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	<title>Comments on: Strategies for creating business opportunities based on open source software</title>
	<atom:link href="http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/feed/" rel="self" type="application/rss+xml" />
	<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/</link>
	<description>A blog for the enterprise open source community</description>
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		<title>By: Instant Business Letter Kit. &#124; WordPress Source</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-474056</link>
		<dc:creator>Instant Business Letter Kit. &#124; WordPress Source</dc:creator>
		<pubDate>Tue, 29 Sep 2009 19:01:10 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-474056</guid>
		<description>[...] 451 CAOS Theory » Strategies for creating business opportunities &#8230; [...]</description>
		<content:encoded><![CDATA[<p>[...] 451 CAOS Theory » Strategies for creating business opportunities &#8230; [...]</p>
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		<title>By: OK, &#8220;Open Source&#8221; Isn&#8217;t a Business Model&#8230; So?&#160;&#124;&#160;RSands Consulting</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471969</link>
		<dc:creator>OK, &#8220;Open Source&#8221; Isn&#8217;t a Business Model&#8230; So?&#160;&#124;&#160;RSands Consulting</dc:creator>
		<pubDate>Wed, 23 Sep 2009 20:17:55 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471969</guid>
		<description>[...] great blog posts from Simon Phipps (I commented), Stephen Walli (I also commented), and Matt Aslett debate the question of whether there is such as thing as an open source business model. Everyone [...]</description>
		<content:encoded><![CDATA[<p>[...] great blog posts from Simon Phipps (I commented), Stephen Walli (I also commented), and Matt Aslett debate the question of whether there is such as thing as an open source business model. Everyone [...]</p>
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		<title>By: Mind Your Own Business (Model) &#124; TuxWire : The Linux Blog</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471925</link>
		<dc:creator>Mind Your Own Business (Model) &#124; TuxWire : The Linux Blog</dc:creator>
		<pubDate>Wed, 23 Sep 2009 16:41:24 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471925</guid>
		<description>[...] but the &#8220;there is no open source business model&#8221; discussion has woken up again, with Matthew Aslett and Stephen Walli in particular chipping in [...]</description>
		<content:encoded><![CDATA[<p>[...] but the &#8220;there is no open source business model&#8221; discussion has woken up again, with Matthew Aslett and Stephen Walli in particular chipping in [...]</p>
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		<title>By: Simon Phipps</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471848</link>
		<dc:creator>Simon Phipps</dc:creator>
		<pubDate>Wed, 23 Sep 2009 12:31:59 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471848</guid>
		<description>I&#039;ll repeat what I said on Stephen&#039;s post and go further than you, Matthew. To assert there is &quot;an open source business model&quot; is to lose sight of the nature of open source. It may have been a fair thing to do when open source has a novelty to business minds, but even considering there &lt;i&gt;could&lt;/i&gt; be such a thing leads people to misunderstand open source and treat the exceptions - like MySQL - as the rule. Not that it&#039;s wrong to monetise ubiquity at the point of deployment by delivering the value that allows scaling. It&#039;s just most open source community members don&#039;t do that.

An open source project is a community of participants that gathers around a free software commons, with each participant aligning a fragment of their interests with the interests of all the others there in order to collaborate. The OSI-approved license gives them the freedom to do so. Each participant comes to the community with their &lt;i&gt;own&lt;/i&gt; individual interest, which in the case of a business will stem from their &lt;i&gt;own&lt;/i&gt; business model.

