Comments on: The free-download economy is dead

When SourceForge's statistics function broke, it told us something we needed to hear: free downloads don't matter anymore. Conversions matter. Customers matter.

[PBarila]

Matt, In your previous post about MySQL changing its business model, you argued that they should differentiate the database versions, and Zack replied and said they were committed to making sure the Community Edition doesn't become "crippleware". Sounds like maybe you might be starting to agree?

[shootthecops]

It sounds like the issue is the bandwidth costs that prevent places like SourceForge from hosting properly for free. The U.S.'s slow, archaic internet service no doubt is the culprit. If I had a company that suffered at the hands of U.S.'s pitiful speeds, I would get outta dodge and set up shop in greener pastures. The U.S. has embarrassed itself by letting its own connections become so slow and businesses will be the ones to pay for not investing into making the connections faster and cheaper.

[arjenlentz]

Horay for real business models, I've long been advocating this.
On some of the examples you used I think the jury is still out on effectiveness/sustainability.
Also, companies don't just need customers or sales, they need mindshare. They need to not just be seen but really have to be "good" and "nice".

[swag]

It's definitely a market with low risk, low reward, and, to be honest, low ambition right now. Companies that do get funding seem to be building what I would merely call a 3-month feature a couple years ago.

As for MySQL, they are in for a rude awakening with v6 pricing when they see how much Oracle has laid the groundwork to undercut a lot of it. It won't be pretty.

[fazalmajid]

The notion that Oracle will undercut MySQL pricing is so ridiculous it doesn't deserve a rejoinder. Oracle is a company that hikes it prices just because it can, without even the pretence of introducing a new release the way Microsoft does.

Oracle's game plan with MySQL is crystal-clear - they bought InnoDB so they have their hand on MySQL's jugular. that's why MySQL is trying desperately to develop the Falcon replacement for InnoDB, but that project is floundering.

The MySQL freemium model is a viable one as long as they don't violate the trust of their users by attempting to cripple the base product. Unlike Oracle, they can't just coast on the lock-in from their installed base, however, and will have to earn each dollar in services or add-ons by delivering value.