Companies whose business centers on the development of open-source software employ a variety of business models to solve the challenge of making profits from software that is under an open-source license . Each of these business strategies rest on the premise that users of open-source technologies are willing to purchase additional software features under proprietary licenses, or purchase other services or elements of value that complement the open-source software that is core to the business. This additional value can be, but not limited to, enterprise-grade features and up-time guarantees (often via a service-level agreement ) to satisfy business or compliance requirements, performance and efficiency gains by features not yet available in the open source version, legal protection (e.g., indemnification from copyright or patent infringement), or professional support/training/consulting that are typical of proprietary software applications.
128-444: Historically, these business models started in the late 1990's and early 2000's as " dual-licensing " models (for example MySQL ), and they have matured over time, giving rise to multiple variations as described in the sections below. Pure dual licensing models are not uncommon, as a more nuanced business approach to open source software businesses has developed. Many of these variations are referred to as "open core" model , where
256-465: A business the potential to reduce IT operational costs by outsourcing hardware and software maintenance and support to the cloud provider. This enables the business to reallocate IT operations costs away from hardware/software spending and from personnel expenses, towards meeting other goals. In addition, with applications hosted centrally, updates can be released without the need for users to install new software. One drawback of SaaS comes with storing
384-758: A permissive free software licence , a company can re-license the resulting software product under a proprietary license and sell the product without the source code or software freedoms . For instance, Apple Inc. is an avid user of this approach by using source code and software from open-source projects. For example, the BSD Unix operating system kernel (under the BSD license ) was used in Apple's Mac PCs that were sold as proprietary products. Some companies sell proprietary but optional extensions, modules, plugins or add-ons to an open-source software product. This approach
512-456: A Service" , "Communications as a Service", "Compute as a Service", and " Data Storage as a Service" . Infrastructure as a service (IaaS) refers to online services that provide high-level APIs used to abstract various low-level details of underlying network infrastructure like physical computing resources, location, data partitioning, scaling, security, backup, etc. A hypervisor runs the virtual machines as guests. Pools of hypervisors within
640-468: A Service) and dPaaS (Data Platform as a Service) . iPaaS enables customers to develop, execute and govern integration flows. Under the iPaaS integration model, customers drive the development and deployment of integrations without installing or managing any hardware or middleware. dPaaS delivers integration—and data-management—products as a fully managed service. Under the dPaaS model, the PaaS provider, not
768-417: A Sponsors program that allows people who support certain open source projects hosted on GitHub to donate money to developers who contribute and maintain the project. Crowdsourcing is a type of participative online activity in which an individual, an institution, a nonprofit organization, or company proposes to a group of individuals of varying knowledge, heterogeneity, and number, the voluntary undertaking of
896-451: A cloud platform instead of directly buying and managing the underlying hardware and software layers. With some PaaS, the underlying computer and storage resources scale automatically to match application demand so that the cloud user does not have to allocate resources manually. Some integration and data management providers also use specialized applications of PaaS as delivery models for data. Examples include iPaaS (Integration Platform as
1024-414: A commercial edition. Not confirmed, but highly plausible: 2) brand promotion, and 3) thwart forking attempts / stifle unsolicited external code reuse. 2) Speculative: Diminish the influence of FOSS enthusiasts and vigilantes, who could interfere with a commercially guided development process. De facto relegation to work on small-scale peripheral complements, which not need to be open source. Only
1152-406: A commercial environment. In this scenario, one option is a proprietary software license, which allows the possibility of creating proprietary applications derived from it, while the other license is a copyleft free software / open-source license , thus requiring any derived work to be released under the same license. The copyright holder of the software then typically provides the free version of
1280-452: A company's methods, assets, and intellectual properties should remain concealed from market competitors ( trade secret ) as long as possible to maximize the profitable commercialization time of a new product. Open-source software development minimizes the effectiveness of this tactic; development of the product is usually performed in view of the public, allowing competing projects or clones to incorporate new features or improvements as soon as
1408-635: A company's portfolio and offerings but generate business in other proprietary products and solutions, including commercial technical support contracts and services. A popular example is Oracle 's MySQL database which is dual-licensed under a commercial proprietary license and also under the GPLv2 . Another example is the Sleepycat License . Flask developer Armin Ronacher stated that the AGPLv3
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#17327721059401536-526: A considerable amount of computing power and memory and are traditionally executed on clusters of computers. In 2016 a handful of companies, including R-HPC, Amazon Web Services , Univa , Silicon Graphics International , Sabalcore, Gomput, and Penguin Computing offered a high-performance computing cloud. The Penguin On Demand (POD) cloud was one of the first non-virtualized remote HPC services offered on
1664-475: A contractor for custom in-house modifications, then release that code under an open-source license. Some organizations support the development of open-source software by grants or stipends , like Google's Summer of Code initiative founded in 2005. In order to commercialize FOSS (free and open-source software), many companies (including Google , Mozilla , and Canonical ) have moved towards an economic model of advertising-supported software . For instance,
1792-538: A developer either at a company's request or to make his/her own job easier, can be released as an open-source contribution without costing the company anything. A larger project such as the Linux kernel may have contributors from dozens of companies which use and depend upon it, as well as hobbyist and research developers. A new funding approach for open-source projects is crowdfunding , organized over web platforms like Kickstarter , Indiegogo , or Bountysource . Liberapay
1920-405: A development environment to application developers. The provider typically develops toolkit and standards for development and channels for distribution and payment. In the PaaS models, cloud providers deliver a computing platform , typically including an operating system, programming-language execution environment, database, and the web server. Application developers develop and run their software on
