Commercial Open Source’s Viability

I took note of David Rosenberg’s blog from yesterday about a new IDC study about open source and it’s validity as a viable business model. The study, while perhaps a little late (at least in terms of SugarCRM’s existence for over four years), is all-in-all good stuff and underscored some important aspects of the commercial open source model via some interesting data points.

The study makes note of the importance of subscription-based sales and the open source model. The reason why commercial open source companies such as ourselves have found success is because it’s this equation that forces us to add value to our products and services. Customers are able to clearly identify value and make investments as such. As Rosenberg states, “These companies are truly software vendors.”

In addition, many still believe that commercial open source allows for every and any level of coding to make it into the product, and that simply isn’t the case. SugarCRM, like other commercial open source providers, focuses on code quality, security, and scalability. In short, we take what works best for the product and our customers.