Open Source: The Model Is Broken: Comments from the field.

The open-source business model that relies solely on support and service revenue streams is failing to meet the expectations of investors. This is what Stuart Cohen from Collaborative Software Intiative claims in a recent BusinessWeek article. I seriously believe it has been a fallacy from many software entreprenours to believe that Open Source will somehow save them or make it more affordable to build software.

According to the article, even Sun will soon realize that they paid a premium of MySQL and will never gain the back the expected revenue that they thought to achieve by buying them. When I look at software products development, it has changed forever. Software is no longer bought with the same reasons as before, end user organizations are much more selective in their approach and people and organizations are buying value, and value of use. This will change and take down many software organizations that are on the old bandwagon of building infrastructure.

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