Making a Business of Open Source

By Rick Lehrbaum
2000-06-21

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This whitepaper by MontaVista Software's VP of Engineering, Kevin Morgan, looks at how the Linux open-source license impacts traditional vendor/customer business relationships. Morgan reviews the key reasons why embedded system developers are attracted to Linux, and examines alternative approaches to converting open-source software into profitable businesses.

Morgan writes . . .

"Today, a growing number of companies vie for the attention of embedded systems developers seeking to build and deploy on Linux. Which are going to grow, thrive, and eventually lead the industry? Which technologies, licensing practices, business models and market forces will determine the leaders?"

"The use of Linux as an embedded systems platform represents a major change in the technologies and economies of building embedded applications. The power of Linux as an operating system, and the new types of business models for licensing, represent a marked change from 'business as usual' practices that have dominated embedded design for the last 20 years."

"Even with the short history of the open source approach, there is more than enough evidence to demonstrate the superiority and survivability of a royalty-free business model. Proprietary, closed source technology and binary product royalties have always been an encumbrance on embedded developers, slowing down business operations, lengthening design and development cycles, and delaying the availability of leading edge technology. Open source approaches enable rapid decision making, more effective engineering, rapid availability of leading technology, and encourage a tighter vendor-customer relationship after the initial product sale."

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