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Why the open source business model is a failure

CIO.com

Open source software companies must move to the cloud and add proprietary code to their products to succeed. The current business model is recipe for failure. That's the conclusion of Peter Levine, a partner at Andreessen Horowitz, the Silicon Valley venture capital firm that backed Facebook, Skype, Twitter and Box as startups. Levine says the conventional open source business model is flawed: Open source companies that charge for maintenance, support, warranties and indemnities for an application or operating system that is available for free simply can't generate enough revenue.