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The Business Of Open Source
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The Business Of Open Source

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Presentation for OpenWest Conference May 2013

Presentation for OpenWest Conference May 2013

Published in: Technology, News & Politics

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  • Here is alittle bit about me, but the important thing to remember is that I am a technologist first, marketer second….which is interesting, because…
  • Backstory; Reason for Presentation;
  • Disclosure on my stance re: opensource
  • Business Models
  • Agenda: Different Business Models, Licenses, Industries,Case Studies
  • Takeaways from presentation;
  • Industries: Operating Systems, Databases, Server/Cloud Management, Enterprise Software: Portels;DocManagement;CRM;BI;Marketing, Security, CMS, eCommerce, Education, Application Development, Video, Ads/Media, Browsers
  • Industries: Operating Systems, Databases, Server/Cloud Management, Enterprise Software: Portels;DocManagement;CRM;BI;Marketing, Security, CMS, eCommerce, Education, Application Development, Video, Ads/Media, Browsers
  • Industries: Operating Systems, Databases, Server/Cloud Management, Enterprise Software: Portels;DocManagement;CRM;BI;Marketing, Security, CMS, eCommerce, Education, Application Development, Video, Ads/Media, Browsers
  • LicensesIANALThere are different versions of some that make a difference
  • Case Studies: Sourcefire, Redhat, SugarCRM, Automattic, Magento, Instructure, Liferay, Jboss, MySQL, Pentaho, SaltStack, Alfresco, MindTouch, OpenX, Kaltura, Eucalyptics;
  • Case Studies: Sourcefire, Redhat, SugarCRM, Automattic, Magento, Instructure, Liferay, Jboss, MySQL, Pentaho, SaltStack, Alfresco, MindTouch, OpenX, Kaltura, Eucalyptics;
  • Business Models
  • Case Studies: Sourcefire, Redhat, SugarCRM, Automattic, Magento, Instructure, Liferay, Jboss, MySQL, Pentaho, SaltStack, Alfresco, MindTouch, OpenX, Kaltura, Eucalyptics;
  • Final Takeway: Inherit cap, but lower risk
  • Final Takeway: Inherit cap, but lower risk
  • Transcript

    • 1. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsTheBusinessofOpenSourceDan(Danny)Fellars
    • 2. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsaboutmeM.S. Computer Science BuyDansHouse.comChileOPENSIDE
    • 3. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars“HowCanYouMake$$GivingItAway”
    • 4. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars“OpenisforLosers”-Dave McClure (500 Startups)
    • 5. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsTheHeatedDilemmahttp://youtu.be/X0R0toLhmwk
    • 6. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsOpenSourceBusinessModels“Free software” means software that respects users freedom and community. Roughly, the usershave the freedom to run, copy, distribute, study, change and improve the software. With thesefreedoms, the users (both individually and collectively) control the program and what it does forthem.When users dont control the program, the program controls the users. The developer controlsthe program, and through it controls the users. This nonfree or “proprietary” program istherefore an instrument of unjust power.Thus, “free software” is a matter of liberty, not price. To understand the concept, you shouldthink of “free” as in “free speech,” not as in “free beer”.A program is free software if the programs 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 youwish (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 thisyou can give the whole community a chance to benefit from your changes. Access to the sourcecode is a precondition for this.- GNU.org (GPL)
    • 7. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsAgenda●Walk thru of my quest foranswers– Locations– Industries– Licenses– Languages– Lifespan– Investability– Business Models●The Impact of Cloud/SAAS●Commercial Benefits ofOpen Source●Company Case Studies●Bees & Trees Analogy●Final Key Takeaways
    • 8. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsKeyTakeaways• Commercial Open Source does not have to bea oxy-moron• Find the right time and place for when to goopen source• The model and license matter, a lot• The move to cloud is both good and bad foropen source• Limits of Commercial Open Source
    • 9. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsLocations
    • 10. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsLocations
    • 11. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsOperatingSystemsIndustryImpactDatabases Server/Cloud EnterpriseSoftware
    • 12. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCMSIndustryImpactEducation eCommerce Security
    • 13. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsApplicationDevelopmentIndustryImpactConsumer Mobile Ads/Media
    • 14. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBSDOpenSourceLicensesMIT APACHEGPL AGPLLGPLMozillaEclipse OSL
    • 15. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBSD/MITLicensesAPACHE GPL AGPLMPL/CPL/OSL LGPL
    • 16. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsJAVALanguagePHPPython.NETC/C++ErlangRuby Javascript
    • 17. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars2010+ 2008/09 2006/07 2004/052002/03 2000/01 1998/99 <1998AgeofCommercialOpenSource
    • 18. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars$100M+ $80-$100M $60-$80M $40-$60M$20-$40M $10-$20M $5-$10MInvestmentReceived
    • 19. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsDual LicenseOpenSourceBusinessModelsSupport /ServicesTieredProductPartnerProgramOnDemandAccessKeyMulti/Add-onProducts
    • 20. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSupport/ServicesBusinessModelsTiered/Dual-LicenseOnDemand/Multi-ProductPartnerProgramDonations
    • 21. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsImpactofCloud/SAASonOpenSource•Cons• GPL Loophole• Less motivation to contribute back to opensource projects• Full applications less likely to be opensourced•Pros• On Demand Business Model• More Libraries being open sourced
    • 22. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBenefitstoCommercialOpenSourceThanks toJamie 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
    • 23. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCaseStudiesLicenseWordpress/b2-cafepressOpenX/phpMyAdsAndroidBusinessModelSugarCRMMozillaIndustry/CompetitionEducationBusinessIntelligence
    • 24. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSugarCRMFull Price Discrimination
    • 25. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsEducationIncumbent PureOpen SourceCommercialOpen Source
    • 26. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBusinessIntelligenceIncumbants SAAS Open Source
    • 27. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCaseStudy:OpenSideMarketMarketingAutomationLicenseAGPLBusinessModelAccess KeysOnDemandTechnology StackPHP/MongoDB/Backbone.js
    • 28. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsPureOpenSource
    • 29. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsProprietary
    • 30. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCommercialOpenSource
    • 31. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCommercialOpenSource
    • 32. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCommercialOpenSource
    • 33. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSupport&Services
    • 34. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSupport&Services
    • 35. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsKeyTakeaways• Commercial Open Source is not an oxy-moron• Find the right time and place for when to goopen source• The model and license matter• The move to cloud is both good and bad foropen source• Financial Limits of Commercial Open Source
    • 36. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsThankYou• Feel free to contact me with any questions• Dan Fellars dan@fellars.com @DannyFellars

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