Dave,
I know with typing it's hard to communicate sentiment, but I'm "speaking" monotonically, passively.
I'm just offering up ideas.
When I say I have no idea what their business model is, I don't mean that as some sort of judgmental venom. I'm speaking matter-of-factly: no one at X10 has called me to let me in on their business model. They've not invited me to play golf with their board.
I would have guessed, by interpreting their actions, they're following the old "give away the Razors and sell the blades" model.
That's all - just a guess.
Yeah, I've got an inkling how hard it is to make money. My family's been in Small Business for forever. I, the black sheep, have been in Fortune 100/500's for 25+ years.
As for companies that have successfully transitioned to an open source model, in my field (Information Technology) there are actually quite a few. A name you *might* recognize, Oracle, has an active open source community (albeit largely an acquired one). RedHat is the apocryphal example.
But, of course, you (and the shareholders) get the final decision on whether they are successful.
--
What I was driving at; what I'd say to the X10 board (if they invited me to play golf) would be something like:
"Software's a PITA and to be avoided. It costs you a lot, and your spreadsheets show you not much of an ROI. For every 3 people it pleases, it aggravates 8... Here's a way for you to retain the benefits, but drop the operating expense." Even Sun Microsystems realized that it was time to open source, their Crown Jewel.
Even IBM realized...
well, that's what I'm driving at.