Friday 4 August 2006

Business Model for Measurement Repository tool using Open Source

ADI should build a business around the Measurement Repository tool it is building by using an Open Source business model.
ADI is about to develop an in house Measurement Repository tool to address CMMI requirements for project measures.
This will be an effective, professional tool that has the potential to be sold to the broader community. There are currently no plans to sell the tool as the cost of promotion probably outweigh potential sales.
ADI would do well to Open Source the core Measurement Repository software and make money by selling services to the Software.
Key benefits from open sourcing the software include:
  • ADI can sell software module enhancements for enterprise customers.
  • ADI can sell support to enterprise customers.
  • Open source developers will enhance the software and ADI will benefit from these enhancements.
Key requirements needed to make this business model a sucess.
  • The software needs to be built upon Open Source components so that users can download a free product.
  • ADI needs to retain ownership of the source code.
An excellent example of how this business model has been applied is Sugar CRM as explained in an interview at

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