Open-source withers in economic slump

In a perfect world, the open-source model for software works. Unfortunately, it seems that in the real world, it's just not paying the bills. While some companies have succeeded, more are falling back on proprietary code.
"Where is our business model if everyone else can copy it?" asked Holger Dyroff, former CEO and now director of sales for Linux software seller SuSE. "The question is where we can make money now. Nobody cared about profitability two years ago."
It seems even service and support can't sustain the open-source model, which is unfortunate. Does open-source have a mass market future, or will it be confined to the niches of its humble beginnings?
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