Open Source Business Models


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A brief discussion on Open Source Business Models - advantages,
limitations and revenue generation.

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Open Source Business Models

  1. 1. Economic Paradox If Open Source Software is distributed for free, where will the money come from?
  2. 2. Most Common Business Models Open Source and Commercial versions Advertising on free software New product development (based on existing OSS) Software Engineering Services (using OSS tools & frameworks/ components) Consulting Services (Migration to OSS & customization) Technical Support Training Documentation 3
  3. 3. Open Source Business Models in G2iX
  4. 4. G2iX Founded 2001 Focused on enabling businesses with innovative solutions Award-winning engineering team Globally Delivered Engineering Services World-class open source engineering automation Leading open source applications Scalable cloud computing platform Build and Test Automation Our employees from Australia to Germany, from US to the Philippines consistently deliver innovation for our worldwide customers Cloud Computing Infrastructure 5
  5. 5. G2iX important milestones Gluecode acquisition by IBM Logicblaze acquisition by IONA Open Source OSCON in Portland, POSS in PH, Software Freedom Day Eclipse Foundation & Apache Software Foundation Speakers in ApacheCon, Committers in Apache, Eclipse & OpenQA projects, First (and only) Filipina VP in Apache Awards 6
  6. 6. Software Development OS cuts down research & development cost Tools Redmine, Eclipse IDE, Maven, Selenium, etc. OS speeds up delivery examples For a telecom company, Liferay Portal was used as the core of their client facing portal For NPN, a financing company in LA, Spring framework was utilized to build the foundation of their loan & mortgage management system 7
  7. 7. Proprietary components to OSS Oakgrove BPM Proprietary Open Source 8
  8. 8. New Product :: Maestro Distributed Engineering with a common build mapping Asynchronous Extensive re-use Development of software around the artifacts world (Ingredients) Frequent testing of integration and functions Adapting the best practices of Open Source development processes to the Enterprise 9
  9. 9. Challenging Business Model Technical Support “Ad hoc support services are used by nearly 70% of the vendors assessed, but represent the primary revenue stream for fewer than 8% of open-source-related vendors” Codes in established OSS are really good Actual developers in the OS project Technical Support Engineers & Highly skilled Software Engineers 10
  10. 10. Other points revenue not from the main product but from ancillary services skills needed Technical Management (Financial, Marketing, etc) 11
  11. 11. Thank You Questions? Jaque Sara
  12. 12. G2iX University Code Camp (April 2010) OJT (April 2010) G2iXU existcodecamp