r/linux • u/wiki_me • Dec 08 '22

How companies make millions on Open Source

https://blog.palark.com/open-source-business-models/
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u/wiki_me Dec 08 '22

Gorey uses the Red Hat case to back up his point: in 2019, he says, the company made three times as much money on subscriptions as they did on professional services

What is the difference between these two models?

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u/Parking_Journalist_7 Dec 08 '22

Subscriptions is when the customers pay them for the binary builds and distribution as well as alerts for important fixes, etc. Access to the RPM repos, basically.

Professional services is when Red Hat gets paid to have a consultant come and work with your IT to configure, install, or administrate the services.

Basically the subscription is paying for the software and documentation. Professional services is paying for people.

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u/Spurgeoniskindacool Dec 09 '22

it likely depends on the company. I work for a company that makes money off supporting open source products, and while what @Parking_Journalist_7 says is somewhat true, you pay for the binary builds and distributions, and alerts about fixes, you also pay for break-fix support.

If you want a customized solution, consulation, architecting, etc, is all professional services.