I saw this fascinating post today in TechCrunch. Apparently 37signals are facing free competition from an open source alternative created by a Serbian PHP developer. My question is WHY? For some reason the post discusses what would happen to 37signals business model if someone decided to build a free alternative and give it away. Duh! What would happen to any business model if somebody came in and gave away their product for free? Cars for example. Would Honda survive if a group of un-enterprising students decided to build a high quality free alternative and give it away to everybody? Oh, but wait, they can’t because there is an intrinsic cost to building cars, the parts cost. The only intrinsic cost in software, is the cost of the equipment on which to write it. This always has to be paid for by somebody, but it may be very small, or it may be paid for by educational institutions in an attempt to educate their students. So, unfortunately software CAN be given away for free, especially now that the web is allowing virtually instantaneous virtually free distribution.
I just don’t get this. To quote from the article above: “Is it just me or is it crazy to think that the 37signals business model could be wiped away by one weekend of hard work between a group of developers?”. But why would you do that?
Lets not bandy words. What we are talking about here is stopping the 37signals guys from earning the money to put food in their mouths. That’s not a funny joke. Its not as though 37signals is a huge mega-corp grabbing everything they can, there applications are based around Ruby On Rails a free framework for web development built in Ruby. 37signals developed that framework and then gave it away for free, they also give away free versions of all of their products for people who can’t afford or don’t need to afford the paid for versions. From the outside, this looks like just about as far from a greedy mega-corp that you can get.
So, given that you have a product to compete with Basecamp or any other easily copyable application, why not do that? Don’t give your code away, compete with them. activeCollab could have a niche for the people who want to run their project management apps internally and don’t trust web alternatives. The advantage of paying for something is that you can get upset when it doesn’t work. But maybe this is too much of a challenge. If your open-source application is of low quality, you can just say “OK. So its free. Don’t use it if you don’t like it”.
My advice to everybody out there with the skills to develop software: Don’t take other people’s ideas and throw free alternatives out there. One day you might be relying on the money from similar business models. Let’s stop devaluing our profession by shooting ourselves in the foot. Go out, find your own ideas and feel free to give them away for free, or better still, why not make some money out of it? No need to be greedy, but why work for nothing?
There is much more to say on this subject and I expect to say some of it over the next few days and weeks