Concept open source offers following Business Model:
- In this model, costs do not change as output varies. In other words, they are fixed even if output moves up or down from period to period.
- Fixed costs are particularly important when it comes to calculating the break-even output of a business. A business needs to generate enough contribution (a kind of profit) to cover its fixed costs in order for it to break-even.
Time & Material Model
- A time and material service is a service offering that is billed strictly on a time and material basis.
- Example of a time and material service offering is a consultant who strictly charges on an hourly basis.