Comment Professional Services is profitable (Score 1) 393
Open source is profitable because professional services is profitable. Open source companies like jBilling, SugarCRM and the like make most of their revenue not from selling licenses, but all kind of services around the software they created that they know well. If you want to deploy jBilling in your company, who do you call? Well, the guys that wrote it would be a good choice.
Add to that companies like IBM, that make a lot of money on consulting and that type of services...
Oracle itself makes a good share of its revenue from support. Try to buy an oracle license without support, you will get called every other day by an Oracle salesman offering support. Try then to upgrade to a newer version of Oracle: you'll have to pay all the years of support you did not pay first.
So Oracle knows very well that software services is profitable, and open source is just a way to distribute software to maximize professional services revenue.
Add to that companies like IBM, that make a lot of money on consulting and that type of services...
Oracle itself makes a good share of its revenue from support. Try to buy an oracle license without support, you will get called every other day by an Oracle salesman offering support. Try then to upgrade to a newer version of Oracle: you'll have to pay all the years of support you did not pay first.
So Oracle knows very well that software services is profitable, and open source is just a way to distribute software to maximize professional services revenue.