Posted by: commonsresource | March 22, 2010

The price is right

Matt Assay, in yet another of his insightful blog posts, puts forward the argument by Brian Prentice (Gartner Research Vice President) “that cost rather than freedom was the primary driver for open-source adoption”.  In “Open-source innovation: A matter of price?“, Matt develops that argument further by advancing the premise that “a much simpler solution … at a dramatically better price” can be a form of “real innovation”.  In the quoted words of Clayton Christensen,  “The types of competition that brings prices down is disruptive innovation”.

Matt goes on state that “Every technology company and, really, every technology buyer, too, must ask itself: where am I going to use open source? And what will I charge for that which isn’t easily available anywhere else?” As an open source lawyer, I see this as the true power of the commons sourcing paradigm – the producer’s ability to drive down the costs of the common while maximizing the price for the unique.  The great challenge is to always remember Goldilocks to ensure that the porridge is neither too hot nor too cold.  And if you get this right, the price is right!

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