{"id":438,"date":"2007-11-19T07:00:17","date_gmt":"2007-11-19T15:00:17","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=438"},"modified":"2007-11-19T07:00:17","modified_gmt":"2007-11-19T15:00:17","slug":"open-source-following-the-cycle-from-boom-to-bust","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/open-source-following-the-cycle-from-boom-to-bust\/","title":{"rendered":"Open Source: Following the Cycle From Boom to Bust"},"content":{"rendered":"<p><span class=\"q\"><a onclick=\"return top.js.OpenExtLink(window,event,this)\" target=\"_blank\" href=\"http:\/\/opensource.mit.edu\/papers\/Alexy_-_Putting_a_Value_on_Openness.pdf\" \/><\/span>What does the market think of Open Source?  That was the subject of an academic <a target=\"_blank\" title=\"Academic Study on Open Source\" href=\"http:\/\/opensource.mit.edu\/papers\/Alexy_-_Putting_a_Value_on_Openness.pdf\">study <\/a>written by a group from the University of Munich.  The study found that from a market perspective Open Source has traveled from a high point just prior to the dot com bust, to a period of about four years when it was out of favor, to again new highs in recent years.<\/p>\n<p>The paper identifies four types of business models that have grown up around Open Source:<span class=\"q\"><br \/>\n<\/span><\/p>\n<ul>\n<li><span class=\"q\">Competitive Weapon<\/span><br \/>\nOpen Source software prevents commercial competitors from taking total market share.<br \/>\nIt can commoditize a layer of software that has less value to the company while the company can then charge for more sophisticated components built on top of the Open Source elements.<\/li>\n<li>Cost or Risk Reduction<br \/>\nOpen Source development can be more cost effective for creating software not related to the core business<\/li>\n<li>Dual Licensing<br \/>\nDifferent licenses available for different groups.  The company typically retains 100% ownership of the software, but they offer a tiered licensing scheme, usually with individual license being free and licenses to other companies on favorable terms to allow integration with other products.<\/li>\n<li>Sale of Complementatry Goods and Services<br \/>\nCompanies can give away software but try to get revenue from consulting, training and subscriptions<\/li>\n<\/ul>\n<p>Open Source may be &#8216;free&#8217;, but that doesn&#8217;t mean you can&#8217;t make money with an Open-Source-based model.<\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fopen-source-following-the-cycle-from-boom-to-bust%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div 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Google Reader)\" title=\"Google Buzz (aka. Google Reader)\" \/><\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>What does the market think of Open Source? That was the subject of an academic study written by a group from the University of Munich. The study found that from a market perspective Open Source has traveled from a high<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/open-source-following-the-cycle-from-boom-to-bust\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":["post-438","post","type-post","status-publish","format-standard","hentry","category-open-source"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=438"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/438\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}