2048-591: A distributed set of machines in different locations, connected to a single network or hub service. It is possible to distinguish between two types of distributed clouds: public-resource computing and volunteer cloud. Multicloud is the use of multiple cloud computing services in a single heterogeneous architecture to reduce reliance on single vendors, increase flexibility through choice, mitigate against disasters, etc. It differs from hybrid cloud in that it refers to multiple cloud services, rather than multiple deployment modes (public, private, legacy). Poly cloud refers to
2176-580: A few months after these friction points were observed, a new fork of the SugarCRM Community Edition was announced. A second use of multi-licensing with free software is for license compatibility , allowing code from differently licensed free software projects to be combined, or to provide users the preference to pick a license. Examples include the source code of Mozilla Application Suite and previously Mozilla Thunderbird and Mozilla Firefox , that have used tri-licensing under
2304-591: A few winners. Popular examples for Crowdsourcing are Linux , Google Android , the Pirate Party movement, and Misplaced Pages. Offering training programs and certification courses related to the open-source software, catering to individuals or organizations, like Red Hat Certification Program or Linux Professional Institute Certification Programs. Other financial situations include partnerships with other companies. Governments , universities , companies, and non-governmental organizations may develop internally or hire
2432-560: A form of virtualized computing." according to ISO . Function as a service is a form of serverless computing. The deployment of services to the cloud is referred to as cloud migration. Reverse cloud migration, also known as cloud repatriation, refers to moving cloud-based workloads back to on-premises infrastructures including enterprise data centers, colocation providers, and managed service providers. Cloud repatriation occurs due to security concerns, costs, performance issues, compatibility problems, and uptime concerns. Private cloud
2560-467: A person outside the company creates additional source code, using the less restrictive license. Because the company with the official code is not the copyright holder of the additional code, they may not legally include this new work in their more restrictively licensed version. Companies may require outside developers agree to a contributor license agreement before accepting their work in the official code-base and source code repositories. Multi licensing
2688-717: A report by Gartner , a survey of 200 IT leaders revealed that 69% experienced budget overruns in their organizations' cloud expenditures during 2023. Conversely, 31% of IT leaders whose organizations stayed within budget attributed their success to accurate forecasting and budgeting, proactive monitoring of spending, and effective optimization. Typically, cloud providers' Service Level Agreements (SLAs) do not encompass all forms of service interruptions. Exclusions typically include planned maintenance, downtime resulting from external factors such as network issues, human errors , like misconfigurations, natural disasters , force majeure events, or security breaches . Typically, customers bear
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#17327721059402816-515: A result, Compaq decided to sell server hardware to internet service providers . In the 2000s, the application of cloud computing began to take shape with the establishment of Amazon Web Services (AWS) in 2002, which allowed developers to build applications independently. In 2006 Amazon Simple Storage Service, known as Amazon S3 , and the Amazon Elastic Compute Cloud (EC2) were released. In 2008 NASA 's development of
2944-443: A series of current existing and legal commercial business models approaches in the context of open-source software and open-source licenses. The acceptance of these approaches has been varied; some of these approaches are recommended (like open core and selling services), others are accepted, while still others are considered controversial or even unethical by the open-source community. The underlying objective of these business models
3072-409: A service (not charging for the software but for the tooling and platform to consume the software as a service often via subscription), freemium , donation-based funding, crowdfunding , and crowdsourcing . There are several different types of business models for making profit using open-source software (OSS) or funding the creation and ongoing development and maintenance. The list below shows
3200-728: A service that extends AWS infrastructure, services, APIs , and tools to customer data centers, co-location spaces, or on-premises facilities. Advocates of public and hybrid clouds claim that cloud computing allows companies to avoid or minimize up-front IT infrastructure costs. Proponents also claim that cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and that it enables IT teams to more rapidly adjust resources to meet fluctuating and unpredictable demand, providing burst computing capability: high computing power at certain periods of peak demand. Additional value propositions of cloud computing include: One of
3328-511: A significant physical footprint, requiring allocations of space, hardware, and environmental controls. These assets have to be refreshed periodically, resulting in additional capital expenditures. They have attracted criticism because users "still have to buy, build, and manage them" and thus do not benefit from less hands-on management, essentially "[lacking] the economic model that makes cloud computing such an intriguing concept". Cloud services are considered "public" when they are delivered over
3456-542: A single attack—a process he called "hyperjacking". Some examples of this include the Dropbox security breach, and iCloud 2014 leak. Dropbox had been breached in October 2014, having over seven million of its users passwords stolen by hackers in an effort to get monetary value from it by Bitcoins (BTC). By having these passwords, they are able to read private data as well as have this data be indexed by search engines (making
3584-409: A software product might violate open-source licenses, while keeping them separated by interfaces and dynamic-link libraries would adhere to license conform. A variant of the approach above is the keeping of required data content (for instance a video game 's audio, graphic, and other art assets) of a software product proprietary while making the software's source code open-source. While this approach
3712-421: A specific community with common concerns (security, compliance, jurisdiction, etc.), whether it is managed internally or by a third-party, and hosted internally or externally, the costs are distributed among fewer users compared to a public cloud (but more than a private cloud). As a result, only a portion of the potential cost savings of cloud computing is achieved. A cloud computing platform can be assembled from
3840-458: A task via a flexible open call. The undertaking of the task, of variable complexity and modularity, and in which the crowd should participate, bringing their work, money, knowledge and/or experience, always entails mutual benefit. The user will receive the satisfaction of a given type of need, be it economic, social recognition, self-esteem, or the development of individual skills, while the crowdsourcer will obtain and use to their advantage that which
3968-679: A tendency towards commercial bias. To prevent the community from being provoked or alienated it may therefore seem imperative to balance commercial inclinations against “open” interests. This is by no means an easy task. As Berdal demonstrated through a case study of SugarCRM , this commercial open source software (COSS) business model can trigger substantial friction points, which can eventually lead to pure open source forks (table adapted from Berdal, Table 3, page 75 ): Free Software purists: “Immoral”. 2) wider scope for price discrimination and product differentiation for commercial editions, and 3) stronger incentives for Sugar CE users to migrate to
