Mozilla Extended Contract With Google for Another 3 Years

Refer to 'Malaysia Technology News'

$300 Million Per Year:

Earlier this week, Google and Mozilla said they had struck a deal to renew their search royalty agreement for another three years.

The search giant will pay just under $300 million per year to be the default choice in Mozilla’s Firefox browser, a huge jump from its previous arrangement, due to competing interest from both Yahoo and Microsoft.

Market Share:

Mozilla's Firefox has earlier been reported that its market share dropped to 26.59%. Microsoft's IE also dropped to new low of 40.92%. The latest information on market share for web browser (according to stat counter) stands at:

  1. Microsoft IE 40.92%
  2. Mozilla's Firefox - 26.59%
  3. Google's Chrome - 24.3%
  4. Safari - 5.77% 
  5. Opera - 1.77%
  6. Others - 0.65%

Business Model:

The business of model of Firefox has long be subjected to many guesses and industrial debates. How can a company like that survive and yet able to keep up to date with latest trends and regularly provides software updates ?

By default, Firefox is a free and open source software. Most of it is tri-licensed under the Mozilla Public License (MPL), the GNU General Public License (GPL) and the GNU Lesser General Public License (LGPL).

Like most open source software, the brand name Firefox is trademark and is owned by Mozilla Corporation. The fate of open source software has always been a roller coaster one .

Take MySQL for example, its eventual fate was to be acquired by Sun Microsystem and later by Oracle. Other notable and common open source revenue making activities include:

  • Technical supports.
  • Technology consultancy.
  • Enterprise edition subscriptions.
  • Proprietary license for full features.
  • Advertisements.
  • Alliance with other software.
Firefox's alliance with Google search is another example of how open source software can create revenue from.

In my personal opinion, with its large user database, Firefox also makes money from selling information for market research.

Many analysts have different ideas on business model of Facebook. Most would agree that advertisement generates huge amount of income and also with Facebook credits for games, movies, ebook and etc.

Personally, I feel that companies like Google, Facebook, Yahoo have more to offer than just selling advertising spaces. The fact that these companies have huge amount of real time information just about anything particularly on people, location, date time, activities, behaviour and numbers. These information is most value to market research and consulting companies.

Opera's business model is very similar to Firefox.

Revenues come from almost any sort of activities which leverages on the brand and technology of Opera web browser. Typically, it makes money from content providers such as search engine providers and OEMs (Nokia, Motorola, Ford) who installed Opera browser into their products.

Bit Torrent hasn't got tremendous luck with previous business model such as selling SDKs and technology consulting, is now towards capitalizing on the world of streaming content. Its first major customer is reported as video-service provider Brightcove.

Refer to more on ideas.


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