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Why don't people realize that 'high software profit margins' are fugazi?

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Why don't more people use OSS is a question I always have.

I think as a programmer, I overestimate how easy it is for most people to find and configure the OSS that solves their problem.

The best OSS solutions also often lag behind the best paid solutions, so OSS applications often lose large chunks of value relative to paid solutions once you scale them, thus meriting paying more money for more cutting edge systems.

So we end up with-

  • People that don't need to scale don't use OSS because they don't have the scale to overcome the barriers to entry such as finding what they need and setting it up.

  • Orgs that do need to scale use OSS... indirectly, in their software's dependencies lists, but still have people they're paying to keep their systems cutting edge and finetuned to their specific needs.

I think the fundamental reason is that OSS software alternatives to existing consumer products largely suck.

OSS is at it's strongest when it serves developer needs. That's because the creators and the target market are highly aligned. However, this is not the same for consumer products, where that instinctual alignment doesn't exist, and has to be forced in. UI/UX is painful work, and while there's a strong monetary incentive for profit-seeking entities to do so, the same doesn't apply to developers, who often loathe such work.

There are a few star examples, but they're the exception to the rule.

It’s also very field-dependent.

My employer has a giant spreadsheet of different OSS licenses, because that affects what you can deliver. In a contract-focused field the inherited licenses are no good.

Alternative tools (libreOffice, OSS compilers or git clients, etc.) are at the mercy of your IT. Letting everyone download and run whatever they want is a non-starter. So there has to be a whitelist, or at least an approval process. And the bigger the company, the more tedious this gets. At a certain point corporate wants the assurance that there’s someone to contact/sue if the software turns out to be an exploit.