Commercial Open Source

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

Commercial Open Source

by Michael Diliberto on Jan 09, 2010

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