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 free software community, along with the commercial ecosystem which surrounds it, is widely seen as having pointed the way toward successful, collaborative development of common resources. We have seen a number of attempts to port the free software model to other areas of endeavor. Open content, headlined by sites like Wikipedia, has adopted this model with considerable success.

Most software developers have little interest in entrepreneurship, but an open-source software project will survive and thrive only by delivering value into a market (users) with business partners (contributors) and against competitors (other open and closed source software). If you want to run a successful open-source project, it helps if you consider the key questions that apply when defining a commercial business model. I'll expand on Chesbrough's and Rosenbloom's list of 6 themes to demonstrate why.

There are a vast number of fantastic open source projects out there, though for every one that is widely adopted, there are many that remain cloaked in relative obscurity. How can the open source development model best be leveraged to take advantage of community feedback, ideas, and testing, and ultimately gather code contributions?

So what happened to open source as a business? There was a wave of “commercial open source” companies that were going to change the world, including SugarCRM, Alfresco, Jasper, Pentaho, and ActiveGrid, a company I started in 2003 to bring open source software into businesses.

Which is to say an open source business model that will generate marginal revenue improvement for firms that employ it, at the cost of developer goodwill and participation. And, potentially, distribution. What open core is not is a model that will mitigate the commercial limitations of the model sufficiently to produce outsized returns similar to historical software producers.

The US Veterans Affairs Department has launched a contest with $3 million in prizes for development of a new patient scheduling system based on open source software. The VA’s chief information officer said “for the last 18 months, we have been working with the open source community to support this change in direction.”

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.

Back at the Linux Foundation Austin Summit, VIA had announced plans to develop a new open-source initiative in a similar fashion what AMD has been doing. However, in the weeks following that they haven't done much for the open-source community.