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Oss Business Models
 

Oss Business Models

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    Oss Business Models Oss Business Models Presentation Transcript

    • AN INTRODUCTION TO OPEN SOURCE SOFTWARE BUSINESS MODELS PRADYOT SAHU
    • An Introduction to Open Source Software Business models
      • An Introduction to Open Source Software Business models.
      • How open source software companies are created and run.
      • The basic building blocks of an open source software organization.
    • OSS Business Models - Contents
      • Donation
      • Free Software, Paid Extra
      • Dual Licensing
      • -----------------------
      • Money Generation thru Sales
      • ----------------------
      • Some other models
      • -----------------------------
      • Exit by Sales
      • Exit by Stock Market Listing
    • OSS Business Models-Main
      • Donation
        • Individual,
        • NPO,
        • Corporate
      • Free Software, Paid
            • Customization
            • Support
            • Training
            • Implementation
      • Dual Licensing (MySQL, Alfresco)‏
        • Free Licensing Version
        • Paid Closed Source Licensing Version (Features/Performance)‏
        • Paid Customization
        • Paid Support
        • Paid Training
        • Paid Implementation
    • Money Generation thru Sales Models
      • Paid CD/DVD software distribution (Shipping and Handling charges)‏
      • Paid Online or CD/DVD Tutorials
      • Paid Training and Seminar fees
      • Sell subscriptions for online accounts and server access.
      • Advertising Sales (Google planning for Android)‏
    • Some More Models
      • Just Sell OSS commercially. (no dev)‏
      • Offer commercial technical support contracts and services (no dev) .
      • Attract customers by free open source edition, then up-sell to a commercial edition.
      • Have open source software in your portfolio to attract customers for other commercial solutions.
      • Offer open source software in source code only, executable binaries to paying customers only.
      • Latest version available only to paying customers.
      • Offer commercial extensions/modules/plugins/add-ons to your open source software.
      • Commercial version to finance development of the free version.
    • OSS Business Models - Exits
      • Exit by Sales
            • MySQL to Sun Microsystems with $1b
            • Project Management Software, OpenProj to Serena Software
      • Exit by IPO/Stock Market Listing
              • such as Red Hat in NYSE
    • Open Source Software Company Creation
      • Group of individuals connected thru Internet (start a project in Sourceforge.net and get people on board who may be just looking for what opensource software available)‏
      • A non-profit organization (such as Apache Foundation) plus a group of individuals in different locations
      • A for-profit organization in different locations (Red Hat)‏
      • A non-profit consortium of companies (partially Open Handset Alliance of Android mobile OS)‏
      • Corporate Organization running Open Source Initiative (Sun Microsystems, Microsoft, Intel)‏
    • How to get people to start a company
      • Personal and professional contacts
      • Open Source Hosting such as sf.net
      • Blogs
      • Wiki
      • Mailing lists/Groups (such as yahoo/google)‏
      • Social Networking Sites and their Groups
      • Free PR such as News
      • All these need a few committed and dedicated individuals
    • Open Source Software Company basic building blocks - Contents
      • Business Plan
      • Marketing
      • Sales
      • Finance
      • Operation
      • Human Resource
    • The business plan Written or unwritten business plan, but Clear Objective Shared Vision Clear Commitment No 20 or 60 page business plan 2 page business plan and 10 slides Presentation is good enough
    • The Marketing
      • No Marketing Agency
      • No High cost market research
      • Word of mouth – real word of mouth, blogs, social networks, groups, wikis (ALL free)‏
      • PR by making news –
            • Internet publications,
            • Print media publications,
      • Hardware and Software vendors may aid distribution to their customers which includes marketing/PR
    • The Sales and Distribution Channels
      • Free Mirror Sites (of Universities etc)‏
      • Free Internet download of Free Version
      • Paid Internet Download of the Paid Version
      • CD/DVD sales (with shipping/handling charges PLUS extra)‏
      • Free or Paid Licensing(or Donation) of Software/Hardware Distributors (Like EEE PC) for Free Software
      • Paid Licensing of Software/Hardware Distributors for Paid Software
    • The Finance – Startup Capital
      • Part-timers working for free with separate full time Job
      • Bootstrapping (with Some Services Sales)‏
      • Donation (individual/ corporate donation)‏
      • Angel Donors/Angel Funders (with equity)‏
      • Venture Capital/Private Equity companies rarely fund in established Open Source Organization with Good Exit possibility by Sales/IPO
    • The Operations Internet Distributed Development Distributed Project Management distributed marketing/ sales Wiki Blogs Free or paid Software-As-A-Service for operations and project management
    • The Human Resource
      • Free resources for software development, documentation, architecture and may be Project Management
      • Free/paid part-time resources for office operations in single or distributed locations
      • Paid full-time resources for office operations in single or distributed locations
    • QUESTIONS ?