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Open Source Business Models

The cluster discusses whether open source is a viable business model, exploring monetization strategies like SaaS, freemium, support services, and open core, with examples from companies such as RedHat and GitLab.

📉 Falling 0.4x Open Source
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Top Contributors

davidw (36) pjmlp (33) sytse (29) jraph (28) dragonwriter (28)

Keywords

e.g IT venturebeat.stfi SUSE FOSS OSS MARKETING werd.io RedHat SCSL open source open source business business model model money business models redhat companies

Sample Comments

ddevault • Jan 28, 2021 • View on HN

Open source is not a business model. You can make money in open source, but not by accident. You have to find a viable business which incorporates open source. One common approach is SaaS, where the software is open source and you provide value by selling hosted versions, with paid support, competing on the reliability and utility of your infrastructure, expertise of your support staff, and integrity of your business.

userbinator • May 31, 2021 • View on HN

Open source = "our code isn't worth much anymore, we have other sources of revenue now".

krung • Nov 29, 2010 • View on HN

"I still have this urge to go open source" -- perhaps you try the Freemium Model ?

rglover • Jan 14, 2019 • View on HN

Open source works if you:- Treat your OSS projects like MARKETING tools, not revenue streams.- Offer a freemium version of what you produce (e.g., offering a "Pro" version that's well-maintained and adds valuable features).- Back your projects with services (e.g., consulting, fast support, "off the shelf" implementations, enterprise workshops, etc.).- Back your projects with paid support.- Scale your performance expectations of the business to the cash flo

pelasaco • Mar 19, 2019 • View on HN

not sure, lot of companies make Money with Open Source (redhat, SUSE, Gitlab) or companies like Github, which earns money with Open Source, without selling Open Source products... Maybe the problem isn't if the code is closed or not, but the product itself?

jbob2000 • Jul 9, 2019 • View on HN

Open source doesn't make them that money, servicing open source does.

schwartzworld • Feb 14, 2023 • View on HN

What open source needs is to be completely owned by private companies?

zpallin • Jan 17, 2020 • View on HN

If that's the case, then why open source it at all? Just make people pay.

zubairov • Sep 19, 2014 • View on HN

Open source is a different business model - you won't be able to do SaaS and open source at the same time. You could try open core where open source would be your marketing channel, this one works - e.g. Talend or RedHat.

benwerd • Dec 9, 2015 • View on HN

Hello! I've created two open source projects (elgg.org and withknown.com). I'd advise you to wait.Also, I wrote a long post about open source businesses. http://werd.io/2015/open-issues-lessons-learned-building-an-...And here's a different take, from Lightspeed Ventures. <a href="http://venturebeat.stfi.re/2015&#