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I always thought that OSS was supposed to be a loss-leader. By being the author you have more credibility for offering services. Sure someone else can do it, bu
by Pet_Ant 3y ago
I always thought that OSS was supposed to be a loss-leader. By being the author you have more credibility for offering services. Sure someone else can do it, but are they really gonna know how to offer support in some rare crazy edge case that is blowing up production right now?
- madeofpalk 3y agoloss-leader for what?
- Pet_Ant 3y agoFor support contracts, services, consulting, and customisation.
- wmf 3y agoThat doesn't generate enough revenue to sustain development.
- jsnell 3y agoHere's Hashicorp's financials: https://ir.hashicorp.com/news-releases/news-release-details/hashicorp-announces-first-quarter-financial-results-fiscal-0 https://ir.hashicorp.com/news-releases/news-release-details/... They made $102M of revenue from support in the latest quarter. Their cost for providing the support was $15M, and their entire R&D costs were $54M. (Professional services was a tiny amount of revenue in comparison, and at break-even.) Clearly support and services could easily generate enough revenue to sustain development. What it can't currently sustain is their $91M / quarter of sales and marketing.
- wmf 3y agoThey need $91M of S&M to get $102M of revenue though, so the $11M net doesn't cover $54M R&D.
- pessimizer 3y agoAmazon can do that better and cheaper than you if you start to become successful.