We can't answer that for you... but we can tell you a bit about our own situation.<p>Personally, I've been running my own (much simpler) VPS hosting startup (<a href="http://prgmr.com" rel="nofollow">http://prgmr.com</a>) for more than two years. I'm on my second Porsche worth of personal money plowed into the thing (ok, second Porsche boxter... I'm probably still on my first, you know, real Porsche.)<p>I dono. I mean, my company breaks even these days... most of what I've gotten out of it is experience and contacts (and those are worth something... my bill rate as a consultant verges on ridiculous, and I have a book deal. Pretty good for a Midwestern hick with no formal education.) I don't regret doing it, but if I had a chance to do it over I'd focus more on being more public (blogging, documenting, etc...) and less on the actual business.<p>If I could 'open source' my project, I think that would magnify the benefits (that is, credibility and contacts) But you can't really 'open source' an ISP, which is essentially what I am.<p>So yeah, personally I'd advise you to go for option #2, unless you can get significant investment from someone else.<p>But then, you sound like you started from a different position than I did. It's possible that because I had so little when I started the credibility is worth a lot more to me than it is worth to you.<p>Also, I have my own conflict of interest... your project sounds pretty cool, and I'd like to be able to use that technology for my own projects, or use products built by other people using that technology. Open-sourcing it is likely the best way to get the tech out to the masses.