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Open Source 2.0?


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Since the inception of open source, companies have struggled to find successful, profitable business models. Attempts abound, including purist "services and support only," "bait and switch," Freemium, …

Since the inception of open source, companies have struggled to find successful, profitable business models. Attempts abound, including purist "services and support only," "bait and switch," Freemium, and dual licensing. Few have hit the successful formula that nourishes a healthy business relationship.

RTI's innovative model offers an alternative. This webinar explores the business factors driving open source and the rationale and benefits behind RTI's new Infrastructure Community Source licensing and business model.

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  • We are *not* trying to redefine open source.We are not advocating that OSI change anything.I am relating the results of a deep investigation of what customers really want and need in one particular industry. And I think it’s more than what the OSS model brings.
  • Free beer => no cost => no vendor biz modelFree speech => can hack code => get yourself screwed,unfair competition, stifles innovation biz modelFree puppy => branch! => huge cost to users, version explosionFreemium =>Open source restricted product,Paid “better” product => hard balanceLet’s face it, nobody has this figured out.60+ OSI-compliant licenses. Something’s wrong.
  • The IC license supports the OA drivers
  • This is an architectural view of the product line. Again, all of the products are built around the RTI DataBus.Another beauty of a data-centric architecture is that services can be plugged into the bus in the same way that a customer’s application can be. So, in addition to just providing the core messaging capability, we can also offer value added services and tools that customers can take advantage of in both their development environments as well as in deployed systems.
  • (You can thus build other binaries if you're a masochist, but we won't help you.)
  • The only real limit is the IC scope.All open source models have practical restrictionsThat limit allows RTI to offer much more value to you, to control our revenue from various segments, to limit competition,and to offer a more competitive product.Critical to openly acknowledge that it’s not “real” open source (or “Free Software”)
  • Talked to 100s of sites. What do you want from OSS?Drafted a LGPL strategy. Nope.Apache? Modified Apache? Nope.Read every OSI license. Studied biz models. Corporate counsels, OSS lawyers, analysts, Program managers.Green: important to user (not other developers).Yellow: psychologically important, although practically valueless, even negative value. Irrational paranoia; you’re dependent on the vendor anyway. We’ll see why.Light green: Useful, but not for what people think.No arrow: irrelevant. Either it just doesn’t really happen (community), or you don’t care (other apps).Credit IC concept to OSD sponsor. Wanted an “acquisition community”. Grew from that.What they want is clear: reduce risk & control cost.
  • So…why does this really happen?First time I’ve put my name on a slide (other than title slide). Stand behind this. Ask any software manager: losing even one key team member is expensive.Branching is easy, but amazingly expensive. 2x the cost! Grows fast.Implications!Software reuse is a misnomerStable teams imply continuous investmentCode repositories are expensive branchesEven more expensive to revive“Government purpose rights” are irrelevantThe IP without the team is inefficient“Community development” is a mythAt least for emerging products, there is no stable external teamThe best structure for large projects is team/code pairsModularize by reducing team/code size => define interfaces and architectureThe innovations in iTunes store is a way to pay stable teams, not an online code repository
  • What’s important to the USER?Generate low-friction viral adoptionFree use for early projectsNo legal & operational red tapeSupport healthy vendorsLimit unfettered competition from services companies that don’t drive the product. (And may be foreign, undesired.)For those who can pay, provide good reason to payEncourage speculative vendor investmentBuild product the broad market needsInvest in features, accessibility, usability, qualityRetain IP controlNo forced copyleft of customer codeEnable a mechanism to ensure code provenanceDrive efficiency and low costEncourage single code base and stable teamStop the “free puppy” syndrome; no local branchesFree puppy is the big problem. Innocent start; No surprises.
  • Leave out key featuresNasty license: GPL, LGPLE.g. an old version, without support. Really, no support?Community development is a myth; this assures it.Even if the “community” creates new IP, it’s lost Few updates, missing features, poor/no support. This is no way to build a quality system.Why would anyone do this? Stale beer model. Get drunk. Why would the vendor do it?Old version: limits competition for latest versionNo support: encourages people to upgradeAnd what happens when you need better?This is the vendor’s goal, after all (!)Free beer: Don’t even check prices.Drunk people fall into traps. You don’t know you’re in trouble until late in the game.Unclear pricing model. They depend on your failure. Struggle for “on ramp” rate. 1% kind of numbers.This is no way to run a relationship.
