Hardware Reference
In-Depth Information
15.
Business
Lars Zimmermann
“The business model of open source hardware? You won't believe how boring it
is. We sell products for more than they cost.”
—Chris Anderson; in his OH Summit talk 2012, “Microeconomics for Makers:
Business Models for the New Industrial Revolution”
This chapter guides you through a variety of business models fit for open source hardware
and open design. We start with some remarks about the obvious natural business model that
comes with hardware and the importance of the brand. The chapter then presents and ex-
plains the Open Source Hardware Business Model Matrix, a tool that aims to help people
ask the right questions and research answers while figuring out their business model for
open source hardware. Company quotes embedded within this chapter were collected by
Alicia Gibb in an open source hardware business survey.
“You can't make money being open” is a common criticism of open source develop-
ment, although history shows many opportunities work better and more effectively when
explored through an open approach. Several businesses were studied for this chapter that
debunk the myth that you can't make money by being open source. Open source is often an
ideal strategy for developing a more innovative, financially successful, and sustainable
business, where money can be made not in spite of being open, but
because
you are open.
Of course, this isn't a case of just changing a license and carrying on with business as usu-
al. Open strategies require certain adjustments to a company's business model—sometimes
minor alterations, but sometimes transformative change.
