FITT (Fostering Interregional Exchange in ICT Technology Transfer)
Practice in General <ul><ul><li>Siruna NV has developed Software for development of mobile websites through a dual Open so...
How we can help you  open the mobile experience .
Who   are we?
About  Us <ul><li>The experts in  web-to-mobile: Make Anything Mobile </li></ul><ul><li>Professional Open Source  company ...
: the  leading OPEN SOURCE platform  and  managed  SOLUTION provider  for  mobile web  applications
Internet  is everywhere CONTENT USER  experience WEB  App’s
Nice  USABLE  stuff … Mobile News (POWERED BY SIRUNA) m.deredactie.be (STANDARD WEBSITE) www.deredactie.be Mobile Search (...
Open vs. Closed Source <ul><ul><li>Revenue from services </li></ul></ul><ul><ul><li>Source code is publically available « ...
Customer value
First Generation Business  Models Services based <ul><li>Revenues are generated through support, consulting, training, doc...
Siruna OSS strategy <ul><li>Is  NOT  to create a large developer community </li></ul><ul><ul><li>Can be a side effect </li...
Dual Licensing <ul><li>Product available under a  regular commercial license  for commercial customers and under a free so...
Copyright of Siruna <ul><li>Necessary condition for dual licensing. </li></ul><ul><li>Gives us rights and protection </li>...
Affero GPL license <ul><li>GPL license: </li></ul><ul><ul><li>Everything  that touches it becomes GPL (viral) </li></ul></...
OSS Sales Funnel
OSS Marketing
Open Source Trends <ul><li>By 2010, Global IT organizations will use OS in 80% of infrastructure investments and in 25% of...
VC activity <ul><li>Increased VC investment in OS: </li></ul><ul><ul><li>2005: 294 M $ was invested </li></ul></ul><ul><ul...
M&A activity <ul><li>Recent deals: </li></ul><ul><ul><li>There were 35 transactions </li></ul></ul><ul><ul><li>There were ...
OSS Facts & Figures <ul><li>MySQL   – Database vendor </li></ul><ul><ul><li>Founded in 1995.  </li></ul></ul><ul><ul><li>C...
Contact Us <ul><li>FRANK GIELEN, CEO </li></ul><ul><li>Zuiderpoort Office Park Gaston Crommenlaan 10/101 9050 Gent, Belgiu...
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Open Source Business Case Final

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  • 08/04/10
  • Transcript of "Open Source Business Case Final"

    1. 1. FITT (Fostering Interregional Exchange in ICT Technology Transfer)
    2. 2. Practice in General <ul><ul><li>Siruna NV has developed Software for development of mobile websites through a dual Open source business model </li></ul></ul><ul><ul><li>Nature of reusability: this model can be easily copied as far as it helps to cover development costs by the help of a large and free developer community, helps to market the product, quickly sets a reference in a rapidly evolving market and succeeds in creating value within an open source setting. </li></ul></ul><ul><ul><li>Case is mostly generic </li></ul></ul><ul><ul><li>Quality/Nature of stakeholders: High tech start-up company, starting form research results </li></ul></ul><ul><ul><li>Processes related to case: business model, IP management </li></ul></ul>
    3. 3. How we can help you open the mobile experience .
    4. 4. Who are we?
