Open Source Solutions for Small Business Problems

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Calculating the True Price of Software

Submitted by John Locke on Sun, 07/24/2005 - 00:32

Interesting analysis of the cost of software, applying the pricing model for financial instruments such as options and calls to support contracts: ONLamp.com: Calculating the True Price of Software.

From the article:

For the open source movement, perhaps a better way to position the change that OSS is making is this: we're converting warrants on future maintenance and enhancements into options, which means that instead of having a sole supplier (warrants), we have created a third-party market (options) of these derivatives.

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