.
Variants
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## Open core
Retain some functionality within a commercial package that's sold via a
subscription or licence.
## Managed services (hosted version)
In a manged services model, you're selling convenience. and dependability.
To out-perform
## Host others' tools
Find a way to wrap
## Education & Training
Offer training materials and educational tools, books videos etc for the
community. Sell them.
## Support
Sell support to people are having trouble with your product.
The best support contracts are often the ones where you're convincing your customers that they make money by using you for advice, rather than cost them money.
## Recruitment
_Supporting business model_
This strategy involves using open source projects to attract developers' eyes.
That can provide a vehicle for attracting resumes.
## Cost savings
_Supporting business model_
Build a sufficiently large community, such that others (and potentially even your competitors) do some of the necessary work for you.
Discussion
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Successful open source business models involve maintaining some form of mindshare
that's associated with the package. Your company will typically gain that mindshare
by being involved with technical contributions.
Needing to maintain credibility
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