Business models for open-source software - Misplaced Pages Continue
4096-487: A thin client interface, such as a web browser (e.g., web-based email), or a program interface. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. In the software as a service (SaaS) model, users gain access to application software and databases . Cloud providers manage
4224-441: Is crowdfunding , which shares similarities with the pre-order or Praenumeration business model, as well as the reverse bounty model, typically organized over web platforms like Kickstarter , Indiegogo , or Bountysource (see also comparison of crowd funding services ). One example is the successfully funded Indiegogo campaign in 2013 by Australian programmer Timothy Arceri, who offered to implement an OpenGL 4.3 extension for
4352-450: Is obfuscation of source code. This approach was used in several cases, for instance by Nvidia in their open-source graphic card device drivers. This practice is used to get the open-source-friendly propaganda without bearing the inconveniences. There has been debate in the free-software/open-source community on whether it is illegal to skirt copyleft software licenses by releasing source code in obfuscated form, such as in cases in which
4480-504: Is a commercial edition, hence to be purchased. The license is only offered as a subscription, named MySQL Enterprise Edition Subscription. The same applies for MySQL Standard Edition (MySQL Standard Edition Subscription) and MySQL Cluster CGE (MySQL Cluster Carrier Grade Edition Subscription). The other editions, such as the MySQL Classic Edition or MySQL Community Edition, are free to use with some restrictions. For instance,
4608-733: Is a crowdfunding platform, primarily for open-source projects, that is itself open-source. Open-source software can be sold and used in general commercially . Also, commercial open-source applications have been a part of the software industry for some time. While commercialization or funding of open-source software projects is possible, it is considered challenging. Since several open-source licenses stipulate that authors of derivative works must distribute them under an open-source ( copyleft ) license, ISVs and VARs have to develop new legal and technical mechanisms to foster their commercial goals, as many traditional mechanisms are not directly applicable anymore. Traditional business wisdom suggests that
4736-551: Is a fee to get the official binary, often bundled with tech support or the privileges of attracting developers' attention to adding new functionalities to the program. It is also practiced to sell both source code and binaries, as Red Hat did. This practice does conform with the free software principles as espoused by the FSF. An approach to allow commercialization under some open-source licenses while still protecting crucial business secrets, intellectual property and technical know-how
4864-539: Is a need for understanding complex technologies and their interconnections to have power and agency within them. The metaphor of the cloud can be seen as problematic as cloud computing retains the aura of something noumenal and numinous ; it is something experienced without precisely understanding what it is or how it works. Additionally, cloud migration is a significant challenge. This process involves transferring data, applications, or workloads from one cloud environment to another, or from on-premises infrastructure to
4992-539: Is a relatively recent model in cloud computing, with most BaaS startups dating from 2011 or later but trends indicate that these services are gaining significant mainstream traction with enterprise consumers. "Serverless computing is a cloud service category in which the customer can use different cloud capabilities types without the customer having to provision, deploy and manage either hardware or software resources, other than providing customer application code or providing customer data. Serverless computing represents
5120-574: Is a variant of the freemium business model. The proprietary software may be intended to let customers get more value out of their data, infrastructure, or platform, e.g., operate their infrastructure/platform more effectively and efficiently, manage it better, or secure it better. Examples include the IBM proprietary Linux software , where IBM contributes to the Linux open-source ecosystem, but it builds and delivers (to IBM's paying customers) database software , middleware , and other software that runs on top of
5248-433: Is also known as the dual-license strategy of commercial open source. In contrast to traditional open source projects, a single-vendor commercial open source project is controlled by exactly one stakeholder with the purpose of commercially exploiting it . In this context, the open source community is less engaged in the development of core functionality, as they typically are in conventional (pure) open source projects. As
Business models for open-source software - Misplaced Pages Continue
5376-552: Is cloud infrastructure operated solely for a single organization, whether managed internally or by a third party, and hosted either internally or externally. Undertaking a private cloud project requires significant engagement to virtualize the business environment, and requires the organization to reevaluate decisions about existing resources. It can improve business, but every step in the project raises security issues that must be addressed to prevent serious vulnerabilities. Self-run data centers are generally capital intensive. They have
5504-428: Is completely legitimate and compatible with most open-source licenses, customers have to buy the content to have a complete and working software product. Restrictive licenses can then be applied on the content, which prevents the redistribution or re-selling of the complete software product. Examples for open-source developed software are Kot-in-Action Creative Artel video game Steel Storm , engine GPLv2 licensed while
5632-553: Is credited to David Hoffman, a General Magic communications specialist, based on its long-standing use in networking and telecom. The expression cloud computing became more widely known in 1996 when Compaq Computer Corporation drew up a business plan for future computing and the Internet . The company's ambition was to supercharge sales with "cloud computing-enabled applications". The business plan foresaw that online consumer file storage would likely be commercially successful. As
5760-487: Is distributed freely, through the web and in physical media. Because creators cannot require each user to pay a license fee to fund development this way, a number of alternative development funding models have emerged. An example of those funding models is when bespoke software is developed as a consulting project for one or more customers who request it. These customers pay developers to have this software developed according to their own needs and they could also closely direct
5888-434: Is done to proprietary software to segregate a market. By splitting customers into multiple categories such as home users, professional users, and academic users, copyright holders can set different prices for each group. However, among proprietary software companies, it is more common to release a "home edition" and a "professional edition" of a given product, which differ by the software and software features included, not just
