Open Source Business Models

As part of my thesis on Open Source Firefox web browser, I am compounding a list of Open Source Business Models in order to identify how Firefox fits the pack. Since I was not able to fit Firefox in Aaron Schiffs list I have added the Ad-supported model. Please add a comment if you think that a particular Open Source Business Model is wrong or missing. Thanks.

Name

Business Model

Example

Loss-leader/Market positioner

Use open source software to maintain a market position for a related proprietary software product.

Netscape’s open source Mozilla web browser and proprietary server software.

Widget frosting

Sell hardware with open source driver software

Apple’s MacOS X

Give away the recipe, open a restaurant

Distribute open source software and sell service and support contracts.

Red Hat

Accessorising

Sell accessories for open source software such as documentation or proprietary add-ons.

Aladdin’s Ghostscript

Free the software, sell the brand

Sell other developers a brand that certifies their implementation of your open source technologies is compatible with all others who use the brand.

 

Sun’s StarOffice

Free the software, sell the content

Develop an open source product that receives proprietary content that the firm sells

N/A

Ad-supported

Direct users to a third-party service and reap some of their revenues in return

Mozilla Firefox and Google partnership

 

 

 

Source: Adapted from Aaron Schiff (2002), The Economics of Open Source Software. Originally adapted from Raymond E.S. (2000), The magic cauldron.

Specifically discussed at http://discuss.joelonsoftware.com/default.asp?biz.5.367424.0

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