Your SlideShare is downloading. ×
Open Source Software
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Open Source Software

647

Published on

Published in: Economy & Finance, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
647
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Reconciling “Free” with “Profit”
  • 2.
    • What Business models will take advantage of Open Source?
  • 3.
    • Use Value (value as an intermediate good)
    • Sale Value (value as a final good)
    The Overwhelming source software value is use value. Not sale value
  • 4.
    • Device Drivers
    • Software bundled with hardware
    • Business specific applications
    Look at the newspaper hiring pages. Classify jobs that create use value versus sale value
  • 5.
    • Vendor has gone burst …is there a market for the company’s product ?
    • Vendor has discontinued support …is there a market for the company’s product?
    Price a customer pays is the expected future value of vendor service
  • 6.
    • Software need not be a factory business
    • But a services model based on exchange of continuous value
  • 7.
    • If you are working in a ISV struggling with support calls and low customer satisfaction scores ask yourself:
    Is the “20% of license” sufficient investment to supporting increasing usage of the product? Will not my customers be willing to pay more if I could prove that it works for them?
  • 8.
    • Reduce Testing efforts
    • Reduce Bug Fixing efforts
    • Augment Feature Development efforts
    All Bugs are shallow for a thousand eyeballs
  • 9.
    • Use Open source software to maintain/gain advantage in proprietary software
    • Use Open source software to drive gains in your hardware business (for drivers etc.)
    • Use Open Source to sell services (eg Red Hat, Zope)
    • Use Open Source to sell the content (share trading, education)
  • 10.
    • Id software’s Doom game:
      • In 1993 really unique in its graphics on low end processors
      • Competitors appeared
      • Markets matured in features, platforms and user base
      • In 1997 Doom released full source
      • Third party developers added value to the game
    This non “software” example crystallizes the issues….
  • 11.
    • Will I really benefit from network effects?
      • Are the key methods common engineering knowledge?
      • Can correctness be verified without independent reviews?
    • How critical it really is?
      • For the business of my customers?
      • Is reliability/stability/scalability critical?
    As customers mature the open source does become an option
  • 12.
    • “ The Cathedral & The Bazaar” by Eric S Raymond

×