“ Globalization 3.0” empowers individuals and small groups (2000-now).
We’re shrinking the world and empowering individuals .
Credit where due: Top-down worked for a long time
Power was concentrated at the top
Communications flowed from the top-down
So did ideas, strategies, products
It worked through the entire Industrial Age
Top-down software, and business, was natural in its time
Monolithic vendors made monolithic systems
The world was smaller, simpler
Data was concentrated, isolated
Systems, and Companies were vertically integrated
But then the Net came along
A whole new software and business habitat.
Zero-friction sharing and collaboration .
Soon the ecosystem filled with a whole new breed of software, and new pockets of expertise Testing Technical Support Q/A Wireless Chip Design JIT Manufacturing HR Admin Call Centers Knowledge Outsourcing Legal Expertise
… And New Ways of Doing Business
Core vs. Context
Seamless Communication Interfaces Hubs of Excellence
The Net and Open Source were both built on principles that forever changed “business as usual”
Nobody owns it
Everybody can use it
Anybody can improve it
Open Source is a Global Phenomenon *Source: Linux Counter Open Source Project – 145,313 self-profiled Linux users http://counter.li.org/reports/ ** Source: Infonomics 2002 FLOSS Survey of Developers http://www.infonomics.nl/FLOSS/report/Final4.htm Countries that have OSS Preference Policies Bahrain, Belgium, China and Hong Kong, Costa Rica, France, Germany, Iceland, Israel, Italy, Malaysia, Poland, Portugal, Philippines and South Africa. Legislation pending: Argentina, Brazil, Bulgaria, Chile, Colombia, France, Italy and Peru. Linux Usage*
An interesting thing happens when anybody can improve software
It gets better . Naturally.
Debugging by over 800,000 developers all over the world.
Improvements from anywhere, in minutes instead of years .
Open source products are naturally open to working with other open source products.
They’re all modular. Like 2 x 4s and roof shingles.
Yet each product grows out of its own development community.
And it’s not the job of each community to make sure its products work with the products of every other community.
You don’t always know what works with what.
When one version of one product changes, what happens to all the dependencies?
Does one dependent app get hosed by a patch that fixes another dependent app?
DIY testing is an open source tradition.
But in large IT shops, it can get mighty time-consuming.
X ? ? ? ? X
CIOs: I need to “just get open source products to work together.”
“ We save 30% in vendor cost and waste 20% in component testing.”
Dependency issues multiply with every addition, every change.
Startups can’t afford the overhead.
Fortune 50 companies don’t want the expense of having teams of people coping , rather than producing .
That’s why Ray Lane and Murugan Pal founded SpikeSource
SpikeSource: Tested, Certified Open Source Software
Founded by Murugan Pal and Ray Lane in Spring 2003
18+ months of development to create a fully-automated test bed for open source component interoperability testing
Commercial Launch in April 2005
Global Startup from Day One
SpikeSource Making Open Source Safe for the Enterprise ™ Supports the Components Required for Your Application SpikeSource Core Stacks Include: 63 Components 6 Platforms 6 Languages SpikeSource offers the most comprehensive and automated solution for testing , integrating , certifying, updating , and supporting open source software. Addresses the Complete Support Lifecycle Fully-Automated Test Bed Provides: 22,000 tests nightly across 272 parameters 189 configuration files Increase Productivity Comprehensive open source information services Custom or 7 pre-configured LAMP/J stacks Network / client installation in 15 minutes Decrease Cost & Risk Track and manage open source assets Updates:12 hour patch to test to deploy 24 hour cost-effective, flexible support options
Why Go Global from Day One ?
Cost reduction on average 1/3 to 1/10 th
Global Time Zone Support Coverage
24 X 7 development schedule key for competitive parity
“ Hubs of excellence” integrated together by global economy and IT
Selling into Local Markets
New billion-dollar market opportunities opening up …
SpikeSource Offshoring – Selection Process
Feb 2004: Extensive RFP Process
Executive Vision for Open Source
CEO Mandate for Open Source Leadership
Proactive Advisor to Customers for cost savings
High rate of customer satisfaction
Results: Early Success
Our internal engineering operations replicated within six days
Delivered three releases in one year
Several projects initiated completely by Cognizant team
Together, we are offering compelling cost savings to customers
60+ engineers are becoming experts in open source and SpikeSource tools
Must help your business partners to hone their skills and capabilities
Identifying skills, enabling infrastructure
And, Differentiation must come from new places
Your competitors have access to the same global resources that you do – differentiation must come from How vs What you do
When commodity components become cheap and abundant, innovation moves to process automation
Optimizing every step in the supply chain becomes the competitive differentiator.
Going Global is Key.
Like open source, 21 st century companies will be designed to be inherently modular
Optimized for Partnering
Process automation + modularity enables speed to market
In ONE Year:
Linux-based email firm grew to 60 customers, providing an alternative to Exchange
One India-based testing company grew to $30M in revenue
ONE College Student
Led development of the first development of a Tamil version of Mozilla . . .
. . . There are over 80 million Tamil-speaking potential customers!
Taking advantage of commodities is the biggest opportunity
— for everybody who wants to be a natural resource…
Or to build a business on them.
So: where’s this all headed?
No application, or business is beyond commoditization. Portals Jetspeed Axis Struts J2EE & Web Services Apps ERP, Transactional Apps Lucene eXist OpenLDAP Open Source Adoption Application Complexity File Servers Mail Servers Self Service Apps CRM, Collab Commerce Linux Apache Tomcat JBOSS PgSQL MySQL ALL Catalogs and Websites SOA Features OS Web Server App Server Database Stack Data Center Management
Building an Open Company Leveraging the “Three O’s”
Outsourcing Open Sourcing
All of which means we’ll need to adapt to life in a world exploding with new opportunities