If you’ve ever thought there wasn’t any money in open source, think again.
I remember back in a television production class back in college, a classmate of mine joked about public television not having any money. My professor jumped in the conversation to set the record straight. The truth of the matter is, public television — aka: not for profit — has plenty of money behind it.
So it goes for open source.
There are plenty of companies running a business model that would never give away a platform that powers 70 million websites (35 million a year ago).
Think about it. At $1 each, that would come to $70 million!
Give it away? For free?
The company behind WordPress is Automattic and despite giving away their platform, they have become an extremely profitable company. This year, Automatttic is expected to bring in $45 million in revenue . Not bad for a company that has 106 employees.
“We march a little to our own beat, and sometimes it’s out of sync with Silicon Valley — and that’s been to our advantage and disadvantage,” Automattic CEO Toni Schneider said. “We don’t get sucked into the latest thing, while some of our competitors are distracted by the latest shiny object. The disadvantage is sometimes we’re against the grain of what everyone else is excited about, and people ask ‘Why don’t you have x yet?’ — but we go at our own pace.”
So where does the money come from?
Automattic makes their money from premium subscriptions and VIP services for their half million customers.
Ah, yes. The riches of open source.
[via All Things D]