Strategies for software-based hybrid business models

The open source approach to software development has been used by software organizations in tandem with their existing business models, which are based on proprietary software licensing. This led to the creation of hybrid business models that merge open source and proprietary paradigms. This paper explores the practices used by software product vendors using hybrid business models and proposes strategies emerging out of these practices using interpretive, single case study research design.

► Three strategies for software-based hybrid business models were identified. ► Strategic licensing is selecting software license as per business model. ► Segmented meshing is coordinating software development across community clusters. ► Selective revealing is balancing the provision of features against its appropriation.