  • Hourly for support, guidance. But also features, bug fixes, standards work, account mgmt (troubleshooting, escalation, etc.), even product mgmt.Greater fool model. Nickle & dime image; but really $250k trap. Hobson’s choice. Caught between a rock and a hard place: live with critical flaw, or fork over $250k. This is where they make money.Relies on mythical “community development”For emerging products, there is no stable external teamBottom line: software vendors need higher margin license fees to reward features, usability, quality, accessibility. Build things a few big customers want, not what the market wants, or what you need.Usability, quality sufferThe model must reward more than hours.
  • Why would we do something so crazy?Retain price control. Main value is DDS. Long term, maybe we don’t need IC restrictions.Limit competition from service firms & hacks that don’t drive investment. Everyone qualifies. We’re just dividing up the market.Get chance to engage sales up front (!) Honest exposure of pricing, greater value. Increase onramp rate.Creative, risky.But…a great deal for you!
  • OSS is about Freedom.What is the price?Which Freedoms are worth the price?
  • Access to source codeDebugging usefulWhen do you want free speech? When your vendor isn’t saying what you want. Musttrust your vendor to keep the code base current. But hack your core infrastructure? => No support, updates. Escrow last resortEven a minute old is too old if it causes a branch.SharingNeeded as part of infrastructure packagesShare changes? => Commit to maintaining code base for othersCommunity contributionsProperly vetted & integrated contributions push progressMust control: provenance, quality, direction
  • GPL has hundreds of dense legalese paragraphs (!)Everyone worries about copyleft, and with good reason.Patent licenses; limit sharing cuz you risk *your* patentsSubtlties galore. Most corporate paper precludes this license.There’s a bigger problemWe found literally *hundreds* of files in the ACE/TAO/CIAO source code distribution with copyright claims by many different authors and companies. The (relatively new) policy of the ACE/TAO/CIAO group that in principle they will not accept any source code submission containing property right claims. RTI has strict policies: check with legal before you download anything. Examine licenses. Search for viruses on google. We offer full indemnification for our products. We stand behind provenance.Palamida makes a killing investigating this.
  • Freedom from SurpriseCrisp, reasonable, understandable, upfront, open pricingBounded, known costSimple metricNo royaltiesCharge support only to those who use itSupport costs are inversely proportional to team size (!)
  • Our customers count on us for weighty things:  The core of multi-$b product lines.  The success of critical programs.  The survival of their compatriots.  Infrastructure middleware is a responsibility, and one that we at RTI take very seriously.  Our product quality, performance, and reliability are covenants with our customers.We also consider both our license and our pricing as fundamental covenants with our customers.  We are fully dedicated to an open, honest, successful relationship.  There will be no surprises.  We will walk that extra mile, with you, to ensure success.That is also freedom; maybe it should be called freedom from loneliness.  Because, in the end, selecting and using infrastructure software is a long journey.  It’s a trip you don’t want to take alone.
  • What’s important to the USER?We believe the Open Community Source model is best for you & best for us.
  • Free beer, but you have to drive home (build a reliable system)Free speech, to those you care about. No branches. Supported.No free puppyNot real open source. Not “free software”.Zealots will not like IC restriction, mix & match restrictionHave great respect for these models.Unfortunately, they don’t fit this growing, emerging, critical infrastructure market.We can do better. We must do better.Questions?
