Andrew Kohlsmith wrote:
On Monday 10 October 2005 08:12, Federico Alves wrote:

reverse code and it surely is a legitimate operation. Open source is far
more convenient, but how do we charge for the product? The business model
is not there: the more popular the product is, the more remote the
possibility of the creator making any money from it. Take Digium. The more
experts on Asterisk pop-up, the less demand is for Digium services. In


This is *precisely* why I believe that Digium's current model is terribly wrong. They are competing with the very people that make Digium money. In my humble opinion, I believe that Digium should not offer support to end users. [snip]


How about the consultant side of things? How do you make your money when you are trying to cultivate and enitre business subculture around your product? Through licensing and support of the distribution and consultants. You provide tier-1 support and training materials to registered consultants around the globe. Perhaps a modest yearly license [snip]

I can't really comment on the hardware side of Digium's business model other than it would seem Digium will have increased competition from Intel (Dialogic) and Sangoma (new Shark line).

On the services side you seem to be describing the Compiere model:

http://www.compiere.org/partner/index.html

Excerpt:

-begin-

Our target customers are companies and people who offer Compiere solutions. We want to build a real partnership - not just distribution channels. You don't have a real partnership, if you are competing with your customers. Consequently, we want to restrict our services to helping our customers to offer / resell Compiere. We offer second level support, consulting, training and licenses to our Partners enabling them to offer comprehensive solutions to their customers.

-end-

Transitioning to a model like that of Compiere seems to make sense.

Regards,

--
Jason Becker
Director & CEO
Coalescent Systems Inc.
Enabling Open Source Telephony
403.244.8089
www.coalescentsystems.ca
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