The Business Of Open Source

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The Business of Open Source

Dan (Danny) Fellars

OpenWest


about me

M.S. Computer Science BuyDansHouse.com

Chile

places lived

education work

family

OPENSIDE


“How Can You Make $$ Giving It Away”


“Open is for Losers”- Dave McClure (500 Startups)


The Heated Dilemma

http://youtu.be/X0R0toLhmwk

http://youtu.be/X0R0toLhmwk


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)


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


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


Locations


Operating

Systems

Industry ImpactDatab

ases

Server/

Cloud

Enterprise

Software


CMS

Industry ImpactEduca

tion

eCommerce

Security


Application

Development

Industry ImpactConsu

mer

Mobile

Ads/Media


BSD

Open Source Licenses

MIT APACHE

GPL AGPLLGPL

MozillaEclipse OSL


BSD/MIT

LicensesAPAC

HEGPL AGPL

MPL/CPL/OSL

LGPL


JAVA

LanguagePHP

Python

.NETC/C++

Erlan g

Ruby Javascri

pt


2010+ 2008/09

2006/07

2004/05

2002/03

2000/01

1998/99

<1998

Age of Commercial Open Source


$100M+

$80-$100M

$60-$80M

$40-$60M

$20-$40M

$10-$20M

$5-$10M

Investment Received


Dual License

Open Source Business Models

Support / Services

Tiered Product

Partner Program

On Demand

Access Key

Multi/Add-on

Products


Support/

Services

Business ModelsTiere

d/Dual-

Licens

e

OnDemand/

Multi-Produc

t

Partner

Program

Donation

s


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


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


Case StudiesLicens

e

Wordpress/

b2-cafepress

Open

X/phpM

yAds

Android

Business

Model

SugarCRM

Mozilla

Industry/

Competition

Education

Busin

essIntelli

gence


SugarCRMFull Price Discrimination


EducationIncum

bent

Pure Open

Source

Commercial

Open Source


Business IntelligenceIncum

bants

SAAS Open Source


Case Study: OpenSideMark

et

Marketing

Automation

License

AGPL

Business

Model

Acces

s Keys

OnDemand

Technology Stack

PHP/MongoDB/Backbone.js


Pure Open Source


Proprietary


Commercial Open Source


Support & Services


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


Thank You

• Feel free to contact me with any questions• Dan Fellars [email protected] @DannyFellars

The Business Of Open Source

Technology

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