Hi all,

I'm very interested on this subject because I'm building a CMS/Portal
solution with Microsoft.NET and C# (very embryonic). This solution would
encompass my experience and all the needs that have been stated in this
list since it at began. Furthermore I would not mind to put it in Open
Source (driving a community of self motivated developers is just too
exciting to miss the experience).

When you're building a product you do it with the purpose of solving a
set of problems right?

The question is how to fund that development?

Open Source defenders usually argue that one can fund development by
providing simply the means of Services. That is, one should charge for
services (customization services, training etc) not for the product.
Also they argue that the overall QOS can improve by opening the source
code to a community of developers.

That would be ok if all the money went to development of the product and
consulting. The question I ask what about the cost of the selling
process? Who will cover it? What about infrastructure, facilities,
computers, phone bills, marketing, etc etc, how can I fund it without
loosing money?

The underlying assumption is that:

1) Services will pay for everything.
2) The community contributes with usable solutions lowering the cost of
development.
3) The community also drives new business deals for the company
sustaining the cost of development (The ring effect). 

The problems:

1) I can't raise the cost of services above the market in order to
increase revenue. Not to mention the fact that I'm competing now with a
community that my company drives with my software. I have more services
only if I sell more, and I expand my sails team and marketing efforts if
I increase revenue.

2) Well. If I ask the most successful Open Source CMS vendor for sure he
would tell me that this particular intent one happened in less than a
handful of cases in the life span of the company. Moreover the cost of
integrating those solutions is not free.

3) I ask people who have used open source tools if they have and when
actually forged new business deals and shared that synergy with the Open
Source vendor. After all this would be an ethical concern due the fact
that they could only present a solution because someone else was kind
enough to provide the software for it.

Today we leave in a world where business partnerships are of up most
importance for driving business. The Open Source community is hardly
acknowledged of doing it successfully (from 3). By successfully I mean
to be one cornerstone of growth of a company actually providing the
software. By growth I mean by increasing the software company revenue
sustaining expansion (human resources, facilities, expertise, etc) by
sharing business deals (no way jose).

Yes the Open Source driven communities have successfully demonstrated
the ability to share knowledge (mainly technical) and effectively steam
"word of mouth" marketing at lower costs, but nothing more. What about
money, yes a check signed and with fund? Nope. 

I say no money no growth. One interesting study could be in analyzing
how much money actually these communities transact within themselves
(I'm imagining almost nothing compared with the commercial counter
parts).

One can argue that some were successful, yes but so was Vignette (they
were born almost at the same time).

I respect developers very very much that open their sources and offer
them for free (The Linux creator, Perl, Python, AWK, TeX/LateX, ouch so
many). They believed in a dream and made it happen (nothing to do with
money, pure kindness and brilliance).
 
The question is where are they now? That is who is actually profiting
from open source (they don't have the expensive cars, the big boats,
nothing like that. They did it for the pure pleasure of building a
technological tool).

Bur someone is getting the money. I can say to you who is actually
profiting, RedHat, Sun, Oracle, IBM, etc. A mix of some old and new kids
on the block (more old then new nowadays). But were actually the persons
that provided the software market with the kernel to make it happen
making the same kind of money? No.

The only really fair and ethical solution would be that the community
(companies and solo developers using the software) to actually fund the
development of Open Source products. The problem is that the community
probably not interested. So it needs to be a solo investment from the
mother of the Open Source product. Why?

1) The Community is the first not wanting to pay for it (as a monthly
contribution, or subscription model). Or are they willing to? Usually
these communities are made of developers (professional programmers,
students, academics, etc) that think "Why should I pay for something
that I feel that I can build". But in the other side they think, gosh I
can use re-use this and spare a lot of time. The most common
misperception of the cost of software development and maintenance.

2) Look I'm short of money too and I have customers that don't want to
pay me either :)

3) I would be willing to pay if you had a bigger Market presence. That
is your brand would allow me to use it in my services. But usually open
source tools to not have much brand awareness outside the technical
field so no can do.

So the only option is that Services should drive the funding unless I
have a guarding angel (a BIG company that is willing to invest). For
that matter I'm financially alone in running against the BIG players in
a sails lead (the community is the first not willing to invest). What do
I care if millions use it for their own profit and good (the bottom line
is that they use it for their own good rather then sharing the financial
benefits and investment as I'm willing to do). 

I would be interest in hearing from people driving consulting businesses
and developers willing to fund such a project and community. It would
not be just another CMS but The Open Source CMS on Microsoft.NET.

People (developers, consultants, etc) are saying "Open up Your Source".
I ask, what is your interest? Are you willing to share the profit that
you have around the software that I provide you? Probably not, but if
you are give me a call I have an Open Source business model for you
around a CMS System. Very simply the model is around "Help to pay the
developers and technical editors and to sustain its growth" (Knowledge
acquisition and expertise is expensive but if shared one can build very
interesting things that talk directly to users, not just technical
people).

Best regards,

Nuno Lopes
Independent Consultant.





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