Sunday, February 12, 2012

How open source software companies make profit?

Companies such as videolan, Mozilla, canonical ,etc make open source software. These companies have programmers as employees and they have other expenses such as server maintainance, still they are not in loss. How they make money?How open source software companies make profit?Different business models:



Videolan, Mozilla, etc = are funded by a foundation that is there to solely raise money for the projects. These are non-profit businesses.



Canonical, Magento, etc = are "self-funded" - the software may be open source but you can BUY addons that cost plenty of money - training, training books, consulting services, the "base" product might be free but you can purchase extras that make it work better, etc.

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