Making Money in the Bazaar, Part 1
Capital is the fuel for companies that will serve any new market. This money may come from the on-going operations of the business or from banks or investors. What is the current environment for getting this funding?
Venture capitalists, the investment partnerships that fund high-risk/high-return companies, are skeptical so far. Their analysis of these opportunities keeps coming back to a critical point: Open Source, by definition, eliminates the barriers of entry to a market. How can a company build a sustainable market advantage if their work can immediately be used by a competitor?
Given this limit on the upside, only a limited number of open-source companies have received funding. These companies have identified key factors to protect them from competitors. For Red Hat, it is a strong brand. For Sendmail, it is having an open/closed mix in their software product line. For a company like Cobalt Networks, it is combining closed hardware with open software. As this market matures, more companies may achieve profitability and attract investment dollars for everyone.
Until then, companies must bootstrap themselves. Ironically, this is feasible because of those same low barriers to entry that scare off investors. An open-source company can build on the past efforts of others, meaning less capital is required to start the company.
In summary, what are the problems that companies must solve in order to grow the market in new directions?
The financial motivation for innovation must be stronger. Most of the current successful business models other than consultants make money off “secondary” services, rather than the software development itself.
Open Source is still largely “by developers, for developers”. To achieve mass market success, it must become more customer-driven and consumer-friendly.
Traditional software products harness the free market to solve these issues. Consumers pay to buy a software product if it meets their needs, which means it must be very polished. Successful products are profitable for the companies that create them. Unsuccessful products die off. Through these mechanisms, good developers make a living and consumers get good choices.
Open Source needs to create systems to provide these consumer checks and balances.
The business models described throughout this article are by no means a comprehensive list. This is a young market we are only beginning to understand. It could yet defy the skeptics and evolve into something that serves customers better and is financially strong.
Part two of this series will explore one particular possibility in this universe of interesting but unproven ideas—a consumer co-op for software contracts. It uses the Web to let consumers commit funds up front to pay for the development of specific applications, feature enhancements or bug fixes critical to them. Resources are pooled, so each person pays only a small portion of the total cost. It is a system compatible with, and tailored to, Open Source. I will analyze this idea in detail, describe an attempt to create a web service which provides the necessary mechanisms and speculate how this system might affect the progress of the open-source market.
With this idea and many others, the open-source market is a fascinating mix of possibilities and dangers. In recent years, it has grown from thousands to millions of users. Several profitable companies are now serving the needs of these consumers.
The next few years will certainly see continued innovation from the open-source research community. From the business side, it remains to be seen whether the current momentum will continue or be struck down by market realities. It may very well depend on the innovations created by the upcoming generation of open-source entrepreneurs. It's a free market. May the best products win.
Practical Task Scheduling Deployment
July 20, 2016 12:00 pm CDT
One of the best things about the UNIX environment (aside from being stable and efficient) is the vast array of software tools available to help you do your job. Traditionally, a UNIX tool does only one thing, but does that one thing very well. For example, grep is very easy to use and can search vast amounts of data quickly. The find tool can find a particular file or files based on all kinds of criteria. It's pretty easy to string these tools together to build even more powerful tools, such as a tool that finds all of the .log files in the /home directory and searches each one for a particular entry. This erector-set mentality allows UNIX system administrators to seem to always have the right tool for the job.
Cron traditionally has been considered another such a tool for job scheduling, but is it enough? This webinar considers that very question. The first part builds on a previous Geek Guide, Beyond Cron, and briefly describes how to know when it might be time to consider upgrading your job scheduling infrastructure. The second part presents an actual planning and implementation framework.
Join Linux Journal's Mike Diehl and Pat Cameron of Help Systems.
Free to Linux Journal readers.Register Now!
- Stunnel Security for Oracle
- SourceClear Open
- SUSE LLC's SUSE Manager
- Tech Tip: Really Simple HTTP Server with Python
- Murat Yener and Onur Dundar's Expert Android Studio (Wrox)
- My +1 Sword of Productivity
- Managing Linux Using Puppet
- Non-Linux FOSS: Caffeine!
- Doing for User Space What We Did for Kernel Space
- Google's SwiftShader Released
With all the industry talk about the benefits of Linux on Power and all the performance advantages offered by its open architecture, you may be considering a move in that direction. If you are thinking about analytics, big data and cloud computing, you would be right to evaluate Power. The idea of using commodity x86 hardware and replacing it every three years is an outdated cost model. It doesn’t consider the total cost of ownership, and it doesn’t consider the advantage of real processing power, high-availability and multithreading like a demon.
This ebook takes a look at some of the practical applications of the Linux on Power platform and ways you might bring all the performance power of this open architecture to bear for your organization. There are no smoke and mirrors here—just hard, cold, empirical evidence provided by independent sources. I also consider some innovative ways Linux on Power will be used in the future.Get the Guide