How do companies make money?

[gist718]

I'm currently stationed in Iraq, and I decided when I get back from the money saved build a new computer and also give Linux a try. Now Microsoft sells Windows anywhere from $100-$200, new office be $400-500, so I see where they get their money, but free OS, how do companies exist?

[macdude425]

There are three main types of organizations who make and distribute open-source software.

• Companies, who also make "corporate" software, which can cost an arm and a leg. Examples of this would be Mandriva and Red Hat, who not only have free products, but ones that cost money too.
• Not for profit organizations, like Debian and Slackware, who get donations from users to keep going, and also have volunteer developers.
• Organizations that are sponsored by a company, but are not owned by them, like Openoffice.org and The Fedora Project. Their sponsors provide them with some money and some development.

Hopefully that answered your question (albeit in a roundabout way).

[gist718]

Interesting, I just read up Ubuntu site, and indeed they accept donations, so if I like what I get out I shall make a donation, which will be a fraction of plucking out money to M$.

[Sevoma]

Originally posted by gist718
Interesting, I just read up Ubuntu site, and indeed they accept donations, so if I like what I get out I shall make a donation, which will be a fraction of plucking out money to M$.

Ubuntu Dapper (will be released in April) is looking really good. I am definatley checking it out.


Mandriva makes money by having a "club" that gets you pre-packaged closed-source software (flash, java...) and also easy automatic updates. Some also have paid professional support..