You have an idea for the next online service that will change the world. Good! Now, should you make it accessible through a web browser, or will you create a desktop application to provide a more responsive and user friendly user interface? Think Google Maps versus Google Earth.
If you are targeting people using a PC or Mac, in most cases you will choose to make your application browser accessible: you will create a web application. However if you are targeting mobile devices, the temptation to create an application that runs on the phone will be greater. With a mobile application, you can fully leverage the capabilities of the phone and provide the best user experience, or at least so goes the theory. In practice, you will have to support a zillion different phones and most people just won't know how to install your application on their phone. For those reasons, I think the appeal of web applications is even greater on mobile devices. But there are right now two limiting factors: the hardware and the software. I am not worried about the hardware: there is a fierce competition in that market and mobile phones are getting better every day.
But what about the software? Smart phone can in general run Opera for Mobile, but what about the so-called feature phones, which represent the bulk of the market? A few days ago, Opera got us closer to making web applications run smoothly on most phones with the release of Opera Mini. It has already been called by some as the "best mobile application to date". It runs on virtually any phone (check if your phone is supported) and runs beautifully (give it a try!). Today Opera got us closer to making web applications really usable on mobile devices.
This morning I was fighting against some nasty little bug and it got to a point where I needed some additional tool to squash the villain: a tool that would show me the HTTP headers sent back by my web application. For this, I used
Models, even if sometimes crude, can help us better get a understanding of the world. After dividing the industry in 3 sectors (goods, services, and insurances), we have seen how this model applies to software. We'll focus now specifically on open source software, and we'll see how this model can help use categorize different types of open source business models.
How do we pay and how should we pay for software: as a good, service, or insurance? Traditionally, software has been sold as a good, often even packaged in a box and available in a store. This was not unlike traditional goods where each additional "copy" has to be produced or manufactured, and shipped, at a cost to the vendor. Of course with the Internet, all of this has changed: now software can be delivered at virtually no cost.
This "article" will be split in 3 parts, to keep each one short and focused. With absolutely no credential in the field of economics, we will start in this first part by looking at another way to divide our industry into 3 sectors. In the second part, we'll see how this can help us better understand different business models for software. And finally we'll look more specifically at open source software, a subject dear to our heart, and see how to classify different open source business models.