Short bio: Computer Scientist, FOSS supporter (read more)
Tux Machines (TM)-specific
Companies who have previously relied upon software to generate revenue will see financial decline if they take the open source road. This decline however is to be short lived and in the long run will prove to be a power play that will pay off in the future and here is why.
SUN Microsystems is a company who had previously generated alot of revenue by selling hardware and the Solaris UNIX operating system. A while ago, SUN decided to take the leap toward the open source way of doing business. This has resulted in loss of revenue and declines in sales. I have read articles about the death of SUN on the New York Times website over the past few weeks.
SUN has made moves to open source the Solaris operating system & various other software.