

Ask HN: Thoughts or Resources on Monetizing Open Source? - Mz

I am nearly done reading &quot;Free as in Freedom.&quot; I am curious to hear feedback, examples or case studies and reading recommendations concerning monetizing open source software.<p>Thanks.
======
mindcrime
Speaking as the founder of an "OSS startup" here are a few observations &
thoughts:

The ultimate case-study is probably Red Hat.[1]

My perception is that their subscription model is the best route to "selling"
open-source software. Having observed RH for years, both from within and
without, their model just seems to work. And, FWIW, it's the same model we're
pursuing at Fogbeam Labs[2]. We can't say yet if we'll be successful with this
model, but I'm confident enough in it to make it the initial plan.

The important point here, I think, is that the product being "sold" is an
enterprise play... it's something companies will pay where the thing they're
_actually_ buying isn't the actual raw bits (you can get 99.9% identical bits
for free by downloading CentOS), but rather the _comfort_ and the risk-
mitigation, and the "somebody to call at 3am" and the "somebody to sue"
factor. Many managers in companies just plain want there to be a company
backing any product they use - and they want an ecosystem with support, and
consultants and training and what-not.

The net-net of that observation? The RH subscription model probably works fine
if the OSS you're monetizing is something that will be used by big companies.
Otherwise, this model may very well not apply.

I'll also expand on this by saying that RH have other revenue streams besides
subscriptions... there is training, certificiations, and professional services
among others. Likewise, when we get "off the ground" with our products, we
expect to offer training, certifications, and services along with the actual
subscriptions. And, in our case, the way our offerings work, lends itself to
the possibility of having some value-added "data as a service" offerings that
complement the products, that could constitute another revenue source. We'll
also be looking to take our product platform(s), build certain specializations
of them, and offer those as SaaS offerings. That latter plan might be a good
model for others looking to monetize OSS, although I can't swear to it.

[1]:
[http://en.wikipedia.org/wiki/Red_Hat](http://en.wikipedia.org/wiki/Red_Hat)

[2]: [http://www.fogbeam.com](http://www.fogbeam.com)

~~~
Mz
Thanks.

