Friday, October 30, 2009

Open Source Economics

Before reading this blog from Michael Widenius, I was of the view that open source movement can go on without the support of any organization. In my opinion it was an effort by the contributors. But alas it is not. It needs an economics to sustain. Here is the excerpt

"MySQL is not an end user application, but an infrastructure project that is quite deep in the system stack. Most of the technology partners, where most of the innovation in the MySQL space happen nowadays, depend on being able to get licenses for MySQL so that they can combine their closed source application or closed code (like storage engines) with MySQL. If you take the license revenue and add it to all direct and indirect money that comes from these kind of partners, this is a huge part of the MySQL economic infrastructure (i.e., where the money is).

The simple fact is that keeping a project like MySQL alive and having it compete with big vendors like Oracle, require many people working in it. If they can't get any revenue from doing that (except support revenue, which is not enough), you will find very few companies prepared to do development and extremely few (or none) investment company would put serious money on a company that gets all of it's money on services (not scalable)."

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