Open Source + Big Data = Big Money

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Presented at OSBC, this presentation examines the growth opportunity for firms whose primary revenue mechanism is software sales and licensing. Specifically, it compares and contrasts them with data oriented revenue opportunities.

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Open Source + Big Data = Big Money

  1. 1. Open Source + Big Data= Big MoneyMay 201110.20.2005
  2. 2. http://redmonk.com/public/osbc.pdf 2
  3. 3. What do these vendors have in common? 3
  4. 4. 4
  5. 5. These are PwCsGlobal Software Top 20 5
  6. 6. Source: PwC6
  7. 7. What else do these vendors have in common? 7
  8. 8. All were founded before 1989 8
  9. 9. 1989 was twenty-two years ago 9
  10. 10. Things that happened in 1989• The Soviet Union left Afghanistan• Time and Warner Merge• The Exxon Valdez oil spill• Tiananmen Square• Rain Man won best picture• Sega Genesis is released 10
  11. 11. Oh, and some show called Seinfeld premiered 11
  12. 12. The average age of theTop 20 Software Companies, in fact, is 47 years 12
  13. 13. Thats partially skewed by the likes of IBM (1911) NEC (1899!), though 13
  14. 14. Less outliers? 31 years 14
  15. 15. So? 15
  16. 16. Big, older companies outsource riskBy acquiring smaller, younger ones 16
  17. 17. But if older = bigger 17
  18. 18. Why is Microsoft the biggest? 18
  19. 19. And theres a bigger problem 19
  20. 20. 20
  21. 21. Question:Is Google a software company? 21
  22. 22. Exactly 22
  23. 23. 23
  24. 24. 24
  25. 25. 25
  26. 26. 26
  27. 27. Growth through software sales is slowing 27
  28. 28. Growth through data is not 28
  29. 29. The Four Stages ofSoftware Producers 29
  30. 30. STAGE 1“The money is in the hardware, not the software” 30
  31. 31. STAGE 2“Actually, the money is in the software” 31
  32. 32. STAGE 3“The money is not in the software, but it is differentiating” 32
  33. 33. STAGE 4“Software is not even differentiating, the value is the data” 33
  34. 34. What happens when companies of one stagecompete with another stage 34
  35. 35. Microsofts Share Price 35
  36. 36. Share Price in Context 36
  37. 37. The Age of Data is upon us 37
  38. 38. The Age of Software The Age of Data 38
  39. 39. What does this mean? 39
  40. 40. Software is a means 40
  41. 41. What are you bad at? 41
  42. 42. Customer conversion 42
  43. 43. If youre in open source,youre good at distribution 43
  44. 44. If youre good atdistribution, youre good at generating data 44
  45. 45. USE IT 45
  46. 46. Open Source is not Growth 46
  47. 47. Open Source enables data Which enables growth 47
  48. 48. So if youre in open source and youre ignoring data 48
  49. 49. Youre doing it wrong 49
  50. 50. QUESTIONS 50

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