6016-634: Is enabled via PayPal . Larger donation campaigns also exist. In 2004 the Mozilla Foundation carried out a fundraising campaign to support the launch of the Firefox 1.0 web browser . It placed a two-page ad in the December 16 edition of The New York Times listing the names of the thousands who had donated. In May 2019, GitHub , a Git -based software repository hosting, management and collaboration platform owned by Microsoft , launched
6144-427: Is in the cloud at any time. It could accidentally or deliberately alter or delete information. Many cloud providers can share information with third parties if necessary for purposes of law and order without a warrant. That is permitted in their privacy policies, which users must agree to before they start using cloud services. Solutions to privacy include policy and legislation as well as end-users' choices for how data
6272-528: Is innovated by Moodle , an open source learning management system and community platform. The business model revolves around a network of commercial partners who are certified and therefore authorised to use the Moodle name and logo , and in turn provide a proportion of revenue to the Moodle Trust, which funds core development. If a software product uses only own software and open-source software under
6400-489: Is more secure for them to use a public cloud. There is the risk that end users do not understand the issues involved when signing on to a cloud service (persons sometimes do not read the many pages of the terms of service agreement, and just click "Accept" without reading). This is important now that cloud computing is common and required for some services to work, for example for an intelligent personal assistant (Apple's Siri or Google Assistant ). Fundamentally, private cloud
6528-422: Is no copyleft FOSS license available which allows the time delayed opening of the source code after distributing or selling of a software product. An extreme variant of "delayed open-sourcing" is a business practice popularized by id Software and 3D Realms , which released several software products under a free software license after a long proprietary commercialization time period and the return of investment
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#17327721059406656-496: Is no hypervisor overhead. IaaS clouds often offer additional resources such as a virtual-machine disk-image library, raw block storage , file or object storage , firewalls, load balancers , IP addresses , virtual local area networks (VLANs), and software bundles. The NIST 's definition of cloud computing describes IaaS as "where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control
6784-454: Is reduced visibility and control. Cloud users may not have full insight into how their cloud resources are managed, configured, or optimized by their providers. They may also have limited ability to customize or modify their cloud services according to their specific needs or preferences. Complete understanding of all technology may be impossible, especially given the scale, complexity, and deliberate opacity of contemporary systems; however, there
6912-479: Is seen as more secure with higher levels of control for the owner, however public cloud is seen to be more flexible and requires less time and money investment from the user. The attacks that can be made on cloud computing systems include man-in-the middle attacks, phishing attacks, authentication attacks, and malware attacks. One of the largest threats is considered to be malware attacks, such as Trojan horses . Recent research conducted in 2022 has revealed that
7040-487: Is stored. Users can encrypt data that is processed or stored within the cloud to prevent unauthorized access. Identity management systems can also provide practical solutions to privacy concerns in cloud computing. These systems distinguish between authorized and unauthorized users and determine the amount of data that is accessible to each entity. The systems work by creating and describing identities, recording activities, and getting rid of unused identities. According to
7168-644: Is to harness the size and international scope of the open-source community (typically more than an order of magnitude larger than what would be achieved with closed-source software equivalents) for a sustainable commercial venture. The vast majority of commercial open-source companies experience a conversion ratio (as measured by the percentage of downloaders who buy something) well below 1%, so low-cost and highly-scalable marketing and sales functions are key to these firms' profitability. Open-source software can also be commercialized from selling services , such as training, technical support , or consulting , rather than
7296-468: Is transparent to the cloud user, who sees only a single access-point. To accommodate a large number of cloud users, cloud applications can be multitenant , meaning that any machine may serve more than one cloud-user organization. The pricing model for SaaS applications is typically a monthly or yearly flat fee per user, so prices become scalable and adjustable if users are added or removed at any point. It may also be free. Proponents claim that SaaS gives
7424-483: Is used by the copyright holders of some free software packages advertising their willingness to distribute using both a copyleft free software license and a non-free software license. The latter license typically offers users the software as proprietary software or offers third parties the source code without copyleft provisions. Copyright holders are exercising the monopoly they're provided under copyright in this scenario, but also use multi licensing to distinguish
7552-592: The Mesa library in two weeks for $ 2,500. Arceri delivered the OpenGL extension code which was promptly merged upstream, and he later continued his efforts on Mesa with successive crowdfunding campaigns. Later, he found work as an employee in this domain with Collabora and in 2017 with Valve . Another example is the June 2013 crowdfunding on Kickstarter of the open source video game Cataclysm: Dark Days Ahead which raised
7680-562: The Mozilla Foundation and the Wikimedia Foundation sell branded merchandise articles like t-shirts and coffee mugs. This can be also seen as an additional service provided to the user community . Selling subscriptions for online accounts and server access to customers is one way of adding value to open-source software . Another way is combining desktop software with a service, called software plus services . Most open core companies that use this approach also provide
7808-584: The Mozilla Public License (MPL) 1.1, GNU General Public License (GPL) 2.0 or GNU Lesser General Public License (LGPL) 2.1 before the latter upgraded to GPL-compatible MPL 2.0, making the tri-licensing unnecessary. Other examples are Perl , which is dual-licensed under the GPL or Artistic License , and Ruby , whose license contains explicit GPL dual licensing. Multi-licensing is also used by distributors of non-free software. Sometimes this
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#17327721059407936-773: The free software community . These contributions can be the support of a dedicated user community, word of mouth marketing or modifications that are made available as stipulated by a copyleft license. However, a copyright holder's commitment to elude copyleft provisions and advertise proprietary redistributions risks losing confidence and support from free software users. Examples of multi-licensed software include Oracle 's NetBeans IDE , MySQL AB 's database, Asterisk , Oracle Corporation 's Berkeley DB , Modelio , ZeroC 's Ice , Magnolia CMS , JUCE , wolfSSL , and Qt Software 's Qt development toolkit. Description on one specific example to illustrate multi-licensing: Oracle MySQL comes in various editions: MySQL Enterprise Edition
