Business Models

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Business Models

  1. 1. Business models Course: Introduction to libre software Israel Herraiz <herraiz@gsyc.es> th A Coruña, November 9 2007 Master on Free Software
  2. 2. Summary Libre software is a matter of business ● Many companies obtain profit out of libre ● software projects Those companies contribute back to the ● projects at the same time In some sense, it is a symbiotic ● relationship Master on Free Software
  3. 3. Software classical business model Selling “boxes” ● License based business ● Nowadays, software has become a ● commodity This model is not sustainable ● Master on Free Software
  4. 4. Best knowledge Developers as employees of your ● company Services based on that knowledge ● Maintenance – Assistance – Teaching – Modifications and adaptations – Master on Free Software
  5. 5. Best knowledge with limitations Some limitations added to the project ● Proprietary parts, etc. ● Master on Free Software
  6. 6. Source of the project Who knows better a project than the ● people who develop it? Very good for corporate image ● Also the variant with some limitations ● Newest versions start as proprietary – Always libre software, but advanced – distribution only for customers Master on Free Software
  7. 7. Dual licensing A libre version, but also a proprietary one ● Some customers may be afraid of libre ● software Allows to sell the project as proprietary ● software Master on Free Software
  8. 8. Branding Extra price because of the brand ● Master on Free Software
  9. 9. Hecker classification http://www.hecker.org/writings/setting-up-shop.html ● Master on Free Software
  10. 10. Hecker classification Support Loss Widget seller leader frosting Service Brand Sell it enabler licensing Free it Software Accesorizing franchising Master on Free Software
  11. 11. What about monopolies? Is it possible to establish a monopoly with ● a libre-based business model? Are monopolies something good for the ● economy? And from the social point of view? ● No competition means no innovation ● Master on Free Software
  12. 12. How monopolies are encouraged Data format. Locking users. ● Distribution chains ● Marketing ● Teaching investment ● Pre-installed software ● Master on Free Software
  13. 13. Monopolies Taking in account the previous slide: ● What is the most likely situation with ● proprietary software? What is the situation with libre software? ● Master on Free Software
  14. 14. Examples and questions Let's see some examples... ● Master on Free Software

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