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Zbwleibniz-Informationszentrum A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Giuri, Paola; Rocchetti, Gaia; Torrisi, Salvatore Working Paper Open source software: From open science to new marketing models. An enquiry into the economics and management of open source software LEM Working Paper Series, No. 2002/23 Provided in Cooperation with: Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies Suggested Citation: Giuri, Paola; Rocchetti, Gaia; Torrisi, Salvatore (2002) : Open source software: From open science to new marketing models. An enquiry into the economics and management of open source software, LEM Working Paper Series, No. 2002/23, Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM), Pisa This Version is available at: http://hdl.handle.net/10419/89477 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Laboratory of Economics and Management Sant’Anna School of Advanced Studies Piazza dei Martiri della Libertà, 33 - I-56127 PISA (Italy) Tel. +39-050-883-341 Fax +39-050-883-344 Email: [email protected] Web Page: http://lem.sssup.it LLEEMM Working Paper Series Open Source Software: From Open Science to New Marketing Models An Enquiry into the Economics and Management of Open Source Software Paola Giuri* Gaia Rocchetti* Salvatore Torrisi † * Sant'Anna School of Advanced Studies, Pisa, Italy †University of Camerino and Sant’anna School of Advanced Studies 2002/23 July 2002 OPEN SOURCE SOFTWARE: FROM OPEN SCIENCE TO NEW MARKETING MODELS AN ENQUIRY INTO THE ECONOMICS AND MANAGEMENT OF OPEN SOURCE SOFTWARE Paola Giuri, Scuola Superiore Sant’Anna, Pisa Gaia Rocchetti, Scuola Superiore Sant’Anna, Pisa Salvatore Torrisi, Università di Camerino and Scuola Superiore Sant’Anna, Pisa Second draft: July 2002 Abstract This research report analyses several issues on the economics and management of Open Source Software (OSS). It offers an historical description of the emergence of OSS and of heterogeneous types of actors involved in the OSS phenomenon. From a theoretical perspective the paper discusses some crucial topics: the organization and performance of the development process in open source and traditional proprietary models, the incentives to innovation in different regimes of intellectual property protection, the ingredients of business models based on open source software. From an empirical perspective it presents some data on the diffusion of open source software in some segments of the software market and develops a detailed comparison of open source and proprietary licensing models, also drawing some implications on the use of different types of open source licences in the commercial market. Keywords: Open Source Software, Intellectual Property, Licensing, Business Model. JEL Classification: O31, O34, L86. Acknowledgements. We thank Giuseppe Attardi, University of Pisa, Alfonso Fuggetta, Politecnico of Milano and Guido Scorza, CIRFID, University of Bologna, for sharing with us their knowledge of technical and legal implications of open source software. We also benefited from information and discussion with Icube S.r.l., Ksolutions S.p.A., Microsoft Italia, and MLX S.r.l. (MadeinLinux) during the preparation of this report. The usual disclaimers apply. TABLE OF CONTENTS 1. EXECUTIVE SUMMARY .................................................................................................................................5 2. THE EMERGENCE OF OPEN SOURCE SOFTWARE: HISTORY AND THE PROCESS OF DEVELOPMENT.. ...............................................................................................................................................................15 2.1 What is Open Source Software ....................................................................................................15 2.2 History of OSS: source code availability vs. trade secret practices.........................................16 2.3 The Organisation of OSS Development ....................................................................................21 3. DIFFUSION OF OPEN SOURCE SOFTWARE PRODUCTS: AN INTERNATIONAL OVERVIEW..................30 3.1 Introduction ....................................................................................................................................30 3.2 Open source software in the community of software developers ..........................................31 3.3 Open Source Software Products: Web Server Software and Web Platforms .......................33 3.4 Operating environments – revenues from open source and proprietary platforms.............44 3.4.1. The market for Linux in Italy ............................................................................................................46 3.5 The market for e-mail servers.......................................................................................................49 3.6 The demand for open source software .......................................................................................49 3.6.1. The academic market ..........................................................................................................................49 4. LICENSE MODELS: A COMPARISON BETWEEN PROPRIETARY AND OPEN SOFTWARE........................54 4.1 Introduction: Intellectual Property Rights and software..........................................................54 4.2 Copyright and licensing open source and proprietary software..............................................57 4.3 An overview of the principal OSS Licence models...................................................................65 4.3.1. The GPL ...............................................................................................................................................66 4.3.2. The LGPL.............................................................................................................................................67 4.3.3. MPL/NPL: The Mozilla Public Licence and Netscape Public Licence .....................................67 4.3.4. The BSD licences.................................................................................................................................67 4.4 Other OSS licenses.........................................................................................................................71 4.4.1. MPL like licenses .................................................................................................................................71 4.4.2. The BSD like licenses..........................................................................................................................72 5. THE ECONOMICS AND BUSINESS OF OPEN SOURCE SOFTWARE ...........................................................75 5.1 Incentives to engage in open software: ‘gift culture’ or ‘exchange economy’? .....................77 5.2 Open software and open science.................................................................................................80 5.3 The competition between open source and proprietary software .........................................83 5.4 Business models..............................................................................................................................86 5.4.1. New business models centred on OSS ............................................................................................89 5.4.2. Linux Distributors ...............................................................................................................................91 5.4.3. The case of Red Hat............................................................................................................................94 5.5 Conclusions and policy implications ...........................................................................................97 1 APPENDIX A THE OSI APPROVED LICENSES ................................................................................................100 APPENDIX B FREE SOFTWARE FOUNDATION APPROVED LICENSES .........................................................101 APPENDIX C OSS LICENCE MODELS...............................................................................................................103 APPENDIX D DIFFUSION OF DIFFERENT LICENSE MODELS........................................................................111 APPENDIX E EXAMPLES OF OSS VENDORS...................................................................................................112
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