The economics of open source (Stephe Walli)

Is open source the only way to write good software? Absolutely not. But, as Stephe Walli argues, open source proves to be a more efficient means to that end:

Now good software has always been written by good software developers without regard for how they share it….

Good software developers also like working with other good software developers. Web-enabled communities complemented by copyright licenses that ensured everyone understood the “contract” of the community allowed well run projects to thrive. Good project managers know how to get the best out of a team of developers.

So we now have the ability to amortize the costs of developing, maintaining, and supporting the development of good software in web-based communities. The engineering efficiency is compelling. Well run open source software projects represent dynamic stable building blocks for solving a growing and complex set of problems. They preserve (and indeed expand) the value in the asset created. (Intellectual property is a set of legal tools used to protect an asset. Let’s not confuse the value of the asset’s protection to a business with the value of the asset itself to its users.)

This does NOT mean that these development communities can’t be closed. Or that they can’t reside inside of a company. But there are two dynamics at work then. First, by closing a community you may be closing out the very developers that can best help grow the asset’s value over time. Second, understand that a company with a customer must serve certain other economic dynamics, beyond a project with participants and users.

Good post, with lots of other goodies in it. Head over to Stephe’s blog for the rest.