8064-723: The server-side use-case without release of the source-code the " ASP loophole in the GPLv2" and encourage therefore the use of the GNU Affero General Public License which plugged this hole in 2002. There were experiments by Independent developers to fund development of open-source software donation -driven directly by the users, e.g. with the Illumination Software Creator in 2012. Since 2011, SourceForge allows users to donate to hosted projects that opted to accept donations, which
8192-621: The source-available Business source license (BSL) which automatically relicenses after three years to the FOSS GPL. This approach guarantees licensees that they have source code access (e.g. for code audits ), are not locked into a closed platform , or suffer from planned obsolescence , while for the software developer a time-limited exclusive commercialization is possible. In 2017 followed version 1.1, revised with feedback also from Bruce Perens . However, this approach works only with own software or permissive licensed code parts, as there
8320-641: The video game domain are in the list of commercial video games with later released source code . Popular non-game software examples are the Netscape Communicator which was open-sourced in 1998 and Sun Microsystems 's office suite , StarOffice , which was released in October 2000 at its commercial end of life. Both releases made foundational contributions to now prominent open-source projects, namely Mozilla Firefox and OpenOffice.org / LibreOffice . Unlike proprietary off-the-shelf software that come with restrictive licenses, open-source software
8448-473: The "backend" as a service (m) model, also known as "mobile backend as a service" (MBaaS), web app and mobile app developers are provided with a way to link their applications to cloud storage and cloud computing services with application programming interfaces (APIs) exposed to their applications and custom software development kits (SDKs). Services include user management, push notifications , integration with social networking services and more. This
8576-512: The Cloud Security Alliance, the top three threats in the cloud are Insecure Interfaces and APIs , Data Loss & Leakage , and Hardware Failure —which accounted for 29%, 25% and 10% of all cloud security outages respectively. Together, these form shared technology vulnerabilities. In a cloud provider platform being shared by different users, there may be a possibility that information belonging to different customers resides on
8704-593: The MySQL Community Edition is a freely downloadable version, available under the GPL license and is supported by a community of open source developers. The term single-vendor commercial open source was coined by Dirk Riehle in 2010, and has later been further popularized by other scholars, such as Simon R. B. Berdal . According to Riehle: Single-vendor commercial open source firms build their business around an open source software project that they fully control, typically by having developed
8832-491: The Trojan horse injection method is a serious problem with harmful impacts on cloud computing systems. The National Institute of Standards and Technology recognized three cloud service models in 2011: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). The International Organization for Standardization (ISO) later identified additional models in 2023, including "Network as
8960-530: The above methods follows from the traditional approach in the selling software, where Software is licensed for installation and execution on a user- or customer-supplied infrastructure. In the classic software product business, revenues typically originate from selling software upgrades to the customer. However, it's also practicing selling exactly the same programs or add-ons but without proprietary licensing. For example, applications like ardour, radium or fritzing it's completely free software on GPL license but there
9088-426: The application runs. This eliminates the need to install and run the application on the cloud user's own computers, which simplifies maintenance and support. Cloud applications differ from other applications in their scalability—which can be achieved by cloning tasks onto multiple virtual machines at run-time to meet changing work demand. Load balancers distribute the work over the set of virtual machines. This process
9216-698: The artwork is CC BY-NC-SA 3.0 licensed, and Frogatto & Friends with an own developed open-source engine and commercialization via the copyrighted game assets for iPhone , BlackBerry and MacOS . Other examples are Arx Fatalis (by Arkane Studios ) and Catacomb 3-D (by Flat Rock Software ) with source code opened to the public delayed after release, while copyrighted assets and binaries are still sold on gog.com as digital distribution . Richard Stallman stated that freedom for works for art or entertainment are not required. The similar product bundling of an open-source software product with hardware which prevents users from running modified versions of
9344-438: The author is less willing to make the source code available. The general consensus was that while unethical, it was not considered a violation. The Free Software Foundation is against this practice. The GNU General Public License since version 2 has defined "source code" as "the preferred form of the work for making modifications to it." This is intended to prevent the release of obfuscated source code. Some companies provide
9472-546: The benefits of multiple deployment models. Hybrid cloud can also mean the ability to connect collocation, managed and/or dedicated services with cloud resources. Gartner defines a hybrid cloud service as a cloud computing service that is composed of some combination of private, public and community cloud services, from different service providers. A hybrid cloud service crosses isolation and provider boundaries so that it cannot be simply put in one category of private, public, or community cloud service. It allows one to extend either
9600-483: The capabilities of the enterprise to deliver a specific business service through the addition of externally available public cloud services. Hybrid cloud adoption depends on a number of factors such as data security and compliance requirements, level of control needed over data, and the applications an organization uses. Another example of hybrid cloud is one where IT organizations use public cloud computing resources to meet temporary capacity needs that can not be met by
9728-441: The capacity or the capability of a cloud service, by aggregation, integration or customization with another cloud service. Varied use cases for hybrid cloud composition exist. For example, an organization may store sensitive client data in house on a private cloud application, but interconnect that application to a business intelligence application provided on a public cloud as a software service. This example of hybrid cloud extends
9856-440: The cloud infrastructure consumer-created or acquired applications created using programming languages, libraries, services, and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly configuration settings for the application-hosting environment. PaaS vendors offer
9984-407: The cloud infrastructure. In this model, the cloud user patches and maintains the operating systems and the application software. Cloud providers typically bill IaaS services on a utility computing basis: cost reflects the number of resources allocated and consumed. The NIST 's definition of cloud computing defines Platform as a Service as: The capability provided to the consumer is to deploy onto
10112-495: The cloud operational system can support large numbers of virtual machines and the ability to scale services up and down according to customers' varying requirements. Linux containers run in isolated partitions of a single Linux kernel running directly on the physical hardware. Linux cgroups and namespaces are the underlying Linux kernel technologies used to isolate, secure and manage the containers. The use of containers offers higher performance than virtualization because there
