4. 2. 2  European Working Group on Libre Software

The business models presented by Hecker and Raymond are based on observation of companies that used free software as part of their business models, though they perhaps lack a degree of systematisation and abstraction in their taxonomy. In its document "Free Software/Open Source: Information Society Opportunities for Europe?", the European Working Group on Libre Software (http://eu.conecta.it/paper/) makes an analysis based on how free software projects are funded rather than on the basis of their business models and regardless of whether the project is linked to a specific company:

Its "Financing as internal investment" section, however, contains a classification of business models, which include, among others, the possibility of generating revenue through services, as a result of the competitive advantage afforded by being the main developers of a given software project.

Business models based on free software. ("Introduction to Free Software" teaching manual)

Model

Differentiation

Revenue

Licences

Examples

Better knowledge here

Better understanding of the product: must be the developer of the product or a collaborator.

Related services: custom developments, adaptations, installation, integration.

Free

LinuxCare (in its early days)

Alcove

Better knowledge here with constraints

Better understanding of the product: must be the developer of the product.

Part is kept proprietary.

Related services and sale of proprietary part.

Free and proprietary

Caldera

Ximian

Source of a free product

Producer, almost entirely free product.

Related services: custom developments, adaptations, installation, integration.

Free

Ximian

Zope Corporation

Source of a free product with constraints

Proprietary product in principle.

Subsequent release as a strategy to expand adoption and other advantages of free software.

Sale of commercial version.

Free and proprietary

Artofcode LLC

Ada Core Technologies

Special licences

Best knowledge here

Offer of proprietary version for customers who do not want GPL.

Sale of commercial version, and related services.

GPL and proprietary

Sleepycat

Sale of brand

Based on image and brand, allowing the product to be sold at a higher price.

Sale of distributions, and related services (including certification and training)

Free

Red Hat