Open Source and Commercial Software Platforms

In this article, we consider the dynamics and competition between two software platforms (Open Source and proprietary software). Potential user-developers can adopt one of the two platforms in order to develop and sell new applications based on the platform. We consider the static issue first and then use a simple dynamic system where the dynamics comes from the development efforts (spillovers) made on each platforms. In this context, we first identify the conditions for the two platforms to coexist in the long run. From this baseline, we then consider different strategies for the editor. A first strategy is for the editor to “show the code” of its software, so as to develop more compatible products. A second strategy is to strategically monitor the compatibility degree between the proprietary and OS platform. In both cases, we analyze whether a mixed industry may be sustainable in the long run.