Open Source Business Issues

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Sep13

Open Source Business Issues

Linda Chan

September 13, 2006

Know More: Technology 2.0, Technology

On September 13, 2006, Fred Greguras, Of Counsel, Corporate Group at Fenwick & West, LLP moderated a discussion in Mountain View, CA on open source business models.

Though open source is increasing in acceptance in operating systems, web servers, and applications, there are many issues in terms of sales strategy and channels, competition, and venture investing for open source businesses.

Low development costs do not by themselves translate to a market for open source software or its related services. Customers seek solutions, resulting in a need for companies engaged in open source to provide incentives in order to convince customers into needing a product or service.

Though software is offered for free, there must be community awareness and market validation of the technical quality for a component or integrated stack. Even though an open source product may be a less expensive alternative to a brand name competitor, the functionalities must be reliable enough in order to persuade a case for migration.

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