An open source community is thus a mix of many motivations. If there&#039;s only one motivation present - only one &quot;business model&quot; - it&#039;s unlikely there is any true community either. People only care about the business model when there&#039;s only one business; in a real community the only way to get along is to mind your own business (model).</description>
		<content:encoded><![CDATA[<p>I&#8217;ll repeat what I said on Stephen&#8217;s post and go further than you, Matthew. To assert there is &#8220;an open source business model&#8221; is to lose sight of the nature of open source. It may have been a fair thing to do when open source has a novelty to business minds, but even considering there <i>could</i> be such a thing leads people to misunderstand open source and treat the exceptions &#8211; like MySQL &#8211; as the rule. Not that it&#8217;s wrong to monetise ubiquity at the point of deployment by delivering the value that allows scaling. It&#8217;s just most open source community members don&#8217;t do that.</p>
<p>An open source project is a community of participants that gathers around a free software commons, with each participant aligning a fragment of their interests with the interests of all the others there in order to collaborate. The OSI-approved license gives them the freedom to do so. Each participant comes to the community with their <i>own</i> individual interest, which in the case of a business will stem from their <i>own</i> business model.</p>
<p>An open source community is thus a mix of many motivations. If there&#8217;s only one motivation present &#8211; only one &#8220;business model&#8221; &#8211; it&#8217;s unlikely there is any true community either. People only care about the business model when there&#8217;s only one business; in a real community the only way to get along is to mind your own business (model).</p>
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		<title>By: Carlo Daffara</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471842</link>
		<dc:creator>Carlo Daffara</dc:creator>
		<pubDate>Wed, 23 Sep 2009 12:16:26 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471842</guid>
		<description>I agree with Matt - one of the reasons for our work on OSS business models within FLOSSMETRICS was not motivated by an academic idea of &quot;measuring&quot; something, but through the observation that models (or whatever you want to call them) are distinct, and have properties that impact the development model, the community model, advantages and disadvantages, and by knowing these properties a company can align their strategy better.
In this sense, I may agree with Stephen that there is no &quot;OSS model&quot; - as I wrote before, open source is not something magic that makes the existing economic rules unnecessary or void. It is, however, something different, because it creates differences with the shrinkwrap proprietary model, and these differences may be exploited for increased efficiency. On the other hand, there is no worse result of the &quot;OSS business model myth&quot; than some company blindingly throwing out their strategy to follow the &quot;model du jour&quot; and going out of business.</description>
		<content:encoded><![CDATA[<p>I agree with Matt &#8211; one of the reasons for our work on OSS business models within FLOSSMETRICS was not motivated by an academic idea of &#8220;measuring&#8221; something, but through the observation that models (or whatever you want to call them) are distinct, and have properties that impact the development model, the community model, advantages and disadvantages, and by knowing these properties a company can align their strategy better.<br />
In this sense, I may agree with Stephen that there is no &#8220;OSS model&#8221; &#8211; as I wrote before, open source is not something magic that makes the existing economic rules unnecessary or void. It is, however, something different, because it creates differences with the shrinkwrap proprietary model, and these differences may be exploited for increased efficiency. On the other hand, there is no worse result of the &#8220;OSS business model myth&#8221; than some company blindingly throwing out their strategy to follow the &#8220;model du jour&#8221; and going out of business.</p>
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		<title>By: Matthew Aslett</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471816</link>
		<dc:creator>Matthew Aslett</dc:creator>
		<pubDate>Wed, 23 Sep 2009 11:42:10 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471816</guid>
		<description>Hi Michael,

As you are aware the use of an OSI approved license does not require a collaborative development model, and the license used for a vendor&#039;s *product* is not necessarily the same license applied to the underlying *project*.

The issue then is how and why vendors should engage in collaborative development and how and why vendors should use particular licensing options in order to benefit the vendor, the customer, and the underlying project. I have no doubt that this is completely plain to you, but it is not to others.

