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Commercial Open Source
 

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.

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 Commercial Open Source Presentation Transcript

  • 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 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
  • 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 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
  • 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
  • What is closed source? ✤ Only compiled code leaves the building*. *mostly Tuesday, January 26, 2010
  • What is closed source? Source Code Compiled Code Winword.exe Customer Tuesday, January 26, 2010
  • 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
  • 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
  • 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
  • Ok, So what about Open Source Photo courtesy of bratmandeux via Flickr Tuesday, January 26, 2010
  • The big difference: how it is built Requirements Design Write Software Test Software Ship Software Tuesday, January 26, 2010
  • 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
  • Open Source is different Source Code Compiled Code OpenOffice.exe Customer Tuesday, January 26, 2010
  • 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
  • Sharing is good Tuesday, January 26, 2010
  • Fast-track development Tuesday, January 26, 2010
  • One more thing... Vs. Photo courtesy of bratmandeux via Flickr Tuesday, January 26, 2010
  • 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
  • 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 moderation) ✤ Functional Delineation: ✤ Build a commercial offering using your Open Source product as a base or framework Tuesday, January 26, 2010
  • 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
  • Functional Delineation (huh?) Tuesday, January 26, 2010
  • 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
  • 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
  • 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
  • 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
  • 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