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  <title>Why OSS for Suppliers</title>
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    <td align="left"><h2>Why OSS for Suppliers</h2></td>
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<blockquote>

  If most companies make money by selling licenses, what compensating
  advantages are there for that lack of revenue stream:

  <ul>
   
    <li>Supporting Software Investment can always equal zero</li>

    <!-- Developing for the linux platform, or cross platform, means
         that companies can use the OSS tools which are always
         available for free.  While software is pretty much free in
         Armenia anyways, if you grow you may find that someone comes
         to do a license evaluation -->


    <li>Decreased Cost of Hardware Investment</li>

    <!-- Hardware is cheap, but just how cheap is it?  OSS software
         runs well on older hardware while the newest version of
         Windows required many people to upgrade their 2 year old
         hardware -->

     <li>Free Developers</li>

    <!-- Developers are a major cost when writing code.  By building
         an online community you get free bug testers, enhancements,
         new features.  You can also hire people from inside the
         community to work for your company saving you training and ramp up time -->

    <li>Many Eyes Make Bugs Shallow</li>

    <!-- QA work annoys most developers, and it's impossible to catch all
         your bugs (if the software is complex).  Therefore having lots of
         people using your software means that bugs are found quickly and
         reported efficiently stabilizing your product faster -->

    <li>Design and Security Review</li>

    <!-- As you have a wide base of people you can get feedback on your Design
         and your security features .. this means that you can catch flaws
         early when they are easy to fix -->

  </ul>

  They also have marketing advantages (since marketing is so expensive
  once you get over a certain size):

  <ul>

     <li>Word of mouth</li>

     <!-- As interest in your project grows you will find people
          recommending your org. to their companies .. free marketing -->

     <li>International Attention on Open Source</li>

     <!-- Lots of international attention for Open Source, ride the tide
          IBM, international governments etc -->

     <li>Code is forever</li>

     <!-- If they have the source code then they are protected against any
          business decisions you make.  MS just stopped supporting Win98,
          what if you won't/can't upgrade to Win2k .. you are stuck with an
          unsupportable product.  As all good companies are "risk averse" they
          are interested in having a product they can fix themselves (or which
          will be fixed by other like minded individuals). -->

      <li>Security</li>

      <!-- Open Source code is recognized as being more secure in basic design then
           it's proprietary counterparts -->

  </ul>

  There are also a few problems unique to running a proprietary
  software company:

   <ul>  

     <li>Licenses are hard to write</li>

     <li>Enforcement of licenses is almost impossible in most parts of
         the world (including the US)</li>

     <li>If you want to compete in the big markets as a proprietary
         company there is a lot of competition.  

     <!--Until you reach a critical mass of users, or spend a lot on
         marketing .. people are going to use the more familiar name
         even if your product is better.  Open Source lets you stand
         out amongst the crowd. -->

  </ul>

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</blockquote>

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by admin last modified 2003-05-05 10:50


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