World Computer Congress Keynote

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  • + Clark_m Clark_m 7 months ago
    Definitely intriguing. I may have a follow up getting ready in an adjacent field.... We’ll talk!
    Great presentation style.
    Thanks
    Clark
  • + haveaword Tanveer Iqbal 2 years ago
    informative thanks for sharing Fabricapo
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World Computer Congress Keynote - Presentation Transcript

  1. Funambol A Successful Business Model for Open Source Systems Fabrizio Capobianco, CEO
  2. What is Open Source?
    • The Source is Open
    • It is mostly licensed with a copyleft clause
    • It is a community effort
    • It is NOT free
    • To create a successful business around an open source project you need:
      • A huge market
      • A commodity market
      • A large community
      • A price cushion
      • A reference implementation of an open standard (optional but useful)
    Not every project is a business
  3. OSS business models
    • Generally associated with the different licenses:
      • GPL/LGPL business model: pure service model, where revenue comes from professional services (OSS + Services)
      • BSD/Apache business model: revenue originates both from license fees on ad-hoc software reselling and professional services
      • Dual licensing business model: revenue relies mainly on license fees
  4.  
  5. OSS dual licensing
    • No cost for open source or personal projects
      • Widespread use and testing of the software
      • Fast growth of a large installed user base
      • High quality, stable and reliable products
    • A commercial license, which releases companies from requirements to publish their source code
      • Freely copy, modify and redistribute, protecting your IP
      • Full guarantee on the product future thanks to source code visibility and access to a wide community of developers
      • Freedom from vendor lock-in
      • Rapid and complete support
  6. OSS “honest” dual licensing
    • Two different communities
      • Open source users
      • Commercial users
    • No bait-and-switch
      • Keep the communities isolated
      • No features are hold from the open source community, if they make sense and would be needed there
    • “ Do not upsell your community” guideline
      • Do not sell anything to your open source community
      • Nope, do not even sell them support (it gets your hands dirty and you cannot call back a salesman when you launch him/her towards a customer…)
  7. The future is SaaS
    • The world is moving toward Software as a Service
      • First consumer email (Hotmail)
      • Then enterprise sales force automation (Salesforce.com)
      • Then consumer content (Youtube, Flickr, Facebook…)
      • Soon all enterprise email, driven by mobile
      • Then everything else, consumer and enterprise
    • Every single software service will be consumed over the network (think 2015, not tomorrow)
      • Even word processing will be hosted. Google Docs is here to stay, so is Office Live. More to come. The dream of the network computer is going to materialize, eventually
      • Google Chrome is a critical element of the SaaS world. It is an operating system running an highly optimized language (Javascript)
  8. The business model of the future
    • Honest Dual Licensing with AGPL
    • A market for your Community Edition
    • A revenue model for your Hosted Edition
  9. Open source is key
    • There is no question about it, I believe it is proven: it is just a better model to develop software that brings incredible quality and invaluable savings
    • You just have to be careful not to screw up your relationship with the community
    • The game is tight-rope walking, a.k.a. funambulism
    • Honest dual licensing is the way
      • Guarantees a scalable business (no scale in professional services businesses)
      • Maintains a positive relationship with your community
  10. AGPL is the license
    • AGPL v3 is the ASP version of GPL v3, a FSF license approved by OSI
    • It protects your project from being used as a service, circumventing copyleft, because there is no distribution of software
    • The ASP loophole is the cancer of open source
    • “ Do not be dumb, give it an A”
  11. A market for your Community Edition
    • It has to be different than the one where you are going to make money
    • You are NOT going to make money here, but you will get all the benefits of a big community
    • That market - in most cases – should be the enterprise.
      • Not every enterprise
      • Those companies that value the source code in open source
      • That want to touch it
      • Those that want to deploy open source in house
  12. A revenue model for your Hosted Edition
    • Deployed vs. Hosted is the key to Honest Dual Licensing
    • Service Providers that want to provide your software as SaaS will license the Hosted Edition of your code (with additional software, only meant for the hosting use)
      • Even Enterprise will pay for it, because it will be convenient
    • Maybe, you could run it yourself, instead of selling it to Service Providers
  13. Where will the revenues come from?
    • Software usage (e.g. per user per year, based on bandwidth consumption or a similar model)
      • Recurring revenues are sustainable (and the market likes them)
    • Advertising (the software is free, the ads pay for it)
      • Advertising is what made the Internet Companies
  14. The Funambol case
    • Honest Dual Licensing
      • Community Edition based on AGPL
      • Carrier Edition for SaaS
    • A market for the for your Community Edition
      • Enterprise use Funambol Community Edition for free, no features hold back from the commercial product
    • A revenue model for your Hosted Edition
      • Service Providers license Funambol Carrier Edition to host it as SaaS, either on a per-user per-month basis or with advertising
  15. Who else is doing this?
    • Today: Funambol ;-)
    • Potentially: SugarCRM, Zimbra Yahoo and many others
    • With evil variations: Google
    • Perfect case: Salesforce.com
    • Getting intrigued: Microsoft
    • Future: everyone (wasn’t the title of the presentation about “A successful business model”?)
  16. The business model of the future
    • So… this is how to make a sustainable business model using open source in the future SaaS-dominated world:
    • Honest Dual Licensing with AGPL
    • A market for your Community Edition
    • A revenue model for your Hosted Edition
  17. Funambol A Successful Business Model for Open Source Systems Fabrizio Capobianco, CEO

+ fabricapofabricapo, 2 years ago

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