David Rosenberg of Open Source Development Labs has this Advice for Open Source Startups:

But the fundamental and fatal flaw [in LinuxCare] was that they based their products on someone else's IP, with no IP of their own. . . . .

In the end, it all comes down to IP. Building a business on top of something you don't own is extremely risky. Companies need to develop their own IP to be innovative and have competitive differentiation. And if they don't develop it themselves, they need to acquire or license the relevant code to protect themselves and ensure they aren't caught without alternatives.

posted by James DeLong @ 7:56 AM | General

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