  • Transcript

    • 1. Your systems. Working as one.Open Source 2.0?RTI Open Community Source DDSPractice and Theory © 2012 Real-Time Innovations, Inc. 1
    • 2. The Great OSS Biz Model Quest• “Free beer” – Pay only for support & services – A poor (failed) biz model• “Free speech” – Worked for Linux – Community development challenge• “Free puppy” – Hidden adoption expense• Freemium (Dual licensing) – Hard balance between “good enough” & paid © 2012 Real-Time Innovations, Inc. 2
    • 3. RTI’s Market: Real-Time Infrastructure © 2012 Real-Time Innovations, Inc. 3
    • 4. Highly Distributed Real-Time Systems• Many applications, processors – 100+ processors in a car – 1,000+ processors on a ship – 100k+ processors in an industrial system – 40M+ lines of code• Many people & teams – Crosses divisions, companies, orgs – Includes end users, suppliers, subs – 50+ s/w suppliers for a modern naval ship © 2012 Real-Time Innovations, Inc. 4
    • 5. RTI Enables Open Infrastructure• A business model that spans the system – Infrastructure Community Business Model – Free, open license for entire community • 100% free & open DDS: source, runtimes, development • Modifiable, sharable, distributable – Aggressive pricing for advanced features• Technology that connects the system – RTI Connext 5.0 – Major new release with 70+ new capabilities – Extensive integration patterns & technologies – Massive scalability, systems of systems © 2012 Real-Time Innovations, Inc. 5
    • 6. RTI Connext™: Edge to Enterprise Diverse Small Device General-Purpose Apps/Systems DDS Apps Apps Real-Time Apps Pub/Sub API Pub/Sub API Messaging API Adapters (DDS subset) (Full DDS) (DDS++ & JMS) Connext Connext Connext Connext Micro DDS Messaging Integrator RTI DataBus™ Administration Recording Persistence Monitoring Replay Logging Visualization Common Tools and Infrastructure Services © 2012 Real-Time Innovations, Inc. 6
    • 7. RTI Connext 5.0 Highlights • Over 70 new features (!) • Enterprise Integration Patterns • Enhanced Scalability • Administration Console • XML Builder/Prototyper App-level ack • Connext View (labs) Publisher Message Message Subscriber Durable Subscriber MessageAccelerates development and integrationof large-scale real-time systems Message Disk © 2012 Real-Time Innovations, Inc. 7
    • 8. Your systems. Working as one.RTI Open Community SourcePractice © 2012 Real-Time Innovations, Inc. 8
    • 9. What Is an Infrastructure Community?• Any community sharing software – Seeking a common or interoperable software infrastructure – Across projects, divisions, companies, programs• Examples – Software supply chains – Enterprises or corporate divisions – Government or industry standards communities (FACE, UCS, COE, ICE) – Large projects• “Everyone you care about” © 2012 Real-Time Innovations, Inc. 9
    • 10. Infrastructure Communities Free Project IC: JHU APL Free ProjectPaid commercial license Paid commercial IC: AudiScope: Project Free Project license Scope: Project Paid commercial license Scope: Project Paid commercial Free Project Paid commercial license Free Project license Scope: Project Scope: Project Free Project Paid commercial license Scope: Project Free Project IC: ICE Paid commercial license Scope: Project Paid commercial license Free Project Scope: Project Free Project Paid commercial license Scope: Project © 2012 Real-Time Innovations, Inc. 10
    • 11. The IC License in a Nutshell• This license covers an entire IC & its free• Free source – Use and modify the DDS source code – Build and use object versions of the original or modified source code – Distribute source or binaries within the IC• Free development – Develop code that links to and uses DDS – Can’t combine development under this free IC license with commercial products on the same Project• Free runtimes – You may ship Target Applications that link DDS to end users• No warranty © 2012 Real-Time Innovations, Inc. 11
    • 12. What do You Get?• IC License – DDS on Win & Linux, full source – No tools, no warranty• Commercial License – Tools – Platforms & Transports – Advanced features • Messaging • Runtime services • Integrator • Micro – Warranty & bounded support costs © 2012 Real-Time Innovations, Inc. 12
    • 13. IC Model Summary• Open Community Source for entire IC – Free, full source & binary for latest RTI DDS • Market leading: 70% share • Windows & Linux pre-built binaries • Share source & binaries within IC – Professional T&M support – No cost, no hassle, no strings• Low-cost commercial product for projects – Starts at $1,000 per developer – Tools, advanced functionality, warranty, platforms – No royalties or deployment fees © 2012 Real-Time Innovations, Inc. 13
    • 14. It’s Not Real Open Source!• It’s restricted to an IC, and we openly acknowledge it – This is not OSI compliant or “Free software”• But… – Within your IC: very open – Outside your IC: why do you care? – And it’s a better deal• Why? © 2012 Real-Time Innovations, Inc. 14
    • 15. Your systems. Working as one.Open Community SourceTheory
    • 16. What Do Users Want from “Open Source”?• No license cost• Can modify and distribute modifications• Community development• Community forum• Use for any application• Access (right) to source code• Freely downloadable © 2012 Real-Time Innovations, Inc. 16
