[CLUG-tech] Econmics of OSS vs Proprietary / Closed SS

Smitty smitty at wam.co.za
Wed Nov 27 03:26:16 SAST 2002

An article about the effects of having proprietary vs open source software
on the economy, countering FUD that OSS is bad for the economy (USA)

Nuclear Winter? More Like Global Warming

For those who don't understand these things (just read the comments):

This is about inneficient allocation of resources ie major money goes to
MS which sits on it. Like a government that taxes but does not spend, it
reduces the private sector, but doesnt counteract by reinjecting the taxes
into the economy.

Its about monopoly (MS) vs (im)perfectly competition (OSS), what makes it
interesting is that the cost of pumping out additional copies of Windows
is next to zero (site licences anyone) a feature of all non customized
software and OSS with its extremely free licensing ie beg / borrow a copy
and after that the cost is next to zero.

Marginal cost pricing so to speak. 

It is not an argument against proprietary software and for OSS. 

it depends

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