[Ilugc] Entrepreneurship based on Open Source Model
- From: mohan.tux@xxxxxxxxx (Mohan Sundaram)
- Date: Mon Sep 11 10:05:40 2006
Mano wrote:
On 9/9/06, Vishnu Vijayaraghavan <vishnu.vijayaraghavan@xxxxxxxxx> wrote:
Hi all,
I would like to set up a start-up based on the Open Source Model
in the near future. How effective will Open Source Model suit for
enterpreneurship. What are the prerequsities to be satisfied before
starting. I would also like to know about some of the most successful
enterpreneur based on open source. Or to simply put up
How to set up an enterprise based on Open Source Model from scratch
(for indian scenario)
Pls. kindly help me.
First thing to do before starting a venture is decide what product or
service you wish to provide. If you beleive that it is an irresistable
product/service every other question or problem will be too trivial to
solve
:-)
regds,
mano
+1.
A lot of mails have crossed on this subject. I believe, you need to be
clear where you want to be. Options are
1. Company that would make money by supporting and promoting usage of
OSS: This is a very viable business model. Given the over-distribution
practiced by guys like M$, sale of M$ products yield very low margins.
This prompts vendors to provide service and charge for it. This model is
no different except that S/w is OSS instead of M$ or other priced
products. Overall cost of ownership to the customer is lower. I used to
run a business on this model. It is very viable. you'll need to build
domain expertise in verticals and experiment, participate and contribute
to software that you pick to support. The selling of this service is not
as easy as a M$ vendor as you'd have to establish your credentials and
also provide comfort that OSS can do the job. The customer will be wary
of a single point support availability.
2. Build a product and publish a part/version of it in OSS like MySQL
and others do. Here your to success is building a good product. This is
a completely different ball game from the option above. You could make
money on a commercial version and/or support fees.
Mohan
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