Following up on related discussions, another common confusion in my opinion is to think that “open source” is a business model. It is not. Open source is a business strategy, in support of a business model. You still need to know how to make money, and it doesn’t happen by giving software away for free. That is to say, you need a business model like selling subscription or implementation services.
The most common commercial open source business strategy is the “dual-license strategy” as demonstrated by MySQL, Alfresco, etc. This particular business strategy is mostly a go-to-market strategy, a way by which the commercial open source company penetrates customers and fosters the sale. I’ve blogged about this before here and here.
There is more to say, obviously, and I’m working on it. Any thoughts would be appreciated!