Increasing Market Share with

Open Source SolutionsApril 04, 2014

Authors: Marcus D. Edwards, Systems Architect Christopher J. Morris, Software Engineer Dustin D. Baumgartner, Engineer Janine M. Brown, Systems Architect Robert D. Siegel, Fellow Engineer

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Acknowledgements

• We wish to thank the Northrop Grumman Corporation for its continued support and guidance through the years.

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Agenda

• Increasing Market Share with Open Source Solution (OSS) Overview

• OSS Case Studies

• OSS Information Assurance (IA) & Licensing Considerations

• OSS Benefits & Challenges

• OSS Systems Engineering (SE) Process

• Increasing Market Share with OSS

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Increasing Market Share OSS Overview

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IMS OSS Briefing Scope

OSS MissionBusiness

Cases

OSS Misuse Case Studies

Analysis of Alternatives

(AoA)

RequirementsOSS Current

State

OSS DoDGuidance

OSS Licensing Considerations

OSS Key Players

NG InterestsOSS Success Case Studies

OSS Benefits& Challenges

OSS TrainingOSS IA

Concerns

OSS IP & Legal

Concerns

OSS Classification

OSS SE Process

Increasing NG Market Share

OSS Elements of Success

OSS Reuse

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The Complete OSS StoryboardTopic of Primary Focus Topic of Secondary Focus De-Scoped Topic Logical Link

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OSS Leading Paradigm Shift in the Defense Industry

OSS Mission Statement

The Department of Defense (DoD) is advocating for the more frequent use of Open Source platforms and software. The use of Open Source allows for more capable and agile DoD acquisition practices that reduce costs and improve schedule. Consequently, the procurement practices of the DoD are evolving and requiring that the business capture strategy of the defense industry evolve as well.

A number of companies have successfully integrated Open Source Solutions (OSS) on both classified and unclassified systems. The integration of OSS early in the systems development life cycle has proven to be critical to the success of these programs. OSS rapidly advanced the system’s capabilities, reduced development cost and improved schedule. The use of OSS has contributed to more profitable company programs, product lines and ventures.

The OSS approach employs Systems Engineering principles to define a repeatable OSS process with proven elements of success. The OSS Process will reduce risks related to licensing, intellectual property and Information Assurance. A standardized industry-adopted OSS Process will better position companies for expansion into emerging markets built on the current and future needs of our customer.

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What is Open Source (OS)?

There are many OS definitions… The one that matters is defined by the DoD

Data Reference (1)

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Google Android Case Study

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The Rise and the Fall of Industry TitansCase Study: Google Android

2005The Writings On The Wall

• Google acquires Android, Inc.

2007Nokia Controls the Market

• Symbian 64% Global Market Share

• Apple iOS Unveiled

2008Android As-We Know It

• Google Android Unveiled

2009The Apple Revolution

• iOS 200% Growth

• Android 4% Global Market Share

2010Google “Game Changer”

• Android 600% Growth

• Android 23% Global Market Share

• Symbian converts to Open Source

2011Black & Blue Berry

• BlackBerry Market Share decline ~150%

• Android 200% Growth

• Android 47% Global Market Share

2012It’s New “Market”

• Android 59% Market Share

2013Too Little Too Late

• Nokia drops Symbian

• Android 65% Global Market Share

• Market Annual Sales ~One Billion Units

2014The King Arrives

• Registered Android devices top 1.3B globally

• Microsoft rumored Open Source migration

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Landscape of $250 Billion Industry Shifted Dramatically in 7 Years

10 Q1-Q4 2007 Q1-Q4 2008 Q1-Q4 2009 Q1-Q4 2010 Q1-Q4 2011 Q1-Q4 2012 Q1-Q4 20130

10

20

30

40

50

60

70

80

90

100

Fiscal Year

Mar

ket

Sh

are

(un

its

in %

)

Global Market Share Analysis of Smartphone Operating Systems

Symbian 64%CLOSED

iOS 3%

BlackBerry 10%CLOSED

Windows 12%CLOSED

Other 12%Various

Symbian 52%CLOSED

iOS 8%CLOSED

BlackBerry 17%CLOSED

Windows 12%CLOSED

Other 11%Various

Android 4%

Symbian 47%CLOSED

iOS 14%CLOSED

BlackBerry 20%CLOSED

Windows 9%CLOSED

Other 6%Various

Android 23%OPEN

Symbian 37%OPEN

iOS 16%CLOSED

BlackBerry 17%CLOSED

Windows 4%CLOSED

Other 4%

Android 47%OPEN

Symbian 19%OPEN

iOS 19%CLOSED

BlackBerry 11%CLOSED

Other 3%

Android 59%OPEN

Symbian 4%OPEN

iOS 29%CLOSED

BlackBerry 3%

Windows 4%CLOSED

Android 65%OPEN

iOS 27%CLOSED

Windows 5%CLOSED

Android

Symbian

iOSBlackBerry

Windows

Other

The Rise of Android’s Global Market ShareCase Study: Google Android

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Android’s Market Share grew by +1600% in 5 years

