CASE STUDIES: East-Southern Africa FLOSS Business Models
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CASE STUDIES: East-Southern Africa FLOSS Business Models

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Case Studies on African FLOSS Business Models

Case Studies on African FLOSS Business Models

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CASE STUDIES: East-Southern Africa FLOSS Business Models CASE STUDIES: East-Southern Africa FLOSS Business Models Presentation Transcript

  • Provided under a Creative Commons Attribution-Share Alike 3.0 Germany License / Copyright: FOSSFA & InWEnt Module 2: African FLOSS Business Models Case Studies for ict@innovation, FOSSFA/InWEnt Version / Date: 14 - 25 September, 2009 University of Dar es Salaam Dar es Salaam, Republic of Tanzania Sulayman K. Sowe [sowe@merit.unu.edu] 1 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • TOC The learning objectives for Module 2 are as follows: 1. To understand the various services and solutions offered by ICT-Based SMEs in Africa. 2. To know the types of FLOSS clientele and how their issues can be addressed in the Africa context. 3. To see the advantages and challenges FLOSS can present to clients and start- up businesses. 4. To understand barriers of entry into FLOSS business in Africa. 5. To know some profitable service sectors. 6. To understand the importance of networking with FLOSS strategic partners and communities. 7. To understand what the FLOSS business risks are and how to mitigate them. 8. To identify African companies using FLOSS business models in their business. 2 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Building African FLOSS business models 3 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Case Studies Methodology • Exploratory study of companies online • Introductory email of intent to participate • Email set of questions (See “template“, page 32) • Outlook and Experience report • Revenue generation • Service line and FLOSS motivation • Lessons learnt....will this work for me? • Follow-ups • Compile cases – Discuss and refine cases – Add relevant cases to broaden scope 4 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Geographical Distribution of Module 2 Case Studies Amest Santim Systems PLC Ltd. Linux Solutions Ltd. Future Soft Resources Nigeria Ltd. OpenWorld Ltd. CENFOSS Ltd. GIS GlobalImage (PTY) Ltd. Linux Holding (PTY) Ltd. 5 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • TASK 1 List 2 ICT-Based SMEs doing business in FLOSS solutions and Services • Country........................... • Company........................ • Website........................... 6 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.1:- OpenWorld - Kenya • Background – Since 2004, Employs 7 – Setup through personal initiative • Business Focus – Consultancy & Training, – Software Development & Support • Lessons learnt – Regular workshops & Invited talks, – try the untested & do things differently 7 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.2:- GIS GlobalImage – South Africa • Background – Since 2000, Employs 17 (5 are directors) – Merger of 2/more other companies • Business Focus – GIS Software Development, Sales, distribution and Support, – Hybrid FOSS business model • Lessons learnt – Partnership with companies and educational Institutions, – Build profile online, Network, workshops, Invited talks, – Customize GUI only. – Forecasts » move to web-based solutions » Other markets, eg mobile 8 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.3:- Future Software Resources Nigeria Ltd. • Background – Established since 1998 but only active in 2008 – Employs 5, partners in UK/USA • Business Focus – Web-design and hosting – E-commerce, Ads • Lessons learnt – Family & friends can start a business, FLOSS to keep cost down – Outsourcing, consulting, – Get FLOSS person in company – Involve FLOSS communities – Donate when you can 9 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.4:- Linux Holding – South Africa • Background – Since 2003, Employs 9 – Setup through personal initiative • Business Focus – Linux-based training (LPI approved) • Individuals and Companies in South/Eastern African • Lessons learnt – Surveys to gather customer & training needs – Strategic plan; expanding incrementally – Need to know • Local market, business laws • Look at what others are doing – Offer quality service – FLOSS is 'free' but services NOT 10 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.5:- Linux Solutions - Uganda • Background – Since 2000, Employs 10 (3 FLOSS experts) – FLOSS Business & Advocacy • Business Focus – Tech support, Consultancy, Software development, Networking – Hardware sales (GNU/Linux pre-installed) • Lessons learnt – Advocacy agend works, Educate your clients – Your business cant survive on FLOSS alone! Diversify! diversify! – Problems with start-up capital. Private sectors as an option – Governments & contracts/bids • Biggest customer, poor paying habits • Consider private sector – more focused? good paying habits? – Does it work for me? Localization!!! think 2wise 11 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.6:- Amest Santim Systems- Ethiopia • Background – Since 2005, Employs 5 – FLOSS business at home!!! • Business Focus – Software Development, training – Web-design/hosting, domain registration – Maintenance & consultancy • Lessons learnt – Minimal start-up cost (2000ETB~200$) – Products & services you are good at – Tailoring product to client needs (consult and discuss) – Creativity, flexibility, creativity – Go for bids with “big