Software, including open source, has a high fixed cost (lots of developer time and effort to get version 1.0 out the door) and a low marginal cost (once it's out there you can distribute via homebrew, for example, for no additional cost).
With most successful software products, you are paying for the exclusive value that the software provides, with open source that value isn't exclusive at all.. I can simply copy your version and try to integrate it myself. So how does open source software make money?
I think freemium and consulting might be good models. Let's say I'm open source organization that builds product X, this product is really popular, has a great developer ecosystem, solid roadmap, lots of folks are using it, etc. If it's good enough large corporations will try to use this product within their systems, why not audit how your customers are building on top of your systems and try to skate to where the puck is going and add an additional layer of features to support those enterprise use cases?
The challenge with open source comes w/ integration, at a large scale your open source product is going to be changed to fit the needs of the customer. As the organization behind an open source product you are in prime position to be the leading consultant of this product and assist with integration. To me, this is the best model to make money on open source, however, it requires a really strong product. Something with very high adoption, not just a plugin that handles a very specific use case.
With most successful software products, you are paying for the exclusive value that the software provides, with open source that value isn't exclusive at all.. I can simply copy your version and try to integrate it myself. So how does open source software make money?
I think freemium and consulting might be good models. Let's say I'm open source organization that builds product X, this product is really popular, has a great developer ecosystem, solid roadmap, lots of folks are using it, etc. If it's good enough large corporations will try to use this product within their systems, why not audit how your customers are building on top of your systems and try to skate to where the puck is going and add an additional layer of features to support those enterprise use cases?
The challenge with open source comes w/ integration, at a large scale your open source product is going to be changed to fit the needs of the customer. As the organization behind an open source product you are in prime position to be the leading consultant of this product and assist with integration. To me, this is the best model to make money on open source, however, it requires a really strong product. Something with very high adoption, not just a plugin that handles a very specific use case.