Software companies build business on model of free [Sept 24, 2012]
In its first seven years, Aras Corp. grew slowly, with a handful of sales people selling its proprietary software to manufacturing clients.
Frustrated by the slow pace of business, founder Peter Schroer had a realization: “Selling corporate software was not profitable, and the scalability of the business was limited to the number of feet on the street.”
So, in 2007, Schroer took a gamble and embraced the open-source model of software that was sweeping corporate computing. He fired the sales teams and started giving away Aras’s software; the company would make money through services, such as technical support, security updates, training, and related consulting work.