How Much Are Your Free Drinks?

Andrea Resmini Brave Gnu World Andrea Resmini How much are your free drinks? A Business Perspective on Free and Open Source Software Internationella Handelshögskolan i Jönköping September 2 2009

how much are your free soft drinks? a business perspective on free and open source software Who am I, actually? Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Information architect I design shared information spaces Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Monday, 10:00 – meeting with the stakeholders Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Associate editor Journal of Information Architecture Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Tuesday 12:45 – Note to the board: is that guy DANCING? Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software F/LOSS advocate contributed to FaceTag, OSCOM, FreeTes Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Thursday 14:15 – Hey! That's my magazine you cut to pieces for those tags! Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software I'm also an advisor for the IAI, coordinator for REG-iA, chairman of the Italian IA Summit, founding member of the European IA / UX Network, a FatDUX consultant, a PhD student, blah blah blah Many hats, but today ... Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software … very much like waking up the sleeping bear. Good penguin. Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software … today we speak of free + open source software or F/LOSS (FOSS) Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software What is this thing then? A few examples Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Free software you may already have heard of Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Firefox, a web browser Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Linux, an operating system. Ubuntu is a Linux distribution Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software OpenOffice, an office productivity suite Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software But it's not just software in your desktop Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The just-announced Linux-based mobile phone by Nokia Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The Apache Web server. One of many Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The TIVo, a personal digital video recorder Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software And some free software you most surely haven't heard of Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software [http://www.microsoft.com/technet/interopmigration/unix/sfu/sfucustm.mspx] Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Oh, yes. Not just software. Free beer as well Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Free speech or free beer? Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software or is it Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software And more important: are these any different? Let's go check Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The free in free software stands for free as in free speech Free software doesn't necessarily means you get to have free beers Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software YES! MAYBE? Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Plenty of free software applications being sold or contracted every day: RedHat Linux Enterprise Premium is roughly $ 2499 per year What F/LOSS really stands for is a different way of looking at what software is and should be, either technically or ethically Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Different software ecosystems Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software PROPRIETARY SOFTWARE OPEN SOURCE SOFTWARE FREE SOFTWARE PUBLIC DOMAIN Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software A rough, brief, sketchy history of F/LOSS Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software In the 60s and 70s, mainframe-times, programs usually were part of the hardware deals and generally then shared among small communities In the early 80s, academic licenses started to be used for work on Unix systems In 1985 R. M. Stallmann and others created the Free Software Foundation and the legal definition of free software under the GPL In 1998, after the announce of the upcoming release of the Mozilla source code, B. Perens and others started using the term open source to seek fast commercialization and acceptance of free software Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Then, when the European Commission started looking into this free software affair, they wanted to avoid the ambiguity of the word free and the misunderstandings carried on by open source. Their solution was to use an expression which was in use here and there since 1992, Libre Software Hence, F/LOSS (Free/Libre and Open Source Software) Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Free Software a definition Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Four freedoms define Free Software:  The freedom to run the program, for any purpose  The freedom to study how the program works, and adapt it to your needs  The freedom to redistribute copies so you can help your neighbor  The freedom to improve the program, and release your improvements to the public, so that the whole community benefits Source: FSF Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software These freedoms are rights, not obligations, although respecting these freedoms for society may at times oblige the individual Free Software does not exclude commercial use. If a program fails to allow commercial use and commercial distribution, it is not Free Software Source: FSF Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Open Source a definition Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Open source doesn't just mean access to the source code There are other criteria which have to be respected for a license to be OSI (Open Source Initiative) compliant. These are: Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Free Redistribution Source Code Available Derived Works Allowed Integrity of The Author's Source Code No Discrimination Against Persons or Groups No Discrimination Against Fields of Endeavor Distribution of License License Must Not Be Specific to a Product License Must Not Restrict Other Software License Must Be Technology-Neutral Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Oh, I get it It's like public domain Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software WRONG! Mh. Tweet this: #fail (1) Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software PROPRIETARY SOFTWARE OPEN SOURCE SOFTWARE FREE SOFTWARE PUBLIC DOMAIN Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software F/LOSS is deeply rooted in Copyright Law The GPL and other F/LOSS licenses rely on Copyright Law You can only use and distribute the software under the terms and conditions of the license The author strongly retains authorship and control Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software On the other hand, though Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Public Domain has no Copyright Works in the public domain has no person or legal entity who can establish or maintain proprietary interests within a particular legal jurisdiction: so to speak, it has no author but rather is considered common knowledge There are no laws which restrict its use by the public at large Proprietary rights are founded in national laws, so an item may be public domain in one jurisdiction but not another Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software But, wait a sec, the GPL is bad! F/LOSS kills squirrels! Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Oh, I see. Maybe you are thinking about the viral thing and all? Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The Measles virus. This is a virus. Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software This most certainly isn't Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Let's check this out and debunk some myths For example: Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software F/LOSS is bad for governments F/LOSS is a huge security risk F/LOSS forbids commercial use F/LOSS (the GPL) is a virus F/LOSS forces you to release your changes F/LOSS is against intellectual property F/LOSS is untrusted F/LOSS wouldn't stand in Court F/LOSS offers no path to revenue F/LOSS comes with no guarantee nor support Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software But how do we do that? Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Let's have a look at some business case studies Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software French Gendarmerie France Migration = flexibillity Source: OSOR, EU Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The French Gendarmerie Nationale is composed of the police forces and the military police Their police work includes everything from criminal investigation to airport security and support of military services It is one of Europe's largest public bodies, having over 100.000 employees distributed all over the country Decisions are made in Paris Need of a communication infrastructure that does not depend on third parties Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software In 2001 the Gendarmerie Nationale started introducing open source software The main goals were to gain greater independence and flexibility than proprietary software could offer Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The use of F/LOSS allowed more flexibility and made the introduction of new standards easier F/LOSS met their needs and offered greater transparency and was easier to adapt and change In 2005 the Gendarmerie replaced Microsoft Office with its open source counterpart OpenOffice, which not only was available at no cost, but also allowed for exactly this modularity and transparency the Gendarmerie required “We didn't want any of our software to force us to employ a special operating system” Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software When Microsoft announced its new operating system Vista in 2006, the Gendarmerie thought that at some point in the near future a migration of the whole operating system would be necessary The group had gained considerable expertise in working with open source software through the several projects implemented since 2001 The desktop usability of several GNU/Linux distributions had also significantly improved since that time The decision to migrate all new workstations to Ubuntu Linux was finally taken in January 2008 Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software In the year 2008 alone 5000 new workstations have been deployed, all running on Ubuntu Every new workstation will ship with the same setup During 2009 the Gendarmerie is planning to migrate close to 15.000 workstations in total Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The LiMux Project Munich, Germany Migration = independence Source: OSOR, EU Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The German city of Munich is migrating its computers to open source and GNU/Linux, both on desktops and servers Rather than lowering IT costs, the main motive is the desire for strategic independence from software suppliers Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The LiMux project puts great emphasis on becoming independent from software suppliers. “Microsoft has shown us what it means to be dependent on a vendor.” Until 2003, the city was using Microsoft Windows NT 4 across the board, and was by and large satisfied The City commissioned a study checking on both proprietary and open source solutions, with regard to their cost effectiveness, technical feasibility and strategic implications. The result of this was a tie match Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The total cost for the proprietary solution were calculated to be 35 million Euro, against 37 million Euro for GNU/Linux These included all costs beyond the solution itself, such as personnel and training costs, over five years While the proprietary solution was deemed to be slightly more cost-effective over the full period, the strategic advantage of being free to take its own IT decisions led the city council to decide in favor of the migration to GNU/Linux Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software The city partnered with SuSE/Novell and IBM and worked out a detailed concept for the migration during 2003 and 2004 The actual migration has been running since 2005 once all legal sides had been cleared For most it has been a soft migration, first installing the open source applications Thunderbird, Firefox and OpenOffice on Windows computers, then rolling out the GNU/Linux basic client This gradual approach keeps the demand for training and support services manageable Proprietary software will be used where a migrations is either impossible or not cost-effective, possibly migrating to platform independent web browser applications Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software This will also complete the internal move to the ODF document format and stop the incessant flow of templates being built all over different offices The migration also offers an opportunity to standardize the city's heterogeneous IT environment In August 2008, 8500 of the city's 14.000 workplaces are using OpenOffice, and 1.200 workplaces LiMux The city goal is “80% + X by 