WEBVTT

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have you ever thought of trying to make money by selling stuff that's actually

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available for free and before you came up with air and water pepsico and gas

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stations already beat you to the punch so sorry

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fortunately this also happens a lot in the tech world with open source software

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open source is a term that refers to any kind of software whose code can be used

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and distributed for free plenty of well-known programs and even operating

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systems are in fact open source such as firefox Android and Linux just to name a

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few and this openness is a key to modern

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technological innovation because one of the ideas behind open source software is

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that it can help businesses and organizations by allowing them to

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collaborate more easily on the development of the same open source

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software platform instead of a bunch of different proprietary ones in fact some

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companies with a more traditional business model like ibm are well known

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for providing funding to open source projects simply so that they can reap

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the benefits of the new technology without dedicating their own human

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resources to its creation now that's business lots of big

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companies love open source software because it spreads out the burden of

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checking for security issues and open source apps can be easily modified for

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special purposes an example of this last one is the way that many smartphone

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manufacturers tweak Android to give their users a more customized experience

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for better or for worse another way that open

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source software can make money is by monetizing features and services other

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than the core software itself a good example of a company that's thrived this

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way is red hat which develops and maintains its own open source Linux

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distribution the source code for that distro is free but red hat makes money

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by selling additional features such as proprietary add-ons for the core product

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they also sell support training consulting and technical assistance

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because simply taking the source code and deploying it can be difficult without the company's expertise

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additionally customers can pay to have the Linux distribution modified to

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better suit their specific needs red hat also sells automation and infrastructure

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as a service meaning that a client doesn't have to have tons of hardware to

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actually run the software or store related data if they're willing to fork

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out some cash other companies have different approaches sometimes a

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developer will offer a free version of a certain piece of software that can be

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downloaded installed and run on the client's hardware but also offer either

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official hardware designed to run that software like ix systems does with their

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freenas open source operating system and truenas lineup of servers or they might

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offer a paid software as a service version that's stored on the company's

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servers and maintained by the company so the client doesn't have to bother

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messing around with hardware or troubleshooting yet another way to make money off of open source software is one

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that isn't really technical at all and is a little more obvious advertising a

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prime example of this is actually firefox traditionally one of mozilla's

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biggest sources of revenue has been from google or yahoo paying as much as

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hundreds of millions of dollars a year to be the default search engine provider

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in their browser another key revenue generation strategy is ecosystem

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google's Android is a great example here unlike traditional operating systems

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which would cost money up front for the user or device manufacturer google

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decided to develop and provide Android for free

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free turns out they were playing a long game and now that everything from phones

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to tvs to car stereos runs on Android these days they're raking in massive

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amounts of money from users buying content and apps for their devices with

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google taking a cut on each transaction many open source projects also survive

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by raising cash from their users instead of enticing customers to buy something

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related the wikimedia foundation for example stays afloat just for

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merchandise sales and those banner ads that remind you that if everyone gave

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today they would be finished fundraising in four hours or whatever you know what

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come to think of it maybe skip that donut at the tim hortons today

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for your health and for human knowledge

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speaking of knowledge those in the know know that freshbooks is the small

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www.freshbooks.com techwiki i think it's that slash

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so check out freshbooks at the link below well that's it for this tech

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quickie guys thanks for watching like dislike check out our other videos

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