John Powell, CEO of Alfresco, has declared that the open-source industry is worth $60 billion, not necessarily because of its vendors' collective revenue, but rather because of the value of the cost savings for customers.
That's the right way to think about software: From the customer's perspective.Open source is now the world's largest software industry....You measure it in the savings people are making in licence fees....Licence fees don't add any value to the product and are purely a transfer of wealth from consumers to software vendors.
Subscription-based business models are ideal for customers because they focus the vendor on delivering constant, consistent value. License-based businesses? Not so much.
As a case in point, Alfresco (Disclosure: I work for Alfresco) just closed a deal with a large US federal agency. The project is worth over $50 million, with Alfresco at the core. But if all of that $50 million were going into my pocket it would be a success for Alfresco and a failure for the customer. Why?… Read more