MontaVista Moving to Royalty Based Sales Model
Market Watch
May 05, 2005
MontaVista is changing to a royalty based sales model. This model, which is more traditional in the embedded market, can reduce upfront costs associated with per-seat licensing.
The new model is intended to appeal to those who can't spend large amounts of money on Linux products-the very customers who are most likely to build their own version of Linux instead, Ulander said.
Royalty-based sales models are common in high volume products such as
cell phones and other consumer electronics devices.
According to the article at CNET, MontaVista expects its revenue to be split between the per-seat and royalty-based licensing models.
