Ubuntu Development Model and Canonical Business Related to Ubuntu.

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Ubuntu Development Model (UDM)

Correct me if I wrong, but I see the UDM as Waterfall model (in 6 months lifecycle) wrapped into cycle.
The process itself divided into 5 stages with strict feature freeze dates. The freeze dates help to distribute each release in time.

As we can see from the scheme (taken from Ubuntu site), the frame divided into:
Start: the beginning on work with new release right after distribution of finished one.
Planning: includes the Ubuntu Developers Summit, where discussed features of next release.
Work on features - is the longest part, where all features implemented to the product.

After that the first feature freeze goes. This means that no more features can be implemented and the work must be focused on bugs fixing.

First stage of fixing is the Bug fixing inside closed community.

After the Bug Fixing the development of UI, documentation, kernel freezes and release goes to Beta testing.
After that, only critical fixes and release candidates made by team. If release candidate has no serious problems, it becomes the final release.

Despite the meaning that the Waterfall model not suitable for big projects, the Canonical implemented it well in Ubuntu development process and provides us with workable releases in time.


Ubuntu as business

The Ubuntu itself is free and Open Source, that means that everyone can obtain it, use and mod (excluding proprietary part of it: i.e. some drivers which downloaded during installation).
Why the Canonical interested in it then?
Well, the OS itself developed mainly by Ubuntu Foundation team, which consists of enthusiasts team and smaller canonical team (paid workers hired by Canonical). Most of Canonical team works in support, to provide flawless support of OS and keep the level of reliable well supported product. I think, that reliability "makes" the choice of user. That's why the Ubuntu is so popular and used for other distros. (link)
The popularity works well for Canonical tryouts to commercialize the product and distribution of other company products on market.

Till year 2014 one of Ubuntu "profitable" parts was UbuntuOne cloud service.
Now the profit consists of donations and selling of merches.

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