Mar 2010
Closing the Deal With Community

Open source software vendors exhibit many differences from their traditional, proprietary competition, but one of the most striking contrasts is how open source organizations focus, invest and reap returns via their sales and marketing efforts. For example, open-source-focused vendors are doing far more of their sales and marketing on the Web, supporting forums and communities, hosting webinars, supporting each other on social networking sites such as Twitter and actually closing sales via the Internet. While very different from the traditional model, an open-source-centric strategy and business does not, in all instances, equate to significant savings on sales and marketing.

Our research indicates that an open source software business can reduce the investment and resources required for sales and marketing (by as much as 70% or even 90%, according to some polled vendors), but there are also unique requirements and investments, including that same community and Web support and vibrancy. In the end, it seems that open source is nearly as often a case of spending differently than spending less when it comes to sales and marketing – although we consistently heard that the return on investment is greater with open source.

This report examines how open source software vendors spend and invest in sales and marketing, what seems to be working, and the key factors involved. It also considers the ways in which non-open-source firms are borrowing techniques from open source – through free versions, SaaS and cloud computing distribution models, and bona fide communities of developers and users – forcing the open source players to further differentiate their offerings and drive successful sales and marketing.

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