There’s actually no single “correct” answer! It all depends on

1. where in a stack the component lives;
2. the state of the market for that component region;
3. sometimes even geographic location of the user comes into play.

Yes, for OSS projects modularity is handy in terms of handling contributions, but modularity may not be the best way to deal with a problem in a certain market state and situation!

Research has shown (see, for example, “The Innovator’s Solution” by Clayton Christensen) that the “integrated” region over time actually shifts to a subcomponent of an original integrated component that has since gone modular. An interesting example of this for MySQL its pluggable storage engine interface since version 5.1. MySQL is more modular now, but individual storage engines are tightly integrated for performance reasons, and in some cases they are even proprietary. …

I wrote yesterday that Christensen’s law of Conservation of Attractive Profits could be used to explain why open source vendors are increasingly turning to hybrid development and licensing strategies to generate revenue from open source.

Before I could think about doing so Arjen Lentz wrote a comment that did a lot of the explaining for me.

To recap, “The Law of Conservation of Attractive Profits”, articulated by Clayton Christensen in his book The Innovator’s Solution, states:

“When attractive profits disappear at one stage in the value chain because a product becomes modular and commoditized, the …

I had an interesting conversation yesterday with Juanjo Hierro from the Morfeo Project, a Spanish community of open source communities set up to speed up the development of Service Oriented Architectures-related software standards and create business opportunities for local suppliers.

Hierro explained that the Morfeo Project is based on “The Law of Conservation of Attractive Profits”, articulated by Clayton Christensen in his book The Innovator’s Solution:

“When attractive profits disappear at one stage in the value chain because a product becomes modular and commoditized, the opportunity to earn attractive profits with proprietary products will usually emerge at an adjacent stage.”

Christensen’s law has also been used by Tim O’Reilly …