OStatic

The 451 Group is reporting that venture capital funding for open source vendors was down 12.2% last quarter, compared to Q3 2007.

They say that while this is a larger drop than seen in the overall market, it's not quite as dire as it may seem at first glance.

ReadWriteWeb points readers to a report released by the 451 Group stating that open source is not a true business model, but more of a business tactic.

Traditionally, the open source business model is perceived as free/open software, with paid support and configuration services. The report found, however, that many of the responding open source businesses incorporate some commercially licensed software in their product line. It also found that the paid support/free software idea -- while theoretically, at least, valid -- is multi-layered, complex, and highly variable between software product, software company, and industry.