{"id":36769,"date":"2007-03-18T18:35:32","date_gmt":"2007-03-18T23:35:32","guid":{"rendered":"https:\/\/www.altoros.com\/blog\/?p=36769"},"modified":"2021-08-31T21:05:56","modified_gmt":"2021-08-31T18:05:56","slug":"7-qualities-of-highly-successful-open-source-software-company","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/","title":{"rendered":"Top 7 Qualities of a Highly Successful Open-Source Software Company"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#Disruptive_businesses\" >Disruptive businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#1_A_new_market\" >1. A new market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#2_Low_price\" >2. Low price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#3_Good-enough_product\" >3. Good-enough product<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#4_Easy_to_implement\" >4. Easy to implement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#5_Community_of_loyal_users\" >5. Community of loyal users<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#6_Standard_technology\" >6. Standard technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#7_New_distribution_channels\" >7. New distribution channels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/#Further_reading\" >Further reading<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Disruptive_businesses\"><\/span>Disruptive businesses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2007\/03\/book-innovator-s-solution.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2007\/03\/book-innovator-s-solution-203x300.jpg\" width=\"130\" class=\"alignright size-medium wp-image-63319\" \/><\/a><\/p>\n<p>Six days ago, I wrote about the key factor influencing a disruptive market strategy, &#8220;<a href=\"https:\/\/www.altoros.com\/blog\/free-vs-cheap-its-not-about-shrinking-a-market-3\/\">New Market<\/a>.&#8221; Today&#8217;s post summarizes six additional characteristics of a truly disruptive open-source business. Most of them derive from <a href=\"http:\/\/www.amazon.com\/gp\/product\/1578518520?ie=UTF8&amp;tag=nakopesou-20&amp;link_code=as3&amp;camp=211189&amp;creative=373489&amp;creativeASIN=1578518520\">one of the best books<\/a> I can think of in the area of disruptive business models, &#8220;<i>The Innovator&#8217;s Solution: Creating and Sustaining Successful Growth<\/i>&#8221; by <a href=\"http:\/\/www.amazon.com\/exec\/obidos\/search-handle-url\/103-4568792-8221436?%5Fencoding=UTF8&amp;search-type=ss&amp;index=books&amp;field-author=Clayton%20M.%20Christensen\">Clayton M. Christensen<\/a>.<\/p>\n<p>Here are all &#8220;Seven Qualities&#8221; as of March 18, 2007.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_A_new_market\"><\/span>1. A new market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>I believe that a new business model alone doesn&#8217;t make it, be it open source, or SaaS, or whatever. The key idea is that in order to be truly disruptive, an offering has to address a large underserved market segment, and create a NEW market in the first place.<\/p>\n<p>In commercial open source, the initial target is never the existing users of expensive, proprietary software. What the heck can they do with your scrappy product? The best target market is a highly growing underserved market with a lot of demand and little to no supply. Similar to what <a href=\"http:\/\/mysql.com\">MySQL<\/a> offered to all Internet small businesses who can&#8217;t afford MS SQL or <a href=\"https:\/\/www.altoros.com\/blog\/oracle-enhances-its-database\/\">Oracle<\/a> database to power an e-commerce shop or a content management system of a micro business with little to no revenues. Then, move up the stack and target the ones who have the budget, but are still not willing to pay $5K\u201320K for a piece of software if there is a cheaper or better yet FREE alternative.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Low_price\"><\/span>2. Low price<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It takes 5x to 10x the price advantage between what your proprietary competitors charge for a solution and what a commercial\/supported package of your software costs in order to create enough disruptive &#8220;leverage&#8221; to cross the chasm and enter the mainstream market.<\/p>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2018\/09\/031807_2334_SevenQualit1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-36770 alignright\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2018\/09\/031807_2334_SevenQualit1-300x262.jpg\" alt=\"\" width=\"300\" height=\"262\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Good-enough_product\"><\/span>3. Good-enough product<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A product\/solution should be good enough to solve 50% to 80% of the most common customer needs. At the beginning, your competition will not consider such an\u00a0 offering as a threat at all, as it doesn&#8217;t have all of the &#8220;things&#8221; and &#8220;features&#8221; their BMW-driving sales force is communicating to prospects all day long. Their customer and your customer are two different animals.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Easy_to_implement\"><\/span>4. Easy to implement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The product should be simple enough that it can to remain easy to implement and extract value from. Take <a href=\"http:\/\/www.mulesource.com\">Mule<\/a>, a highly successful open-source <a href=\"https:\/\/www.altoros.com\/blog\/etl-vs-esb\/\">ESB<\/a> as an example. Mule can be installed in several minutes compared to hours to install and configure proprietary products from EII\/ESB vendors, such as TIBCO. At <a href=\"http:\/\/apatar.com\">Apatar<\/a>, we strive to do the same and make sure <a href=\"https:\/\/sourceforge.net\/projects\/apatar\/files\/latest\/download\">Apatar ETL<\/a> can be installed in two minutes or less.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Community_of_loyal_users\"><\/span>5. Community of loyal users<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There should be enough supporters willing to contribute their time to requesting new features (compliment Product Marketing), testing your software and reporting bugs (compliment QA), and developing new product functionality (compliment R&amp;D).<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Standard_technology\"><\/span>6. Standard technology<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A disruptive open-source product\/solution should utilize widely used technologies, which have already become or could become a &#8220;commodity&#8221;-type component in a technology stack, such as LAMP or Java.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_New_distribution_channels\"><\/span>7. New distribution channels<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The traditional distribution models are not good for a truly disruptive product. No BMW-driving sales folks to &#8220;push&#8221; your product into the market (unless you are really short on time and have VC backing to support some direct sales). The Internet is replacing most roles in the marketing, PR, and sales functions of an emerging open-source startup.<\/p>\n<p>&nbsp;<\/p>\n<p>If you have ideas about any additional components that make an &#8220;essential&#8221; package of a disruptive open-source software startup, I&#8217;d love to hear about them.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_reading\"><\/span>Further reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/open-source-dbms-move-forward\/\" rel=\"noopener noreferrer\" target=\"_blank\">Open-Source Databases Break into the Enterprise<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/open-source-data-integration-and-etl-keep-maturing\/\">Open-Source Data Integration and ETL Keep Maturing<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/top-10-trends-in-enterprise-open-source-2006-2007\/\">Top 10 Trends in Enterprise Open Source (2006\u20132007)<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Disruptive businesses<\/p>\n<p>Six days ago, I wrote about the key factor influencing a disruptive market strategy, &#8220;New Market.&#8221; Today&#8217;s post summarizes six additional characteristics of a truly disruptive open-source business. Most of them derive from one of the best books I can think of in the area of disruptive business models, [&#8230;]<\/p>\n","protected":false},"author":8,"featured_media":36770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[960,895],"class_list":["post-36769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","tag-data-integration","tag-research-and-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Top 7 Qualities of a Highly Successful Open-Source Software Company | Altoros<\/title>\n<meta name=\"description\" content=\"This is the second post in my series dedicated to disruptive market strategies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/7-qualities-of-highly-successful-open-source-software-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top 7 Qualities of a Highly Successful Open-Source Software Company | Altoros\" \/>\n<meta property=\"og:description\" content=\"Disruptive businesses Six days ago, I wrote about the key factor influencing a disruptive market strategy, &#8220;New Market.&#8221; Today&#8217;s post summarizes six additional characteristics of a truly disruptive open-source business. 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