Data Reference (2-23)

11 Q1-Q4 2007 Q1-Q4 2008 Q1-Q4 2009 Q1-Q4 2010 Q1-Q4 2011 Q1-Q4 2012 Q1-Q4 20130

100

200

300

400

500

600

700

800

900

1000

Fiscal Year

Sal

es V

olu

me

(un

its

in M

illio

ns

(M))

Global Market Share Analysis of Smartphone Operating Systems

Symbian 78MCLOSED

Symbian 73MCLOSED

Symbian 81MCLOSED

BlackBerry 34M

Android 67MOPEN

Symbian 112MOPEN

iOS 47MCLOSED

BlackBerry 50MCLOSED

Android 229MOPEN

Symbian 84MOPEN

iOS 90MCLOSED

BlackBerry 51MCLOSED

Android 469MOPEN

Symbian 26M

iOS 132MCLOSED

BlackBerry 33M

Android 773MOPEN

iOS 152MCLOSED

Windows 32M

Android

Symbian

iOSBlackBerry

Windows

Other

The Rise of Android’s Global Sales VolumeCase Study: Google Android

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Global Smartphone Industry approaches a record setting Annual Sales Volume of 1-Billion Units sold in 2013

Data Reference (2-23)

OSS IA & Licensing Considerations

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OSS Misconceptions & Misinterpretations

DoD reserves the right, appointed by Congress, to Veto any “Free-World Export” license

Data Reference (1)(27)

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OSS IA & Licensing Considerations

The DoD Guidance clears the path for the broad government use of OSS

Data Reference (1)

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Common Open Source License Types

Name “Freeness”

Use Modify Other

GPL (General Purpose License)

GPL GPLVery common, but using GPL OSS means your app is GPL, and must be FREE.

LGPL (Lesser GPL)

None LGPLSoftware that mods LGPL OSS must be FREE but can charge $ if uses it.

BSD (Berkley Software Dist.)

BSD BSDMaintains ©, 3 flavors, no FREE requirement MIT, Boost, Apache are similar

CDDL(Common Develop. & Distribution License)

CDDL CDDLIncompatible with GPL, allows better separation btwn. proprietary and open source.

• OSS does NOT mean the software must be available to the public, a common misconception

• Rather, if the open source software is delivered to a party, then that party must receive ALL source code used to build that software, if requested

• Various licenses dictate how licensing terms are applied to the Open Source Software:

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ES Tools for Managing OSS & Company IP

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Established OSS knowledge repositories exist and are currently available

Reuse Library

• Company repository of reusable software• Company IP MUST be protected • License / Copyright agreements MUST be complied with• Obligations / Agreements of Users MUST be noted• Will restrict access to code that does not meet requirements

• External OSS Input Software

• Company Software• License

agreements

• Reusable software w/ vetted OSS• License agreement requests

Tool findings

Tool

Fin

ding

s

Output Software

Tools allows OSS user to scan their developed code for propriety and risks.

Reuse Library (RL) is a repository for storing vetted company developed code.

RL uses Tool to vet submissions.

RL submitters will be asked to provide confirmation of agreements to found licenses.

Tools helps OSS users be aware of and comply with associated agreements.

Forge.mil

GPL3Linux

OpenOffice

LGPL3

Source Forge

Android

OSS Benefits & Challenges

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18Mark pages according to the proprietary level of information as described in Company Procedure J103 (or remove)

Emerging Defense Industry PrioritiesPotential OSS Benefits & Challenges

Benefits Challenges

IndependenceRemoves reliance on proprietary solutionsAvoids the necessity of sole-source vendor contracts

Source DeliveryDoD requirements for source deliveryDoD selection criteria favoring source deliveryClear interpretation of source requirements

System ImprovementsReliability, availability, & maintainability (RAM)StabilityFlexibilityTechnology refresh rate

Awareness & Compliance Distinct marking of Company IP, 3rd Party IP, and OSSAwareness and compliance with licenses and agreements Documentation of associated licenses and agreements

Lowered CostsDevelopment Life cycle management Maintenance System refresh

OSS InteroperabilityObsolescence Maintenance Overall mission (roadmap needs to be clear)

TimeReduced time to marketQuick reaction time for new opportunities

Security ConcernsAgreements for OSS usage (unclassified vs. classified programs)Assessment of OSS author and interface risk

DoD Aware of Open Source Potential and Seeking to Capitalize on OSS

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OSS Intellectual Property & Legal Concerns

DoD Guidance clarifies the meaning of existing laws, policies and regulations

Data Reference (1)

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OSS SE Process

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OSS Systems Engineering (SE) Process

