The Business of Open Models

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The Business of Open Models

  1. 1. The Business of Open Models Prof. Dr. Dirk Riehle, M.B.A.Friedrich Alexander-University Erlangen-Nürnberg Open Models – Dagstuhl – 2012-03-27
  2. 2. Talk Agenda / Discussion Question ● What can open model projects learn from success- ful open source projects? ● Specifically, how can they become equally successful and long-term sustainable? Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 2
  3. 3. Open Source DefinitionLegal Process ● Open source license [1] “Open source is a development ● Free use allowed method for software that harness- es the power of distributed peer ● Source code available review and transparency of ● Modification of code allowed process. The promise of open ● Distribution of modifications OK source is better quality, higher reliability, more flexibility, lower ● Open source initiative cost, and an end to predatory vendor lock-in.” [2] ● Approves open source licenses ● Permissive vs reciprocal licenses ● Permissive code growing [3][1] See http://www.opensource.org/osd.html[2] See http://www.opensource.org/[3] See http://bit.ly/xbYEYP Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 3
  4. 4. Proposition 1: Open Models DefinitionLegal definition ● Like open source with license appropriate for modeling artifacts: A model is an open model if it can be used free of charge, is available in source form, can be modified to ones needs, and can be redistributed in a modified form.Process definition ● Like community open source [4] based on open collaboration [5]: A modeling project is an open model project if it is being developed in an open collaborative process, which is egalitarian, meritocratic, and self-organizing.[4] RIEHLE, D. 2007. The Economic Motivation of Open Source: Stakeholder Perspectives. IEEE Computer vol. 40, no. 4 (April 2007), 25-32.[5] RIEHLE, D. et al. ODENWALD, T. 2009. Open Collaboration within Corporations Using Software Forges. IEEE Software vol. 26, no. 2 (March/April 2009), 52-58. Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 4
  5. 5. Who Wrote Linux 2.6.20? “At least 65% of the code which went into 2.6.20 was created by people working for companies.” [6][6] See http://lwn.net/Articles/222773/ Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 5
  6. 6. Proposition 2: Business Model Every sustainable open source project has a business model. So should every open models project. Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 6
  7. 7. Sustainable Open Source Business Models For Profit (“Commercial”) 1. Single-Vendor Open Source Firms 2. Open Source Distributors Not-for-Profit (Subsidized) 3. Developer Foundations 4. User Foundations Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 7
  8. 8. Open Source Developer FoundationsDefinition Purpose1. A developer foundation is ● Lower development costs a non-profit organization ● Increase share of wallet (foundation, consortium) ● Reach more customers2. with the purpose of ● Grow addressable market managing and performing ● Reduce strategic lock-in3. the development of (non-differentiating) Downsides open source software ● Higher engagement made available to foundation members (and the general public). Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 8
  9. 9. Examples of Developer Foundations Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 9
  10. 10. Economic Motivation of Dev. Foundations [7] 1. Increase share of wallet 2. Reach more customers 3. Grow addressable market 4. Use legal framework 5. Use process framework[7] Dirk Riehle. “The Economic Case for Open Source Foundations.” IEEE Computer vol. 43, no. 1 (January 2010). Page 86-90. Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 10
  11. 11. Proposition 3: Modeler FoundationsDefinition Purpose1. A modeler foundation is ● Lower development costs a non-profit organization ● Increase share of wallet (foundation, consortium) ● Reach more customers2. with the purpose of ● Grow addressable market managing and performing ● Reduce strategic lock-in3. the modeling of (non-differentiating) Downsides open models ● Higher engagement made available to foundation members (and the general public). Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 11
  12. 12. Blueprint for Developer Foundations [8] ● General ● Governance ● Purpose ● Board membership ● Incorporation ● Project membership ● Membership ● Member careers ● Member level ● Philosophy ● Commercial stance ● Financing ● Development model ● Foundation ● Projects ● Intellectual property ● Project license ● Operations ● Patent grant ● Infrastructure ● IP ownership ● Backoffice[8] Dirk Riehle, Sebastian Berschneider. “A Model of Open Source Developer Foundations.” In preparation, 2012. Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 12
  13. 13. Proposition 4: Wrong Stakeholders? Currently: 1. Researchers Should be: 2. Companies 3. Modelers Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 13
  14. 14. Proposition 5: How to Get the Ball Rolling? Talk to SAP (or Oracle) or … Talk to everyone but SAP (or Oracle) Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 14
  15. 15. Thank you! Questions? dirk.riehle@cs.fau.de – http://osr.cs.fau.de dirk@riehle.org – http://dirkriehle.com – @dirkriehle Dagstuhl - 2012-03-27 © 2012 Dirk Riehle - All Rights Reserved 15DR

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