Why Freedom makes
       for a better business
               model
                         Johan Janssens, Director, Noo...
"Success consists of going from failure to
                 failure without loss of enthusiasm. “

                       ...
Freedom




Johan Janssens - http://www.nooku.org
Crowd Question

           Open source is free (gratis) as in free beer ?



                                        Answe...
Freedom doesn’t mean free of charge !
                                             vrij ≠ gratis
                         ...
Freedom success stories

                     Success story          Freedom
                              eBay           ...
Open Source




Johan Janssens - http://www.nooku.org
Crowd Question

                   Open source is a business model ?



                                        Answer
   ...
Free / Open Source Software
                                 • Not a mystery
                                 • Not a reli...
Pursuit of Software Freedom and Profits

               Success in open source requires you to serve

                 1. T...
Open Source business models are hybrid

    Software is free, but:

    1. … we need donations and subsidies to survive(Ap...
Open Source business models are hybrid

    Software is free, but:

     5. … on-going maintenance, monitoring and provisi...
Open Source business models are hybrid

    Software is free, but:

    9. … we sell everything else on the planet, includ...
Open Source business models are hybrid

    Software is free, but:
    13. … we want to drive web traffic (Yahoo YUI)

    ...
Joomla!




Johan Janssens - http://www.nooku.org
Crowd Question

             Joomla is not a product, it's a project ?



                                        Answer
 ...
Barriers to Open Source adoption


         1. Lack of formal support and services.
         2. Velocity of change.
      ...
The Open Source principles

           1. Free as in ‘Freedom’ Not ‘Zero cost’
            2. Principle of ‘Openness’
    ...
Crowd Question

                 Is there a Joomla business model ?



                                        Answer
    ...
Commercial Open Source - The Beekeeper




Johan Janssens - http://www.nooku.org
Commercial Open Source - The Beekeper




Johan Janssens - http://www.nooku.org
Summary




Johan Janssens - http://www.nooku.org
Summary



     • FOSS business won’t work unless you serve both
     those who spend time to save money and those who
   ...
Questions ?
                 http://www.twitter.com/johanjanssens




Johan Janssens - http://www.nooku.org
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Joomladay Nl 2009 - Business Models

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If you're in any way working professionaly with open source applications this presentation is for you. It explores the business mechanics behind FOSS and try to defuse a number of common misconceptions and false-truths that exist about doing business in open source and especially with Joomla.

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Joomladay Nl 2009 - Business Models

  1. 1. Why Freedom makes for a better business model Johan Janssens, Director, Nooku.org Joomladay NL, June 2009 - Nieuwegein
  2. 2. "Success consists of going from failure to failure without loss of enthusiasm. “ Winston Churchill Johan Janssens - http://www.nooku.org
  3. 3. Freedom Johan Janssens - http://www.nooku.org
  4. 4. Crowd Question Open source is free (gratis) as in free beer ? Answer NO Johan Janssens - http://www.nooku.org
  5. 5. Freedom doesn’t mean free of charge ! vrij ≠ gratis fri ≠ gratis frjáls ≠ ókeypis vapaa ≠ ilmainen frei ≠ kostenlos libre ≠ gratuit freedom libre ≠ gratuito free of speech libero ≠ gratis dror ≠ chinam beer azad ≠ rayegon aazad ≠ muft swatantra ≠ vina mulya shadhi nata ≠ bine poisha sudandram ≠ ilavasam svobodnoe ≠ besplatnoe Johan Janssens - http://www.nooku.org
  6. 6. Freedom success stories Success story Freedom eBay Trade Google Advertising Skype Telephony Second life Social life Youtube Video production Linux Operating system LAMP web applications Ikea Furnishing Joomla Websites Johan Janssens - http://www.nooku.org
  7. 7. Open Source Johan Janssens - http://www.nooku.org
  8. 8. Crowd Question Open source is a business model ? Answer NO Johan Janssens - http://www.nooku.org
  9. 9. Free / Open Source Software • Not a mystery • Not a religion • Not a charity • Not anti-commercial • Not against ownership • Not socialism • Not a business model A smarter way to produce the software and a smarter way to distribute the software Johan Janssens - http://www.nooku.org
  10. 10. Pursuit of Software Freedom and Profits Success in open source requires you to serve 1. Those who spend time to save money 2. Those who spend money to save time Differentiation drives the compelling reason to buy, but incorrectly implemented it may also drive the ”compelling reason to abandon” Johan Janssens - http://www.nooku.org
  11. 11. Open Source business models are hybrid Software is free, but: 1. … we need donations and subsidies to survive(Apache Software Foundation, Eclipse, ObjectWeb) 2. … we sell ads and placements (Mozilla) 3. … if you embed it in closed source, you pay a fee (Trolltech, DB4Objects, Funambol, MySQL, etc.) 4. … services are for a fee (Covalent, Ubuntu/Canonical) Johan Janssens - http://www.nooku.org
  12. 12. Open Source business models are hybrid Software is free, but: 5. … on-going maintenance, monitoring and provision of binaries is for a fee (Red Hat, JBoss, MySQL) 6. … some enterprise features are for a fee (SugarCRM, Zimbra, JasperSoft) 7. … we built a closed-source product around it (EnterpriseDB, GreenPlum) 8. … hardware is for a fee (Sun, Asterisk/Digium) Johan Janssens - http://www.nooku.org
  13. 13. Open Source business models are hybrid Software is free, but: 9. … we sell everything else on the planet, including closed source software (IBM) 10. … that's not our real business (Ruby on Rails, individual contributors, etc.) 11. … we regret it (Borland with Interbase) 12. … we don’t want to see it any more (any good examples?) Johan Janssens - http://www.nooku.org
  14. 14. Open Source business models are hybrid Software is free, but: 13. … we want to drive web traffic (Yahoo YUI) 14. … since we bought Sun and now we are stuck with it (Oracle) Johan Janssens - http://www.nooku.org
  15. 15. Joomla! Johan Janssens - http://www.nooku.org
  16. 16. Crowd Question Joomla is not a product, it's a project ? Answer YES Johan Janssens - http://www.nooku.org
  17. 17. Barriers to Open Source adoption 1. Lack of formal support and services. 2. Velocity of change. 3. Lack of roadmap. 4. Functional gaps. 5. License types. 6. Lack of endorsements open source projects generate software, they do not generate ‘whole product’ Johan Janssens - http://www.nooku.org
  18. 18. The Open Source principles 1. Free as in ‘Freedom’ Not ‘Zero cost’ 2. Principle of ‘Openness’ 3. Principle of ‘Transparency’ 4. Principle of ‘Early and often’ 5. Expectation of ‘Community’ The community is a byproduct of the project. The project is a byproduct of the open source principles. Johan Janssens - http://www.nooku.org
  19. 19. Crowd Question Is there a Joomla business model ? Answer YES Johan Janssens - http://www.nooku.org
  20. 20. Commercial Open Source - The Beekeeper Johan Janssens - http://www.nooku.org
  21. 21. Commercial Open Source - The Beekeper Johan Janssens - http://www.nooku.org
  22. 22. Summary Johan Janssens - http://www.nooku.org
  23. 23. Summary • FOSS business won’t work unless you serve both those who spend time to save money and those who spend money to save time • Open source projects generate software, they do not generate ‘whole product’. Commercial open source does. • It is early and the FOSS industry is still experimenting with business models Johan Janssens - http://www.nooku.org
  24. 24. Questions ? http://www.twitter.com/johanjanssens Johan Janssens - http://www.nooku.org

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