Comments on: Millionaires, Billionaires, and Open Source http://practical-tech.com/business/millionaires-billionaires-and-open-source/ for practical people. Tue, 16 Mar 2010 01:39:13 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: bilbophile http://practical-tech.com/business/millionaires-billionaires-and-open-source/comment-page-1/#comment-56 bilbophile Sat, 10 May 2008 07:06:17 +0000 http://practical-tech.com/?p=207#comment-56 To make an above average profit in a business there has to be an imbalance between supply and demand, i.e. at least a temporary/niche monopoly. In proprietary software, due to IP rights, once established such a monopoly can be maintained for as long as there is a demand (think not only of patents but also of lock-in etc.) with "normal" costs. In open source, a competitor can at any moment flood the market with virtually the same code, so defending or amending one's "monopoly" (i.e. competitive edge) requires higher development costs/risks and accepting lower profit margins to raise the barrier of entry. Actually, free software was designed by experts (such as academia, consultants) specifically to prevent corporations from taking over their work and then outcompete them using IP rights. And you are right that while experts can never hope to become billionaires, they can have much healthier and happier lives than CEOs. To make an above average profit in a business there has to be an imbalance between supply and demand, i.e. at least a temporary/niche monopoly. In proprietary software, due to IP rights, once established such a monopoly can be maintained for as long as there is a demand (think not only of patents but also of lock-in etc.) with “normal” costs.

In open source, a competitor can at any moment flood the market with virtually the same code, so defending or amending one’s “monopoly” (i.e. competitive edge) requires higher development costs/risks and accepting lower profit margins to raise the barrier of entry.

Actually, free software was designed by experts (such as academia, consultants) specifically to prevent corporations from taking over their work and then outcompete them using IP rights. And you are right that while experts can never hope to become billionaires, they can have much healthier and happier lives than CEOs.

]]> By: Boycott Novell » Links 09/05/2008: GPL wins in court Again, 100% Free Software PC Finally Available http://practical-tech.com/business/millionaires-billionaires-and-open-source/comment-page-1/#comment-54 Boycott Novell » Links 09/05/2008: GPL wins in court Again, 100% Free Software PC Finally Available Fri, 09 May 2008 08:36:47 +0000 http://practical-tech.com/?p=207#comment-54 [...] Millionaires, Billionaires, and Open Source [...] [...] Millionaires, Billionaires, and Open Source [...]

]]> By: Lennie http://practical-tech.com/business/millionaires-billionaires-and-open-source/comment-page-1/#comment-53 Lennie Fri, 09 May 2008 07:39:30 +0000 http://practical-tech.com/?p=207#comment-53 If you count Google, can I just also suggest Mark Shuttleworth, he too wouldn't have been able (or maybe not as easily) to have had such a successful comapny he could sell without Open Source/Free Software. If you count Google, can I just also suggest Mark Shuttleworth, he too wouldn’t have been able (or maybe not as easily) to have had such a successful comapny he could sell without Open Source/Free Software.

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