Open-source business models

Open source business models are booming. However, a CNET article points out that an open-source business model start-up needs a number of attributes that a closed-source software company doesn’t. In particular, they need to establish a vibrant “community” of open-source users, some of whom are not paying customers. Not all open-source companies are hitting the right balance between commerce and community. According to a VC quoted in the article: “If a community doesn’t form and form fast, then they’re going to burn through their venture capital, and they’re going to be disasters.”