Two open source business models

John Koenig has a nice article in the IT Manager’s Journal listing seven open source business models: Optimization, Dual License, Consulting, Subscription, Patronage, Hosted, and Embedded.
From the perspective of software developers, however, there are only two. Patronage works for individual developers who are so brilliant, innovative and famous that a corporation or foundation will hire them to do whatever it is they do next. A few people merit this approach.
All of the other business models are based on a single principle — provide software and services that someone else wants. The stereotypical open source model is to “scratch your own itch” – build software that you want. That is a powerful motivation that gets a lot of software built.
But if you want to make money, you need to do something that somebody else wants, and that is valuable enough that they’re willing to pay you to do it. That something could be optimization, custom consulting, service and support, or a packaged product that uses your code (Koenig’s list). There’s also a patronage model that’s at the level of a project, not an individual — IBM’s sponsorship of Apache fits this model. In this case, the sponsor is paying for ongoing development and maintenance.
The solipsistic/bohemian model of open source — artists make software only for other artists, and talk only to other artists — falls short if those artists are looking to make a living. Unless you’re one of a handful of superstars, you need to provide a product or service that’s of immediate value to someone else.