Monday, November 07, 2005

Open source, open wallet

CNET News.com: "Open-source business models are booming in the software industry, a rapid rise that has some experts wondering if it's a bubble that will burst.
Venture capital firms are pouring more money into start-ups that adhere to open-source practices, such as giving away technology for free. That rush could result in an investment bubble, similar to that seen in the early days of the Web, several industry executives cautioned at the Open Source Business Conference last week.
For an open-source business to work well, a start-up needs a number of attributes that a closed-source software company doesn't, executives said.
In particular, they have to combine their pursuit of profit with active involvement in a vibrant 'community' of open-source users, some of whom are not paying customers. Not all open-source companies are hitting the right balance between commerce and community, analysts and executives said. "

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