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[News] Google Makes $Billions by Giving Software and Services for Free

  • Subject: [News] Google Makes $Billions by Giving Software and Services for Free
  • From: Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx>
  • Date: Sun, 25 Nov 2007 00:52:06 +0000
  • Newsgroups: comp.os.linux.advocacy
  • Organization: Netscape / schestowitz.com
  • User-agent: KNode/0.10.4
Open-source software gamble for Google

,----[ Quote ]
| Can something you give away for free turn into a gold mine? That's the 
| multimillion-dollar question Google Inc. is betting on with its push into 
| open-source software.  


Google gains at the expense of: publishers, media companies, traditional
advertisers, proprietary software companies (fierce lockin). Google offers its
services and software to everyone, without limits based on economic status. It
seems like a win-win situation (Google-consumer), with the exception of greedy
corporations that suck money without the consumer's own control.


Top Five Open Source Business Models You Never Heard Of

,----[ Quote ]
| The art of “selling” or generating revenue from open source is a topic of 
| growing importance as open source takes a larger piece of the software 
| business. In the past, open source revenue has largely been associated with 
| services marketed by many top tier Linux companies: Support, middleware 
| solutions, etc.    


How to make money by giving stuff away

,----[ Quote ]
| RedHat CFO Charlie Peters said this week that the key to success
| is to "convince customers of the value of moving from free to paid".
| Largely because JBoss is a free download, an estimated 11 million
| people are using it. Now if they can move even a small fraction of
| those customers into the paying column, that will be a significant
| source of revenue.
| [...]
| There is something of a snowball effect here. As you bring more
| people into your "community", the community becomes more attractive
| (because of new content, shared knowledge, buzz, etc.), which drives
| even more people in.


How to use open source as a power marketing tool

,----[ Quote ]
| There are a number of ways traditional software vendors can participate
| in the open source software community. They circulate around open
| source licenses, such as the GNU General Public License (GPL), and
| how to leverage open source software as a marketing tool.
| [...]
| Traditional software vendors need to recognize the shift taking place
| is driven not only by successful open source projects, but also by the 
| rapid and broad adoption of open source in the customer marketplace. The 
| numbers behind open source adoption are compelling. Linux in both the 
| United States and Asia is the fastest growing operating system ever. As 
| measured by hostnames, Netcraft reports that the Internet has grown 26.1 
| percent over the past 12 months, over 67 percent of it served up by open 
| source Apache servers.


So what is open source code?

,----[ Quote ]
| The drawbacks are that there is not as much money in open source development. 
| Money can be made, but it is easier for the big companies to close things up, 
| get people hooked on their code, then charge them lots for the next upgrade 
| to whatever the big company decides to give them. You can make money from 
| open source, and one way is to do like Terra Soft Solutions (TSS) is doing. 
| Pre installing Linux onto PS3 can make money. Releasing an entire operating 
| system to the paying customers first before releasing it to the public a few 
| weeks later can make money. Selling support can make money. Selling 
| supercomputer services can make money. Did I mention that a variant of Yellow 
| Dog Linux (YDL) is used by TSS to build supercomputers?         


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