Open Sources | Rodrigues & Urlocker » Open Source downloads and reciprocal value

January 18, 2007 | Comments: (0)

Open Source downloads and reciprocal value

TAGS: Open Source

The open source world is obsessed with the number of downloads that projects yield. I'm not sure if it still holds true but the download factor has been a key metric for open source companies seeking VC funding. Over the course of the last year many of us have realized that downloads are a great initial indicator but not a completely reliable metric.

Yesterday we celebrated the fact that Mule had reached the 500,000 download milestone which while impressive for its size, there are likely other more interesting facts associated with download numbers. I am trying to come up with a master economic plan for this but have had enough of computers, open source, and pretty much anything but Black Sabbath for today.

Nonetheless, there is something important to be figured out in relation to the total lifetime value of a customer. A big part of my theory is based on the fact that companies that initially embrace open source applications tend to bring in more instances over time, and typically the timing is faster than one sees with products that have expensive upfront costs. So basically, my thought is that if you can convert a download to a customer in month one (let's say on one server) the actual value of that customer over time is much higher-not only in bookings, but in the fact that the customer actually can contribute back to you.

For example, we found out recently (through our user survey) that about 64% of Mule users are making modifications, adding extensions and doing other coding around the product. We also found out that the majority of them wanted to donate some portion of the code back to the product. Even if 1% of the code is mainlined, it's a positive for the product and the reciprocity of open source means that all parties get something out of it.

More on this in the future...that is, if I have actually figured anything out.

Posted by Dave Rosenberg on January 18, 2007 10:51 PM

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