EOLE / OWF 12 - Free “libre” open source software licenses – a picklock to open the market-massimiliano gambardella (eole2012)
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EOLE / OWF 12 - Free “libre” open source software licenses – a picklock to open the market-massimiliano gambardella (eole2012)

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EOLE / OWF 12 - Free “libre” open source software licenses – a picklock to open the market-massimiliano gambardella (eole2012) EOLE / OWF 12 - Free “libre” open source software licenses – a picklock to open the market-massimiliano gambardella (eole2012) Presentation Transcript

  • Background Economics Licences’ Strategies Business Models To be continued... FLOSS A Pick-lock to Open the Market Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris Ouest Paris October, 12 2012Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...IntroductionThe Non-Senses For an economist it seems a non-sense that: people decides to invest effort and time without an advantage a producer assembles and manages experts to produce a quasi-public good (non-rival & non-excludable) experts decide to work for free ...this is what happens in the FLOSSMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Economic dynamics EconomicsMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Economic dynamicsFormal Institution All organization structures are based on Formal Institutions: understandable accepted shared FLOSS licenses represent our Formal InstitutionMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Economic dynamicsMotivations Intrinsic Motivation activity itself (Lakhani and Wolf, 2005; Valentinov 2007) ego motivation (Lerner and Tirole, 2002; Lakhani and Wolf 2005) solve particular need (von Hippel, 1988, 2005; Johnson, 2002)Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Economic dynamicsMotivations Extrinsic Motivation Monetary administrative commands and money (Valentinov, 2007) Non-Monetary reputation (Lerner and Tirole, 2002) career concerning (Lerner and Tirole, 2002) peer recognition (Lerner and Tirole, 2002) sharing innovation (Harloff et al., 2003)Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Economic dynamics The extrinsic non-monetary and intrinsic motivations compensate for a lower salary and incentivise volunteering and donationsMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued... LicensesMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...LicensesGNU/GPL allows to modify, copy and redistribute with or without charge as long as they reuse the same license “do ut des” I give so that you give (in a well-defined way) persistent: constraint on the redistribution viral: the union with a program under different license may be distributed under the GPL production disconnected from the diffusion services are disconnected from the productMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...LicensesBSD(-like) allows to be incorporated into proprietary products allows to license derivative works under proprietary license much of FreeBSD’s code base is integral part of other operating systems such as Apple’s OS XMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...LicensesIBM public it places the liability on the publisher or distributor of the licensed software code the idea is to facilitate commercial use of floss no risk of liability for the contributors it reassures the customersMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...LicensesNetscape public first commercial license Netscape can re-distribute external modifications under proprietary terms mandatory clause because of accords with clients Mozilla Public License no special clause for Netscape it allows proprietary modules in derived projects, but core files must remain free/openMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...LicensesWhat was Netscape’s business model? Ads tremendous amount of downloads Netscape portal as default browser homepage Contributions IBM and other Unix vendors paid to provide a browser no client... no server! Support bug-fixing for customersMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued... Business ModelsMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 1/7 Loss-leader/Market positioner Use open source software to maintain a market position for a related proprietary software product. Example Netscape’s open source Mozilla web browser and proprietary server softwareMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 2/7 Widget frosting Sell hardware with open source driver software. Example Apple’s MacOS XMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 3/7 Give away the recipe, open a restaurant Distribute open source software and sell service and support contracts. Example SuseMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 4/7 Accessorising Sell accessories for open source software such as documentation. Example O’Reilly and AssociatesMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 5/7 Free the future, sell the present Sell closed source software with a license that makes it open source after a specified time period. Example Aladdin’s GhostscriptMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 6/7 Free the software, sell the brand. Sell other developers a brand that certifies their implementation of your open source technologies is compatible with all others who use the brand. Example Sun’s StarOfficeMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...The Magic Cauldron - E. Raymond, 2000 adapted by A. Schiff, 2002Business Models 7/7 Free the software, sell the content. Develop an open source product that receives proprietary content that the firm sells. Example e-Learning platformMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued... ConclusionsMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...ConclusionsEconomies of ScaleMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...ConclusionsThe long tail * * http://www.leftclick.com/blog/online-marketing/chasing-the-long-tailMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...ConclusionsLocal Economy Firms point of view : niche markets starts-up State point of view : innovation funds in the territoryMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Conclusions It’s so easy?Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Conclusions tons of similar and different software asymmetry of knowledge among different actors no time...Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Conclusions Evaluation * OITOS project in ItalyMassimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Conclusions Total Cost of Ownership * local health authority - Rimini - Gambardella Master Thesis 2004Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Conclusions Total Cost of Ownership costs distributed in 3 years FLOSS 1y: Total e436.262,38 1 PC e256,62 Closed 1y: Total e946.194,13 1 PC e556,58 * local health authority - Rimini - Gambardella Master Thesis 2004Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • Background Economics Licences’ Strategies Business Models To be continued...Conclusions Innovation is not an instrument... ...is a strategic variable!Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market
  • cc-by-nd 2.0Background Economics Licences’ Strategies Business Models To be continued...Conclusions Thank you!This document is under Creative Commons license 3.0 Attribution -Massimiliano Gambardella massimiliano.gambardella@gmail.com EconomiX, University Paris OuestFLOSS A Pick-lock to Open the Market