Using open source is a great way to solve problems, because the licensing is simple, and the overhead can be quite low. One of the best aspects is that U can get other folks to solve your problems for free; of course, it’s on their schedule, not yours, so take that into account when U’re developing your product. It also really *really* helps to know what U’re selling; it’s best if U’ve actually used the product. And if U’re not a programmer, it doesn’t hurt to get in contact with somebody who can muddle around in the code a bit; check out sourceware.org, which can hook U up with one.

About the only thing that’s truly different when U’re selling an open-source product is that it’s more friendly to the little guy – so long as U’re not afraid to get your hands dirty.

For example, there’s plenty of opportunities around selling (and implementing and supporting) traditional proprietary applications on Linux – while giving customers many of the same benefits around TCO, security, flexibility and vendor independence usually associated with all open source solutions. Open source does not have to be an all or nothing proposition – for most customers the pragmatic solution is a mixed source solution. You can mix and match open source & proprietary applications with open source & proprietary OS’s. There’s plenty of market opportunity for VARs around mixed source solution stacks and plenty of benefit to your customers as well.

Thanks for the post! — Ian Bruce/Novell.

And those commercial open source start-ups (where the original founder of the open source is active / present) have some obvious advantages over other VARs / solution providers when competing for revenue off that installed base. Specifically, a lot more leverage & control around things like: (obviously) feature definition / “core” development; the mailing lists / correspondences with user base (“marketing”); documentation; etc.

VARs / Solution providers on the other hand might have better inroads to revenue (with an open source community) via their experience with IT in specific vertical markets, their experience with other technologies in their customers’ environments, existing customers NOT yet using that open source technology. But they also are going to find that a lot of open source users bristle up pretty quickly when approached by a commercial entity and asked to consider buying anything.

I wonder how many VARs and solution providers are out there waiting on the sidelines for better evidence of revenue opportunities around certain open source technologies they are evaluating.

Open source offers some tremendous advantages, and it’s a no-brainer why users go for it. But the idea that a large base of users automatically translates into revenue is the same type of irrational exuberance that was happening around building “communities” in the dotcom bust. This business of converting open source users into paying customers seems extremely complicated, with few sure fire formulas. For every RedHat / MySQL – there are many commercial open source startups that do not appear to be heading towards prosperous futures. Not saying open source is any more dangerous than proprietary for VARs – but certainly different.

Other ways to make money include selling Zmanda backup, and Virtual Iron (based on Xen and Suse) as an alternative to VMware ESX.

Tristan

Now, he saves trees by saving paper … but burns oil by keeping this web site humming along in a data center.