This is an interesting article, though he is quite wrong.  The business 
model for open source software companies is ridiculously simple, which is 
why so few people really understand it.

First of all, software, especially OSS, is not designed to be static and
completed all at once for the first release, and we are a very long way
from completely satisfying the demand of new and better software.  Given
this practically limitless need for new and improved software, not to
mention the need for bug patching and support, there is obviously
extensive, sustainable revenue available for such service, and I know at
least Matthew Suzlik knows this.  If your software is valuable, someone
will pay you to maintain/develop it.

Why did AT&T, a software _consumer_, commission UNIX and sponsor the
development of the C and C++ programming languages?  IBM pours millions of
dollars into Linux because IBM has perpetual need for a new and better
Linux, and they also know that if they don't pay for it, it is not
guaranteed to be developed, at least not at the rate for which they can
afford.  Why does IBM do this even though all of their expensive work is
up on display and available gratis at kernel.org?  For that very reason.  
Many people intelligent enough to hack through it are capable of
discovering or fixing problems unseen by IBM's commission.  Therefore, IBM
not only gets what they want by paying for it, but also garners gratis
improvement and value from other, perhaps simmilar, parties.

The gratis in free software flows both ways.


Justin


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