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The rise of collaboration

The new open source economy

ManimohanMay 16th 2008

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Overview

Collaboration

Value

Open SourceThe Open Economy

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Overview

Collaboration

Value

Open SourceThe Open Economy

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Manimohan May 2008 The new open source economy

Collaboration

Collaboration operates through a process in which thesuccessful intellectual achievements of one person arouse theintellectual passions and enthusiasms of others, and throughthe fact that was at first expressed by only one individual,

becomes a common intellectual possession instead of fadingaway into isolation.

- Alexander von Humboldt

1769 - 1859

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Value

Metcalfe's Law

The value of a network is proportional tothe square of the number of its Nodes

Robert Metcalfe -circa 1980

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Open Source

The Birth of a concept

1983 Free Software Campaign

1998 Open Source Initiative

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Open Source

The Results The hobby project of a student in his twenties, Linux, takes over

enterprise computing Linux sub-sector alone showing an annual growth rate of 37 to 45

percent and predicted to be a $35 Billion dollar market by 2008

(IDC Consulting)

IBM, the epitome of conservative business, de-emphasizes itsbillion-dollar "AIX" operating system in favor of a productdeveloped by a loose coalition of programmers with no financial

motive in common, upon whom no corporate directive can bebinding, whose leader has no power but the respect of others.

Microsoft faces its first serious competitor in a decade:programmers who give away their work.

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Open Source Myths

Open Source will kill the industry !

Consider: US Software Market Report

Pre-packaged Software 24.6% of the software market

US Bureau of labor statistics reports for 2002 2,153,000 people hold programming-related jobs in the US

499,000 are Computer Programmers,

675,000 are Computer Software Engineers,

979,000 are Computer Systems Analysts & Database Administrators Not counting 758,000 jobs held by Computer Support Specialists and

Systems Administrators, who generally perform at least some scriptprogramming, and Computer Operators, who held 182,000 jobs.

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

Value

Metcalfe's Law

Implications: The number of possible cross-connections in a

network grow as the square of the number ofcomputers in the network increases.

The community value of a network grows as thesquare of the number of its users increase.

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

The Open Economy

Case The Gold HuntGoldcorp Inc Robert McKewan

50 years worth of Data opened to Public

1,400 participants Geologists, Physicists, Mathematicians, Complex

Systems Specialists . . . .

140 submissions

28 winners - > 50% sites previously unidentified

From Industry Laggard to one of the richest gold minesin the world - 6.6 million ounces reserves

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

The Open Economy

Case The Gold HuntGoldcorp Inc Robert McKewan

50 years worth of Data opened to Public

1,400 participants Geologists, Physicists, Mathematicians, Complex

Systems Specialists . . . .

140 submissions

28 winners - > 50% sites previously unidentified

From Industry Laggard to one of the richest gold minesin the world - 6.6 million ounces reserves

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

The Open Economy

Startling Facts

FaceBook MS buys 1.6% at $240m (15bn)

YouTube Google buyout at 1.65bn

MySpace Google buys into adspace - $900m

MS bid for Yahoo 44.6bn rejectedGoogle worth more than Coca Cola & McDonalds

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Manimohan May 2008 The new open source economy Slide 4 (of 10)

The Sentiment

Consumer/Producer

More heads are better than one

The future is nothing like the past

May you live in Interesting Times

attributed to be an old Chinese Curse

Truth Happens

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Manimohan May 2008 The new open source economy Slide 9 (of 10)

Have Fun

Thank you for your time