Image provided by afsilva via Flickr




    Commercial Open Source
    Mike Diliberto


Tuesday, January 26, 2010
My Story

    ✤    Originally studied Computer Science

          ✤    Discovered that I was not
               passionate...
From this




Tuesday, January 26, 2010
To this




Tuesday, January 26, 2010
My Story
    ✤    Originally studied Computer Science

          ✤    Discovered that I was not passionate about
         ...
Today’s Topics

    ✤    What is Closed Source?

    ✤    What is Open Source?

    ✤    Why Open Source?

    ✤    Value ...
What is closed source?




    ✤    Only compiled code leaves the building*.




*mostly
 Tuesday, January 26, 2010
What is closed source?

                            Source Code    Compiled Code




                                     ...
How do you build
    closed source?

    ✤    There are a lot of different
         development methods, here is
         ...
How do you build
    closed source?

    ✤    There are a lot of different
         development methods, here is
         ...
How do you build
    closed source?

    ✤    There are a lot of different
         development methods, here is
         ...
Ok, So what
    about Open
    Source




                            Photo courtesy of bratmandeux via Flickr
Tuesday, Ja...
The big difference: how it is built



    Requirements



                   Design



                            Write ...
The big difference: how it is built



    Requirements
                                                                  ...
Open Source is different

                            Source Code         Compiled Code




                              ...
Why Open
    Source?
    “Proprietary
    software developers
    have the advantage
    of money; free
    software devel...
Sharing is good




Tuesday, January 26, 2010
Fast-track development




Tuesday, January 26, 2010
One more thing...



                            Vs.




                             Photo courtesy of bratmandeux via Fl...
Need more
    reasons?

    ✤    Consumer Driven Innovation

    ✤    Get the product out the door!
         (good, fast, ...
So, if people can get it for free,
                how do you make money?




Tuesday, January 26, 2010
Revenue

    ✤    Services:

          ✤    Support

          ✤    Custom design and
               development (in moder...
Support

    ✤    Paradox:

          ✤    Corporate users want a butt to
               kick

          ✤     Open Source...
Functional Delineation (huh?)




Tuesday, January 26, 2010
Functional Delineation: How?

                                                        User	
  requested	
  features	
  /	
...
Marketing.                   (Or, thank goodness for social media!)




    ✤    Open Source marketing budgets are usually...
Word of Mouth / Community

    ✤    Love your community, they are your most valuable resource!!

    ✤    In our recent su...
Love your data
    ✤    Gather data like it is your job - even if you do nothing with it!

    ✤    CRM

    ✤    Lead tra...
You can do that with our software?




Tuesday, January 26, 2010
How do I get involved?




Tuesday, January 26, 2010
Image provided by afsilva via Flickr




    Thank You!
    Mike Diliberto


Tuesday, January 26, 2010
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Commercial Open Source

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Mike Diliberto's presentation from the Refresh conference. A discussion of how to be a successful commercial open source company.

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  • Hint: If you have passion for solving problems, start or join a startup, where you have the greatest chance to make an impact.
  • The point here is to lead into a conversation about resource constraints. In closed source, you can only plan, develop, and test as much as your least available resource. In Open Source, by comparison, everyone can take on the tasks of planning, designing, coding and testing. (although testing the final product is usually done internally, for safety)
  • First, lets talk a little about what is open source
  • Closed source makes that case that in order to be successful, you need to make it all yourself, that in fact, source code is the most valuable resource. Not so. People and the company are your most valuable resource.
  • And one last point on Open Source, I want to address the “freemium” model and how Open Source is not freemium.
  • The difference between “freemium” and “Open Source” is the power of the users. Whereas free beer means that you are being given something commercial (of value) for free, free as in speech means that everyone has a voice.
  • Two types of community members: Developers Vs. Users Users become customers!
  • Commercial Open Source

