[FSF India] Making money from GPLed (Free) Software

Vivekananda Prabhu fsf-india@gnu.org.in
Fri, 31 Aug 2001 05:15:31 -0700 (PDT)


Hi,

One of the common refrains I hear about GPL from Open
Source/Closed Source guys is you cannot make money by
writing GPLed software. You need a proprietory licence
or Open Source MPL/BSD to make money.

Ofcourse you can make money writing GPLed software.
But the business model is different than making money
using MPL/BSD or proprietory licenses.

Proprietory/ Open Source models depend on "Branding"
to get VC funding & run the business profitably (1).
To have an effective branding you need USPs (Unique
Selling Propositions). This ultimately leads to some
really useful modules being Closed source (
irrespective of the licence claiming to be Open
Source)

In GPL model you make money by offering Services (not
selling software alone). You could sell "Free"
software but your USP will be the quality of service
(QOS) you offer in installing/setting up software,
software customization, training, maintenance &
technical support.

The only difference will be some high-flying VC will
not be funding you. You really need to sweat it out.
Anyway it is not bad as you won't have a black-suited
guy who doesn't know ABCD of software controlling your
every action.There is no danger that he (VC) will
pull-out his investments when things are not green &
your Co. joins the long list of Dot.gone companies

You can win & keep clients only by offering
first-class services. Any second-class, third-class
service will not do (otherwise he will go to others
GPL grants him the freedom to do so).Word of mouth is
very important. Nobody can lock-in customers by
offering third-class proprietory solutions (you
actually are *stealing* customers freedom in doing so
by using BSD/MPL) & denying him & others from
improving the software beyond what you have given (
You might have given him A grade product but he wants
A+ one & doesn't like to pay you. May be he doesn't
like your QOS or price)

Considering the Freedom GPL gives to end-users I am
beginning to wonder why doesn't a Consumer Forum (not
FSF/RMS) ask for a ban on Non-GPL software to safe
guard consumer interests

Increasingly we are seeing BSD/MPL being used as
sugar-coated "poison candy" by companies to trap &
lock-in users. 

I suggest that a law be passed that these software
carry a warning "B grade. Expect Non-Free 'A' grade
software soon which is injurious to your freedom " the
way cigarette packs carry the message "Smoking
cigarettes is injurious to health". After reading this
message if someone decides to use such S/W ar smoke
cigarettes it is thier funeral (freedom), but let us
guard their "Freedom for Information" (Just joking
don't brand me as a person conspiring to steal others
freedom which I am not)

Well developing GPLed software you can still make
money. But you cannot make money sacrificing ethics
(stealing customer freedom) as GPL will not allow you
to do it the way MPL/BSD do. You really do need to
sweat it out. Do you have it in you?

GPLed software will give money to meet everyones needs
but not everyones greeds.

Come on, we leave in a country where people buy cars,
houses & make a posh living selling Idlis & Dosas
which donot carry any IP or licence in roadside shops.
There are companies that package it in vaccuum packs &
make money. It is the quality of service that brings
in (more) money.

Software is also a commodity to be sold in bulk in the
Bazaar (Both RMS & ESR agree to this point). The only
difference is that these shops or packaging companies
do not intend to make proprietory extensions to Idli &
patent/copy right it. That is why we don't need GPL
here.But in S/W there are M$ & others waiting to steal
our freedom & choices, so we need GPL.

Infact there is lot of opportunity for making money
using GPLed software in India. Around 90% people don't
own PCs yet (aren't addicted to Windows yet).When our
stupid government removes import duties on H/W making
the PCs cheaper a whole lot of people will be buying
it. This is an opportunity for us to grow.

Around 60%-70% of our population donot know English.
They want software in local languages.They cannot
afford XP (because of WPA & price), Win XX doesn't
give this choice to them. We can give them that choice
using Indigo

A whole lot of people do not know installing/setting
up software. There is money to be made here. A whole
lot of home users, companies need Financial software
(GnuCash) which is customized to their taste &
requirements. Any software including supposedly user
friendly M$ Office needs training.

There is money *here*. You only need to keep you eyes
& ears open

If you go to Banta Singh (sorry for racial stereo
stypes you can even read it as Banta Prabhu if you are
offended) from Jhumri Talaiyya & tell him about
"linux" technology & security, IBM clustering,
loadable Kernel modules etc. He will say "Duh!". He is
more than happy using Windowz.

You give him an assembled PC pre-loaded with
GNU/Linux, any software customized or otherwise in his
own language, any training he needs & maintenance he
needs he will buy it. 

But even OSS guys can do it or even pirated software
guys selling Windowz. So what is Free Software USP?

We say to Banta "Look Boss (customer is our king). I
am not locking-in or trapping you in anyway. I am
giving you *complete* source (code). If tommorrow I
close shop or you don't like my source you can go to
any XYZ to do anything you want with the software". He
will be amazed & ask you "How do you plan to make
money in the future?". You smile & say "By giving you
a better quality of service & offering you reasonable
prices". He will then trust you & tell these OSS &
pirated software guys to scoot.

They can't tell him the same thing without telling
lies(fully or partially).Even if they lie they cannot
fool all the people all the time.

So hackers start writing code in GPL & close your ears
for all MPL/BSD marketing & FUD

Regards,
Vivek









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