Unicorns, Dragons, Open Source Business Models and Other Mythical Creatures

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OSCON talk about business and my perspectives on the advantages and disadvantages building business around open source software.

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Unicorns, Dragons, Open Source Business Models and Other Mythical Creatures

  1. 1. Unicorns, Dragons, Open Source Business Models And Other Mythical Creatures Andrew Clay Shafer OSCON 2014 @littleidea
  2. 2. @littleidea
  3. 3. this guy
  4. 4. disclaimer a school of thought
  5. 5. buckle up keep your arms and legs inside the ride at all times http://www.flickr.com/photos/spatch/4630771984/
  6. 6. three stone cutters walk into a Pareto Inefficient Nash Equilibrium
  7. 7. this talk is for me
  8. 8. Makers
  9. 9. Business Guy
  10. 10. this talk is for you …hopefully
  11. 11. I changed this talk to protect the innocent.
  12. 12. how many of you pay rent? mortgage? fun? food?
  13. 13. in conclusion convince people to give you more money in exchange for something that costs you less than said money rinse and repeat
  14. 14. if I was holding a mic… I would now drop it
  15. 15. let’s rewind that
  16. 16. I don’t love computers
  17. 17. I love maths
  18. 18. I love learning
  19. 19. I love games
  20. 20. I love puzzles
  21. 21. I love people
  22. 22. I want to have nice things
  23. 23. I want people to have nice things
  24. 24. one way to get nice things is $$
  25. 25. one way to get $$ is software
  26. 26. in case you lost the plot… software keeps eating the world
  27. 27. Open Source is Big Business
  28. 28. recognize privilege
  29. 29. let’s get a few things out of the way
  30. 30. you will NOT be the RedHat of X
  31. 31. many open source ‘exits’ were fundamentally not ‘businesses’
  32. 32. you cannot exchange downloads
  33. 33. more context about me
  34. 34. I was born
  35. 35. Fur Trading formative years
  36. 36. Washing Cars
  37. 37. One Bright Day
  38. 38. I studied math on a debate scholarship
  39. 39. Worlds Colliding
  40. 40. mistakes were made
  41. 41. disregarding ‘business’
  42. 42. –George Bernard Shaw “Forgive him, for he believes that the customs of his tribe are the laws of nature!”
  43. 43. ssh BASH TCP/IP LAN lun ACL HTTP SANTLS git haskell functional OOP scala go
  44. 44. EBITA NPVP&L RFP IRR IPO Margin ROI Profit M&A
  45. 45. community != business
  46. 46. undervaluing the solution value is created
  47. 47. not allowing people to pay value is captured
  48. 48. not managing expectations
  49. 49. not respecting relationships
  50. 50. not recognizing opportunities
  51. 51. not scaling/scaling too much
  52. 52. none of that was specific to open source…
  53. 53. but open source has unique advantages
  54. 54. inverted information asymmetry
  55. 55. authenticity
  56. 56. existing relationships
  57. 57. obvious leads
  58. 58. internal champions
  59. 59. open source also has unique disadvantages
  60. 60. inverted information asymmetry
  61. 61. at odds with the community
  62. 62. no one likes to be sold
  63. 63. tragedy of the commons
  64. 64. the user is not the buyer
  65. 65. finally…
  66. 66. choose your own adventure
  67. 67. make the choice explicit
  68. 68. make great software
  69. 69. make great money
  70. 70. have nice things
  71. 71. don’t limit yourself
  72. 72. don’t limit us
  73. 73. and they all lived happily ever after
  74. 74. come at me @littleideaOSCON 2014

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