1/ Open source software is a huge change for businesses. First, code is an idea and if I give you an idea I still have that idea. In contrast, if give you my car, I don't have a car. Free is also "priced to sell." Distribution and reproduction of the open source code costs ~ $0.
2/ The open source business model depends on selling something that complements the open source software that isn't open source (is not free). That paid product can be: (1) software that drives services from a server; (hardware) or (3) human services. What scales best is (1).
3/ The open source business model is a variant of "freemium." Like all freemium models, the core objective of the free product is to create low cost distribution for something that customers pay for. Sales friction drops when customers self-educate by using the free product.
