Legal firms are rapidly expanding their open source practices as the legal challenges to developers and users mount.

It's not every day that a Microsoft executive as highly placed as senior vice president, corporate secretary and general counsel Brad Smith shows up at an open source conference, but he made an appearance at the Open Source Business Conference in San Francisco this week. I enjoyed the title of InfoWorld's summary of his visit: Microsot's Brad Smith Tries to Make Nice with Open Source Community.

As more than 11,000 attendees prepare to converge on San Francisco for the LinuxWorld Conference & Expo next week, one industry analyst says customers are evaluating open-source software the same way they evaluate proprietary software: It has to be priced right and work well.

The first rule of Fight Club is to not speak about Fight Club. That is unless of course you're an open source vendor that, by definition, aims to make everything open and available.

According to a talk by Benchmark Capital's Rob Bearden at this week's Open Source Business Conference (OSBC), the nature of open source business models are changing. He says open source companies should strive to become the "enterprise standard" in their market space in order to effectively monetize their commodities.

MANY technology firms are floundering amid the recession. But many of the ones that offer services tied to open-source software—free programs written by volunteers who collaborate online—are boasting double-digit growth. Sales at Red Hat, the world’s biggest independent open-source firm with annual revenues of $653m, grew by 18% year-on-year in the first quarter.

A bit of teenage angst is cropping up in speculation about acquisitions of open source software companies. With the $500 million buy of XenSource by Citrix Systems Inc. and previous buys by RedHat Inc. and Oracle Corp. last year, open source software providers have become viable targets despite worries about lack of sales and compromised code that could lead to legal disputes.

There was a time when open-source software was the domain of computer geeks and do-it-yourselfers with more time than money. But, as Oracle's legal salvo against Google highlighted last week, those days are long gone. Oracle (ORCL), through its purchase of Sun Microsystems, has become one of the largest purveyors of open-source software in the world.

When I first found out about open source software, I felt the sky was the limit — with the source code, I could do anything now! But after working on open source ERP for the last seven years, I’ve come to realize that customizing software, even open source software, should not be taken lightly.