Business Models
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  • 1. Business models Course: Introduction to libre software Israel Herraiz <herraiz@gsyc.es> th A Coruña, November 9 2007 Master on Free Software
  • 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. 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. Best knowledge Developers as employees of your ● company Services based on that knowledge ● Maintenance – Assistance – Teaching – Modifications and adaptations – Master on Free Software
  • 5. Best knowledge with limitations Some limitations added to the project ● Proprietary parts, etc. ● Master on Free Software
  • 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. 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. Branding Extra price because of the brand ● Master on Free Software
  • 9. Hecker classification http://www.hecker.org/writings/setting-up-shop.html ● Master on Free Software
  • 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. 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. How monopolies are encouraged Data format. Locking users. ● Distribution chains ● Marketing ● Teaching investment ● Pre-installed software ● Master on Free Software
  • 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. Examples and questions Let's see some examples... ● Master on Free Software