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Selling Open Source-as-a-Service?

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Open source as a service
In one of my last blog articles, I came to the conclusion that the traditional economic model for open source is much challenged and open source companies fighting a hard fight against branded companies.

Though open source is free for developers and users, it is hard to keep up with the development speed that proprietary companies provide.

We discovered that Red Hat has a model that works with distributing open source software for fee but charging for support and management services. However, not many other companies were able to adapt this model very successfully.

A New Model: Open-Source-as-a-Service

Models, which seems to be a valuable opportunity allow open source companies survive, may provide open source as a:

  • Service comparable to models of cloud computing or Software-as-a-Service (SaaS)
  • Software appliance
  • Hardware appliance

With these business models companies can provide open source far more strong and flexible, boost innovation of their code base and facilitate continuous investments in software development.

Many new companies depend on standardized open source elements that are usually reused and updated by the industry. Companies using those open source building blocks are normally more than happy to contribute to their ongoing success and altogether are ever more becoming the foundation recent cloud and SaaS offerings.

The one or the other company may even develop additional open source software products that are specific to their business or build proprietary software to enhance the product, which all in all makes the value of the open source significantly grow.

Even big and world-wide known companies including Amazon, Facebook or GitHub that provide their individual proprietary code, adopted this concept of Open-Source-as-a-Service and now sell the combination of open source code and proprietary code product as a service.

Combining open source with a service or appliance model is creating amazing results and transforming in the moment our software landscape.

Using this concept, created the foundation for the accelerating cloud and SaaS adoption that is outracing on premise deployments. That means that older methods of installing and customizing software on client’s computers that gets managed through their own data center gets outdated and substituted by Open-Source-as-a-Service plus proprietary code solutions.

In summary, building Open-Source-as-a-Service products combined with branded code may represent a significant shift in enterprise IT that can result in reduced licensing and maintenance costs, higher adaptation rates, quality product delivery, fast and effective product implementation and increased user satisfaction.

see: http://www.atomrain.com/it/technology/money-matters-open-source, http://www.atomrain.com/it/software-process/ode-open-source


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