<transcript><audio_61>software and you're using it to sell custom hardware so an example of this might be like the Kindle it might be the</transcript><transcript><audio_62>the Digium telecom platform and so forth what you're doing is she's saying I'm giving away the software then to sell you the hardware and the limitation of this model is it hardware sales have low margins so you have to have high volume but it's definitely a business model</transcript><transcript><audio_63>that can work and by the way there are tons of companies who release open source software in order to get you to use their custom hardware products that's all over the place you know almost every IOT device right then</transcript><transcript><audio_64>here's an interesting one that most people don't think of and I call it the embargo model so what happens here is that you have an open source project but you give early access to people who are paying for it what that</transcript><transcript><audio_65>means is that you're doing a custom proprietary software agreement with your best customers and they get a first look at new features now this works well in</transcript><transcript><audio_66>markets where a you know a small entry advantage is huge for instance consumer electronics which you know have a half-life of about 15 seconds or you have to buy a new one right so if you're</transcript><transcript><audio_67>doing software for say smartphones you're doing software for some kind of consumer electronic device then you can provide your customers with a lot of value just by giving them early access and then later on you give the community</transcript><transcript><audio_68>access so this is sort of a staged release model and by the way a lot of companies do this and really don't make much hay about it but that's how they are sort of eking the the business</transcript><transcript><audio_69>benefit out of the open source model the next is dual licensing and the the pictures here the first picture of the really cute little babies is representing when you have dual</transcript> software and you're using it to sell custom hardware so an example of this might be like the Kindle it might be the the Digium telecom platform and so forth what you're doing is she's saying I'm giving away the software then to sell you the hardware and the limitation of this model is it hardware sales have low margins so you have to have high volume but it's definitely a business model that can work and by the way there are tons of companies who release open source software in order to get you to use their custom hardware products that's all over the place you know almost every IOT device right then here's an interesting one that most people don't think of and I call it the embargo model so what happens here is that you have an open source project but you give early access to people who are paying for it what that means is that you're doing a custom proprietary software agreement with your best customers and they get a first look at new features now this works well in markets where a you know a small entry advantage is huge for instance consumer electronics which you know have a half-life of about 15 seconds or you have to buy a new one right so if you're doing software for say smartphones you're doing software for some kind of consumer electronic device then you can provide your customers with a lot of value just by giving them early access and then later on you give the community access so this is sort of a staged release model and by the way a lot of companies do this and really don't make much hay about it but that's how they are sort of eking the the business benefit out of the open source model the next is dual licensing and the the pictures here the first picture of the really cute little babies is representing when you have dual
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