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How Does Ubuntu Make Money?

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Ubuntu, one of the most popular Linux distributions, is widely recognized for its user-friendly interface and robust performance. While it’s free for users to download and install, one might wonder how Ubuntu, and by extension Canonical Ltd., the company behind Ubuntu, makes money. In this article, we’ll delve into the various revenue streams that support Ubuntu’s ongoing development and maintenance.

Quick Answer

Ubuntu, the popular Linux distribution, generates revenue through a variety of sources. These include support services, contracting services, the Ubuntu Software Centre, Launchpad.net, and Amazon referrals. Canonical Ltd., the company behind Ubuntu, uses these revenue streams to fund the ongoing development and maintenance of Ubuntu.

Canonical Ltd. and Ubuntu

Before we delve into the specifics, it’s important to understand the relationship between Ubuntu and Canonical Ltd. Ubuntu was created by Canonical Ltd., a private company founded by Mark Shuttleworth. Canonical funds Ubuntu’s development and in return, uses Ubuntu as a platform to provide various services for revenue.

Revenue Streams

Support Services

One of the main ways Canonical generates revenue is through support services. Canonical offers several levels of support services, primarily to businesses, under the banner of Ubuntu Advantage. These services include 24/7 telephone and web support, access to Landscape (a systems management tool for using Ubuntu at scale), and coverage of various open-source applications.

Contracting Services

In addition to support services, Canonical also provides contracting services to businesses. This includes working with Original Equipment Manufacturers (OEMs) like Dell to pre-install Ubuntu on their devices. Canonical also assists companies like Google with projects such as Chrome OS, which is based on the Linux kernel.

Ubuntu Software Centre

The Ubuntu Software Centre, a platform where users can download and install software packages, also contributes to Canonical’s revenue. While many of the applications available are free, there are also paid applications. Canonical earns a portion of the revenue from the sale of these paid applications.

Launchpad.net

Launchpad.net is a web application and website developed by Canonical. It is used for the Ubuntu project and other open-source software projects. While it is free for open-source projects, closed-source projects need to purchase a commercial license to use Launchpad.net.

Amazon Referrals

Ubuntu includes Amazon product referrals in its search results, and Canonical receives a share of the revenue from these referrals. This feature has been controversial among some users due to privacy concerns, but it remains a part of Ubuntu’s revenue strategy.

Conclusion

While Ubuntu is a free and open-source project, it’s clear that its development and maintenance are supported by a variety of revenue streams. Canonical Ltd. has been working towards making Ubuntu profitable, as it has to support its large workforce of over 600 employees. While there have been indications of success, Canonical has not yet reported consistent profitability.

The business model of Ubuntu and Canonical Ltd. is a testament to the potential viability of open-source projects. By offering value-added services and capitalizing on partnerships and referrals, they have managed to sustain one of the most popular Linux distributions in the world.

Is Ubuntu completely free to download and use?

Yes, Ubuntu is completely free to download and use. Users can freely install and use Ubuntu on their devices without any cost.

How does Canonical Ltd. make money if Ubuntu is free?

Canonical Ltd. generates revenue through various channels such as support services, contracting services, the Ubuntu Software Centre, Launchpad.net, and Amazon referrals. These revenue streams help fund Ubuntu’s development and maintenance.

What support services does Canonical offer for Ubuntu?

Canonical offers support services under the banner of Ubuntu Advantage. These services include 24/7 telephone and web support, access to Landscape (a systems management tool), and coverage of various open-source applications.

Does Canonical provide contracting services?

Yes, Canonical provides contracting services to businesses. They work with Original Equipment Manufacturers (OEMs) like Dell to pre-install Ubuntu on their devices. They also assist companies like Google with projects such as Chrome OS.

How does the Ubuntu Software Centre contribute to Canonical’s revenue?

The Ubuntu Software Centre allows users to download and install software packages. While many applications are free, there are also paid applications available. Canonical earns a portion of the revenue from the sale of these paid applications.

What is Launchpad.net and how does it generate revenue for Canonical?

Launchpad.net is a web application and website developed by Canonical. It is used for the Ubuntu project and other open-source software projects. While it is free for open-source projects, closed-source projects need to purchase a commercial license to use Launchpad.net, which generates revenue for Canonical.

Does Canonical receive revenue from Amazon referrals in Ubuntu?

Yes, Canonical includes Amazon product referrals in Ubuntu’s search results. When users make purchases through these referrals, Canonical receives a share of the revenue. This has been a controversial feature due to privacy concerns.

Is Canonical Ltd. profitable?

While Canonical has been working towards making Ubuntu profitable, they have not yet reported consistent profitability. However, they continue to support Ubuntu’s development and maintenance with their various revenue streams.

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