Many developers earn their monthly income creating Linux code. They work for companies that, for one reason or another, have determined that supporting the Linux ecosystem is good for business. Some are “open source” companies. Making free software is a key part of what they do. Red Hat is the largest example of this.
A question we ran across in our research was “How do Linux companies make money?”.
Companies make money from Linux in a variety of inventive ways. They use proprietary software, commercial products, or a combination of services delivered as a customized business model.
Why do Linux companies work on Linux?
They work for companies that, for one reason or another, have determined that supporting the Linux ecosystem is good for business. Some are “open source” companies. Making free software is a key part of what they do. Red Hat is the largest example of this. Canonical, who makes Ubuntu, is another prominent one.
How do free software developers make money?
Developers and open-source companies can also make money by providing their open-source software to the public. They can then ask for donations or “a cup of coffee” to help them continue their ongoing developments. This has become a popular way for free software developers to earn an income from their open-source projects.
A common query we ran across in our research was “How do open source companies make money?”.
Another way open source companies make their money is with add-ons. One of the most successful of these is Woo, and commerce. At the time it was acquired by Automattic in 2015, it powered over 25 percent of all ecommerce stores.
Hermann has a point, but it turns out there are a lot of ways to make money from free software. Let’s start with the issue of demand. The more specialized a type of software is, the fewer users there will be. Generally, the fewer users, the smaller the market opportunity.
How do Linux kernel developers get funded?
Although this mode of support is relatively uncommon, you don’t necessarily have to be an open source superstar to secure this type of funding; many Linux kernel developers are partially or wholly funded by companies like Red Hat. Paid for specific features or extensions.