One more way to make money with Linux is by offering paid professional support services for free open-source software. So for instance, a company uses Linux to develop a new piece of software that fulfills a huge market need. They open the software is up for free distribution, download, and use.
Another frequent inquiry is “How do Linux companies make money?”.
Companies make money from Linux in a variety of inventive ways. They use proprietary software, commercial products, or a combination of services delivered as a customized business model.
How do Linux developers make money?
Many developers earn their monthly income creating Linux code. They work for companies that, for one reason or another, have determined that supporting the Linux ecosystem is good for business. Some are “open source” companies. Making free software is a key part of what they do.
I learned with the rapid growth of the market along with the income from the hardware components, predictions were that Linux’s worth would exceed $35.7 billion back in 2008. However, a Fortune Business Insights report article has decreased this prediction and declared the worth closer to $3.89 billion in 2019.
This of course begs the query “How do Linux kernel developers get funded?”
Although this mode of support is relatively uncommon, you don’t necessarily have to be an open source superstar to secure this type of funding; many Linux kernel developers are partially or wholly funded by companies like Red Hat. Paid for specific features or extensions.
Why do Linux companies work on Linux?
They work for companies that, for one reason or another, have determined that supporting the Linux ecosystem is good for business. Some are “open source” companies. Making free software is a key part of what they do. Red Hat is the largest example of this. Canonical, who makes Ubuntu, is another prominent one.
The Linux source code is freely available which means that development companies can use the code to create new distribution packages and versions of Linux. They can then license these as their own products to sell and make money. Examples of these distribution versions include Debian, Fedora, Ubuntu, and Red Hat.
How do open source companies make money?
Another way open source companies make their money is with add-ons. One of the most successful of these is Woo, and commerce. At the time it was acquired by Automattic in 2015, it powered over 25 percent of all ecommerce stores.
Developers and open-source companies can also make money by providing their open-source software to the public. They can then ask for donations or “a cup of coffee” to help them continue their ongoing developments. This has become a popular way for free software developers to earn an income from their open-source projects.
Hermann has a point, but it turns out there are a lot of ways to make money from free software. Let’s start with the issue of demand. The more specialized a type of software is, the fewer users there will be. Generally, the fewer users, the smaller the market opportunity.