Open Source Matters
The open source business model relies on shifting the commercial value away from the actual products and generating revenue from services surrounding the product such as systems integration, support, tutorials and documentation.
In our practice, the value of software products approaches zero in the fast-paced, highly-customized, ever-changing world of information technology and because of this we trully believe that in the real-world, the value of software lies in the value-added services surrounding products and not in the product itself or any intellectual property that the actual product represents.
The major benefit of business is that with open source products business might cut down owning cost of products they use for critical business needs. But it is not simply an acknowledgment of the revenue streams generated by services surrounding the actual product ('product halo') that makes open source a compelling business strategy. Open source also cuts down on essential research and development costs while at the same time it is speeding up delivery of new products.
This paradoxical situation arises from the fact that within an open source project, the community members themselves provide free research and development by contributing new solutions, features, and ideas back to the community as a whole. The company that sits at the center of any successful open source project may reap the rewards of the work of thousands of highly-skilled developers without paying them a cent.
From business standpoint, open source product brings more benefits for business if there is a support contract with a company or even a contractual developer who can work with source code and provides updates and fixes in time not to mention benefits from community contributions and thus the use of more stable, advanced and constantly evolving product.
In fact, in the web technology space, almost every global standard has been based upon open source technology.
Summarizing everything, by using the open source technology model, we can create use a superior product, which immediately has a competitive advantage, and which generates multiple scalable revenue streams while being freely available throughout the community.