10240-452: The cloud provider, the company typically does not offer monetary compensation. Instead, eligible users may receive credits as outlined in the corresponding SLA. Cloud computing abstractions aim to simplify resource management, but leaky abstractions can expose underlying complexities. These variations in abstraction quality depend on the cloud vendor, service and architecture . Mitigating leaky abstractions requires users to understand
10368-502: The cloud. Cloud migration can be complicated, time-consuming, and expensive, particularly when there are compatibility issues between different cloud platforms or architectures. If not carefully planned and executed, cloud migration can lead to downtime, reduced performance, or even data loss. Applications hosted in the cloud are susceptible to the fallacies of distributed computing , a series of misconceptions that can lead to significant issues in software development and deployment. In
10496-540: The code-owning firm, as well as strategic partners that have vested interest in the software. As Riehle notes, In single-vendor open source, almost all of the core product development work is carried out by the commercial firm, with occasional contributions from the community. As Berdal notes, the governance of the open source community becomes a key business management process in this context: As such, it needs to be aligned with other business activities. Governance models of dual-licensed OSS editions may therefore display
10624-595: The companies develop both open source software elements and other elements of value for a combined product. A variety of open-source compatible business approaches have gained prominence in recent years, as illustrated and tracked by the Commercial Open Source Software Index (COSSI), a list of commercial open source companies that have reached at least US$ 100 million in revenue. Notable examples include open core (sometimes referred to as dual licensing or multi-licensing ), software as
10752-434: The continued development of the free open-source version. Customers may prefer a no-cost and open-source edition for testing, evaluation, proof of concept development, and small scale deployment. If the customer wishes to deploy the software at scale, or in proprietary distributed products, the customer then negotiates for a commercial license to an enterprise edition. Further, customers will learn of open-source software in
10880-444: The customer, manages the development and execution of programs by building data applications for the customer. dPaaS users access data through data-visualization tools. The NIST 's definition of cloud computing defines Software as a Service as: The capability provided to the consumer is to use the provider's applications running on a cloud infrastructure . The applications are accessible from various client devices through either
11008-440: The data is in the cloud initially hampered adoption of cloud for big data , but now that much data originates in the cloud and with the advent of bare-metal servers , the cloud has become a solution for use cases including business analytics and geospatial analysis . HPC cloud refers to the use of cloud computing services and infrastructure to execute high-performance computing (HPC) applications. These applications consume
11136-457: The developers' work. If both parties agree, the resulting software could then be publicly released with an open-source license in order to allow subsequent adoption by other parties. That agreement could reduce the costs paid by the clients while the original developers (or independent consultants) can then charge for training, installation, technical support , or further customization if and when more interested customers would choose to use it after
11264-513: The exact definitions according to NIST: By 2023, the International Organization for Standardization (ISO) had expanded and refined the list. The history of cloud computing extends back to the 1960s, with the initial concepts of time-sharing becoming popularized via remote job entry (RJE). The "data center" model, where users submitted jobs to operators to run on mainframes, was predominantly used during this era. This
11392-565: The first open-source software for deploying private and hybrid clouds. The following decade saw the launch of various cloud services. In 2010, Microsoft launched Microsoft Azure , and Rackspace Hosting and NASA initiated an open-source cloud-software project, OpenStack . IBM introduced the IBM SmartCloud framework in 2011, and Oracle announced the Oracle Cloud in 2012. In December 2019, Amazon launched AWS Outposts,
11520-430: The functionality of the solutions, cost , integrational and organizational aspects as well as safety & security are influencing the decision of enterprises and organizations to choose a public cloud or on-premises solution. Hybrid cloud is a composition of a public cloud and a private environment, such as a private cloud or on-premises resources, that remain distinct entities but are bound together, offering
11648-410: The implementation details and limitations of the cloud services they utilize. Service lock-in within the same vendor occurs when a customer becomes dependent on specific services within a cloud vendor, making it challenging to switch to alternative services within the same vendor when their needs change. Cloud computing poses privacy concerns because the service provider can access the data that
11776-601: The implementation of a desired feature or functionality. Offering bounties as funding has existed for some time. For instance, Bountysource is a web platform which has been offering this funding model for open source software since 2003. Another bounty source is companies or foundations that set up bounty programs for implemented features or bugfixes in open-source software relevant to them. For instance, Mozilla has been paying and funding freelance open-source programmers for security bug hunting and fixing since 2004. A newer funding opportunity for open-source software projects
11904-679: The information public). There is the problem of legal ownership of the data (If a user stores some data in the cloud, can the cloud provider profit from it?). Many Terms of Service agreements are silent on the question of ownership. Physical control of the computer equipment (private cloud) is more secure than having the equipment off-site and under someone else's control (public cloud). This delivers great incentive to public cloud computing service providers to prioritize building and maintaining strong management of secure services. Some small businesses that do not have expertise in IT security could find that it
12032-454: The infrastructure and platforms that run the applications. SaaS is sometimes referred to as "on-demand software" and is usually priced on a pay-per-use basis or using a subscription fee. In the SaaS model, cloud providers install and operate application software in the cloud and cloud users access the software from cloud clients. Cloud users do not manage the cloud infrastructure and platform where
12160-446: The initial release. There also exist stipends to support the development of open source software, such as Google 's Summer of Code and Outreachy . Another approach to funding is to provide the software freely, but sell licenses to proprietary add-ons such as data libraries. For instance, an open-source CAD program may require parts libraries which are sold on a subscription or flat-fee basis. Open-source software can also promote
