451 CAOS Theory 
A blog for the enterprise open source community
100% Open Source
Raven Zachary, May 2, 2006 @ 9:35 pm ETAlfreso, an open source document management vendor, made an announcement yesterday that mostly went unnoticed, but is deserving of mention (and reflection) – it has open-sourced the enterprise edition of its software. Why does this matter?
The trend for venture-funded open source startups has been to provide two software versions – one open source with a base set of features, and one licensed and closed source with enhanced features and support options. The goal here is to generate a substantial user base through open access to the community version with upsell to the licensed version. If the company can build a large enough user base with the open source version, it can sustain a business model on license revenue and support services from the enhanced version by simply converting a percentage of its free userbase. A secondary goal here is to generate a community of developers for the open source version, which benefits the functionality of the enhanced version over time. Free developers coding in support of license revenue. Sounds grand, doesn’t it?!
The problem here is that this is confusing to a lot of people. Is an open source vendor really “open source” when the ultimate goal is to upsell to a proprietary version? If you are a customer of the proprietary version and the vendor goes belly up, you’re in no better shape than you were as a customer of a proprietary software vendor, pretty much.
What Alfresco has done is commit to making its enterprise version open source. Alfresco retains the two version model, but there is source code transparency with both versions. You are still required to pay a license fee to Alfresco if you are a user of the enterprise version, but with access to the source code, you’re in a much better long-term position. This is still one step short of the JBoss model with a single version and a services-only revenue model, but it is 100% open source.
I think this will open up new opportunities for Alfresco and help to legitimize its offering to prospective customers that might have been hesitant before. Presumably, government and educational markets were more sensitive to this issue.
Comments (46) Categories: Licensing,Software
五一归来之——Alfresco开放企业版源码…
乍一看标题：Alfresco Enterprise Edition Goes 100% Open Source，很是兴奋啊，印象中Alfresco有两个版本，enterprise和community版本，前者比后者多了一些功能，比如集群等等（好像有一个对照表，懒得去查…
Our first foreign language trackback. I hope it’s not SPAM.
Raven, what is the license for the Enterprise version? And are there any restrictions on redistribution?
The Alfresco Public License, a derivative of the Mozilla Public License (MPL). There is a section regarding redistribution towards the bottom.
Nice article on Alfresco, thanks
Making revenues from free & open source software is one of the most frequently asked questions these days. While there have been a few successful examples of companies (like MySQL, Red Hat, and as you pointed out JBoss etc) which are making money, I’d surmise that these are still very early days for open source revenue & profit models. Dual licensing, which is what Alfresco’s licensing scheme is mainly about I guess, is also one of the models that is fast catching up…
While open source as an operational paradigm certainly has been having exceptional success against proprietary and closed-software models in the recent past, in my opinion, a lot more thought need to be given and experimentations done before the emergence of viable revenue models for the free & open source models that can successfully compete with the current proprietary software revenue model. Some specifics of the business models are emerging fast, but it will take a few years for the market to test each of these out and hopefully, the fittest will survive.
A site that focuses exclusively on revenue models from open source is Follars.com – Free, Open-source Dollars!
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