    • 17. The sole imperative to control software cost is toestablish a stable team working on a single codebase -- Stan Schneider © 2012 Real-Time Innovations, Inc. 17
    • 18. What’s Important in a Model?• Let you adopt without friction• Support healthy vendor with known cost• Encourage speculative vendor investment• Retain your IP control• Drive efficiency and low cost © 2012 Real-Time Innovations, Inc. 18
    • 19. Not-Enough Model• Offer free, but unpalatable OSS• Dead branch is a dead end• What happens when you need better? © 2012 Real-Time Innovations, Inc. 19
    • 20. Pure-Play OSS Model• No license fees; charge hourly for everything• “Someone else will pay”• Unknown, unbounded costs (!)• Limits vendor speculative investment• Often has poor You are Here provenance control © 2012 Real-Time Innovations, Inc. 20
    • 21. RTI Balanced Approach• Open Community Source • Low friction upgrade – Free, viral adoption – Advanced functionality, tools, – Latest product platforms, warranty – Support available – Clear, reasonable per- developer fees • IC model benefits – Provides you freedom – Improves vendor financials – Encourages speculative investment – Lowers overall cost © 2012 Real-Time Innovations, Inc. 21
    • 22. © 2012 Real-Time Innovations, Inc. 22
    • 23. Source Freedom • See the trail • Vendor maintains the trail • Stay on the trail © 2012 Real-Time Innovations, Inc. 23
    • 24. Business Model Freedoms• Freedom from frustration • Freedom from stranding – Support all versions (free, – Proactively develop to match paid) needs – Offer professional guidance, – Encourage latest technology, services no branches• Freedom from legal strings – Motivate features, usability, – Offer warranty and quality, accessibility indemnification – Ensure vendor profitability – Control provenance • Freedom from unbounded – No copyleft; keep your IP cost – Avoid patent license risk – Offer usable free product• Freedom from errors – Predictably & reasonably price advanced product – Enforce quality control – Bound support costs – Push usability, docs, examples – Eliminate runtimes © 2012 Real-Time Innovations, Inc. 24
    • 25. Freedom from Legal Strings• prov·e·nance (prŏv’ Ə nƏns). n. – 1. Place of origin; derivation. – 2. The history of the ownership of an object, especially when documented or authenticated.• in·dem·ni·fi·ca·tion (ĭn-dĕm’nƏ-fĭ-kāshƏn) n. – 1. A compensation for loss.• As pertains to OSS – What’s in this code? – Do I have the right to use it? – Who takes the risk? © 2012 Real-Time Innovations, Inc. 25
    • 26. Freedom from SurpriseOpen Community Source RTI DDS Includes Not included • Market Leading OMG DDS • Development Tools • Full Library Source Code • Additional Platforms • Linux and Windows Binaries • Commercial Warranty Optional Support: /hourCommercial Connext RTI Connext DDS RTI Connext Messaging RTI Connext Micro • Small footprint DDS • RTI DDS Libraries • Enterprise $/Developer • Basic tools & utilities Communication Patterns • Platform Options • Persistence Service • Commercial Terms • Secure & WAN Xports RTI Connext Micro Cert • Evidence license per industry $1,000/Developer +/Developer stds +/DeveloperRTI Connext Integrator RTI Connext Tools Optional • Support: $/named user• Routing Service • Admin Console • Training: $/user• Adapter SDK • Monitor• Example Adapters • Analyzer All Prices Annual• Database Integration • Record/Replay Source Code Included +/Developer +/Developer © 2012 Real-Time Innovations, Inc. All Products ROYALTY FREE 26
    • 27. Freedom From Failure• Leverage hundreds of mission-critical successes• Deliver top performance• Bundle extensive tools• Aggressively support standards• Extend from edge to enterprise• Ensure scalability• Aggressively develop future technologies• Provide professional account & product management• Field top services team• Develop global support and delivery © 2012 Real-Time Innovations, Inc. 27
    • 28. Freedom From Loneliness © 2012 Real-Time Innovations, Inc. 28
    • 29. About RTI• Market Leader – Over 70% DDS mw market share1 – Largest embedded middleware vendor2• Standards Leader – Active in 15 standards efforts – OMG Board of Directors – DDS prime authors• Real-Time Pedigree – Founded by Stanford researchers – High-performance control, tools history• Maturity Leader – 500+ designs – 350,000+ licensed copies – TRL 9 1Embedded Market Forecasters 2VDC Analyst Report © 2012 Real-Time Innovations, Inc. 29
    • 30. Global Support and Distribution2008 © 2012 Real-Time Innovations, Inc. 30
    • 31. What’s Important in a Model?• Let you adopt without friction• Support healthy vendor with known cost• Encourage speculative vendor investment• Retain your IP control• Drive efficiency and low cost © 2012 Real-Time Innovations, Inc. 31
    • 32. Open Community Source Model • Addresses real needs of customers – Free, current, supported base product – Powerful, low-friction upgrade – Clean, open licensing – Clean, open pricing • Addresses real needs of your vendor – Encourages investment in product – Supports strong relationship • Open Source 2.0? – Not really. But is it better?No open source projects were harmed inthe making of this webinar. © 2012 Real-Time Innovations, Inc. 32
    • 33. © 2012 Real-Time Innovations, Inc. 33