Comments on: Does the open source professional services business model suck? http://spacebug.com/open-source-professional-services-business-model-suck-html/ Keeping Software Simple, Open and Pragmatic. Wed, 11 Jan 2012 01:15:39 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: anonymous http://spacebug.com/open-source-professional-services-business-model-suck-html/comment-page-1/#comment-4 anonymous Fri, 08 Aug 2008 11:32:29 +0000 #comment-4 There is still a tension between the open source service provider and the client. I agree that’s why you have healthy competition, and that healthy competition balances this effect. My point is that an open source product company, basing its strategy on the professional services business model, will avoid making its product more simple and automatic because that will kill its business model. On the other hand, if you are selling licenses of the product, one of your main goals is to make the product as simple and easy as possible in order to minimize customer support, training, and other costs that you as a product company need to maintain and pay for. BTW, I changed the input format of the comments so you can add the link to your blog. If you still have problems mail me at: amir(at)spacebug(dot)com Cheers Amir Shevat There is still a tension between the open source service provider and the client. I agree that’s why you have healthy competition, and that healthy competition balances this effect.
My point is that an open source product company, basing its strategy on the professional services business model, will avoid making its product more simple and automatic because that will kill its business model. On the other hand, if you are selling licenses of the product, one of your main goals is to make the product as simple and easy as possible in order to minimize customer support, training, and other costs that you as a product company need to maintain and pay for.

BTW, I changed the input format of the comments so you can add the link to your blog. If you still have problems mail me at: amir(at)spacebug(dot)com

Cheers
Amir Shevat

]]> By: Amir Shevat http://spacebug.com/open-source-professional-services-business-model-suck-html/comment-page-1/#comment-3 Amir Shevat Fri, 08 Aug 2008 09:06:57 +0000 #comment-3 I know very little in business management, but I'll give it a go: If your product sux because you need the client to require support, the client will find a better product, and you will be out of business. So you can't really make a product that is harder to use than it should be. The same goes for providing poor quality service - service is part of the product. If the service sux, your product sux. I do agree that for small and easy to use products, the services model won't work. If you want to make revenue from a desktop utility, you should find some other business model - either charge for license or use ads. In both case, it should probably be closed source. finally, I don't think anyone thinks that open source will take over the world. There will always be closed source and open source living side by side, and every company will decide what model fits its needs. In the mean time, there are a lot of companies making a lot of money from services to open source products, so yes, open source can sustain companies. too bad i can't link back to my blog from here. tsahi I know very little in business management, but I’ll give it a go:
If your product sux because you need the client to require support, the client will find a better product, and you will be out of business. So you can’t really make a product that is harder to use than it should be.
The same goes for providing poor quality service – service is part of the product. If the service sux, your product sux.
I do agree that for small and easy to use products, the services model won’t work. If you want to make revenue from a desktop utility, you should find some other business model – either charge for license or use ads. In both case, it should probably be closed source.
finally, I don’t think anyone thinks that open source will take over the world. There will always be closed source and open source living side by side, and every company will decide what model fits its needs. In the mean time, there are a lot of companies making a lot of money from services to open source products, so yes, open source can sustain companies.

too bad i can’t link back to my blog from here.

tsahi

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