OpenITWorks CEO Michael Grove contends that it is a mistake to think of commercial open source as its own business model. Instead, open source is one of many possible means to an end of making a single software business model successful -- that of selling value to customers through software. Businesses should focus their strategic planning on how to best monetize their value propositions, through open source or something else.

I’ve talked in the past about a number of “open source” business models. There’s the MySQL “dual license” model, where all the software is available under an open license but a proprietary license can be purchased.

I have noticed a trend developing in the business models of successful open source companies. These companies are implementing a business model that is based on dual licensing their software.

The Open Business Foundation (OBF) operates on two premises: that the open source development community makes good business sense, and that small businesses can be more successful if they band together with each other to share resources of all kinds.

"The Open Business Foundation (OBF) operates on two premises: that the open source development community makes good business sense, and that small businesses can be more successful if they band together with each other to share resources of all kinds."

The open-source development model can can be powerful and incredibly beneficial for any software development project. Yet, even most open-source projects do not follow this style of development. Today, I want to talk a bit about why this is the case, and what can be done to set your project on the right path to enjoy the advantages of the open-source development process.

What do you see as the biggest danger to open-source software today? On the one hand, there's still a locus of resistance. Microsoft still maintains strongly the view that its business model, which depends upon concealing source code from users, is a viable and important and indeed necessary model.

Last week the Talent First Network announced the launch of a new monthly publication geared toward greater understanding and dialogue between businesses and open source software projects.

CIO Magazine has a collection of articles about the business issues in an open source endeavor. This one, written by JT Smith, includes tips on operating an open-source project and establishing a solid business around it to provide financing and additional resources. See also the sidebars (highlighted on the first page).