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Can someone give an example of software that is distributed as both service and product and how to classify, if i have to eventually, under one category?

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  • Atlassian does this. But it is not opensource. – peterh Dec 14 '20 at 15:48
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Can someone give an example of software that is distributed as both service and product

An example that comes quickly to mind is Wordpress. It's distributed under GPLv2+, so you can take a copy and install it on your own website, as very many people do. Most major distros repackage it, to make doing your own installation very easy (CentOS 7: yum install epel-release ; yum install wordpress). However, you can also buy Wordpress site hosting as a service, from many providers (example 1, example 2, example 3, and I should stress these are taken from the results of a duckduckgo search and their selection implies no endorsement whatsoever).

how to classify, if i have to eventually, under one category

I'm sorry, I don't understand that question. If you mean "how do I decide whether I'm distributing software or offering SaaS", the question to ask yourself is "am I giving copies of software to people to run on their own computers, or am I running it on my own computer and letting them use it?".

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