Control over unique, hard-to-recreate data sources that get richer as more people use them…

[ Tim O'Reilly, Core Competencies of Web 2.0 Companies, What Is Web 2.0 ]

Tim made a fortune publishing books–many of them about Free or Open Source Software.

He also articulated a set of characteristics (core competencies) common to some of the most successful technology companies since the dot com bust–the so-called Web 2.0 companies.  Think of Facebook.  Think of Google, for that matter.

In early 2008, Wired Magazine published an article by Chris Anderson titled Free! Why $0.00 Is the Future of Business.  Chris used “free” in the sense of “free beer” (no monetary cost).  Free products and services are often paid for by third parties–parties who are willing to pay to participate in an exchange taking place between two other partners.  Advertising is a specific case of this three-way marketplace.

Of course, these third parties are only willing to pay if there’s no other way to play.  This is why control is important.  Control creates scarcity.  Scarcity creates a perception of value.  Commerce ensues.

In the last few years, we entrusted a tremendous amount of personal data to Web 2.0 companies.  True, in many cases it cost us nothing to post/store/share this data.  However, thanks to Tim, at the heart of every Web 2.0 business plan and every Web 2.0 private equity investment is the idea that control of a hard-to-recreate data source is valuable.

In 1985, Richard Stallman published the GNU Manifesto.  Like Chris, Richard believed that free was important; however Richard was concerned about “free” in the sense of “free speech” (unfettered or unrestrained).  The GNU Manifesto put forth the radical idea that software should be free.  Users should be free to read, modify, and share software source code.

This kind of freedom is powerful–I’m writing this post on a laptop that runs entirely on Free Software–but it’s incompatible with the kind of control embodied and embraced by the Web 2.0 world.  This is ironic, because a great amount of Web 2.0 software is powered by Free Software.  It is also disappointing, because Tim has to know that sharing, not control, is at the core of Free Software movement.

It’s time to learn a lesson from history, to look back on the incredible value that was created by and with Free Software over the last fifteen years, and to free our data so that we can see an explosion of innovation down the road.

I would be willing to pay to use my favorite Web 2.0 applications, but give me an API and easy access to my data.  I’m unwilling to trade one kind of free (freedom) for another kind of free (monetary).

The price is too great.