Disclosure: I work for a closed source product company, but write a lot of open source that pairs well with our product.
What a silly claim by the author.
Of course OSS wins by being cheaper (in terms of $$$ paid). I agree that cost is not the only way it wins, though. Points made by the author on how it can win:
* extensibility
* transparency
I'd also add:
* lower barrier to entry (for a subset of technical users, at least). If you want to try it, you download it.
* optionality: in the spirit of libre open source, you should be able to stand it up yourself. If things go sideways with the company providing you the OSS app, you've lowered your risk.
* if the user is a dev (the product is infra) "many eyes make for shallow bugs"
Those are all compelling arguments.
However, weighed against all of that is the profit motive and sustainability of a business. People, even software devs, like to eat :) . And businesses need to make money to employ people and push a product forward.
Honestly, I don't think we've figured out how to build a pure big open source business outside of the following business models:
* consulting/support (Redhat); pursuing this has poorer margins
* loss leader for another service (like VSCode for the MS ecosystem). this isn't really a pure OSS business model
* hosting/SaaS (but the clouds impinge; I opined a few years ago on this: https://www.mooreds.com/wordpress/archives/3438 )
(I'm leaving out open core or SSPL companies because I don't consider them to be 'pure' OSS companies, myself.)
Maybe the answer is that we can't have a big open source business. Maybe smaller ones are just fine. I'd avoid VC though, in that case. Most don't like smaller businesses.
FYI, you can also have some of the beneficial attributes of OSS:
* transparency through clear communication and docs
* extensibility through clear, stable APIs and docs
even with a closed source company. Software companies have lots to learn from OSS as a development process.