    1. 1. Image provided by afsilva via Flickr Commercial Open Source Mike Diliberto Tuesday, January 26, 2010
    2. 2. My Story ✤ Originally studied Computer Science ✤ Discovered that I was not passionate about writing code ✤ Started working in R&D ✤ Because I am passionate about solving problems ✤ Started my career in corporate America (Circuit City), later worked for a New Zealand startup, and now at MindTouch Mike Diliberto @mikediliberto mikediliberto@gmail.com Tuesday, January 26, 2010
    3. 3. From this Tuesday, January 26, 2010
    4. 4. To this Tuesday, January 26, 2010
    5. 5. My Story ✤ Originally studied Computer Science ✤ Discovered that I was not passionate about writing code ✤ Started working in R&D ✤ Because I am passionate about solving problems ✤ Started my career in corporate America (Circuit City), later worked for a New Zealand startup and now at MindTouch ✤ Working for a small, resource constrained firm taught me how to make the most of the resources on hand. ✤ Being accountable for the money I spent (and Mike Diliberto made!) made me passionate about business @mikediliberto mikediliberto@gmail.com Tuesday, January 26, 2010
    6. 6. Today’s Topics ✤ What is Closed Source? ✤ What is Open Source? ✤ Why Open Source? ✤ Value in Support ✤ Building value in functional delineation Image courtesy of mark van de wouw via Flickr Tuesday, January 26, 2010
    7. 7. What is closed source? ✤ Only compiled code leaves the building*. *mostly Tuesday, January 26, 2010
    8. 8. What is closed source? Source Code Compiled Code Winword.exe Customer Tuesday, January 26, 2010
    9. 9. How do you build closed source? ✤ There are a lot of different development methods, here is one: Requirements Design Write Software Test Software Ship Software Image provided by tinyfroglet via flickr Tuesday, January 26, 2010
    10. 10. How do you build closed source? ✤ There are a lot of different development methods, here is one: Requirements Design Write Software Test Software Ship Software Tuesday, January 26, 2010
    11. 11. How do you build closed source? ✤ There are a lot of different development methods, here is one: Requirements Issue: Design All of these activities occur internally Write Software Test Software Ship Software Tuesday, January 26, 2010
    12. 12. Ok, So what about Open Source Photo courtesy of bratmandeux via Flickr Tuesday, January 26, 2010
    13. 13. The big difference: how it is built Requirements Design Write Software Test Software Ship Software Tuesday, January 26, 2010
    14. 14. The big difference: how it is built Requirements Difference: Design Some or all of these activities occur publicly Write Software Test Software Ship Software Tuesday, January 26, 2010
    15. 15. Open Source is different Source Code Compiled Code OpenOffice.exe Customer Tuesday, January 26, 2010
    16. 16. Why Open Source? “Proprietary software developers have the advantage of money; free software developers need to make advantages for each other” - Richard Stallman Photo courtesy of bratmandeux via Flickr Tuesday, January 26, 2010
    17. 17. Sharing is good Tuesday, January 26, 2010
    18. 18. Fast-track development Tuesday, January 26, 2010
    19. 19. One more thing... Vs. Photo courtesy of bratmandeux via Flickr Tuesday, January 26, 2010
    20. 20. Need more reasons? ✤ Consumer Driven Innovation ✤ Get the product out the door! (good, fast, and cheap!) ✤ Marketing / Leads (Community) ✤ Market penetration Photo courtesy of bratmandeux via Flickr Tuesday, January 26, 2010
    21. 21. So, if people can get it for free, how do you make money? Tuesday, January 26, 2010
    22. 22. Revenue ✤ Services: ✤ Support ✤ Custom design and development (in moderation) ✤ Functional Delineation: ✤ Build a commercial offering using your Open Source product as a base or framework Tuesday, January 26, 2010
    23. 23. Support ✤ Paradox: ✤ Corporate users want a butt to kick ✤ Open Source is typically not supported ✤ The most popular commercialization method (for now) is to provide support to customers or provide a supported version for a fee. Tuesday, January 26, 2010
    24. 24. Functional Delineation (huh?) Tuesday, January 26, 2010
    25. 25. Functional Delineation: How? User  requested  features  /   Community  contributions Functionality Internal Development Commercial Framework Open Source New   High  Value  Add Commercial   High  Value  Add Capabilities   Low  Value  Add New  OSS   Low  Value  Add Capabilities   Open  Source Open  Source Capabilities    Capabilities   Version n Version n + 1 Graph Courtesy Gartner Research Group 2009 Tuesday, January 26, 2010
    26. 26. Marketing. (Or, thank goodness for social media!) ✤ Open Source marketing budgets are usually pretty small ✤ So, spend where it counts: ✤ Google Ad Words ✤ Social Media ✤ Trade show (sometimes) ✤ Speaking engagements at RefreshSD ✤ Word of mouth Tuesday, January 26, 2010
    27. 27. Word of Mouth / Community ✤ Love your community, they are your most valuable resource!! ✤ In our recent survey, 75% of commercial Open Source firms have or plan to hire a community manager. ✤ Spend time in the community: ✤ Online ✤ Real life ✤ Spend time with the users Tuesday, January 26, 2010
    28. 28. Love your data ✤ Gather data like it is your job - even if you do nothing with it! ✤ CRM ✤ Lead tracking / lead scoring ✤ Know your people: ✤ What are they doing? ✤ Where can you help? ✤ Do you <3 statistics? learn. ✤ Every commercial Open Source firm that we surveyed is doing this Tuesday, January 26, 2010
    29. 29. You can do that with our software? Tuesday, January 26, 2010
    30. 30. How do I get involved? Tuesday, January 26, 2010
    31. 31. Image provided by afsilva via Flickr Thank You! Mike Diliberto Tuesday, January 26, 2010
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