Business Model In An Open Source

By Author: Anthony W Bills
Total Articles: 158
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Business Model in an Open Source
Introduction
The open source business model is a business development methodology that offers a practical and open access to the source of the product. It is also referred an open source to different possible approaches while on the other hand is also considered as a critical strategic in the business operations.
Before the open business source was adopted, there were different phrases that were used to describe this concept. Open source business model gained its popularity with the rise of the internet that provided an access to other variety of production models interactive communities and communication paths. The open source business model allows the occurring of different ideas and agendas, approaches as well as priorities from more closed models with centralized development. The principles and the practices are mostly used to development of the source code for the software to be availed to the collaboration of the public and are commonly released as open source software.
Business model
As portrayed by the oracle, the business model is a term that is used to ...
... a wide range of the formal and informal descriptions used by most enterprises in representing different aspects of its businesses that include its offerings, infrastructure, trading practices, strategies, organizational structure, policies and operational processes.
By the use of the open source business model, the organizations are able to enterprise and describe their business models. This is likely to have more impact and effect to the usage of the model compared to the traditional models because it has more concentrated closed source models that other with single distinctive closed models. The organizations are able to analyze most of the activities that happen in the organization like the strategies that are used in learning the organization. (Weber, 2005, p. 45)
Most companies that have been using the closed source business model have found it difficult to venture in to software market due to lack of open source approach. The closed source business models tend to operate in limited peripheral with the third party on none-disclosure agreements. In most cases the closed source models uses paid developers to achieve their goals while on the hand open source business model, their goals are achieved through the efforts of voluntary workforce for those involved though the data wring is done by paid programmers. The new code is developed and then reviewed mostly by a large number of people and since some of these people are familiar with these system, their views are take and analyzed therefore quality is assured. (Lerner & Tirole, 2005, P. 99-120)
In this case the open source business model will eventually supersede the traditional or closed source business model in some way or another. This evidenced as most businesses are willing to give their information in the internet through the use of software and reach more people for recommendation than other tradition models would do. Lerner, 2006, p. 111-119)
Conclusion
With the rise of the internet, the open source business model has been on the growing tread for most of the businesses have gone in the software business. Open source business model has to be approved by millions of people as they are familiar with the system. The closed source business model cannot give all the business information due to limitation given through their limited interaction with the third party.
The closed source models end up using more money in paying the developers to achieve their goal without recommendations from the users of the system as compared to open source model that has to certify by millions of people. This has contributed to shifting of most businesses from the closed source business model to open source business model.

Reference:
Lerner J. 2006, The Dynamics of Open Source Contributors, American Economic Review, vol. 96 (2), p. 111-119.
Lerner, J. & Tirole, J. 2005, The Economics of Technology Sharing: Open Source and Beyond, Journal of Economic Perspectives, vol. 19(2), p. 99-120.
Weber, S. 2005. The Success of Open Source. Harvard: Harvard University Press.

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