Open Source and Linux Economics

The usual question that many ask and suspect - 'How come Linux is given away free? And how do these companies - like Ubuntu - survive?'

I always have a difficult time answering that - and most of the time can make out that the audience is not convinced. Those in the government and decision making chain instead of being thankful that we have a great software available free of cost - do tend to feel there is some ulterior motives (who gives away things for free now-a-days??) or just don't believe it!

Came across a great blog by Mark Shuttleworth - the Owner/Creator of Ubuntu (his company is called Canonical) - wherein he explains some of the free and Open Source Economics. Check it out here
(of course - make it a point to check out the fair comments at the blog site too! Pretty interesting debate!!)

Mark is a 'billionaire' by the way, and the second 'self-funded' space tourist - check his Wikipedia site here

Extract from his blog:

The bulk of the direct cost in creating the audience of Ubuntu users is carried by Canonical. There are many, many indirect costs and contributions that are carried by others, both inside the Ubuntu community and in other communities, without which Ubuntu would not be possible. But that doesn’t diminish the substantial investment made by Canonical in a product that is in turn made available free of charge to millions of users and developers.

The business model which justifies this investment, and which we hope will ultimately sustain that effort for the desktop without dependence on me, is that fee-generating services which are optional for users provide revenue to Canonical. This enables us to make the desktop available in a high quality, fully maintained form, without any royalties or license fees. By contrast, every other commercial Linux desktop is a licensed product – you can’t legally use it for free, the terms for binaries are similar to those for Windows or the MacOS. They’re entitled to do it their way, we think it’s good in the world that we choose to do it our way too.