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What are the typical types of business models for open source software?

The typical types of business models for open source software include:

  1. Support and Services Model: Companies offer support, consulting, and training services for their open source software. Users can use the software for free but pay for professional assistance. For example, Red Hat provides support and services for its open-source operating system, Red Hat Enterprise Linux.

  2. Dual Licensing Model: The software is available under an open-source license but also has a commercial version with additional features or support. Users can choose between the two. MySQL is a classic example, offering both an open-source version and a paid enterprise edition.

  3. Freemium Model: Basic features of the software are available for free, while advanced features require a paid subscription. This model is common in software as a service (SaaS) applications. An example is GitLab, which offers a free version of its platform but charges for premium features like advanced security and compliance.

  4. Contributor License Agreement (CLA) Model: Companies may require contributors to sign a CLA, granting the company rights to use contributions in both open-source and proprietary versions of the software. This helps companies protect their intellectual property while still benefiting from community contributions.

  5. Open Core Model: The core software is open source, but companies develop proprietary add-ons or extensions that can be sold commercially. This allows companies to monetize specific functionalities that are not included in the open-source version.

  6. Sponsorship and Advertising Model: Some open-source projects generate revenue through sponsorships or advertising within the software or its community platforms. This model relies on the project's popularity and user base to attract advertisers.

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