Brief introduction to theOS business modelspar : Rahmo Mohamed CC salon Open Taqafa .2 20 ctob 2012
introductionwe are not speaking about something specificthis is just an introduction, you can innovateand creat your own business model, stimulatingthe innovation is the mean goal of thispresentation
we speak about : Open sourceaccording to the first two lines of the definitionin wikipedia its :" open source is a philosophy, or pragmaticmethodology that promotes free redistributionand access to an end products design andimplementation detail "
we speak about : business modelA business model describes the rationale ofhow an organization creates, delivers, andcaptures value (economic, social, cultural, orother forms of value). The process of businessmodel construction is part of business strategy.if you wonder this is wikipedia again
how i made this presentation ?i was reading .... then i found an otherpresentation that contain all the categories iwant ... i took them from it , thank you : SwatiSani C.E.O. SANIsoft , Nagpur, India, i reallydont know you but you did save my life you area dude !and also Naomi Hoffman for the paper OpenSource Software
we are not sayingthe propriety software is bad, and all thisbullshit about comparison between this and thatwe are just speaking about what exist, whatcould be done, to explain to people howbusiness works and how they can make moneyprograming those stuffs.
Categories● OSS Tools and Applications● Products and Services● Marketing
Support SellersIn this model, you give away the software product, but selldistribution, branding, and after-sale service. This is whatRed Hat and Cygnus are currently doing.● Base software free● Sources of revenue ○ media distribution ○ Branding ○ Training ○ Consulting ○ custom development ○ post-sales support
Loss LeaderIn this model, you give away open-source as aloss-leader and, temporarily, market position forpotential future sales for proprietary software.● Build the brand and reputation● Add Value to the traditional products :making them more functional and useful● Increase the overall base of loyal customers
Widget FrostingIn this model, a hardware company (for whichsoftware is a necessary addition but strictlya cost rather than profit center) goes open-source in order to get better drivers andinterface tools cheaper.
AccessorizingSelling accessories - books, compatiblehardware, complete systems with open-sourcesoftware pre-installed. It is easy to trivialize this(open-source T-shirts, coffee mugs, Linuxpenguin dolls) but at least the books andhardware provide some clear successes:OReilly Associates, SSC, and VA Researchare among them.
Software Franchising● Lack marketing power?● Give your product free to the appointed franchisees Train them● Revenues would come from sources such as sales of franchises and royalties based on franchisees revenues
Sell it, free it !● Loss Leader model repeated and extended through time● Sell your product the traditional way for adding to product life cycle, open it after a certain length of time● Timing: When you free it is very important Your customers pay a premium for the value of having the software earlier rather than later
Dual Licensing● Non Commercial usage are licensed under one of the open source license (Most often GPL)● Commercial usage Charged
Brand Licensing● Open the source of your product but● Retain brand reminiscence and Intellectual Property rights● Customers pay for license to use your product
conclusionyou can have your own business model , dontbe stressed be your self and do business itseasy even if it looks hard but if you dont take itthat serious it will be easy