The first point: You know as an end user, FOSS rocks and you would want FOSS! Then you may have surely guessed why developing OSS widens your market!

Suppose I have an company that has its own product. Now, Why would I open source it? The main question i feel that a corporate cannot answer to himself is: How is it gonna benefit me if i give away all the efforts of my employees for free?

*Licenses*

I think the first thing that a corporate personnel should understand about is: licenses.

*Many* people I've met have a WRONG idea of open source software. You can always control how the other party uses your software by correctly issuing licenses. You can distribute your product with a restrictive-but-open-source license (such as CC BY-NC-ND 4.0). More about Open source licenses can be searched online!

*See The Another Business Model*

But first, You need to be sure about the benefits of open source softwares from a neutral (non-business) point of view.

1. Bugs
"As a large number of users can access and change the code, bugs tend to be more visible and more rapidly corrected in open source softwares."

2. Customization and Enhancement
An open source software always has large room of customization and enhancement, which is great for end-users. They can just issue another subcontractor to write the enhancements for them or use the software to their own needs. It also provides room for translation of the software to different languages by the people in need.

3. Security
For various reasons, open source software is more secure than the closed source. Many people have the misconception that making the source code open will make the system vulnerable. Incorrect! It just makes your system secure.

Now that some (important) points of OSS are discussed, we finally come to making money.

1. Sell the Service, not the Software!

As mentioned by a lot of good peoples before me, the basic model of Open Source Software is to sell your support! And It's better than selling the software.

2. Your Software Production Costs Are Greatly Reduced!

Since there are a lot of people and organizations involved in making the software, the software production and maintenance costs are reduced.

3. You're Making The World a Better Place.

Well, this is a philosophical point. But you can show your CSR by contributing to open source softwares.

Here are the links that I visited to compile these points. Going through these may give a clear(er) view on open source softwares.

[1] http://blogs.hbr.org/2013/01/yes-you-can-make-money-with-op/ -- Yes, You Can Make Money with Open Source - Igor Faletski - Harvard Business Review

[2] http://www.linuxit.com/Portals/154143/docs/5-common-myths-open-source-infographic.pdf -- 5-common-myths-open-source-infographic.pdf

[3] http://opensourceforamerica.org/learn-more/benefits-of-open-source-software/ -- Benefits of Open Source Software | Open Source for America

[4] http://oss-watch.ac.uk/resources/whoneedssource -- Benefits of open source code

[5] http://eu.conecta.it/paper/Advantages_open_source_soft.html -- Advantages of open source software

[6] http://opensource.about.com/od/basics/tp/5-Ways-To-Make-Money-With-Open-Source-Software.htm -- 5 Ways to Make Money With Open Source Software


On ???????? 07 ????? 2014 07:48 ???????, Sushil Ale Magar wrote:
Hi all,
I'm trying to get some idea about foss. We can generally define what
is foss and how can we get benifits from it as an end user but I don't
have clear idea from the developers point of view. As a corporate
business house, we want profit. we can see many big organisations have
invested on open source project. Why do they invest a lot in foss
project?
I hope you will provide me some ideas and resources from which i can
get clear view.

Best Regards,


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