Wednesday, August 6, 2014

How Open Source Companies Stay Profitable

While it's true that there are many open source solutions that both companies and individuals can acquire and use at no cost, the notion that the phrase "open source" equates with the word "free" is simply not true. Open source projects are generally developed within communities of enthusiastic programmers who often voluntarily contribute their time. Still, common sense belies the fact that there would be open source companies, like Red Hat, capable of generating more than $1 billion of revenue by offering free products. So while there are many open source solutions that can be legally obtained and utilized without opening your wallet, there are also a slew of them that cost money. Businesses also make money off open source products in a variety of other non-traditional ways which we'll explore later in the article. But before doing that, let's take a look at why the confusion surrounding the costs associated with open source software exists in the first place.

It's not "Free", It's "Free"

According to the Open Source Initiative, "free software" and "open source software" are interchangeable phrases. It's just that the word "free," in this case, doesn't mean "without cost." Instead, it has to do with being liberated from the traditional walls of proprietary solutions, as programmers are able to use open source code as a foundation upon which to build. That's one of the primary allures of open s [...]

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