    5. 5. About Us <ul><li>The experts in web-to-mobile: Make Anything Mobile </li></ul><ul><li>Professional Open Source company </li></ul><ul><li>Venture Capital backed startup </li></ul><ul><li>Located in Belgium | UK | US | India | UAE | China </li></ul>
    6. 6. : the leading OPEN SOURCE platform and managed SOLUTION provider for mobile web applications
    7. 7. Internet is everywhere CONTENT USER experience WEB App’s
    8. 8. Nice USABLE stuff … Mobile News (POWERED BY SIRUNA) m.deredactie.be (STANDARD WEBSITE) www.deredactie.be Mobile Search (POWERED BY SIRUNA) m.goldenpages.ie (STANDARD WEBSITE) www.goldenpages.ie Mobile Portal (POWERED BY SIRUNA) m.zita.be (STANDARD WEBSITE) www.zita.be
    9. 9. Open vs. Closed Source <ul><ul><li>Revenue from services </li></ul></ul><ul><ul><li>Source code is publically available «  Copyleft  » </li></ul></ul><ul><ul><li>Source can be adapted / improved </li></ul></ul><ul><ul><li>Development by a community </li></ul></ul><ul><ul><li>Selling software licenses </li></ul></ul><ul><ul><li>Source code protected as intellectual property </li></ul></ul><ul><ul><li>Customer can’t get the source code </li></ul></ul><ul><ul><li>Development inside the company </li></ul></ul><ul><li>The business models are linked with the license model: </li></ul><ul><li>GPL/LGPL business models </li></ul><ul><li>BSD/Apache models </li></ul><ul><li>Multi license business models: Dual license </li></ul>OPEN SOURCE CLOSED SOURCE
    10. 10. Customer value
    11. 11. First Generation Business Models Services based <ul><li>Revenues are generated through support, consulting, training, documentation </li></ul>Loss leader A free OS product is used to create a market position for the traditional commercial software. Fight competition <ul><li>Vendors as IBM, Apple, Novell, Oracle.. realize that OS provides a way to compete against Microsoft because: </li></ul><ul><li>They can reduce R&D costs </li></ul><ul><ul><li>Eliminate dependencies on competitor’s technology </li></ul></ul><ul><ul><li>Of the access to a large, external development community </li></ul></ul><ul><li>Example: instead of competing with Symbian, Motorola committed to OS </li></ul>
    12. 12. Siruna OSS strategy <ul><li>Is NOT to create a large developer community </li></ul><ul><ul><li>Can be a side effect </li></ul></ul><ul><ul><li>We control it through the Contributor License Agreement. (CLA) </li></ul></ul><ul><li>Disruptive business model </li></ul><ul><ul><li>People can try the code, see the internals </li></ul></ul><ul><ul><li>They buy what they like (quality) </li></ul></ul><ul><ul><li>They can modify the code for their customer </li></ul></ul><ul><ul><li>Create a developer/user pull </li></ul></ul>
    13. 13. Dual Licensing <ul><li>Product available under a regular commercial license for commercial customers and under a free software licence ( AGPL ) for those who live by the principles of free software </li></ul><ul><li>The product is technically identical under both licences, but the financials and the legal ramifications are different </li></ul><ul><li>It is up to the customer to decide what path he wants to follow and what licence to use but restricted by our policy & commercial strategy. </li></ul><ul><li>MySQL AB, Sleepycat Software & Trolltech AS use dual licensing </li></ul>Siruna is the copyright holder
    14. 14. Copyright of Siruna <ul><li>Necessary condition for dual licensing. </li></ul><ul><li>Gives us rights and protection </li></ul><ul><ul><li>We decide what license is used by who: </li></ul></ul><ul><ul><ul><li>Commercial </li></ul></ul></ul><ul><ul><ul><li>AGPL </li></ul></ul></ul><ul><ul><li>We can introduce “golden lines” or credentials. </li></ul></ul><ul><li>Our “golden lines” </li></ul><ul><ul><li>Adapted for Mobile by Siruna </li></ul></ul><ul><ul><li>Google Analytics transformer insert </li></ul></ul>
