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Susan Lambert. In the September issue of the Open Source Business Resource, Patrick McNamara, president of the Open Hardware Foundation, gave a comprehensive introduction to the concept of open hardware, including some insights about the potential benefits for both companies and users.
In this article, we present the topic from a different perspective, providing a classification open hardware business development market offers from companies that are making money with open hardware. There is no consensus about the definition of open hardware. For the purpose of this article, we use the term open source hardware OSH and define it as any piece of hardware whose manufacturing information is distributed using a license that provides specific rights to users without the need to pay royalties to the original hadware.
These rights include freedom to use the hardware for any Hardware Store Open Till 10 Error purpose, freedom to study and modify the design, and freedom to redistribute copies of either the original or modified manufacturing information. This definition fits what McNamara calls "open implementation" hardware, described as "hardware for which the complete bill of materials necessary to construct the device is available.
In the case of open source software OSSthe information that is shared is software code. In OSH, what is shared is hardware manufacturing information, such as hardware definition language descriptions, and the diagrams and schematics that describe a piece of hardware.
These two sites list more than projects, from designs for printed circuit boards to hardware description language HDL code for microprocessors. By using those Internet repositories, search engines and additional information gathered from businese OSH community, we searched for companies that offer products and services based on OSH designs.
Twelve companies were found and included in this research. The OSH offerings of these companies are summarized as follows:. Based on the analysis of the twelve companies, we identified 56 market offers. These were classified using four dimensions: i type buwiness market offer; open hardware business development ownership of Open hardware business development project; iii type of OSH asset transformation; iv and importance of OSH to the market offer.
Our findings can be summarized as follows:. Type of market offer: forty four of the market offers were for manufactured products, such as printed circuit boards. Six of the market offers were open hardware business development intellectual property, such open hardware business development electronic circuit designs and software.
The remaining six offers were for services, such as consulting, custom designs and training. Ownership of the OSH project: fifty three of the companies own the OSH projects upon which their market offers are based. Open hardware business development were three cases of companies whose one market offer was related to open hardware business development OSH project owned by another company or individual.
Type of transformation of the OSH asset into the opsn offer: this dimension refers to the type of activity that is needed to transform the initial OSH asset into the final market offer. Our analysis revealed four market offers requiring software development, fifty one offers requiring hardware development and manufacturing, and one market offer open hardware business development the same OSH asset without any transformation.
Importance open hardware business development the OSH for the functional integrity of the market offer: this dimension has three possible options.
The design of thirteen market offers did not include any open source component and were classified as "pure-close offers". The designs of twenty eight market offers are completely based on open source components, and Open Hardware Business Version were classified as "pure-open offers".
The core of fifteen of the market offers are based on open source designs but also include additional proprietary components; these were classified as "open-driven offers". Open hardware business development these four dimensions, we found eight different developmment of making money with Hardawre in the listed companies.
Those eight methods are summarized as follows:. Some authors have cited the costs associated with manufacturing hardware as one of the biggest disadvantages of OSH in comparison with OSS. Users who download software code can compile and use it without any cost. Users who download source for an open microprocessor cannot use it unless they pay for its manufacture. However, most of the companies working with OSH have taken this disadvantage as a business opportunity by selling manufactured OSH.
Secondly, companies, as seen with Gaisler Research, may successfully combine more than one way of making money with OSH to diversify their sources of income. Dual-licensing, consulting, and customization of open source projects are such examples.
The classification presented here is just the first step towards a more systematic buskness of how open hardware business development build business models around OSH.
More research is needed to study which models dveelopment likely to generate higher incomes and the profitability of the market offers related to OSH. Apel, Open hardware business development. Pomerantz, Gregory. Skip to main content. Edy Ferreira. Defining Open Hardware There is no consensus about the definition of open hardware. Our findings can be summarized as follows: Type of market offer: forty four of the market offers were for manufactured products, such as printed circuit boards.
Those eight methods are summarized as follows: Consulting and custom designs over owned OSH three market open hardware business development : this category includes companies which sell vevelopment related to the OSH projects that they own. Those services could be custom designs or consulting. Consulting and custom designs over third-party OSH three market offers : this category is open hardware business development to businexs previous one, but the services sold are for OSH designs owned by other companies.
Proprietary hardware designs based on OSH one market offer : this category includes companies that sell modified versions of OSH projects that they own. The market offer is intellectual property in the form of schematics, diagrams or any other type of hardware design information. The OSH assets are transformed into the market offer by designing proprietary hardware modules hardware development that modify the OSH asset open-driven offer.
Gaisler Research sells the netlist information for Leon-3FT, a fault-tolerant processor code based on Leon Proprietary hardware based on OSH eight market offers : this category includes the sale of modified versions of owned OSH projects.
The market offer is the result of proprietary hardware modules hardware development that modify hqrdware OSH asset open-driven offer. The difference from the previous classification is that the market open hardware business development is not intellectual property based on hardware design information, but physical manufactured products.
Manufactured OSH twenty seven market offers : this category includes companies harsware sell a physical manufactured hardware Open Hardware Shop Near Me Right based on pure-open hardware designs that they own. This category includes more companies and seems to be the first step most organizations take to start making money with OSH.
Software tools for OSH four market offers : deve,opment companies that sell pure-closed software tools for testing and working with OSH assets that they own. Gaisler Research sells simulation and debug monitor software for Leon 3. Hardware tools for OSH nine market offers : this category is similar to the previous one, but these pure-close market offers are not software but hardware tools for an owned OSH asset.
For example, Gaisler Research also sells development boards for Leon 3. The idea is to offer the same pure-open hardware design that is owned by the company with two difference licenses. The first license is a GPL-like license, which is free but forces users open hardware business development disclose the source code of any modified version of the original design. The second is a commercial license, which has a fee open hardware business development allows buyers open hardware business development conceal the source code of any modified version.
Conclusion Some authors have cited the costs associated with manufacturing hardware as one of the biggest disadvantages of OSH in comparison with OSS.
Recommended Reading Lambert, S. Do we Need a Real Taxonomy of e-business Models? Rate This Content:. Open Source Business.
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