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Thread: Canonical Business Model for Ubuntu?

  1. #11
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    Re: Canonical Buisness Model for Ubuntu?

    Wow,

    For some reason I believe that this is going to be a hot thread for a while, the response to this statement is obvious (BS!).

    I have been a member of the software trade now for over twenty years and first introduced to UNIX while I was in college in the summer of 1981 on a PDP-11 running at GE corporate in Fairfield County Conn. At that same time I remember a system sitting in the corner of the room, there also was something called a "Xerox Star" which I fortunate to have to opportunity to be introduced to it's graphical user interface (GUI).

    Ubuntu is one of the finest products to be released in the world of software world ever. People need to know what Ubuntu can do for them, and there is money in that for anyone in our profession that what's to support Ubuntu.

    Selling something (Linux) that you don't own just by slapping your trademark on it seems to me as completely bogus business model regardless of it's profitability potential.

    Peace

    Mike Feravolo
    Cocoa Beach, Florida. USA

  2. #12
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    Re: Canonical Buisness Model for Ubuntu?

    The actual software developers fix most of the bugs, not Canonical.

    The better Ubuntu is, the less the support customers actually call the support team, thus saving Canonical money.

    The better Ubuntu is, the more people will use it, translating into more prospective customers.

    The more widely and freely available is, the more people will use it, translating into more prospective customers.

    People buy Canonical support for several reasons:
    * peace of mind
    * Someone to call when they break things
    * Someone to blame when things break
    * Advice on deploying Ubuntu

    I think they also do stuff around creating Ubuntu derivatives.

  3. #13
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    Re: Canonical Buisness Model for Ubuntu?

    Quote Originally Posted by 3rdalbum View Post
    Canonical doesn't make money by the number of support calls - it charges a yearly fee for support.
    For the sake of precision, a year of support with ten "incidents", i.e. support requests. I know because I asked for a quote to deploy Ubuntu on a server (sadly, the higher ups then decided to go with a Mac...).
    "Violence is the last refuge of the incompetent." - Salvor Hardin in Foundation by I. Asimov
    My blog | My CC-licensed novel | Plasma FAQ maintainer

  4. #14
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    Re: Canonical Buisness Model for Ubuntu?

    Support dosn't just mean fixing bugs. Alot of the time support also means helping while troubleshooting a setup. For example. I want to set up 200 Desktops at our school. Each student is asigned a password and username, they can log on with any computer in the school, I want the computers to log on to a centeral server to check the login details. However I do not know how to do this, therefore I phone Canonical and ask how. Thats what support means in my opinion.

  5. #15
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    Re: Canonical Business Model for Ubuntu?

    The reviewer MAY know what he is talking about when discussing operating systems (or he may not, I can't tell) but he has absolutely no clue about how business works.

    I think we can safely discount his 'opinion' on that basis.

  6. #16
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    Re: Canonical Business Model for Ubuntu?

    As a money-making business model, I would agree that Canonical is probably not as "robust" as Microsoft's. However, in regards to business ethics, I'd say Canonical far exceeds Microsoft. Let's compare.

    Canonical...

    Supports development of a free product in the hopes that everyone can use it, and use it on equipment they already own. They get paid for customer support calls to Ubuntu, which helps foot some of the bill, along with special side projects. In the short-term, Mark Shuttleworth has invested money in Ubuntu and Canonical to spring Linux into more users hands, and in the long-run, he may profit from this if he uses Canonical to create Linux-only software that can be charged for, Ubuntu-only consultant teams to hire out to corporations, and/or invests in Linux-only hardware companies that the large Linux base will purchase from. (that last part is speculative...I'd still like to think he's a humanitarian).

    Microsoft...

    Has created a virtual bubble existence for its users, not only making them think they're locked into a buggy product they have to pay to update each time a new version comes out, but pay to purchase hardware that MS has vested interests in to run that OS, and pay millions in tech support calls to support that buggy product, and (recently) instead of fixing security holes in their product, they decided it would be more profitable to roll out and charge customers for an ANTIVIRUS software package for their OWN OS (!)

    http://news.com.com/Microsofts+antiv...3-6104926.html


    Comparison...

    With Microsoft firmly entrenched as the company to beat in a market place, Canonical is doing the best thing it can right now...that is to produce a free product that would dethrone a product others are paying for. Once they commodotize the OS industry (IE: everyone having access to a free one that works on all systems), they've basically evened the playing field and can catapult the profit of long-term ventures they invest in and setup now that compliment the use of Linux and Ubuntu on a mass-scale in the future, like Linux/Ubuntu hardware sales, tech support, consulting firms, embedded devices that work together on the Ubuntu architecture, etc that branch off from a free foundation of Ubuntu.

    In other words, it's a bit like other Linux distro's try to profit off bundling the distro and packaging/shipping it to users (like Madriva does). However, with Linux being open-source, it's hard to get folks to buy-into the idea of paying for Linux or open-source software. So, you focus on the things around the software that people would pay for...tech support, hardware, consulting.

    It's actually quite smart. I just hope Mark Shuttleworth is actually a humanitarian and isn't just trying to set himself up as the next Bill Gates through the guise of humanitarianism. I don't mind someone making a profit off something, I just don't want to replace one "dictator" with another. Joel of "Joel on Software" has an old rant that sums this up more eloquently then I can....

    http://www.joelonsoftware.com/articl...gyLetterV.html

  7. #17
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    Is Edgy eft a conspiracy?

    The question is always "Who benefits?" and users like to stay up to date.

    The developers made flaws on purpose, to attract users to commercial support.

    You may consider my theory to be improbable, but you can't think of it as illogical.
    Last edited by Somenoob; April 16th, 2007 at 10:09 AM.

  8. #18
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    Re: Is Edgy eft a conspiracy?

    That makes no sense. If you make a bad OS on purpose, people will stop using it. If people don`t use the OS, you don`t make much money from support. Secondly, it was called Edgy for a reason. It was bleeding edge, and you could expect getting cut. Thirdly, I can`t remember how many times I heard that if stability was most important, use Dapper.

  9. #19
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    Talking Re: Is Edgy eft a conspiracy?

    If it was a conspiracy to get people to pay for support then why have a free and open forum where you get free help and advice?

    Surely they would make it a patch release only effort with absolutely NO email access to Canonical at all, then make it impossible to contact Canonical unless you gave them a credit card number.

    Hmm, sounds eerily familiar of another O/S I previously used

  10. #20
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    Re: Is Edgy eft a conspiracy?

    Quote Originally Posted by Hallvor View Post
    That makes no sense. If you make a bad OS on purpose, people will stop using it. If people don`t use the OS, you don`t make much money from support. Secondly, it was called Edgy for a reason. It was bleeding edge, and you could expect getting cut. Thirdly, I can`t remember how many times I heard that if stability was most important, use Dapper.
    Many were encourage to switch, or at least try. bleeding edge or not, it still was an official release and in theory to created potential customers for support. People have an habit to upgrade even if not needed.

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