Hi Guys…!!!… Welcome to another blog. In this blog we are going to discuss about How does free Software makes money. So, let’s get started…
Have you ever thought of trying to make money by selling stuff that’s available for free?
And before you came up with air and water PepsiCo and gas stations.
Fortunately this also happens a lot in the tech world with open-source software.
How does free Software make money?
Open source is a term that refers to any kind of software whose code can be used and distributed for free.
Plenty of well-known programs and even operating systems are open source such as Firefox, Android, and Linux just to name a few.
And this openness is a key to modern technological innovation.
Because one of the ideas behind open source software is that it can help businesses and organizations.
By allowing them to collaborate more easily on the development of the same open-source software platform instead of a bunch of different proprietary ones.
Some companies with a more traditional business model like IBM are well known for providing funding to open source projects.
Simply so that they can reap the benefits of the new technology without dedicating their human resources to its creation.
Now that’s business lots of big companies love open-source software.
Because it spreads out the burden of checking for security issues and open source apps can be easily modified for special purposes.
An example of this last one is the way that many smartphone manufacturers tweak.
Android to give its users a more customized experience for better or for worse.
Another way that open-source software can make money is by monetizing features and services other than the core software itself.
A good example of a company that’s thrived this way is Red Hat.
Which develops and maintains its own open-source Linux distribution.
The source code for that distro is free but Red Hat makes money by selling additional features such as proprietary add-ons for the core product.
They also sell support training consulting and technical assistance.
Because simply taking the source code and deploying it can be difficult without the company’s expertise.
Additionally customers can pay to have the Linux distribution modified to better suit their specific needs.
Red Hat also sells automation and infrastructure as a service, meaning that a client doesn’t have to have tons of hardware to run the software or store related data if they’re willing to fork out some cash.
Other companies have different approaches sometimes a developer will offer a free version of a certain piece of software.
That can be downloaded installed and run on the client’s hardware.
But also offer either official hardware designed to run that software like IX systems does with their FreeNAS open-source operating system.
And true Nass lineup of servers or they might offer a paid software as a service version that’s stored on the company servers.
And maintained by the company so the client doesn’t have to bother messing around with hardware or troubleshooting.
Yet another way to make money off of open-source software is one that isn’t technical at all and is a little more obvious.
Advertising a prime example of this is Firefox.
Traditionally one of Mozilla x’s biggest sources of revenue has been from Google or Yahoo paying as much as hundreds of millions of dollars a year to be the default search engine provider in their browser.
Another key revenue generation strategy is the ecosystem.
Google’s Android is a great example here.
Unlike traditional operating systems which would cost money upfront for the user or device manufacturer.
Turns out they were playing a long game.
And now that everything from phones to TVs to car stereos runs on Android these days.
They’re raking in massive amounts of money from users,
buying content and apps for their devices with Google taking a cut on each transaction.
Many open-source projects also survive by raising cash from their users instead of enticing customers to buy something related.
The Wikipedia Foundation for example stays afloat just from merchandise sales and those banner ads that remind you that if everyone gave today.
They would be finished fundraising in four hours or whatever.
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So, this was all about How does free Software make money .
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