Software industry struggles to survive in an open source world

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Panelists ponder how to make money through new software paradigm

By Paul Krill
March 02, 2005

BURLINGAME, Calif. -- Software industry dignitaries at the EclipseCon 2005 conference here Tuesday pondered a burning question: How do you make money in open source software when the software is free?

The selling of support and services were two options noted, but panelist Mitchell Kertzman, a partner at Hummer Winblad Venture Partners, said a similar question about how to make money was raised when the computing paradigm shifted to the PC more than 20 years ago.

When the PC came out, everyone said there would be no software business anymore, no one will pay more than $100 for anything, and Microsoft (Profile, Products, Articles) could take away all the business, Kertzman said. "Maybe that last one was true," he joked.

Paradigm shifts, however, are like movements of tectonic plates, Kertzman said. "They create the greatest opportunities for startups because the large companies can't move, can't adjust," Kertzman said.
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http://www.infoworld.com/article/05/03/02/HNopensourcequestions_1.html?source=NLC-TB2005-03-02