Forgive me but this part of the open source and foss confuses me. If you code and release an open source and free piece of software like say, a robust video player such as VLC, how is that dev being paid?
Because in my eyes (I’m not too privy to FOSS ins and outs)
I’m basically getting your software for free of no charge, it IS free as in free beer cos you’re not asking ME to pay it for so who is paying YOU?
Does it come via donations or wealthy corporations like Red Hat and Microsoft pay or fund open sourced projects that is given to the hard working developers of that OSS/FOSS project?
Most open source projects will have a donation page / link, so it relies on people feeling compelled to donate because the software provided is useful to them.
Lemmy for example has options for financially supporting its development. Some Lemmy instances also feature a link to a donation page to cover the hosting costs.
Some have an organisation behind it, like
Firefox has the Mozilla Foundation to finance it. Actually it’s the other way around, see ahal’s comment belowThe team behind VLC has a “for profit” branch that adapts the video software for companies, allowing them to also finance VLC’s development in addition to donations.
Some of Lemmy development is/was paid by foundation funding.
The Firefox example is actually the reverse, Firefox funds the Mozilla Foundation. This is a case of an open source project successfully monetising through search referrals (mostly from Google).
Oh wow thanks for the correction, I’ll edit my comment
Would “Freelance” be a good word for it?
I think consulting would be a better word
depends on the project. Some projects are spun out from major corporations. Others are one dude making a thing and it gets used everywhere and taken over by venture capital firms.
Some projects will have sponsorship, there are also government grants they can get, but I would say most comes from regular users doing reoccurring dontations.
Some projects are spun out from major corporations.
This is most of the FOSS projects in data engineering and data science. They come from tech giants or some dudes who just left tech giants to create a FOSS tool with a paid managed version, and those may get bough back by other tech giants later.
Example:
Analytics and AI giant Databricks reportedly paid nearly $2 billion when it acquired Tabular in June, a startup that was only doing $1 million in annual recurring revenue, according to Bloomberg. That’s a pretty outrageous exit multiple, and it was purportedly fueled by a battle between Databricks and Snowflake.
Tabular had over $30 million in funding, backed by Altimeter Capital, Andreessen Horowitz and Zetta Venture Partners, when it was acquired just three years after it was founded. Tabular’s valuation was tied to Apache Iceberg, a popular open source table format that the startup’s founders created while at Netflix. The startup quickly became an expensive pawn in the war between Databricks and Snowflake.https://techcrunch.com/2024/08/14/databricks-reportedly-paid-2-billion-in-tabular-acquisition/
Like others have mentioned, there are various options (donations/sponsorships/grants) that larger projects will generally have some of, but for smaller projects (99% of what’s out there, by project count if not usage), the answer is simply “it isn’t.” It’s done as a hobby, as a resume booster, or with the hope of eventually becoming big enough to hit one of those revenue streams.
I contribute and run some open source projects. Some projects receive sponsorships and contributions, some are backed by companies, a lot are just someone doing it on their own time, very few can actually meaningfully support the people working on them. Personally, I receive no money for mine.
Likewise, I run/host/contribute to several public projects and typically get $0 unless someone feels like throwing $20 my way. Happens very rarely, though. I feel like most FOSS projects started like this, where the devs are just trying to “scratch thier own itch”.
I’d assume it’s mostly donations
FOSS is free, OSS doesn’t have to be. Very often open source software, of which the commercial fork is being maintained by a company, that company will profit from businesses using the software. Idk about VLC but Moodle, for instance, is open source and updates for it are based on a subscription model.
The license agreement for OSS will often state that you are free to use it in your own home, but if you start commercially using the software, they expect you to pay. Some open source projects can get resold by service providers this way to handle deployment of updates, provide support, et cetera.
Lots of OSS is created by people who want to create something, and happily gives it away to others too.
The problem is when others start depending, and demanding, work from that person. There is no good solution to that problem at the moment.
It all starts out with people who make stuff for free, and sometimes they receive donations. There are also non-profit grants that can fund a few months here or there. Money is pooled in organisations, and those organisations pay out project members.
Most of Linux development is done by companies like Red Hat, Intel, AMD, Canonical, you name it. Plenty of volunteers, but not enough to make projects like these. There are also projects by big companies like Twitter and Facebook that get open sourced because it’ll get them goodwill and free patches from the community. Facebook is developing React regardless of its license so they may as well share it.
Smaller projects are just hobby projects most of the time. It’s “free” as in “mattress”, in that you should think twice before adding it, and don’t even think you’re entitled to help or free work.
Sometimes that goes wrong, like when left-pad got pulled, or when colors.jb pushed an update in protest, and billion dollar companies could suddenly no longer update their software because they used the free stuff Some Guy put out in their critical build chain. Or, as xkcd accuratelt depicted it: https://xkcd.com/2347/
Loads of donations for one. You ought to donate to some of your favourites too!
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