Individual and enterprise users of software today have many options for satisfying their computing and networking needs. Open source software (OSS) is one of them, and it is often selected because of the broader choices OSS can deliver. For instance, OSS offers enterprises the opportunity to be more self-reliant through source code modification. It allows incremental project and upgrade schedules, free rein in integration decisions, and direct interaction with the OSS community. It creates the opportunity to implement projects in a way that is consistently mindful of enterprise goals, rather than the goals of a proprietary software vendor. OSS allows enterprises to select from a broader range of
hardware and software vendors and service providers than proprietary solutions. For these and other reasons, the pace of OSS adoption continues to accelerate in ATM domain.

Open source presents a large potential competitive advantage for hardware and software vendors, and vendors of complementary or substitute services. Linux has contributed greatly to the adoption and success of OSS. Major ATM companies have invested in and legitimized the use of Linux for ATM applications.

There are many strategies around open source platform applications and utilities aside from Linux or an open source solution stack (being a set of open-source software integrated to make a new application providing dedicated services). These strategies include substantial marketing and service alternatives that are creative and highly competitive.

An open source initiative, for instance, may establish an industry standard and this support the role of Eurocontrol in harmonisation in ATM.

A relatively straightforward and simple open source marketing decision may reposition a company or product. For example, using the “Optimisation” strategy, a major company embraces and extends open source software with  refinements that may help them pursue new markets or position themselves against established competitors more effectively. Likewise OSS creates product strategy and business model challenges for many traditional software vendors, creating incentive for innovation, opportunities for new comers in short positive emulation.

Ben

Source:  Seven Open Source Business Strategies for Competitive Advantage

This is a typical question for companies starting to think about switching to Open Source.
Here come the notion of “software maximum cost”.

Let me explain…

When an organisation is working alone to produce a software the only, it is the only sponsor (simple truth ).Every activities on software production are entirely financed by this organisation. It endorse then the total cost of the software or the “maximum cost”.

By switching open, this company gives itself the possibility to share the cost of the product. Another company or any other volunteers can produce a part of the software. This development will benefit to all the community. Any participant will have the right to use the software to turn into a business model but will only finance part of it (in other word make business).

As a consequence either the software will be cheaper to produce fro any participants.
Linux is a good example of this. Before IBM, HP and other used to develop and maintain their own UNIX flavour. Now, they are contributing to the free operating system. Their were able to reduce the required budget for using a operating system and still be able to have it customise for their own needs.

Interested to share the price but get the full product?

Regards,

Ben