How do IT companies get a profit by making their products open source?

There are some conscious ideas behind development of open source software.

Sometimes the development companies plan to launch open source products as part of their product marketing strategy. The aim is to know and understand the customer so well the product fits him and sells itself. Common users can easily download and modify an open source product as per their need. It’s a great way to gain popularity at minimal investment. Despite being a free solution for common users, these companies generated more revenue per user than others. This way Software companies can quickly become billion-dollar giants. It has been observed that in many cases these companies started selling other paid products after gaining popularity through production of open source software.

Reusability is an important factor in the development of open source software. In other words, using one platform, development companies are able to satisfy requirements of several customers. There is no answerability and no right to transfer.

Sometimes development companies provide open source products for a small fee. It has become popular among users, especially among those with some programming knowledge, as they can modify the source code as per individual requirements. Open Source packages are released under the GPL license, which means that an open source software can be used, modified, and extended by anyone.

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