So yes the focus is on &quot;what *services*, what *capabilities*, what *value* can be delivered by best use of open source&quot;, and also what approaches to development and product licensing best deliver those.</description>
		<content:encoded><![CDATA[<p>Hi Michael,</p>
<p>As you are aware the use of an OSI approved license does not require a collaborative development model, and the license used for a vendor&#8217;s *product* is not necessarily the same license applied to the underlying *project*.</p>
<p>The issue then is how and why vendors should engage in collaborative development and how and why vendors should use particular licensing options in order to benefit the vendor, the customer, and the underlying project. I have no doubt that this is completely plain to you, but it is not to others.</p>
<p>So yes the focus is on &#8220;what *services*, what *capabilities*, what *value* can be delivered by best use of open source&#8221;, and also what approaches to development and product licensing best deliver those.</p>
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		<title>By: Michael Tiemann</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471804</link>
		<dc:creator>Michael Tiemann</dc:creator>
		<pubDate>Wed, 23 Sep 2009 11:22:35 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471804</guid>
		<description>You say &quot;We know from experience of talking to and working with clients that our report has helped some people/companies to identify the development and licensing strategies they needed to put in place of ??????? to ensure that they are successfully engaging with open source.&quot;

Now I say ??????? because to me the one thing that open source *does* clarify is precisely the question of development and licensing strategies.  The value I would expect you to add is not papering over what the OSI and the open source community have already made completely plain.  Rather, the ??????? of your &quot;business model&quot; discussion should be focused on what *services*, what *capabilities*, what *value* can be delivered by best use of open source.

Surely you understand that by definition, open source licensing is...open source licensing.  There&#039;s not much explaining to do there!</description>
		<content:encoded><![CDATA[<p>You say &#8220;We know from experience of talking to and working with clients that our report has helped some people/companies to identify the development and licensing strategies they needed to put in place of ??????? to ensure that they are successfully engaging with open source.&#8221;</p>
<p>Now I say ??????? because to me the one thing that open source *does* clarify is precisely the question of development and licensing strategies.  The value I would expect you to add is not papering over what the OSI and the open source community have already made completely plain.  Rather, the ??????? of your &#8220;business model&#8221; discussion should be focused on what *services*, what *capabilities*, what *value* can be delivered by best use of open source.</p>
<p>Surely you understand that by definition, open source licensing is&#8230;open source licensing.  There&#8217;s not much explaining to do there!</p>
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		<title>By: Once More unto the Breach</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-471411</link>
		<dc:creator>Once More unto the Breach</dc:creator>
		<pubDate>Tue, 22 Sep 2009 21:16:40 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-471411</guid>
		<description>&lt;strong&gt;Making Money from Open Source and the Business Model Debate...&lt;/strong&gt;

Matt Aslett makes great observations about open source business models in a recent blog follow-up discussion: I am very glad that they took that decision, because in hindsight the statement “there is no open source business model” would have been.....</description>
		<content:encoded><![CDATA[<p><strong>Making Money from Open Source and the Business Model Debate&#8230;</strong></p>
<p>Matt Aslett makes great observations about open source business models in a recent blog follow-up discussion: I am very glad that they took that decision, because in hindsight the statement “there is no open source business model” would have been&#8230;..</p>
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		<title>By: Matthew Aslett</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-470162</link>
		<dc:creator>Matthew Aslett</dc:creator>
		<pubDate>Fri, 18 Sep 2009 16:33:22 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-470162</guid>
		<description>Michael,

Thanks for your comment. I think the key issue is that it wasn&#039;t immediately obvious to people that open source is not a business model, and that the confusion was potentially detrimental to open source. The thing that triggered the report for me was hearing multiple execs from companies outside open source taking about using &quot;the open source business model&quot; and assuming that it was a fast track to success that went something like:

release software under open source license -&gt; downloads -&gt; ??????? -&gt; profit!

