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Re:Making Money from Open-Source Software by yesimahuman on Saturday February 09, 2019 @03:17PM (#19124338)
For others looking for ways to monetize open source, we’ve learned at Ionic that many enterprises aren’t just looking to buy a premium version of your OSS project, they want your help solving (with software) a ton of related challenges around the technology/space, too.

The big money is in doing those things too and not just being one small piece of the puzzle. So, for us, that means helping teams be successful with app development in general using our software/tech in the process (i.e. scalable software product on a yearly subscription and the same as sold to other customers, not custom development).

If you want to go down that route, get ready to have excellent support and be willing to be seen as an expert that your customers are going to call upon. But support is tablestakes for B2B so that comes with the territory.

Of course, this is no small leap. Going from having a successful open source project to building an enterprise business around it is really hard and took a lot longer than I expected. Looking back I wish we spent a little less time worrying about GitHub stars and more about solving enterprise problems, but we made it through!

Of course this is just one way to monetize and I’m also excited about the growing OSS sustainability offerings out there, like Tidelift

Re:Making Money from Open-Source Software by usaphp on Saturday February 09, 2019 @03:29PM (#19124405)
Isn't it just consulting? How is it different from just offering dev services as a feeelance agency?
Re:Making Money from Open-Source Software by yesimahuman on Saturday February 09, 2019 @03:57PM (#19124582)
No, you are shipping and licensing a software product (like SaaS) and you’re not building custom solutions (in the general case), but you are backing it with support. Support is also not the same as consulting hours as you aren’t billing hourly for it and customers can only purchase it if they also pay for the software. It’s probably more like an insurance policy than anything (and should be high margin on its own)

Support is tablestakes for B2B so this isn’t unique to OSS

Re:Making Money from Open-Source Software by capkutay on Saturday February 09, 2019 @04:07PM (#19124637)
yeah what you're describing is almost a textbook example of enterprise services/consulting that companies like Oracle/IBM/HP have been doing for decades.

and what you're describing was also debunked as a scalable core business model by many companies...

https://a16z.com/2014/02/14/why-there-will-never-be-another-...

Re:Making Money from Open-Source Software by yesimahuman on Saturday February 09, 2019 @04:16PM (#19124694)
Actually our particular model is more like the OSS as a service he gets to at the end, but it’s unique to us and so my original comment was more broad strokes.

A lot of the software our customers pay us for is _not_ open source but fits in with the open source in a really natural way (and we’re on the frontend/mobile). We also don’t see support standalone, you only get it in tandem with the software subscription.

“Support” is a loaded term. Every B2B company has to have a team able to support their biggest customers and you’d be dumb to not charge extra for it. I don’t think the shape of our support is that much heavier than any B2B SaaS company today and our high gross margins just on support further prove that (but it’s not our core business).

So far the model is scaling. Can it scale to be another public OSS success like red hat or mongo? We’d like to think so but we’ve got a long ways to go still on that.

Re:Making Money from Open-Source Software by marpstar on Saturday February 09, 2019 @04:03PM (#19124620)
Sounds like fixed-price consulting to me.
Re:Making Money from Open-Source Software by krn on Saturday February 09, 2019 @04:32PM (#19124774)
> Sounds like fixed-price consulting to me.

Is there no difference between technical support and consulting?

I see technical support as answering emails and picking up the phone when someone needs the help using your product.

For instance, AWS Support Plans[1].

[1] https://aws.amazon.com/premiumsupport/plans/

Re:Making Money from Open-Source Software by yesimahuman on Saturday February 09, 2019 @04:40PM (#19124808)
Yes there is s huge difference. One is a yearly subscription and the other is billed per-hour or is a set of consumable hours you buy one-off. Most teams don’t just sell support on its own, you only get it if you have a subscription to the software product behind it.
Re:Making Money from Open-Source Software by yesimahuman on Saturday February 09, 2019 @04:21PM (#19124712)
No, it’s more like a SaaS model. Yearly subscription/license and you’re not doing bespoke development
Re:Making Money from Open-Source Software by gk1 on Saturday February 09, 2019 @03:48PM (#19124511)
Because you can build products around the open-source core. So then you are selling enterprise products, not services.
Re:Making Money from Open-Source Software by TAForObvReasons on Saturday February 09, 2019 @03:35PM (#19124430)
It is, the open source project functions as marketing for your abilities to develop solutions in the space.
Re:Making Money from Open-Source Software by em-bee on Sunday February 10, 2019 @02:33AM (#19126748)
this sounds much better than what the article suggests which i almost stopped reading at "making money from commercial licenses".

that model just doesn't work for me because while it may work financially (and i have seen companies being successful with it), it prevents the product from being fully immersed into the Free Software ecosystem.

to sell commercial licenses i need to own 100% of the code, which means i can't easily accept outside contributions, nor can i use GPLd libraries which would conflict a commercial license. i do not want to be limited in my choice of tools to suit a commercial license. that's not what i think a good Free Software project should be like.

your comment therefore feels like a relief. my question is though, how to get the companies interested when the product is not yet proven? how to start, find the first customers? those who will pay enough for support to allow me to finish building the product?

Re:Making Money from Open-Source Software by mk926 on Sunday February 10, 2019 @10:54PM (#19131933)
Yes, I have the same question?
Re:Making Money from Open-Source Software by mistrial9 on Saturday February 09, 2019 @03:28PM (#19124393)
companies outsource the jobs that are the hardest, least-desirable, or worst case, within some turf war or other management dysfunction.. plenty of those also pay "the big money" ... for some duration.. its not easy