2012” Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Who writes Linux? A simple enough question has an unexpected answer Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software If you are like me you are going to say something like this: Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software “Oh, I know, that's easy It's that geeky guy who never gets out of his room” Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software WRONG! Mh. Tweet this: #fail (2) Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software 1. Red Hat: 12.3% 9. Parallels 1.3% 2. IBM: 7.6% 10. Renesas Technology: 1.3% 3. Novell: 7.6% 11. Academia: 1.2% 4. Intel: 5.3% 12. Fujitsu: 1.1% 5. Independent consultant: 2.5% 13. MontaVista: 1.1% 6. Oracle: 2.4% 14. MIPS Technologies: 1.1% 7. Linux Foundation: 1.6% 15. Analog Devices: 1.0% 8. SGI 1.6% 16. HP: 1.0% Source: Who writes Linux: Big Business [http://ow.ly/nDyG] Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Linux is not techies for techies Major computer companies like IBM, Intel, Oracle, Fujitsu, and HP, spend hundreds of millions in making Linux better They don't think Linux is "cool" Linux makes good, hard business sense for traditional hardware and software companies Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Ha! Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software General business advantages in the use of F/LOSS Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Try before you buy as much as you need Lower startup costs Lower licensing and auditing costs Possibility to profit from an enormously large pool of existing software Possibility to adapt for local needs Possibility to deploy on demand Higher share of added values remains local Can drive ICT and innovation No single-vendor lock-in and your data stays yours Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Payoffs for developers for merchants for entrepreneurs Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software DEVELOPERS Development Speed Commercial developers using the bazaar mode might have a substantial initiative advantage over those that don't First commercial developer in a market niche may gain substantial advantages over later ones, as pool of available talent is limited Lower Overhead Significant overhead reduction in per-project software production costs. The open-source model allows software shops to more easily outsource some of their work, paying for it in values less tangible than money Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software MERCHANTS Closeness to the Customer Management advice often repeated is "Stay close to the customer." If you sell software, what better way to do this than by co-opting your customers' engineers to help your development? Broader Market An important side-effect of the open-source model will be a much wider platform range for your product. Open-source authors frequently find themselves receving, for free, port changes for operating systems and environments they barely know exist and can't afford developers to support. Each such port, of course, widens the market appeal of the product. Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software ENTREPRENEURS Grab mind-share The best new concept in the world won't make money unless people know it's interesting Value in service and integration Whether this makes sense as a strategy depends on whether you think your main value proposition is in the software itself or in service and the expertise associated with the software. Software easily becomes a commodity, though Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Higher level business' and investor's points of view Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software 1. Support Sellers 2. Loss Leader 3. Widget Frosting 4. Accessorizing [http://www.opensource.org/advocacy/case_for_business.php] Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Support Sellers or "Give Away the Recipe, Open A Restaurant" In this model, you give away the software product, but sell distribution, branding, and after-sale service. This is what Red Hat does Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Loss Leader In this model, you give away open-source as a loss-leader and market positioner for closed software. This is what Netscape did Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Widget Frosting A hardware company for which software is a necessary adjunct but strictly a cost rather than profit center goes open-source in order to get better drivers and interface tools cheaper. Silicon Graphics, for example, supports and ships Samba Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Accessorizing Selling accessories - books, compatible hardware, complete systems with open-source software pre-installed. Easy trivialized but books and hardware underly some clear successes: O'Reilly Associates, and SSC are among them Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Support / service sellers and Loss leader have so far proven to be reliable business methods for commercial success in the free and open source software arena. Nevertheless, there is good reason to believe that the clearest near-term gains in open-source will be in widget frosting For widget-makers (such as semiconductor or peripheral-card manufacturers), interface software is not even potentially a revenue source. Therefore the downside of moving to open source is minimal Source: OSI Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Conclusions and a short story concerning free soft drinks Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Me: “Hello, what can I get for you today?” Customer: “Yeah, how much are your free soft drinks?” Me: “… I’m sorry?” Customer: “Are you deaf son!? HOW MUCH ARE YOUR FREE SOFT DRINKS!?” Me: “Oh, I’m sorry sir. I couldn’t hear you and thought you said something stupid. The free drinks are $5 each.” Customer: “That’s f***ing highway robbery! You people should be ashamed!” Me: “Oh, we are…” Source: Not Always Right, http://notalwaysright.com/just-tell-%E2%80%98em-what-they-want-to-hear-part-three/1124 Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software You might give them what they want, but knowing your options always pays off Internationella Handelshögskolan I Jönköping September 2nd 2009

how much are your free soft drinks? a business perspective on free and open source software Questions? It's either now or mail: andrea.resmini@gmail.com read: http://andrearesmini.com tweet: http://twitter.com/resmini/ And thank you! Internationella Handelshögskolan I Jönköping September 2nd 2009

How Much Are Your Free Drinks?

by Andrea Resmini on Sep 02, 2009

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How Much Are Your Free Drinks? — Presentation Transcript