Open for Business: The reputation economy of open source—do you take the egg roll?

Tarus Balog | OpenSource.com | September 28, 2011

Open source software has been referred to as a "gift economy," one where valuable goods and services are exchanged without the expectation of payment. That’s fine, so far as it goes, but when it comes to businesses involved with open source software, I think the term "reputation economy” is more accurate...

...But what about true open source software? How does one get across that powerful software is available for free when prospective customers are used to paying for it? How do you convince them there’s no catch?

This is where the idea of "reputation" is important. There’s a level of trust that comes with knowing someone; for example, you’re more likely to accept a dinner invitation from a friend than from a stranger. The best way for a company to become known to potential clients--to build that trust--is to develop a strong, positive reputation.

As open source software becomes more mainstream, the importance of reputation will grow...