When JBoss was acquired by Red Hat, the publicly acknowledged conversion rates were 3% (JBoss) and 10% (Red Hat). People start making assumptions about business models based on driving downloads and user community size. And that's where the problem starts.

I’ve talked in the past about a number of “open source” business models. There’s the MySQL “dual license” model, where all the software is available under an open license but a proprietary license can be purchased.

The merits of the open source distribution model in generating sales leads have been well documented but it’s always good to see statistics that back up the theory. I recently talked with a new open source software vendor (who will remain nameless, although in the interests of avoiding confusion I should state it was not LoopFuse) that shared with me some statistics about its first year distributing open source code and the comparative cost of lead generation using the proprietary model.

Over the last couple of years a number of different open source business strategies have evolved. According to the 451 Group, it's an evolution that includes the broader adoption and usage of open source overall by both open source and proprietary software vendors.

OpenITWorks CEO Michael Grove contends that it is a mistake to think of commercial open source as its own business model. Instead, open source is one of many possible means to an end of making a single software business model successful -- that of selling value to customers through software. Businesses should focus their strategic planning on how to best monetize their value propositions, through open source or something else.

GoAhead Software Moves to Open Source Business Model. GoAhead® Software today announces that it is shifting its business model and technology strategy from its proprietary SAFfire product to an open source software model. Simultaneous with the move to open source, GoAhead is announcing the acquisition of Avantellis from Emerson Network Power.

What do you see as the biggest danger to open-source software today? On the one hand, there's still a locus of resistance. Microsoft still maintains strongly the view that its business model, which depends upon concealing source code from users, is a viable and important and indeed necessary model.

The Open Business Foundation (OBF) operates on two premises: that the open source development community makes good business sense, and that small businesses can be more successful if they band together with each other to share resources of all kinds.

"The Open Business Foundation (OBF) operates on two premises: that the open source development community makes good business sense, and that small businesses can be more successful if they band together with each other to share resources of all kinds."