Open Source - Open Future

By AG
Let figures speak. Linux Server Operating Environment (SOE) market is valued at around US$ 130 million, with almost similar figure for end-user spendings. Its cathing up like a forest fire - estimated to grow at around 31% CAGR from '03 to '08. And still theres whole lot of untapped business out there. Its happening. You understand the unabated revolution thats steadily sweeping everyone off their feet when you hear something like Peru and Venezuela decides to go open source. Its happening, and its going to happen with or without Red Hat, with or without GNU/FSF, or with or without Linus Torvalds.

At this point it is important for software businesses to consider their business model and have a thought of how it would be in the open future, future when most software pieces would be open source. It is important to understand that except for few specialized verticals, all applications are likely to be derived directly or indirectly from a community developed open source code. This is a drastic change from the conventional business model, where you sell the stuff that you make or that you knew better. Now its different, now you have to sell stuff which is not yours, you just know it, essaintially better.

Trying to sell things which is not owned by us sounds kind of absurd, but thats the new business model all about. Moreover, it gets trickier when we need to sell a thing and make money out of it, when its already available for free (free as in free food). Companies like Red Hat should be truely appreciated for putting forth an example of how a company should be in the open future. It s this new business model that makes mere 1300 people company threaten the business of many hundred thousand people companies.

1 comment so far.

  1. AG 6:57 AM, July 07, 2006
    Lawyers happen everyday, thats what one of my VP says on this :)

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