OSS SE Process = (Repeatable Process + Measurable Results)Benefit

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OSSSE

Process*

Process Input

Stakeholders Customer End-User (UX) Company

Considerations Needs Objectives Requirements Interfaces Constraints

Proven OSS Elements Design

Solutions Design Data Requirements Cost Data Use Cases Verification &

Test

Standards/Specifications

Technology Base

Process Output

System Architecture Design Interfaces Performance

Data Baseline

Documentation Specifications Trade Studies CONOPS

Execution Inputs Master

Plan/Sch. Life Cycle Cost Support Data

*Enterprise Process Currently Undefined

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OSS Process Considerations

Front-Loading OSS in the Development Life Cycle reduces Cost/Schedule

Assess OSS Options

Determine OSS with Potential Use

in Company Products

Conduct Security Evaluation of OSS

Conduct License Evaluation of OSS

Add OSS to Repository &

Company Usage Policies

Conduct SE Process

Determine OSS to be Implemented

Inform User to Pull OSS from Repository

Obtain User Agreement to

Understanding of OSS Licensing

Restrictions/Rules

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Increasing Market Share with OSS

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What are the DoD Interests?Strategic Investments

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OSS Direct Implication for the RDT&E and Procurement totaling $166.8B

Data Reference (25)(26)

Cyber Security Space Airborne

ISR C3 Industrial Base Energy

DoD Budget Priorities for Fiscal Year 2014

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Targeted Market StrategyIncreasing Market Share with OSS

OSS meets DoD Visual & IT needs across XYZ Core Business Areas

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Marine Systems Radio Systems Visual Systems IT Services

Under Water Systems FM Systems Visual Solutions Logistics System

Submarine Systems AM Systems EO Systems Logistics Services

Ridge Systems WiFi Systems IR Technologies Logistics Training

Planning & Technology Radio Research SAR Systems

XYZ Corporation Sectors

Targeted Market Strategy Leverage OSS to increasing Company Market Share for Cross Sector C4ISR &

Logistics Technologies

Data Reference (28)

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OSS Elements of SuccessEmpirically Proven

• Observed OSS Elements of Success– Frequent and Direct Communication with Customer

– Resolve OSS Concern Early in the Development Life Cycle

– Clearly determine the following considerations for each OSS Module

• Licensing

• Usage

• OSS Product Implications, Restrictions and Distribution Rights

– OSS Licensing/Distribution Documentation Requirements

• Measured OSS Elements of Success– IRAD will determine measurable OSS Element of Success

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Communication is Key for the Successful Implementation of OSS

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IMS OSS Next Step

• Secure funding necessary to develop OSS Process & Policies

• Secure funding necessary to research viable DoD market trends

Funding is needed to further the development of the OSS Process

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References

1. DoD Chief Information Officer (CIO) Memorandum, “Clarifying Guidance Regarding Open Source Software (OSS),” October 16, 2009, <http://dodcio.defense.gov/Portals/0/Documents/FOSS/2009OSS.pdf>

2. Gartner, Inc., "Gartner Smart Phone Marketshare 2013 Q4". Retrieved 2014-01-13, <http://www.gartner.com/newsroom/id/2665715>3. Gartner, Inc., "Gartner Smart Phone Marketshare 2013 Q3". Retrieved 2013-11-14, <http://www.gartner.com/newsroom/id/2623415>4. Gartner, Inc., "Gartner Smart Phone Marketshare 2013 Q2". Retrieved 2013-08-14, <http://www.gartner.com/newsroom/id/2573415>5. Gartner, Inc., "Gartner Smart Phone Marketshare 2013 Q1". Retrieved 2013-05-14, <http://www.gartner.com/newsroom/id/2482816>6. Gartner, Inc., "Gartner Smart Phone Marketshare 2012 Q4". Retrieved 2013-02-13, <http://www.gartner.com/newsroom/id/2335616>7. Gartner, Inc., "Gartner Smart Phone Marketshare 2012 Q3". Retrieved 2012-11-14, <http://www.gartner.com/newsroom/id/2237315>8. Gartner, Inc., "Gartner Smart Phone Marketshare 2012 Q2". Retrieved 2012-08-14, <http://www.gartner.com/newsroom/id/2120015>9. Gartner, Inc., "Gartner Smart Phone Marketshare 2012 Q1". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/2017015>10. Gartner, Inc., "Gartner Smart Phone Marketshare 2011 Q4". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1924314>11. Gartner, Inc., "Gartner Smart Phone Marketshare 2011 Q2". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1764714>12. Gartner, Inc., "Gartner Smart Phone Marketshare 2011 Q1". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1689814>13. Gartner, Inc., "Gartner Smart Phone Marketshare 2010 Q4". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1543014>14. Gartner, Inc., "Gartner Smart Phone Marketshare 2010 Q3". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1466313>15. Gartner, Inc., "Gartner Smart Phone Marketshare 2010 Q2". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1421013>16. Gartner, Inc., "Gartner Smart Phone Marketshare 2010 Q1". Retrieved 2012-05-26, <http://www.gartner.com/newsroom/id/1372013>17. International Data Corporation, " "Android and iOS Continue to Dominate the Worldwide Smartphone Market with Android Shipments Just Shy

