I recently published an article about Enterprise open source strategy and how using a best in class formula will help open source companies obtain better revenue results. 

So far we have interviewed 16 leading open source executives (with many more planned) and found a best in class success formula emerge.  The entire formula and ensuing discussion can be found using the link in the first paragraph.  But in short here it is:

What we found time and time again is that the best- in-class open source companies knowingly or unknowingly followed this formula:

D x CR x ASP = $$

The formula can be broken down as follows:

• D = Distribution (total number of downloads, subscriptions, etc.)
• CR = Conversion Rate (meaning: percentage of the Distribution that develops into paid customers)
• ASP = Average Sales Price
• $$ = Revenue

There are best in class strategies and tactics that we uncovered for each formula element.  Plus each comes with it’s own set of challenges.  

The best in class group focused primarily on the CR because they already had an established community of users for which to market commercial products.   In fact, the bigger the pool of Core users, the larger the CR opportunity.   That’s where the highly successful set themselves apart from the successful.

I’m thrilled at the work we have done here and excited about where the research is going.  We have some best in class ideas to share with the Open Source community and I thought it was important to receive your feedback on some of the high level reasoning.

Any open source executive or marketer can learn a lesson from the survey results (note: participants only).  

Read the the original post and comments and then let me know what you think.