12288-537: The latest version available only to paying customers. A vendor forks a non- copyleft software project then adds closed-source additions to it and sells the resulting software. After a fixed time period the patches are released back upstream under the same license as the rest of the codebase. This business model is called version lagging or time delaying. For instance, 2016 the MariaDB Corporation created for business compatible "delayed open-sourcing"
12416-473: The license. Cloud computing "Cloud computing is a paradigm for enabling network access to a scalable and elastic pool of shareable physical or virtual resources with self-service provisioning and administration on-demand." according to ISO . In 2011, the National Institute of Standards and Technology (NIST) identified five "essential characteristics" for cloud systems. Below are
12544-480: The main challenges of cloud computing, in comparison to more traditional on-premises computing, is data security and privacy. Cloud users entrust their sensitive data to third-party providers, who may not have adequate measures to protect it from unauthorized access, breaches, or leaks. Cloud users also face compliance risks if they have to adhere to certain regulations or standards regarding data protection, such as GDPR or HIPAA . Another challenge of cloud computing
12672-429: The number of licenses used, e.g. dual-licensed for software licensed under two different licenses. When software is multi-licensed, recipients can typically choose the terms under which they want to use or distribute the software, but the simple presence of multiple licenses in a software package or library does not necessarily indicate that the recipient can freely choose one or the other. In some cases, especially when
12800-480: The number of projects named after their host institutions, such as BSD Unix , CMU Common Lisp , or the NCSA HTTPd which evolved into Apache . Companies may employ developers to work on open-source projects that are useful to the company's infrastructure: in this case, it is developed not as a product to be sold but as a sort of shared public utility. A local bug-fix or solution to a software problem, written by
12928-486: The open source software. However, any update to the next version requires either exporting the data, reinstalling the new version, then reimporting the data to the new version, or subscribing to the proprietary update system, or studying the two versions and recreating the scripts from scratch. This practice does not conform with the free software principles as espoused by the FSF. Richard Stallman condemns this practice and names it "diachronically trapped software". All of
13056-486: The open-source application AdBlock Plus gets paid by Google for letting whitelisted Acceptable Ads bypassing the browser ad remover. As another example is SourceForge , an open-source project service provider, has the revenue model of advertising banner sales on their website. In 2006, SourceForge reported quarterly takings of $ 6.5 million and $ 23 million in 2009. The users of a particular software artifact may come together and pool money into an open-source bounty for
13184-598: The open-source core. Other examples of proprietary products built on open-source software include Red Hat Enterprise Linux and Cloudera 's Apache Hadoop -based software. Some companies appear to re-invest a portion of their financial profits from the sale of proprietary software back into the open source infrastructure. The approach can be problematic with many open source licenses ("not license conform") if not carried out with sufficient care. For instance, mixing proprietary code and open-source licensed code in statically linked libraries or compiling all source code together in
13312-443: The payment of a full-time developer for 3.5 months. Patreon funding has also become an effective option, as the service gives the option to pay out each month to creators, many of whom intend to develop free and open-source software. In a dual licensing model, the vendor develops software and offers it under an open-source license but also under separate proprietary license terms. The proprietary version can be licensed to finance
13440-733: The private cloud. This capability enables hybrid clouds to employ cloud bursting for scaling across clouds. Cloud bursting is an application deployment model in which an application runs in a private cloud or data center and "bursts" to a public cloud when the demand for computing capacity increases. A primary advantage of cloud bursting and a hybrid cloud model is that an organization pays for extra compute resources only when they are needed. Cloud bursting enables data centers to create an in-house IT infrastructure that supports average workloads, and use cloud resources from public or private clouds, during spikes in processing demands. Community cloud shares infrastructure between several organizations from
13568-501: The public Internet, and they may be offered as a paid subscription, or free of charge. Architecturally, there are few differences between public- and private-cloud services, but security concerns increase substantially when services (applications, storage, and other resources) are shared by multiple customers. Most public-cloud providers offer direct-connection services that allow customers to securely link their legacy data centers to their cloud-resident applications. Several factors like
13696-561: The public code repository is updated, as permitted by most open-source licenses. Also in the computer hardware domain, a hardware producer who provides free and open software drivers reveals the knowledge about hardware implementation details to competitors, who might use this knowledge to catch up. Multi-licensing Multi-licensing is the practice of distributing software under two or more different sets of terms and conditions. This may mean multiple different software licenses or sets of licenses. Prefixes may be used to indicate
13824-455: The release of the open-source software is not an open source deployment. With a SaaS approach, businesses no longer need to write new code from scratch, but instead can use the software they need by paying a subscription. Serverless technology allows businesses to completely transfer infrastructure management to the provider, which means that teams can create scalable applications more efficiently, cheaper, easier, and more reliably. The FSF called
13952-509: The responsibility of monitoring SLA compliance and must file claims for any unmet SLAs within a designated timeframe. Customers should be aware of how deviations from SLAs are calculated, as these parameters may vary by service. These requirements can place a considerable burden on customers. Additionally, SLA percentages and conditions can differ across various services within the same provider, with some services lacking any SLA altogether. In cases of service interruptions due to hardware failures in
14080-429: The rights and freedoms different recipients receive. Such licensing allows the holder to offer customizations and early releases, generate other derivative works or grant rights to third parties to redistribute proprietary versions all while offering everyone a free version of the software. Sharing the package as copyleft free software can benefit the copyright holder by receiving contributions from users and hackers of
14208-657: The sale of specialized hardware that it interoperates with, some example cases being the Asterisk telephony software developed by PC-telephony hardware manufacturer Digium and the Robot Operating System (ROS) robotics platform by Willow Garage and Stanford AI Labs. Many open source software projects have begun as research projects within universities, as personal projects of students or professors, or as tools to aid scientific research. The influence of universities and research institutions on open-source shows in
