We know that the open source + paid support business model works
for software products that have extremely large numbers of users,
but does it scale to products with medium or small numbers of
users?
Software is often described as a stack (see the simplified
version below).
Vertical Applications [Installed base = small]
————————–
Middleware (e.g. Database) [Installed base of MySQL = 12
Million]
————————–
Operating System [Installed base of Windows = 1Billion+]
Companies in the operating system layer typically have large
numbers of users with a small license fee per user. This dynamic
makes it relatively painless for a company to forgo a small
license fee in exchange for a larger userbase, and then make
money on support. For example, an open source company might forgo
the $100 license fee, but charge $15 a seat for support. With
large numbers of users, the …
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