    15. 15. Affero GPL license <ul><li>GPL license: </li></ul><ul><ul><li>Everything that touches it becomes GPL (viral) </li></ul></ul><ul><ul><li>If you redistribute a GPL software package, you need to publish your code </li></ul></ul><ul><ul><li>Service provider loophole </li></ul></ul><ul><li>AGPL license: </li></ul><ul><ul><li>Closes the MSP loophole </li></ul></ul><ul><ul><li>Software distribution & network access </li></ul></ul>
    16. 16. OSS Sales Funnel
    17. 17. OSS Marketing
    18. 18. Open Source Trends <ul><li>By 2010, Global IT organizations will use OS in 80% of infrastructure investments and in 25% of business software investments (Source: Gartner). </li></ul><ul><li>OS impact on infrastructure SW is 20 B $ growing to 46 B $ in 2011 </li></ul>(Source GIMV )
    19. 19. VC activity <ul><li>Increased VC investment in OS: </li></ul><ul><ul><li>2005: 294 M $ was invested </li></ul></ul><ul><ul><li>2006: 475 M $ was invested, up 61% from 2005 (Source: Computer Business Review, Feb. 2007) </li></ul></ul><ul><li>Why do VCs invest in Open-Source? </li></ul><ul><ul><li>The increased adoption of OS by corporate users. </li></ul></ul><ul><ul><li>Attracted by the success of Red Hat,: </li></ul></ul><ul><ul><ul><li>Marketcap of 3.8 B $ and .. profitable! </li></ul></ul></ul><ul><ul><ul><li>Revenues increasing very fast: 200 M $ in 2005, 280 M $ in 2006 and 400 M $ in 2007 </li></ul></ul></ul><ul><ul><li>Belief that there could me more money made from OS than from proprietary software </li></ul></ul><ul><ul><li>Lower cost of development </li></ul></ul><ul><ul><li>Also lower cost of sales & marketing due to the viral effect of the dvlpt community </li></ul></ul><ul><ul><li>OS leads to better quality assurance , more frequent releases, community dvlpt </li></ul></ul>(Source GIMV )
    20. 20. M&A activity <ul><li>Recent deals: </li></ul><ul><ul><li>There were 35 transactions </li></ul></ul><ul><ul><li>There were 3 significant transactions; </li></ul></ul><ul><ul><ul><li>Sun acquiring MySQL for 1 B $, EV/S of 14.3 x </li></ul></ul></ul><ul><ul><ul><li>Yahoo acquiring Zimbra for 350 M $ (email collaboration), </li></ul></ul></ul><ul><ul><ul><li>Nokia acquiring Trolltech for 153 M $, </li></ul></ul></ul><ul><ul><ul><li>Citrix acquiring Xensource for 500 M $ </li></ul></ul></ul><ul><ul><ul><li>RedHat acquiring JBoss for 350 M $ </li></ul></ul></ul>(Source GIMV )
    21. 21. OSS Facts & Figures <ul><li>MySQL – Database vendor </li></ul><ul><ul><li>Founded in 1995.  </li></ul></ul><ul><ul><li>Challenger for Oracle, Sybase, .. </li></ul></ul><ul><ul><li>External VC in 2001: </li></ul></ul><ul><ul><li>Revenues </li></ul></ul><ul><ul><ul><li>2002:  6,5 Mio Revenue </li></ul></ul></ul><ul><ul><ul><li>2005: 34 Mio Euro   </li></ul></ul></ul><ul><ul><ul><li>2006: 50 Mio Euro </li></ul></ul></ul><ul><ul><li>Exit 2007: Sun acquiring MySQL for 1 B $, </li></ul></ul><ul><ul><li>2009: Oracle acquiring Sun </li></ul></ul><ul><li>OpenBravo – ERP vendor (GIMV investment) </li></ul><ul><ul><li>Founded in 2003. (Univ. of Navarra – 2001)  </li></ul></ul><ul><ul><li>External VC in 2006: 4 Mio Euro from SODENA </li></ul></ul><ul><ul><li>Revenue 2007:  1,1 Mio Euro </li></ul></ul><ul><ul><li>External VC in 2008: 9 Mio Euro </li></ul></ul><ul><ul><li>Target 2008: 3,3 Mio Euro </li></ul></ul><ul><ul><li>Target 2010: 24 Mio Euro (requiring 15 Mio Euro investment) </li></ul></ul>
    22. 22. Contact Us <ul><li>FRANK GIELEN, CEO </li></ul><ul><li>Zuiderpoort Office Park Gaston Crommenlaan 10/101 9050 Gent, Belgium </li></ul><ul><li>Tel +32 (0)9 331 48 36 [email_address] </li></ul>
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