Open source presents a large potential competitive advantage for hardware and software vendors, and vendors of complementary or substitute services. Linux has contributed greatly to the adoption and success of OSS. Companies such as IBM, HP, Red Hat, Oracle, and recently, Novell, have invested in, and legitimized the use of Linux for enterprise applications — including datacenter operations.
Linux-related services deliver more than $1 billion in annual revenue to both IBM and HP. Oracle strongly promotes and likewise derives revenue from the Linux platform, with the so-called “unbreakable Linux” guarantee. In an attempt to catch the Linux wave, companies such as Computer Associates and Peoplesoft are porting their applications to Linux on ambitious timeframes.
In this article, we examine seven open source strategies that can give your company a competitive advantage. (Editor’s note: Each of the following links will take you directly to a particular section of the story.)
The Optimization Strategy
The Dual License Strategy
The Consulting Strategy
The Subscription Strategy
The Patronage Strategy
The Hosted Strategy
The Embedded Strategy