Information Society Watch

1999, Philip Varner

This overview of the economics of open source software (OSS) focuses on how businesses can use open source models to their advantage. It claims that the open source business model is far superior to traditional closed source businesses, and companies will be required to adopt such open source models to remain competitive. The first section of the website defines open source software as that which is freely redistributable and includes the source code. It explores the most popular forms of OSS licensing, pointing out that two common characteristics of these licenses are user participation and free contribution to improve the product and benefit the community. Next the website discusses four primary economic models for OSS--service sellers and loss leaders, widget frosting and accessorising--and explains how these models change the revenue-earning and value-added strategies of traditional closed source businesses. After arguing that the open source model is superior and addressing counterarguments about potential a software market collapse and and other concerns, the site finally provides other resources for learning more about open source.

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