of 800 Million in 2013". Retrieved 2014-01-13, < http://www.idc.com/getdoc.jsp?containerId=prUS24676414>.18. Kantar World Panel, "Kantar Worldpanel ComTech’s Smartphone OS market share data Q4 2013". Retrieved 2014-01-2719. Kantar World Panel, "Kantar Worldpanel ComTech’s Smartphone OS market share data Q3 2013". Retrieved 2013-11-1720. Kantar World Panel, "Kantar Worldpanel ComTech’s Smartphone OS market share data Q2 2013". Retrieved 2013-11-1721. Kantar World Panel, "Kantar Worldpanel ComTech’s Smartphone OS market share data Q1 2013". Retrieved 2013-11-1722. Kantar World Panel, "Kantar Worldpanel ComTech’s Smartphone OS market share data Q4 2012". Retrieved 2013-11-1723. Kantar World Panel, "Kantar Worldpanel ComTech’s Smartphone OS market share data Q3 2012". Retrieved 2013-11-1724. Northrop Grumman Corporation, “General Description and Systems Engineering (SE) Process Flow Diagram”. Retrieved 2014-02-17,

<http://wiki.northgrum.com/wiki/Mission_systems_engineering>25. DoD, “SUMMARY OF THE DOD FISCAL YEAR 2014 BUDGET PROPOSAL”. Retrieved 2014-03-16

<www.defense.gov/news/2014budget.pdf>26. DoD, “DEFENSE BUDGET PRIORITIES AND CHOICES FISCAL YEAR 2014”. Retrieved 2014-03-16

<www.defense.gov/.../DefenseBudgetPrioritiesChoicesFiscalYear2014.pdf>27. DoD, “THE DEPARTMENT OF DEFENSE'S ROLE IN FREE-WORLD EXPORT LICENSING UNDER THE EXPORT ADMINISTRATION ACT”.

Retrieved 2014-03-17 <scholarship.law.duke.edu/cgi/viewcontent.cgi?article=3048&context=dlj> 28. Northrop Grumman Corporation, “U.S. Securities & Exchange Commission (SEC) Form 10-K”, Retrieved 2014-03-16 <

http://investor.northropgrumman.com/Mobile.view?c=112386&d=0&v=0>

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Q & A Session

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Backup

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Open Source License Types

• Apache License 2.0

– The Apache License, Version 2.0, grants a number of rights to users. These rights can be applied to both copyrights and patents. Because some licenses can be applied only to copyrights and not patents, this flexibility would be an obvious factor in a patent developer’s choice of license (read this article on How Stuff Works for an explanation of the difference).

• BSD 3-Clause "New" or "Revised" license

– The New BSD License (“3-clause license”) allows unlimited redistribution for any purpose as long as its copyright notices and the license’s disclaimers of warranty are maintained. The license also contains a clause restricting use of the names of contributors for endorsement of a derived work without specific permission. The primary difference between the New BSD License and the Simplified BSD license is that the latter omits the non-endorsement clause.

• BSD 2-Clause "Simplified" or "FreeBSD" license

– BSD licenses represent a family of permissive free software licenses that have fewer restrictions on distribution compared to other free software licenses such as the GNU General Public License. Among different versions of the license two versons are particularly important: the New BSD License/Modified BSD License, and the Simplified BSD License/FreeBSD License. Both have been verified as GPL-compatible free software licenses, and have been accepted as open source licenses by the Open Source Initiative.

• GNU General Public License (GPL)

– The GNU General Public Licence (GPL) is probably one of the most commonly used licenses for open-source projects. The GPL grants and guarantees a wide range of rights to developers who work on open-source projects. Basically, it allows users to legally copy, distribute and modify software.

• GNU Library or "Lesser" General Public License (LGPL)

– You should be aware of another GNU license: the Lesser General Public Licence (LGPL). It grants fewer rights to a work than the standard GPL. Generally, the LGPL is appropriate for libraries that want to allow linking from non-GPL and non-open-source software. Because the GPL requires that other software with parts of licensed code to also be licensed under the GPL, developers cannot use GPL-licensed code for paid and proprietary software. The LGPL negates this by not requiring other projects with parts of the code to be similarly licensed.

• MIT license

– The MIT License is the shortest and probably broadest of all the popular open-source licenses. Its terms are very loose and more permissive than most other licenses.

• Mozilla Public License 2.0

• Common Development and Distribution License

• Eclipse Public License

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