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Brief introduction to the
OS business models
par : Rahmo Mohamed


        CC salon Open Taqafa .2
             20 ctob 2012
introduction

we are not speaking about something specific
this is just an introduction, you can innovate
and creat your own business model, stimulating
the innovation is the mean goal of this
presentation
we speak about : Open source
according to the first two lines of the definition
in wikipedia it's :

" open source is a philosophy, or pragmatic
methodology that promotes free redistribution
and access to an end product's design and
implementation detail "
we speak about : business model

A business model describes the rationale of
how an organization creates, delivers, and
captures value (economic, social, cultural, or
other forms of value). The process of business
model construction is part of business strategy.
if you wonder this is wikipedia again
how i made this presentation ?
i was reading .... then i found an other
presentation that contain all the categories i
want ... i took them from it , thank you : Swati
Sani C.E.O. SANIsoft , Nagpur, India, i really
don't know you but you did save my life you are
a dude !
and also Naomi Hoffman for the paper Open
Source Software
we are not saying

the propriety software is bad, and all this
bullshit about comparison between this and that
we are just speaking about what exist, what
could be done, to explain to people how
business works and how they can make money
programing those stuffs.
Categories


● OSS Tools and Applications
● Products and Services
● Marketing
Support Sellers
In this model, you give away the software product, but sell
distribution, branding, and after-sale service. This is what
Red Hat and Cygnus are currently doing.
● Base software free
● Sources of revenue
   ○   media distribution
   ○   Branding
   ○   Training
   ○   Consulting
   ○   custom development
   ○   post-sales support
Loss Leader
In this model, you give away open-source as a
loss-leader and, temporarily, market position for
potential future sales for proprietary software.
● Build the brand and reputation
● Add Value to the traditional products :making them
    more functional and useful
●   Increase the overall base of loyal customers
Widget Frosting

In this model, a hardware company (for which
software is a necessary addition but strictly
a cost rather than profit center) goes open-
source in order to get better drivers and
interface tools cheaper.
Accessorizing
Selling accessories - books, compatible
hardware, complete systems with open-source
software pre-installed. It is easy to trivialize this
(open-source T-shirts, coffee mugs, Linux
penguin dolls) but at least the books and
hardware provide some clear successes:
O'Reilly Associates, SSC, and VA Research
are among them.
Software Franchising
● Lack marketing power?
● Give your product free to the appointed
  franchisees Train them
● Revenues would come from sources such as
  sales of franchises and royalties based on
  franchisees' revenues
Sell it, free it !
● Loss Leader'' model repeated and extended
  through time
● Sell your product the traditional way for
  adding to product life cycle, open it after a
  certain length of time
● Timing: When you free it is very important
  Your customers pay a premium for the value
  of having the software earlier rather than
  later
Dual Licensing

● Non Commercial usage are licensed under
  one of the open source license (Most often
  GPL)
● Commercial usage Charged
Brand Licensing

● Open the source of your product but
● Retain brand reminiscence and Intellectual
  Property rights
● Customers pay for license to use your
  product
conclusion

you can have your own business model , don't
be stressed be your self and do business it's
easy even if it looks hard but if you don't take it
that serious it will be easy

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Mohamed rahmo - business model de l'open source.

  • 1. Brief introduction to the OS business models par : Rahmo Mohamed CC salon Open Taqafa .2 20 ctob 2012
  • 2. introduction we are not speaking about something specific this is just an introduction, you can innovate and creat your own business model, stimulating the innovation is the mean goal of this presentation
  • 3. we speak about : Open source according to the first two lines of the definition in wikipedia it's : " open source is a philosophy, or pragmatic methodology that promotes free redistribution and access to an end product's design and implementation detail "
  • 4. we speak about : business model A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy. if you wonder this is wikipedia again
  • 5. how i made this presentation ? i was reading .... then i found an other presentation that contain all the categories i want ... i took them from it , thank you : Swati Sani C.E.O. SANIsoft , Nagpur, India, i really don't know you but you did save my life you are a dude ! and also Naomi Hoffman for the paper Open Source Software
  • 6. we are not saying the propriety software is bad, and all this bullshit about comparison between this and that we are just speaking about what exist, what could be done, to explain to people how business works and how they can make money programing those stuffs.
  • 7. Categories ● OSS Tools and Applications ● Products and Services ● Marketing
  • 8. Support Sellers In this model, you give away the software product, but sell distribution, branding, and after-sale service. This is what Red Hat and Cygnus are currently doing. ● Base software free ● Sources of revenue ○ media distribution ○ Branding ○ Training ○ Consulting ○ custom development ○ post-sales support
  • 9. Loss Leader In this model, you give away open-source as a loss-leader and, temporarily, market position for potential future sales for proprietary software. ● Build the brand and reputation ● Add Value to the traditional products :making them more functional and useful ● Increase the overall base of loyal customers
  • 10. Widget Frosting In this model, a hardware company (for which software is a necessary addition but strictly a cost rather than profit center) goes open- source in order to get better drivers and interface tools cheaper.
  • 11. Accessorizing Selling accessories - books, compatible hardware, complete systems with open-source software pre-installed. It is easy to trivialize this (open-source T-shirts, coffee mugs, Linux penguin dolls) but at least the books and hardware provide some clear successes: O'Reilly Associates, SSC, and VA Research are among them.
  • 12. Software Franchising ● Lack marketing power? ● Give your product free to the appointed franchisees Train them ● Revenues would come from sources such as sales of franchises and royalties based on franchisees' revenues
  • 13. Sell it, free it ! ● Loss Leader'' model repeated and extended through time ● Sell your product the traditional way for adding to product life cycle, open it after a certain length of time ● Timing: When you free it is very important Your customers pay a premium for the value of having the software earlier rather than later
  • 14. Dual Licensing ● Non Commercial usage are licensed under one of the open source license (Most often GPL) ● Commercial usage Charged
  • 15. Brand Licensing ● Open the source of your product but ● Retain brand reminiscence and Intellectual Property rights ● Customers pay for license to use your product
  • 16. conclusion you can have your own business model , don't be stressed be your self and do business it's easy even if it looks hard but if you don't take it that serious it will be easy