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sestocker
sestocker

There are three revenue sources for software:

  1. Sell the software
  2. Sell consulting/maintenance around the software
  3. Host the software

In your case you will also have ad revenue from your three web properties that use the codebase.

Open sourcing the software definitely eliminates #1 above and may also eliminate #3 (as Joel mentioned in Podcast #60). I could certainly see FogCreek being able to make a ton of money using the #2 approach - sell the server, installation, configuration, and training for $50,000 plus an annual maintenance fee. Enterprises want the software on their own network - a reason I think the StackExchange idea will not be as successful as it could be.

There will be many advantages of open sourcing the software from a business sense: getting the FogCreek brand out (for Joel), developer good will (you buy products from companies you like), and contributions from open source developers.