Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R....
Transcript of Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R....
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A Story
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1997~750,000LoC~$10,000,000
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Interix~$100,000
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Interix+ACT~$140,000
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Buildvs.Buy
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Buildvs.Buyvs.Borrow
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Buildvs.Buyvs.(Borrow&Share)
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OpenSourceSoftwareisaboutEngineeringEconomics
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1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
We’vesharedsoftwaresincewe’vewrittensoftware
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1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
We’vesharedsoftwaresincewe’vewrittensoftwareWritinggoodsoftwareishardwork
![Page 16: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/16.jpg)
1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
CompaniessharedsoftwarebeforewehadtheOSD
DECUltrix1984
SunOS1983
OSF/11992
RedHat1993
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1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
CompaniessharedsoftwarebeforewehadtheOSD(Writinggoodsoftwareishardwork)
DECUltrix1984
SunOS1983
OSF/11992
RedHat1993
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Collaboratively-DevelopedLiberally-LicensedSoftwareisaboutEngineeringEconomics
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AnotherStory
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AStoryofRedHatinThreeCEOs
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1994 1999 2008
AStoryofRedHatinThreeCEOs
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1994 1999 2008
AStoryofRedHatinThreeCEOs
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1994 1999 2008
AStoryofRedHatinThreeCEOs
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RedHatisasoftwarecompanythatisfocusedonmakingitscustomerssuccessful
RedHatisasoftwarecompanythatisverygoodattheengineeringeconomicsofopensourcesoftware
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SoWhatAbouttheBusinessModel?!?!!?
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Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
TheEvolutionofanOpenSourceProject
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Committer(s)+
Code
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Developers
Committers+
Code
![Page 29: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/29.jpg)
Developers
Committers+
Code
![Page 30: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/30.jpg)
Developers
Users
Committers+
Code
![Page 31: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/31.jpg)
Developers
Users
Committers+
Code
![Page 32: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/32.jpg)
Developers
Users
Committers+
Code
Books
Contractors
Products
Distributions
Consulting
Training
Support
BuildingtheEcosystem
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Howdoyouincreaseyouruserbase?
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Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)
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Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)
Howdoyouencouragedevelopers?(Becausetheseareyourfuturecontributors)
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Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)
Howdoyouencouragedevelopers?(Becausetheseareyourfuturecontributors)
Howdoyoumakeiteasytocontribute?(Becausethisisthegrowthandsuccessofyourcommunity)
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Howdoyouincreaseyouruserbase?(Howdoyoumakeiteasytoinstall/configure/usethesoftware?)
Howdoyouencouragedevelopers?(Howdoyoumakeiteasytobuild/test/experiment?)
Howdoyoumakeiteasytocontribute?(Whatdoyoucommunicatetoyourcommunity)
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OpenSourceCom
mun
ityPractices
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
CommunityDevelopment
SoftwareConstructionMaturity
![Page 39: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/39.jpg)
OpenSourceCom
mun
ityPatterns
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
CommunityDevelopment
SoftwareConstructionMaturity
EncourageUsers
EncourageContributorsEncourageDevelopers
![Page 40: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/40.jpg)
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
TheEvolutionofanOpenSourceProject
![Page 41: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/41.jpg)
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
CorporateContributors
TheEvolutionofanOpenSourceProject
![Page 42: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/42.jpg)
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
CorporateContributors
Customers
TheEvolutionofanOpenSourceProject
![Page 43: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/43.jpg)
OpenSourceCom
mun
ityPractices
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
Proven
ance
Tracking
Repo
sitories
Protected
Depe
nden
cies
Documen
ted
Contrib
utions
Auditte
d
Proven
ance
Managem
ent
Committers
Inde
mnifie
d
Committer
Governance
Tradem
ark
Managem
ent
IPManagementActivities
CommunityDevelopment
SoftwareConstructionMaturity
![Page 44: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/44.jpg)
OpenSourceCom
mun
ityPatterns
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
Proven
ance
Tracking
Repo
sitories
Protected
Depe
nden
cies
Documen
ted
Contrib
utions
Auditte
d
Proven
ance
Managem
ent
Committers
Inde
mnifie
d
Committer
Governance
Tradem
ark
Managem
ent
IPManagementActivities
CommunityDevelopment
SoftwareConstructionMaturity
EncourageUsers
EncourageContributorsEncourageDevelopers
Encourage/ManageCorpContributions
![Page 45: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/45.jpg)
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
CorporateContributors
Customers
TheEvolutionofanOpenSourceProject
![Page 46: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/46.jpg)
TRANSISION
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Engineering/Partner?/Customer?/Committers
Engineering/Partner?/Customer?/Contributors
Community
EcosystemProject
ProductsServices
Books
Training
Partner/CustomerContributors
TheEvolutionofaCorporateOpenSourceProject
SettingCustomerandPartnerExpectationsinCommunityisCritical
![Page 48: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/48.jpg)
Engineering/Partner?/Customer?/Committers
Engineering/Partner?/Customer?/Contributors
Community
EcosystemProject
ProductsServices
Books
Training
Partner/CustomerContributors
TheRealityofaCorporateOpenSourceProject
SettingCustomerandPartnerExpectationsinCommunityisCritical
![Page 49: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/49.jpg)
CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)
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CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)
PartnersversusCommunity(Don’tmixbusinesswithcommunity)
![Page 51: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/51.jpg)
CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)
PartnersversusCommunity(Don’tmixbusinesswithcommunity)
ProductsversusProjects(Successmetricsaredifferent;OKRsandKPIsaredifferent)
![Page 52: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/52.jpg)
Engineering/Partner?/Customer?/Competitors?/Committers
Engineering/Partner?/Customer?/Competitors?/Contributors
Community
EcosystemProject
ProductsServices
Books
Training
Partners/CompetitorsContributors
TheRealityofCorporateOpenSourceProjects
SettingCustomerandPartnerExpectationsinCommunityisCritical
![Page 53: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/53.jpg)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
![Page 54: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/54.jpg)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)
![Page 55: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/55.jpg)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)
SuccessfulOpenSourceProjectsFollowWellKnownPatterns(NoScalewithoutDiscipline)
![Page 56: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/56.jpg)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)
SuccessfulOpenSourceProjectsFollowWellKnownPatterns(NoScalewithoutDiscipline)
Don’tConfuseCustomers,Partners,Community,Products&Projects(CorporateOpenSourceProjectsRequireDifferentThinking)
![Page 57: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/57.jpg)
Howdoyoumakemoneywhenyougiveawaytheproductforfree?
![Page 58: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/58.jpg)
Howdoyoumakemoneywhenyougiveawaytheproductforfree?
![Page 59: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/59.jpg)
Whatproblemarewesolvingforourcustomers?
![Page 60: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/60.jpg)
Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?
![Page 61: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/61.jpg)
Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?Whatcanwedotomakeourcommunityhealthier?
![Page 62: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/62.jpg)
Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?Whatcanwedotomakeourcommunityhealthier?Howdowemakeourcommunitysuccessful?
![Page 63: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/63.jpg)
Questions&Commentsstephen r walli
[email protected]@stephenrwalli
http://stephesblog.blogs.comhttp://opensource.com
https://medium.com/@stephenrwalli/
![Page 64: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model](https://reader034.fdocuments.us/reader034/viewer/2022051912/6002881415e592108e2d311e/html5/thumbnails/64.jpg)
NoScalewithoutDiscipline(ThisisanAttributeofSoftware)
OrdersofMagnitude(1000:100:10:1)
Freeloadersareimportant!(Itmeansyou’redoingitright)