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The European software-intensive industry is facing challenges related to heterogeneous distributed development. These challenges are due to the commodification of software. Software that originally was differentiating (that is, helped distinguish one company's products from another's) is now available as a commodity. So, embedded systems companies are adopting open source practices and becoming involved in open source development. This article illustrates how two large European companies in the secondary software sector utilize collaborative open source development to deal with software commodification. Software commodification can also lead to new forms of collaborative development, such as inner-source development.