Skip to main content

A Licensing and Business Model for Sharing Source Code with Clients—Leveraging Open Client Innovation in the Proprietary World

  • Conference paper
Book cover Software Business (ICSOB 2010)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 51))

Included in the following conference series:

Abstract

While the pure-form open source model has been in the focus of much information systems research recently, research is lacking on truly hybrid software licensing models that combine limited openness of source code with traditional value appropriation logic. Yet such boundedly open models are implied by open innovation literature and by the recent emphasis on client involvement therein. The further amalgamation of traditional proprietary software licensing with open source licensing can be rationalised through commodification of software, shift from products to services, the viability of the pure-form open source model, and the continuing need for better operational efficiency. After reviewing other hybrid-OSS models, a very practical hybrid licensing model is presented that responds to the need of software vendors in various vertical domains. Its benefits and limitations are discussed, and it is positioned relative to the value co-production (co-creation) literature. A set of research questions are raised to the information systems research agenda.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Cook, S.: The Contribution Revolution. Letting Volunteers Build Your Business. Harvard Business Review, 60–69 (October 2008)

    Google Scholar 

  2. Ramírez, R.: Value co-production: Intellectual Origins and Implications for Practice and Research. Strategic Management J. 20, 49–65 (1999)

    Article  Google Scholar 

  3. Nambisan, S., Nambisan, P.: How to Profit from a Better ‘Virtual Customer Environment’. MIT Sloan Management Review 49(3), 53–61 (2008)

    Google Scholar 

  4. Nambisan, S., Baron, R.A.: Interactions in Virtual Customer Environments: Implications for Product Support and Customer Relationship Management. J. of Interactive Marketing 21(2), 42–62 (2007)

    Article  Google Scholar 

  5. Bettencourt, L.A., Ostrom, A.L., Brown, S.W., Roundtree, R.I.: Client Co-Production in Knowledge-Intensive Business Services. California Management Review 44, 100–128 (2002)

    Google Scholar 

  6. den Hertog, P.: Knowledge-Intensive Business Services as Co-Producers of Innovation. Int. J. of Innovation Management 4(4), 491–528 (2000)

    MathSciNet  Google Scholar 

  7. Möller, K., Rajala, R., Westerlund, M.: Service Innovation Myopia? A New Recipe for Client-Provider Value Creation. California Management Review 50(3), 31–48 (2008)

    Google Scholar 

  8. Levy, Y., Ellis, T.J.: A Systems Approach to Conduct an Effective Literature Review in Support of Information Systems Research. Informing Science J. 9, 181–212 (2006)

    Google Scholar 

  9. Cusumano, M.: The Business of Software: How to Survive and Thrive in Good Times and Bad. The Free Press, New York (2004)

    Google Scholar 

  10. Nambisan, S.: Why Service Businesses are not Product Businesses. MIT Sloan Management Review, ABI/INFORM Global 42(4), 72–80 (2001)

    MathSciNet  Google Scholar 

  11. Teece, D.J.: Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy. Research Policy 15, 285–305 (1986)

    Article  Google Scholar 

  12. Kampas, P.J.: Shifting Cultural Gears in Technology-driven Industries. MIT Sloan Management Review, 41–48 (Winter 2003)

    Google Scholar 

  13. Rossi, C., Bonaccorsi, A.: Why Proft-Oriented Companies Enter the OS Field? Intrinsic vs. Extrinsic Incentives. In: Open Source Application Spaces: Fifth Workshop on Open Source Software Engineering (5-WOSSE), St Louis, MO, USA, May 17 (2005)

    Google Scholar 

  14. Shah, S.K.: Motivation, Governance and the Viability of Hybrid Forms in Open Source Software Development. Management Science 52(7), 1000–1014 (2006)

    Article  Google Scholar 

  15. Osterloh, M., Rota, S.: Open Source Software Development—Just Another Case of Collective Invention? Research Policy 36, 157–171 (2007)

    Article  Google Scholar 

  16. von Hippel, E., von Krogh, G.: Open Source Software and the ‘Private-Collective’ Innovation Model: Issues for Organization Science. Org. Science 14(2), 209–223 (2003)

    Article  Google Scholar 

  17. Allen, R.C.: Collective Invention. J. of Economic Behaviour and Org. 4(1), 1–24 (1983)

    Article  Google Scholar 

  18. Bonaccorsi, A., Giannangeli, S., Rossi, C.: Entry strategies under competing standards: Hybrid business models in the open source software industry. Management Science 52(7), 1085–1098 (2006)

    Article  Google Scholar 

  19. Fitzgerald, B.: The Transformation of Open Source Software. MIS Quarterly 30(3), 587–598 (2006)

    Google Scholar 

  20. Hecker, F.: Setting Up Shop. The Business of Open Source Software. IEEE Software 16(1), 45–51 (1999)

    Article  Google Scholar 

  21. Karels, M.J.: Commercializing Open Source Software. In: Many Have Tried, a Few Are Succeeding, But Challenges Abound. ACM Queue, July/August 2003, pp. 46–55. ACM, New York (2003) (1542-7730/03/0700)

    Google Scholar 

  22. Krishnamurthy, S.: An Analysis of Open Source Business Models. In: Feller, J., Fitzgerald, B., Hissam, S.A., Lakhani, K.R. (eds.) Perspectives on Free and Open Source Software, pp. 279–296. MIT Press, Cambridge (2005)

    Google Scholar 

  23. Välimäki, M.: The Rise of Open Source Licensing. In: A Challenge to the Use of Intellectual Property in the Software Industry. Turre Publishing, Helsinki (2005)

