{"id":233,"date":"2007-03-06T07:36:17","date_gmt":"2007-03-06T15:36:17","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=233"},"modified":"2007-03-06T07:36:17","modified_gmt":"2007-03-06T15:36:17","slug":"open-source-another-wrinkle-in-business-models","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/open-source-another-wrinkle-in-business-models\/","title":{"rendered":"Open Source: Another Wrinkle in Business Models"},"content":{"rendered":"

There’s a lot of people convinced that Open Source is huge.\u00a0 That it’s disruptive.\u00a0 That it’s the future.\u00a0 But there are also a lot of people struggling with business plans that try to make Open Source their centerpiece.<\/p>\n

About a year ago, CIO magazine published a matrix of Open-Source Business Models.\u00a0 That article classified strategies as follows:<\/p>\n

Open Source + Service<\/strong>\u00a0 Maybe this is the classic\u00a0Open Source business\u00a0strategy.\u00a0 Give away the software and then sell support and services around the software.<\/p>\n

Mixed\u00a0<\/strong> Create an Open Source software base and community but also sell proprietary add-ons.<\/p>\n

Open Source + Buy Off<\/strong>\u00a0 Offer software as Open Source but with the restriction that if you redistributed something that has been modified, you’ll need to pay for a proprietary license.<\/p>\n

Open Source + Aggregation<\/strong>\u00a0 Package stacks of interoperable Open Source software.\u00a0 Test and support the interoperability of the OS components.\u00a0<\/p>\n

Open Source + Hardware<\/strong>\u00a0 Hardware companies offer Open Source software that runs on their machines.\u00a0 But to use the software, you need to first buy the hardware.<\/p>\n

Recently a new wrinkle on these set of Business Models has emerged by a partnership that was announced between Red Hat<\/a> and Exadel<\/a>.\u00a0 Exadel’s model relative to Open Source has been primarily as an aggregator, similar to what SpikeSource<\/a>, Navica<\/a>, and SourceLabs<\/a> are doing.<\/p>\n\n\n
\u00a0\"Exadel<\/td>\nBut Exadel has also created commercial\u00a0Eclipse-based developer tools\u00a0like RichFaces, Ajax4jsf, and Studio Pro.\u00a0 In the partnership with Red Hat, these products will take on an Open Source license and join the Red Hat umbrella of products.\u00a0\u00a0Going forward they will be called JBoss Rich Faces, JBoss Ajax4jsf and Red Hat Developer Studio.\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

<\/font><\/td>\n<\/tr>\n<\/table>\n

There is no company merger or acquisition.\u00a0 The partnership grows the Red Hat line of products and complements other Red Hat products.\u00a0 Exadel has licensed all the software to Red Hat and Red Hat retails all rights for new development, although it is expected that Exadel would continue to be a major contributor to the development.<\/p>\n

Red Hat and JBoss have much higher name recognition than Exadel and it’s expected that software under the Red Hat\u00a0banner\u00a0would be\u00a0much better positioned for acceptance.<\/p>\n

The agreement will free up Exadel to devote more time to other activities.\u00a0 Much of their main business is coming<\/a> now from building and supporting high-traffic sites for large companies, like mortgage.com<\/a>.\u00a0 At least in the short term, Exadel would also receive work from Red Hat to assist in the support of the transferred software.<\/p>\n

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There’s a lot of people convinced that Open Source is huge.\u00a0 That it’s disruptive.\u00a0 That it’s the future.\u00a0 But there are also a lot of people struggling with business plans that try to make Open Source their centerpiece. About a…<\/span><\/p>\n

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