Making Money From Open Source Hardware

Making Money from Open-Source Hardware David A. Mellis Reboot11 – 26 June 2009 – Copenhagen

Introductions

Me Arduino Copenhagen Institute of Interaction Design MIT Media Lab

Open-Source Hardware Provision of the digital artifacts necessary to produce, understand, and modify a piece of hardware.

Arduino Open-source electronics prototyping platform. Hardware Software Community

Value Chain

“I don't want to sell anything, buy anything, or process anything.... I don't want to sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought, or processed, or repair anything sold, bought, or processed.” —John Cusack, Say Anything

ArduinoTM

Advantages Disadvantages Small capital investment Small proﬁt margin Few expenses No barrier to competition Limited risk Have to protect the name Flexibility Visibility

Arduino

Open-Source Software

Manufacturers

Distributors

Bundlers

ARDX Experimentation Kit From .:Oomlout:.

Business Models

Selling Kits Photo by Zach ‘Hoeken’ Smith

Open Source Hardware Reserve Bank

Selling Commercial Products http://www.ﬂickr.com/photos/avenafatua/2561017754/

Consulting

Don’t people rip you off ?

Contributions

Implications

There’s real money here.

The people who invest (risk) money are the ones who make money.

Open-source keeps you honest.

Questions

Is there anything new here?

Does it need to be open-source?

Is it wrong to make money from this?

How much will people do themselves?

Thank you.

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Making Money From Open Source Hardware

by David Mellis on Jun 27, 2009

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Making Money From Open Source Hardware — Presentation Transcript