Free and open source software (FOSS) has revolutionized the software industry and enabled global collaboration and innovation. However, despite its widespread adoption in various sectors, a major challenge remains: monetizing FOSS without compromising the core principles of openness and collaboration. While much has been written about the benefits and philosophy of FOSS, there is a lack of comprehensive analysis of sustainable business models that reconcile revenue generation with the ethos of open source development. This thesis aims to fill this crucial gap. The central question driving this research is: How can developers and companies make money from free and open source software without violating open source principles? This question is addressed by examining existing monetization strategies, the challenges involved, and how these can be overcome to ensure both financial viability and consistency with the open source philosophy. The paper starts with an introduction to FOSS's core concepts and the challenges associated with monetization. It then examines specific strategies such as dual licensing, commercial support services, and special software customization. With analysing each of these strategies in detail, taking into account their potential to generate revenue as well as potential legal, technical, and community challenges. The thesis concludes with a discussion of the implications of these findings, as well as suggestions for future research in this evolving field. This work is based on a thorough review of the existing literature, drawing on both historical and contemporary sources. Foundational texts such as Eric Raymond's The Cathedral and the Bazaar (1999) provide critical insights into the origins and philosophy of FOSS, while more recent studies offer a perspective on current trends and challenges. Case studies of successful FOSS projects such as Linux, Apache, and MySQL are used to illustrate the practical application of the monetization strategies discussed. The research methodology is primarily qualitative, focusing on secondary data from academic papers, industry reports, and case studies. The literature examined spans more than two decades, ensuring a comprehensive understanding of the evolution of FOSS and its monetization. Key sources include work on open source licensing, business models, and the challenges of intellectual property, which together provide a solid framework for analysis. While this paper provides a detailed examination of FOSS monetization strategies, it is limited by the fact that it relies on secondary research. The lack of primary data means that the analysis is based on existing studies and may not capture the most recent developments in the rapidly evolving FOSS landscape. Furthermore, the scope is limited to well-documented case studies that may not represent the full diversity of FOSS projects. The findings of this thesis suggest that while monetizing FOSS poses significant challenges, there are viable strategies that can strike a balance between generating revenue and upholding open source principles. As the digital economy continues to expand, the importance of sustainable FOSS business models will continue to grow. Future research should focus on developing more refined strategies, incorporating real-time data, and exploring the potential of innovative approaches that can further bridge the gap between open source ideals and commercial success.
How to make money with Free and Open Software: An overview of Chances and Limitations
Ritberger, S. (Author). 2024
Student thesis: Bachelor's Thesis