Are open source vendors more capital efficient?
Reading Mark’s guest post led to Dave’s post on “Finding the right open-source price.” Dave wrote:
Customers expect open-source alternatives to be 10 percent to 20 percent of the cost of the proprietary product, which means that open-source companies need to be 80 percent to 90 percent more capital-efficient.
What does 80 to 90 percent more capital efficient really mean? Well, if it takes a commercial vendor 60 cents in expenses to drive $1 in revenue, then an open source vendor must only spend 6 to 12 cents in expenses to drive the same $1 in revenue.
Are open source vendors more capital efficient? |Open Sources | Rodrigues & Urlocker | InfoWorld
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