This document discusses how to build commercial open source business models. It proposes that a commercial open source business can be constructed through a combination of business models, product and licensing strategies, and leveraging the community. It provides examples of business models for open source software companies, including offering services and commercial licenses. It also discusses the strategy of dual licensing, where identical software is provided under both an open source and commercial license.

1. How to build commercial
open source business models
(short introduction)
Dr. Karl Popp
http://www.drkarlpopp.com
Version 1.3 6/19/2012
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

2. Background information
Business Models, Ecosystems and Partnerships
in the software industry
Profit from Software
Ecosystems
ISBN-13: 978-3842300514
Examples from over 50
software companies
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

3. Question in focus
• Can a commercial open source business
be constructed as a combination of
– Business models
– Product and licensing strategy
– Way to leverage the community?
• I say: YES!
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

4. Commercial Open Source Business Model
Type of
Products/
Services
offered
Intangi Huma
ble n
Creato Invent n/a
r or
Distrib IP n/a
utor distri
butor IP = Intellectual Property
Based on the work by Weill et. al.
Lessor IP Contr
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

5. Commercial Open Source Business Model
• Software vendors can create different
Invent business models for open source
or • Starting with services
IP (consulting, maintenance, support) at
distri the bottom additional business
butor models can be added:
IP – IP Lessor: commercial licenses can be
sold to customers
lesso
– IP distributors: distribute open source
r software
– Inventor: create software
Contr
IP = Intellectual Property
actor
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

6. Open Source Business Model variation:
Dual Licensing
IP Provide
distri Software
Open Source
Software Custo-
butor vendor Provide mer
Commercial
IP Software
lesso
Identical software or software versions
r are provided
under two different licenses
Products,
Assets or
Services
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

7. Summary
• A commercial open source business can
be constructed as a combination of
– Business models
– Product and licensing strategy
– Way to leverage the community
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

8. The offering
• Learn where you are and when you like
– Books or On demand video lessons
print or iBooks
or kindle
Profit from Software ProfitfromSoftwareEcosystems.
Ecosystems mindbites.com
ISBN: 978-3842300514
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM