Open source networks: An exploration of business model and agility issues

The growing interest of commercial organisations in developing and exploiting open source software (OSS) has led to increased focus on business model aspects of the OSS phenomenon. However, much of the work on OSS business models describes the revenue stream but neglects of other aspects of the business model. In addition, many OSS companies participate in business networks in order to offer the complete product / service offering (whole product) demanded by customers. Such collaboration is seen as vital in competing with large firms in delivering the 'whole product. However, there are uncertainties about how such collaboration affects (1) the business models of participants and (2) the agility of the network. This paper examines Zope Europe Association (ZEA), a network of small open source companies co-operating to deliver the 'whole product'. It investigates how participation in the network augments the business models of each participant company, and identifies the business agility challenges faced by the network. The paper concludes identifying the need to address adaptability and alignment issues in addition to business network agility.