boys“ - lessons to be learnt, be bold. 12 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Module 2.7:- CENFOSS - Mozambique • Background – Since 2006, Employs 12 – 1st come - 1st have • Business Focus – Server configuration, software Development – Domain registration, network monitoring – Training & Support • Lessons learnt – Main if not only FLOSS training and solution provider – Less or no competition – Big customers – Government, private sector, NGOs, Univ. Telecom, Banks – External FLOSS partners (CodeWeaver, Wine) 13 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Q&A 14 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • TASK 2 • Group work – For each case study, discuss and list 1.FLOSS Business Strengths 2.FLOSS Business Weaknesses 3.Opportunities for your FLOSS Business Strategy 4.Room for Improvements 15 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Taxonomy of FLOSS Business Models 16 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • Taxonomy of African FLOSS Business Models SS = Software Selection, INS= Installation, INT= Integration, TCERT= Technical Certification, LCERT= Legal Certification, TR= Training, MASC= Maintenance and Support Contracts, MION= Migration from old to new systems Company SS INS INT TCERT LCERT TR MASC MION OpenWorld Yes Yes Yes NA NA Yes Yes NA Global Image Ltd Yes Yes Yes NA NA Yes Yes Yes Future Software Resources Yes Yes NA NA NA Yes NA NA Linux Holdings NA Yes NA NA NA Yes NA NA Linux Solutions NA Yes NA NA NA Yes Yes NA Amest Santim Systems PLC Yes Yes Yes NA NA Yes Yes Yes CENFOSS Yes Yes Yes NA NA Yes Yes Yes Percentage in module 71.45% 100% 57.1% 0% 0% 100% 71.4% 42.8% 17 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • TASK 3 Discussion What is your FLOSS Business? 18 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • “New“ African Business Models • FLOSS packaging • FOSSCDs (www.fosscds.co.za) forge business. • Pack schema....vs freedom toasters, check opencafe. • FLOSS marketing • Build a FLOSS repo of goods and services • FLOSS companies can use and benefit from incubator • Others • Provide FLOSS documentation • FLOSS Strategic management, • Policy advise, legacy issues for start-up companies • Mobile tech & • Data archiving, storage • Data processing – Accounting, survey, tax and census data analysis 19 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • WHAT IS YOUR FLOSS BUSINESS MODEL? 20 S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies
  • About ict@innovation The ict@innovation programme builds capacities in African small and medium ICT enterprises to make a business with Free and Open Source Software (FOSS). ict@innovation aims to encourage the growth of African ICT industries, particularly in Southern and East Africa, through three main actions: spreading FOSS business models for enterprises in Africa, fostering FOSS certification and supporting innovative local FOSS applications for social and economic development. ict@innovation is a partnership of FOSSFA (Free Software and Open Source Foundation for Africa) and InWEnt - Capacity Building International (Germany). The programme focuses on Free and Open Source Software (FOSS) as a key technology to drive innovation, add local value and create sustainable and affordable ICT-solutions. With financial support by: the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Open Society Initiative for Southern Africa (OSISA). License: Creative Commons Attribution-Share Alike 3.0 Germany Copyright for this version: FOSSFA & InWEnt About the Creative Commons Attribution-Share Alike 3.0 Germany License: You are free to copy, distribute, transmit and adapt the work under the following conditions: 1) Attribution: You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). 2) Share Alike. If you alter, transform, or build upon this work, you may distribute the resulting work only under the same, similar or a compatible license. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/de/deed.en or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Please note that this license requires attribution of all authors in future versions, and should include the following attribution: "Created during the initiative "ict@innovation - Creating Business and Learning Opportunities with Free and Open Source Software in Africa", a programme of FOSSFA and InWEnt – Capacity Building International, Germany For more information see www.ict-innovation.org. Reference number : 1702900100. / Under the license, the copyright holder (FOSSFA & InWEnt) do not endorse any previous or future versions of the material or the use of the work." Please also note the following indications and disclaimers: - All trademarks mentioned in this document and potentially protected by third parties shall be subject to the unqualified provisions of the pertinent trademark law and property rights of the registered owner. - Under the license, InWEnt / FOSSFA do not endorse any previous or future versions of the material or the use of the work. on behalf of: - This document has been produced with the financial assistance of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Open Society Initiative for Southern Africa (OSISA). The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of the BMZ. 21 -In addition to the attribution under the license, FOSSFA & InWEnt would kindly request a brief notice in case of use of the material indicating context of use/ modification and number of people reached. Please give us a feedback at ict[at]inwent.org. S. K. Sowe. UNU-MERIT: Module 2: African FLOSS Business Models Case Studies