14336-490: The same data server. Additionally, Eugene Schultz , chief technology officer at Emagined Security, said that hackers are spending substantial time and effort looking for ways to penetrate the cloud. "There are some real Achilles' heels in the cloud infrastructure that are making big holes for the bad guys to get into". Because data from hundreds or thousands of companies can be stored on large cloud servers, hackers can theoretically gain control of huge stores of information through
14464-447: The software and never having shared control with third parties. This is done by owning the full copyright to the code and related intellectual property such as patents and trademarks... Typically, the free open source form is provided under a reciprocal license like the GPL to drive adoption but stall possible competitors. Paid-for versions of the software are then provided under a commercial license like traditional software vendors do. This
14592-429: The software at little or no cost, and profits by selling proprietary licenses to commercial operations looking to incorporate the software into their own business. This model can be compared to shareware . Since in most cases, only the copyright holder can change the licensing terms of a software, multi licensing is mostly used by companies that wholly own the software which they are licensing. Confusion may arise when
14720-434: The software has multiple origins, all the accompanied licenses apply at the same time. The applicability of the different licenses has to be individually checked. The distributor may or may not apply a fee to either option. The two usual motivations for multi-licensing are license compatibility and market segregation based business models. Multi-licensing is commonly done to support free software business models in
14848-406: The software in a fashion suitable for on-premises , do-it-yourself deployment. To some customers, however, there is significant value in a "plug and play" hosted product. Open source businesses that use this model often cater to small and medium enterprises who do not have the technology resources to run the software. Providing cloud computing services or software as a service (SaaS) without
14976-446: The software is called tivoization and is legal with most open-source licenses except GPLv3 , which explicitly prohibits this use-case. Another variant of the approach above, mainly use for data-intensive, data-centric software programs, is the keeping of all versions of the software under a free and open-source software license, but refraining from providing update scripts from a n to an n +1 version. Users can still deploy and run
15104-587: The software itself. Another possibility is offering open-source software in source code form only, while providing executable binaries to paying customers only, offering the commercial service of compiling and packaging of the software. Also, providing goods like physical installation media (e.g., DVDs ) can be a commercial service. Open-source companies using this business model successfully are, for instance RedHat , IBM , SUSE , Hortonworks (for Apache Hadoop ), Chef, and Percona (for open-source database software). Some open-source organizations such as
15232-495: The software on their infrastructure or platform. Examples include the IBM proprietary Linux software , where IBM contributes to the Linux open-source ecosystem, but it builds and delivers (to IBM's paying customers) database software , middleware , and other software that runs on top of the open-source core. Other examples of proprietary products built on open-source software include Red Hat Enterprise Linux and Cloudera 's Apache Hadoop -based software. Another financing approach
15360-452: The then CEO Mårten Mikos of MySQL said in an interview: The depth of the contributions varies by product and situation. The deeper you go into the core of the database engine, the more difficult it is for somebody to contribute because it takes five years to learn. If you build something on the outskirts of the kernel - some tool or function that you add on top of it - then that is much easier because there's less risk that you will mess up
15488-611: The underlying cloud infrastructure but has control over operating systems, storage, and deployed applications; and possibly limited control of select networking components (e.g., host firewalls)." IaaS-cloud providers supply these resources on-demand from their large pools of equipment installed in data centers . For wide-area connectivity, customers can use either the Internet or carrier clouds (dedicated virtual private networks ). To deploy their applications, cloud users install operating-system images and their application software on
15616-414: The use of multiple public clouds for the purpose of leveraging specific services that each provider offers. It differs from Multi cloud in that it is not designed to increase flexibility or mitigate against failures but is rather used to allow an organization to achieve more than could be done with a single provider. The issues of transferring large amounts of data to the cloud as well as data security once
15744-420: The user has brought to the venture, whose form will depend on the type of activity undertaken. Caveats in pursuing a Crowdsourcing strategy are to induce a substantial market model or incentive, and care has to be taken that the whole thing doesn't end up in an open source anarchy of adware and spyware plagiates, with a lot of broken solutions, started by people who just wanted to try it out, then gave up early, and
15872-445: The users' data on the cloud provider's server. As a result, there could be unauthorized access to the data. Examples of applications offered as SaaS are games and productivity software like Google Docs and Office Online. SaaS applications may be integrated with cloud storage or File hosting services , which is the case with Google Docs being integrated with Google Drive , and Office Online being integrated with OneDrive . In
16000-410: The whole product. But something great can emerge out of many tiny-looking contributions. It's analogous to how, in economic development, microloans can have such a huge impact - each entry is minimal, but when you multiply it by the number of people who are involved, it grows massive. It starts getting a momentum of its own. . Hence, the community of multi-license software as a rule includes employees of
16128-508: Was a "terrible success" as "vehicle for dual commercial licensing" and noted that MongoDB , RethinkDB , OpenERP , SugarCRM as well as WURFL utilizing the license for this purpose. Dual license products are generally sold as a "community version" and an "enterprise version." In a pure dual licensing model, as was common before 2010, these versions are identical but available under a choice of licensing terms. Added proprietary software may help customers analyze data, or more efficiently deploy
16256-502: Was a time of exploration and experimentation with ways to make large-scale computing power available to more users through time-sharing , optimizing the infrastructure, platform, and applications, and increasing efficiency for end users. The "cloud" metaphor for virtualized services dates to 1994, when it was used by General Magic for the universe of "places" that mobile agents in the Telescript environment could "go". The metaphor
16384-435: Was achieved. The motivation of companies following this practice of releasing the source code when a software reaches the commercial end-of-life , is to prevent that their software becomes unsupported Abandonware or even get lost due to digital obsolescence . This gives the user communities the chance to continue development and support of the software product themselves as an open-source software project. Many examples from
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