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Making Money from Open-Source Hardware Projects

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David Mellis

This document discusses business models for making money from open-source hardware like Arduino. It describes Arduino's open-source electronics platform and value chain from hardware to software to community. It then outlines several business models such as selling kits, commercial products, and consulting that open-source hardware companies use while still protecting their intellectual property and brand. The document concludes by questioning whether open-source is always needed, how much work users will do themselves, and whether making money from open-source hardware is wrong.

Self ImprovementTechnologyNews & Politics
1 of 35
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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