Subject: Re: Nessus 3.0's failed community
From: susan wu <>
Date: Wed, 30 Nov 2005 15:51:05 -0800 (PST)

>>> Not to put too fine a point on it, but my presumption is that a F/OSS
>>> vendor will have lower per-customer margins.
>> Where does that presumption come from?  It may be true, but why should
>> it be true?  I really would like to know.

Are we assuming that the F/OSS vendor's model is built around 
services/support or proprietary extensions of the base platform/code? 
Gross margins for services business lines are lower, and to the extent 
that a F/OSS vendor's business model has a greater percentage of revenue 
derived from services, than its overall margins would be lower as well. 
If we assume that the F/OSS vendor derives most of its revenue from 
proprietary extensions, then I'm not sure this argument holds as well.