[TriLUG] Can open source solutions be viable companies?

[Scott Chilcote]

Hi Roy,

I think the first question your company needs to consider is how to mesh 
the Open Source point of view with its business philosophy - if 
possible.  They can certainly start by reading Raymond, Levine, 
Stallman, and Young on the subject.

I worked for an Open Source company not long ago that was taken over by 
an aggressive, "make a good financial report and SELL" conglomerate.  I 
had the opportunity to be present when the issue of using an Open Source 
model was raised before its management.

The company's new management was completely focused on becoming 
profitable quickly, and despite the product's dependence on Linux and 
GNU as a platform, Open Source was never considered seriously.  Although 
I have enjoyed and benefitted from Free Software and Open Source for 
years, I felt hard pressed to come up with a convincing strategy for 
this company to accomplish its fast-track goals.

Give away the product and sell consulting?  Sell the documentation? 
Sell boxed product but let anyone download it?  Sell 24-hour support? 
Or even, sell a bare-bones version and cost-extra upgrades (but that's 
stepping outside the lines).  Just try floating any of these concepts 
past a purely profit-motivated management team that doesn't care what 
kind of widget it's selling as long as the numbers look good.

The Bioinformatics field seems driven by long established corporate 
roots with little reason to explore alien-seeming business models, 
especially in areas far outside of their home turf.  Do you think they'd 
seriously consider a new approach?  Do they think they stand to gain 
anything?

Or, are they more concerned about what they might lose?  This would be 
the case if the cost of porting what they already have based on GPL and 
Open Source licensing is large enough.  I'm really curious what's 
driving them to consider Open Source.

Thanks,

                              Scott

Vestal, Roy L. wrote:
> One of our project directors, a Linux supporter, asked me to ask the group,
> specifically RedHat folks the following question. There is a big debate in
> the bioinformatics community, which has been using Linux as a solution
> because of cost more than anything. Now that bioinformatics are becoming
> more "mainstream", better monies are coming in. Now they are starting to
> look elsewhere. If we as a community can show how Linux is viable in this
> emerging field, then maybe it will help show that Linux is viable.
> 
> Question to me:
> "Do you have pointers to info on how open-source solutions can still be
> viable companies.  There is a big debate in the bioinformatics community
> about this, and I thought you might have some info."
> 
> Any info would be greatly appreciated.
> 
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