Learning from open source collaboration
Open-source code is generally great code, not requiring much support. So open-source companies that rely on support and service alone are not long for this world. The reason that the software is so good, lies in the collaboration model.
In an article in Businessweek of December 1, 2008, Stuart Cohen claims the present business model (making money from freely available software by charging customers for support and add-on features) is broken.
"Open-source code is generally great code, not requiring much support. So open-source companies that rely on support and service alone are not long for this world." The reason that the software is so good lies in the collaboration model.
"We've learned that collaboration results in really good software that everybody can use. Collaboration begets lean development, lower costs, platform independence, and sustainability."
He compares it to sharing a pizza: "While the open-source business model may be broken, the concepts behind open source will continue to bring new value to customers and strong returns to software company stakeholders. But the value is in the collaboration, not in open source itself.
Think about it like going in with others on a pizza. Too often, businesses need to develop software with the same "ingredients" as everyone else, and this offers no competitive advantage. If everyone wants the same pizza, why not share the cost? And by the way, let's not just share the cost; let's make it together so we get it just right and know what we're getting."
This is where collaboration works best. Companies today are coming together to form "communities" of subject matter professionals—executives, business managers, doctors, or researchers—to define software that can be produced at much lower cost. The cliché that everyone wins may be corny, but it's true here. And hey, it's the way the best open-source projects always started.
But today, open source is the means. These "communities" of subject matter experts are using it to build their applications because it's open and low-cost, but in the end, it doesn't really matter if the final product is available via subscription, delivered as a service over the Web, or licensed under the General Public License that governs free software.
Unless open-source providers find new ways to add value for their customers, especially in this economic environment, the growth of their companies is at serious risk."
