3 ms·
Revenue is probably not a good measure, as an open source solution tends to reduce market size as measured by dollars spent. From Bob Young, founder of Red Hat:
by slavik81 8y ago
Revenue is probably not a good measure, as an open source solution tends to reduce market size as measured by dollars spent. From Bob Young, founder of Red Hat:
> The reality is most of our users don’t pay us squat [...] Our business model [showed] that if we had millions of users, we only needed one-tenth of our users to actually find something of value to pay Red Hat for.
> If Microsoft’s earning $40 billion worth of operating system sales, and if we [reduce that to] a $4 billion-a-year market, because nine out of ten of the people that use our operating system aren’t going to pay us, we’re quite happy with a share of a $4 billion-a-year market.
https://growthhackers.com/growth-studies/red-hat-how-they-developed-a-big-idea-that-shook-up-a-huge-market https://growthhackers.com/growth-studies/red-hat-how-they-de...
- maxerickson 8y agoI think that makes it important to consider revenue. Say each company spends ¼ of revenues paying developers. Microsoft would be paying ~10x the developers to write software and probably be writing more software.