Language Selection

English French German Italian Portuguese Spanish

Open-source companies chase steady money

Filed under
OSS

When entrepreneur Byron Sebastian started his company last year, he set his sights on the business software industry's ultimate cash cow: maintenance contracts.

Rather than charge large up-front fees for a product, his company, SourceLabs, will try to siphon off some of the millions of dollars corporate customers earmark for support. Like a growing number of start-ups, Sebastian's weapon of choice is open source.

The spread of open-source software, which generally is freely available, allows smaller companies to compete for maintenance money that until now has been locked up with incumbent software vendors, he said.

"Open source creates a competitive market for support and maintenance contracts," Sebastian said. "For the first time, you can build a successful business by being great at that, rather than just being mediocre."

Many industry veterans argue that open source is accelerating a shift that has been going on in the software industry for some time: Rather than hinge their business on big-ticket license contracts, software providers increasingly rely on recurring maintenance revenue.

And because most open-source tools don't have license fees attached to them, commercial open-source companies are often forced to build their businesses around services revenue, in the form of support, up-front installation or training.

With this model, purchasing software is more like committing to a yearlong cell phone contract--and less like buying a car with a large cash outlay and making regular payments later.

Although upstart open-source companies are relatively small and untested, the services-led business model reflects how more value is being attached to follow-on services than the actual the software, analysts and industry executives say. In fact, this week, industry executives at the Open Source Business Conference in San Francisco will consider the impact of open-source products on how software is acquired.

Full Story.

More in Tux Machines

Leftovers: Software

Emulation or WINE

Fedora: The Latest

  • New "remi-php71" repository
  • PHP on the road to the 7.1.0 release
  • First round of Fedora 24 Updated Lives now available. (torrents expected later this week)
    As noted by my colleague on his blog the first round of F24 Updated Lives are now available and carry the date 20160720, Also as mentioned last week on his blog F23 Respins are not going to be actively made, however we and the rest of the volunteer team will field off-off requests as time and resources permit. We are considering a new/second tracker for the Updated Spins but as of today there are only .ISO files available at https://alt.fedoraproject.org/pub/alt/live-respins [shortlink] F24 Live-Respins . The F24 respins carry the 4.6.4-200 Kernel and roughly ~500M of updates since the Gold ISOs were released just 5 weeks ago. (some ISOs have more updates, some less)

Leftovers: Ubuntu

  • Snappy Packaging Happenings In The Fedora, Arch Space
    This week Canonical hosted a Snappy Sprint in Heidelberg, Germany where they worked to further their new package management solution originally spearheaded for Ubuntu Touch. This wasn't an Ubuntu-only event, but Canonical did invite other distribution stakeholders. Coming out of this week's event were at least positive moments to share for both Arch and Fedora developers. The Arch snaps package guy made progress on snap confinement on Arch. Currently when using Snaps on Arch, there isn't any confinement support, which defeats some of the purpose. There isn't any confinement support since it relies upon some functionality in the Ubuntu-patched AppArmor with that code not yet being mainlined. Arch's Timothy Redaelli has got those AppArmor patches now running via some AUR packages. Thus it's possible to get snap confinement working on Arch, but it's not yet too pleasant of an experience.
  • PhantomJS 2.1.1 in Ubuntu different from upstream
    At the moment of this writing Vitaly's qtwebkit fork is 28 commits ahead and 39 commits behind qt:dev. I'm surprised Ubuntu's PhantomJS even works.
  • Ubuntu 16.04.1 LTS released
    Ubuntu 16.04 is a LTS version of Ubuntu.Now Ubuntu team has announced the release of it's first point release,Ubuntu 16.04.1.This first point release includes many updates containing bug fixes and fixing security issues as well and as always what most of users want from a distribution and most of distributions tries to perform,Stability.This release is also well focoused on stabilty as Ubuntu 16.04.