Xen is one of those things where the market is SO DAMN HUGE that even the very SMALL proportion of money that an open source company can wring from the marketplace is actually non-trivial in an absolute sense. If Red Hat is only monetizing 0.01% of the Linux marketplace, that's still fine, because they are making millions. The best market places seem to be "enterprise" software with large new markets. Examples of success stories are JBoss, Red Hat, Sleepycat, MySQL, and note that the last two are actually "sort of" open source companies, in that they still fall back on the software-for-sale model for revenues.

The trouble with the geospatial marketplace is that it is relatively small, so the small proportion an open source company can monetize is smaller still. The problem with service-oriented FOSS businesses is that they don't make money from software, so the easiest thing to cut in budgeting is core software development. Let the product languish for a while, it doesn't cost you anything as long as service business keeps flowing in. Or, in the case of pure consultancies, don't do any core development at all, just use the software. The service- oriented FOSS business I think has serious structural problems, not around providing good service, but around strong incentives to nourish the underlying software.


On 3-Jan-08, at 8:58 AM, Christopher Schmidt wrote:

On Thu, Jan 03, 2008 at 10:26:51AM -0500, Lucena, Ivan wrote:
Hi all,

I am *not* going to disagree with Andrea, Gilberto, Paul, Howard or
anybody else. I just want to point out a interesting open source
business model that is making a big impact this days. I am talking about
Xen [http://en.wikipedia.org/wiki/Xen].

I keep reading news and more news about new commercial products from big
software companies based on Xen. Is that possible on the GIS world?

Depending on what you're reading (I can't tell from a quick Google which
types of stories you're talking about), I'm not sure how Xen really
plays a part in the commercialization. Xen can be used to host products
in a virtual environment, and if that is the case, there's no money
being made off *Xen*, money is being made off the other software.

I could be wrong. I just didn't find anything to back up either way in
the Wikipedia and related links.

Christopher Schmidt
Web Developer
Discuss mailing list

Discuss mailing list

Reply via email to