Clearly the more companies followed this misunderstanding the greater the risk that open source would be seen to be failing to deliver on this &quot;model&quot;. We know from experience of talking to and working with clients that our report has helped some people/companies to identify the development and licensing strategies they needed to put in place of ??????? to ensure that they are successfully engaging with open source.</description>
		<content:encoded><![CDATA[<p>Michael,</p>
<p>Thanks for your comment. I think the key issue is that it wasn&#8217;t immediately obvious to people that open source is not a business model, and that the confusion was potentially detrimental to open source. The thing that triggered the report for me was hearing multiple execs from companies outside open source taking about using &#8220;the open source business model&#8221; and assuming that it was a fast track to success that went something like:</p>
<p>release software under open source license -> downloads -> ??????? -> profit!</p>
<p>Clearly the more companies followed this misunderstanding the greater the risk that open source would be seen to be failing to deliver on this &#8220;model&#8221;. We know from experience of talking to and working with clients that our report has helped some people/companies to identify the development and licensing strategies they needed to put in place of ??????? to ensure that they are successfully engaging with open source.</p>
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		<title>By: Michael Tiemann</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-470149</link>
		<dc:creator>Michael Tiemann</dc:creator>
		<pubDate>Fri, 18 Sep 2009 15:59:12 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-470149</guid>
		<description>Matthew,

I&#039;m sure that a writer of your skills could easily publish several reports using the template &quot;X&quot; is not a business model.  For example, it is immediately obvious to me that &quot;Software is not a business model&quot;.  It is equally obvious that &quot;IT is not a business model&quot;.  Indeed, &quot;Technology is not a business model.&quot;

My business model question for you is this: what actual investable hypothesis can be informed from any such perspectives?</description>
		<content:encoded><![CDATA[<p>Matthew,</p>
<p>I&#8217;m sure that a writer of your skills could easily publish several reports using the template &#8220;X&#8221; is not a business model.  For example, it is immediately obvious to me that &#8220;Software is not a business model&#8221;.  It is equally obvious that &#8220;IT is not a business model&#8221;.  Indeed, &#8220;Technology is not a business model.&#8221;</p>
<p>My business model question for you is this: what actual investable hypothesis can be informed from any such perspectives?</p>
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		<title>By: 451 CAOS Theory » Strategies for creating business opportunities &#8230; &#187; Business Search</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-470138</link>
		<dc:creator>451 CAOS Theory » Strategies for creating business opportunities &#8230; &#187; Business Search</dc:creator>
		<pubDate>Fri, 18 Sep 2009 15:31:14 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-470138</guid>
		<description>[...] the article here: 451 CAOS Theory » Strategies for creating business opportunities &#8230;   18 September 2009 6:48am -  Business   &#171; Brazil eyes Amazon sugar ban HK banker jailed for [...]</description>
		<content:encoded><![CDATA[<p>[...] the article here: 451 CAOS Theory » Strategies for creating business opportunities &#8230;   18 September 2009 6:48am &#8211;  Business   &laquo; Brazil eyes Amazon sugar ban HK banker jailed for [...]</p>
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		<title>By: Twitter Trackbacks for 451 CAOS Theory » Strategies for creating business opportunities based on open source software [the451group.com] on Topsy.com</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-470085</link>
		<dc:creator>Twitter Trackbacks for 451 CAOS Theory » Strategies for creating business opportunities based on open source software [the451group.com] on Topsy.com</dc:creator>
		<pubDate>Fri, 18 Sep 2009 13:03:42 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-470085</guid>
		<description>[...] 451 CAOS Theory » Strategies for creating business opportunities based on open source software  blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software &#8211; view page &#8211; cached  An open source blog by The 451 Group. &#8212; From the page [...]</description>
		<content:encoded><![CDATA[<p>[...] 451 CAOS Theory » Strategies for creating business opportunities based on open source software  blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software &ndash; view page &ndash; cached  An open source blog by The 451 Group. &mdash; From the page [...]</p>
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		<title>By: Strategies for creating business opportunities based on open source software &#124; Software Management</title>
		<link>http://blogs.the451group.com/opensource/2009/09/18/strategies-for-creating-business-opportunities-based-on-open-source-software/comment-page-1/#comment-470040</link>
		<dc:creator>Strategies for creating business opportunities based on open source software &#124; Software Management</dc:creator>
		<pubDate>Fri, 18 Sep 2009 10:53:17 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.the451group.com/opensource/?p=1233#comment-470040</guid>
		<description>[...] Read more:  Strategies for creating business opportunities based on open source software [...]</description>
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