Glyn Moody looks at making money with free software. "As companies like Red Hat have grown in size and profitability, so has the credibility of free software options among larger enterprises. Profits mean that other, smaller open source companies can be bought, providing a useful payback for entrepreneurs that encourages others to enter the fray by funding new open source start-ups. Money also means more influence at the political table through increased visibility and clout."
Read more at LWN