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Some open source startups fail because they are non-scalable service companies deluding themselves that they are product companies.

Some open source startups fail because they are non-scalable service companies deluding themselves that they are product companies. Furthermore, they do not own enough of any durable advantage (IP, talent, mindshare), and so multiple "product" companies pretend to not compete while offering similar services in a niche that does not have that much demand. Furthermore with FOSS, most potential customers are often politically incentivized to poach upstream code and talent, give nothing back and eschew overpriced "consulting" services entirely. So it's almost always the wrong business model, unless you dominate it. (I've plenty of enterprise FOSS consulting to realize there are easier ways to make much more $/time, like enterprise startups that are product companies. Also, PGs essays about "consultingish.")

Posted by vgabios on Apr 13, 2015, 10:53 AM

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Some open source startups fail because they are non-scalable service companies deluding themselves that they are product companies.

vgabiosApr 13, 2015, 10:53 AM

Some open source startups fail because they are non-scalable service companies deluding themselves that they are product companies. Furthermore, they do not own enough of any durable advantage (IP, talent, mindshare), and so multiple "product" companies pretend to not compete while offering similar services in a niche that does not have that much demand. Furthermore with FOSS, most potential customers are often politically incentivized to poach upstream code and talent, give nothing back and eschew overpriced "consulting" services entirely. So it's almost always the wrong business model, unless you dominate it. (I've plenty of enterprise FOSS consulting to realize there are easier ways to make much more $/time, like enterprise startups that are product companies. Also, PGs essays about "consultingish.")

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