The Business Of Open Source
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Transcript of The Business Of Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
The Business of Open Source
Dan (Danny) Fellars
OpenWest
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
about me
M.S. Computer Science BuyDansHouse.com
Chile
places lived
education work
family
OPENSIDE
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
“How Can You Make $$ Giving It Away”
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
“Open is for Losers”- Dave McClure (500 Startups)
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
The Heated Dilemma
http://youtu.be/X0R0toLhmwk
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Open Source Business Models“Free software” means software that respects users' freedom and community. Roughly, the users have the freedom to run, copy, distribute, study, change and improve the software. With these freedoms, the users (both individually and collectively) control the program and what it does for them. When users don't control the program, the program controls the users. The developer controls the program, and through it controls the users. This nonfree or “proprietary” program is therefore an instrument of unjust power. Thus, “free software” is a matter of liberty, not price. To understand the concept, you should think of “free” as in “free speech,” not as in “free beer”. A program is free software if the program's users have the four essential freedoms: •The freedom to run the program, for any purpose (freedom 0).•The freedom to study how the program works, and change it so it does your computing as you wish (freedom 1). Access to the source code is a precondition for this. •The freedom to redistribute copies so you can help your neighbor (freedom 2). •The freedom to distribute copies of your modified versions to others (freedom 3). By doing this you can give the whole community a chance to benefit from your changes. Access to the source code is a precondition for this.
- GNU.org (GPL)
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Agenda●Walk thru of my quest for
answers– Locations– Industries– Licenses– Languages– Lifespan– Investability– Business Models
● The Impact of Cloud/SAAS● Commercial Benefits of Open
Source● Company Case Studies● Bees & Trees Analogy● Final Key Takeaways
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Key Takeaways
• Commercial Open Source does not have to be a oxy-moron• Find the right time and place for when to go
open source• The model and license matter, a lot• The move to cloud is both good and bad for
open source• Limits of Commercial Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Locations
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Locations
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Operating
Systems
Industry ImpactDatab
ases
Server/
Cloud
Enterprise
Software
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
CMS
Industry ImpactEduca
tion
eCommerce
Security
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Application
Development
Industry ImpactConsu
mer
Mobile
Ads/Media
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
BSD
Open Source Licenses
MIT APACHE
GPL AGPLLGPL
MozillaEclipse OSL
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
BSD/MIT
LicensesAPAC
HEGPL AGPL
MPL/CPL/OSL
LGPL
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
JAVA
LanguagePHP
Python
.NETC/C++
Erlan g
Ruby Javascri
pt
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
2010+ 2008/09
2006/07
2004/05
2002/03
2000/01
1998/99
<1998
Age of Commercial Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
$100M+
$80-$100M
$60-$80M
$40-$60M
$20-$40M
$10-$20M
$5-$10M
Investment Received
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Dual License
Open Source Business Models
Support / Services
Tiered Product
Partner Program
On Demand
Access Key
Multi/Add-on
Products
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Support/
Services
Business ModelsTiere
d/Dual-
Licens
e
OnDemand/
Multi-Produc
t
Partner
Program
Donation
s
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Impact of Cloud/SAAS on Open Source
•Cons
• GPL Loophole• Less motivation to contribute back to open
source projects• Full applications less likely to be open
sourced•Pros
• On Demand Business Model• More Libraries being open sourced
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Benefits to Commercial Open Source
Thanks to Jamie Dixon (Pentaho) - jamesdixon.wordpress.com
● Making Open Source a Whole Product (Crossing the Chasm)● Market Optimization● Company Culture and Management● Collaborative Development● Customer Focus● Talent Acquisition● Quality Assurance● Community, Community, Community● Quicker Adoption
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Case StudiesLicens
e
Wordpress/
b2-cafepress
Open
X/phpM
yAds
Android
Business
Model
SugarCRM
Mozilla
Industry/
Competition
Education
Busin
essIntelli
gence
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
SugarCRMFull Price Discrimination
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
EducationIncum
bent
Pure Open
Source
Commercial
Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Business IntelligenceIncum
bants
SAAS Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Case Study: OpenSideMark
et
Marketing
Automation
License
AGPL
Business
Model
Acces
s Keys
OnDemand
Technology Stack
PHP/MongoDB/Backbone.js
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Pure Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Proprietary
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Commercial Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Commercial Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Commercial Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Support & Services
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Support & Services
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Key Takeaways
• Commercial Open Source is not an oxy-moron• Find the right time and place for when to go
open source• The model and license matter• The move to cloud is both good and bad for
open source• Financial Limits of Commercial Open Source
OpenSidePhone: (801) 319-6764 | e-mail: [email protected] | twitter: @DannyFellars
Thank You
• Feel free to contact me with any questions• Dan Fellars [email protected] @DannyFellars