Joomladay Nl 2009 - Business Models

Why Freedom makes for a better business model Johan Janssens, Director, Nooku.org Joomladay NL, June 2009 - Nieuwegein

"Success consists of going from failure to failure without loss of enthusiasm. “ Winston Churchill Johan Janssens - http://www.nooku.org

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

Crowd Question Open source is free (gratis) as in free beer ? Answer NO Johan Janssens - http://www.nooku.org

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

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

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

Crowd Question Open source is a business model ? Answer NO Johan Janssens - http://www.nooku.org

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

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

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

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

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

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

Joomla! Johan Janssens - http://www.nooku.org

Crowd Question Joomla is not a product, it's a project ? Answer YES Johan Janssens - http://www.nooku.org

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

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

Crowd Question Is there a Joomla business model ? Answer YES Johan Janssens - http://www.nooku.org

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 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

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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