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Business Models for the Open Source Era

Customer demand and superior solutions are at the heart of every growing market, but given the fact that Linux is essentially free, what business models make sense? A growing number of companies are approaching the Linux and Open Source opportunities, each with different business models.

In a recent Industry Report, Hambrecht & Quist describes five business models that provide a useful framework for understanding the Open Source market:

Business Model Chart

There are approximately three quarters of a million lines of code in the Linux kernel version 2.0. Windows 2000 is forecast to contain 35–40 million lines of code.


Resources:
Industry Report, Hambrecht and Quist
Linux Comes of Age; An industry briefing paper by Linuxcare, Inc.


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