sivaji j.g wrote:
> forward message from my friend .
> 
> 
> Is Open Source Software a Race To Zero?
> 
> gozunda writes "My company is an open source software
> vendor/developer. We maintain a popular open source project and keep
> ourselves afloat by producing commercial products derived from or
> extending the value of the core project. Over time we've seen our
> business model eroding as other open source projects produce free
> versions of the same extensions and utilities that are our bread and
> butter. 

Depends on how your friend sees 'software' and how it reflects as a line
item in the books of accounts.

A commonly (mis)used way to view software is as a commodity and hence
living in fear of the next competitor who undercuts your price is a
norm. With the passage of time, software bits would cease to have a
price and the business model around software would have to morph into
something that makes sense socially and economically while being
profitable enough to be sustaining a community. However, that would also
require some overloading of meaning to the term 'software'.

Software businesses based on loss leader model won't work out precisely
because software is not a commodity.

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