    Google Scholar 

  24. West, J.: Value Capture and Value Networks in Open Source Vendor Strategies. In: Proceedings of the 40th Annual Hawaii International Conference on System Sciences (HICSS 2007), pp. 176–185 (2007)

    Google Scholar 

  25. Thomke, S., von Hippel, E.: Customers as Innovators—a New Way to Create Value. Harvard Business Review 80(4), 74–81 (2002)

    Google Scholar 

  26. von Hippel, E.: Open Source Projects as Horizontal Innovation Networks—by and for Users. MIT Sloan Working Paper No. 4366–02 (2002)

    Google Scholar 

  27. von Hippel, E.: Democratizing Innovation: The Evolving Phenomenon of User Innovation. J. für Betriebswirtschaft 55, 63–78 (2005)

    Article  Google Scholar 

  28. Harhoff, D., Henkel, J., von Hippel, E.: Profiting from Voluntary Information Spillovers: How Users Benefit by Freely Revealing Their Innovations. Research Policy 32(10), 1753–1769 (2003)

    Article  Google Scholar 

  29. Fink, M.: Business and Economics of Linux and Open Source. Prentice-Hall, New Jersy (2003)

    Google Scholar 

  30. Mannaert, H., Ven, K.: The Use of Open Source Software Platforms by Independent Software Vendors: Issues and Opportunities. In: Open Source Application Spaces: Fifth Workshop on Open Source Software Engineering (5-WOSSE), St Louis, MO, USA, May 17. ACM, New York (2005) (1-59593-127-9)

    Google Scholar 

  31. Ven, K., Mannaert, H.: Challenges and Strategies in the Use of Open Source Software by Independent Software Vendors. Information and Software Tech. 50, 991–1002 (2008)

    Article  Google Scholar 

  32. Lindman, J., Rossi, M., Marttiin, P.: Applying Open Source Development Practices Inside a Company. In: Proceedings of the 4th International Conference on Open Source Systems, Milan, Italy, pp. 381–387 (2008)

    Google Scholar 

  33. van der Linden, F., Lundell, B., Marttiin, P.: Commodification of Industrial Software. A Case for Open Source. IEEE Software (2009)

    Google Scholar 

  34. Dinkelacker, J., Garg, P.: Corporate Source: Applying Open Source Concepts to a Corporate Environment. In: Proceedings of 1st Workshop on Open Source Software Engineering, Toronto, May 15 (2001)

    Google Scholar 

  35. Sharma, S., Sugumaran, V., Rajagopalan, B.: A Framework for Creating Hybrid-Open Source Software Communities. Information Systems J. 12, 7–25 (2002)

    Article  Google Scholar 

  36. Gurbani, V.K., Garvert, A., Herbsleb, J.D.: A Case Study of Open Source Tools and Practices in a Commercial Setting. In: Proceedings of the 5th Workshop on Open Source Software Engineering, St Louis, MO, USA, May 17, pp. 24–29 (2005)

    Google Scholar 

  37. Gurbani, V.K., Garvert, A., Herbsleb, J.D.: A case study of a corporate open source development model. In: Proceedings of the the 28th International Conference on Software Engineering, Shanghai, China, pp. 472–481 (2006)

    Google Scholar 

  38. Matusow, J.: The Shared Source Initiative: The Microsoft Perspective. In: Feller, J., Fitzgerald, B., Hissam, S.A., Lakhani, K.R. (eds.) Perspectives on Free and Open Source Software, pp. 329–346. MIT Press, Cambridge (2005)

    Google Scholar 

  39. Fox, P., Wareham, J., Giner, J.L.C.: Value Appropriation in Hybrid Technology Ecosystems. In: 29th Int. Conference on Information Systems, Paris, France (2008)

    Google Scholar 

  40. Schultze, U., Prandelli, E., Salonen, P.I., van Alstyne, M.: Internet-enabled Co-Production: Partnering or Competing with Customers? Comm. of AIS 19, 294–324 (2007)

    Google Scholar 

  41. O’Mahony, S.: The Governance of Open Source Initiatives: What Does It Mean To Be Community Managed? J. of Management Governance 11, 139–1150 (2007)

    Article  Google Scholar 

  42. West, J., O’Mahony, S.: The Role of Participation Architecture in Growing Sponsored Open Source Communities. Industry & Innovation 15(2), 145–168 (2008)

    Article  Google Scholar 

  43. West, J.: How Open is Open Enough? Melding Proprietary and Open Source Platform Strategies. Research Policy 32, 1259–1285 (2003)

    Article  Google Scholar 

  44. Lakhani, K.R., von Hippel, E.: How Open Source Software Works: ‘Free’ User-to-user Assistance. Research Policy 32, 923–943 (2003)

    Article  Google Scholar 

  45. Kahneman, D., Knetsch, J.L., Thaler, R.: Fairness as a Constraint on Profit Seeking: Entitlements in the Market. The American Economic Review 76(4), 728–741 (1986)

    Google Scholar 

  46. Güth, W., Schmittberger, R., Schwartze, B.: An experimental analysis of ultimatum bargaining. J. of Economic Behavior & Organization 3(4), 367–388 (1982)

    Article  Google Scholar 

  47. Tuli, K.R., Kohli, A.K., Bharadwaj, S.G.: Rethinking Customer Solutions: From Product Bundles to Relational Processes. J. of Marketing 71, 1–17 (2007)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Riepula, M. (2010). A Licensing and Business Model for Sharing Source Code with Clients—Leveraging Open Client Innovation in the Proprietary World. In: Tyrväinen, P., Jansen, S., Cusumano, M.A. (eds) Software Business. ICSOB 2010. Lecture Notes in Business Information Processing, vol 51. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13633-7_2

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-13633-7_2

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-13632-0

  • Online ISBN: 978-3-642-13633-7

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics