<div dir="ltr">On Thu, Sep 4, 2008 at 2:19 AM, Mark James <span dir="ltr"><<a href="mailto:mrj@advancedcontrols.com.au">mrj@advancedcontrols.com.au</a>></span> wrote:<br><div class="gmail_quote"><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
So Red Hat Linux is commercial Open Source software that is<br>
associated with support subscriptions that are effectively optional,<br>
both because binary-compatible alternatives are available, and<br>
because the software continues to function after a subscription<br>
expires.<br>
<br>
The Red Hat system wouldn't work for Rails Wheels because<br>
we list less complex software that calls for more development<br>
work than support work. And the Rails Wheels system wouldn't<br>
work for Red Hat because of Linux's Pollockian ownership.</blockquote><br>The Red Hat model is not the only commercially successful model. The company I founded, Cygnus, was based largely on developing free (GPL) software for $$$. We built that company to $25M/year in annual revenue before being acquired by Red Hat (who also had approx $25M/year in revenue at the time). You can read how we made Cygnus work in the O'Reilly book Open Sources. My chapter is freely downloadable, and gives revenue figures, profits, and a detailed analysis of what worked and what didn't.<br>
<br>The Red Hat model has proved itself to be very scalable ($500M+/year and counting), but we still bid and win GNU development contracts, and funded development is still a part of Red Hat's business.<br><br>M<br><br>
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