No Baggage
Traditional companies have the advantage of a large installed base, but they also are bound by their current business models. So it is in the software business. We're seeing this in both the movements to Linux and in the new companies architected only for delivery as a service.
The advent of Linux has challenged the fundamental business model for software. If software is free, how can a company make money? Red Hat invests in and delivers Red Hat Linux. The current version is made up of more than 800 individual packages, almost all of which have been developed as open-source projects. All can be downloaded directly from the Red Hat Web site. So, if you can't make money on the software, you have to make money on servicing the software. ...
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