Open Source Software - A Guide to Innovation
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[heavy content] This guide explains how to make proper use of different software forms. Particularly, the guide stresses that open source software is an essential part of software development ecosystem. It outlines its evolutionary role and challenges that are faced by the software industry. The guide should help IT managers to build sound software strategies. It also signals where are growth points for a forward looking and proactive participation in the technology community.
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Open Source Software - A Guide to Innovation
- 2. This is a high quality software product
- 3. They never ever bake it alone
- 4. There are at least three parts there
- 8. They all add essential spices to the mix
- 9. The three parts are always there
- 10. They bring required but different mind sets and skills to the table
- 11. Customers tend to emphasize certain product components
- 12. Customers distinguish components very well and pick what they need
- 13. A stress on one product’s component doesn’t mean that others don’t exist
- 14. The components are just hidden by the vendors
- 15. This game simplifies messaging to the customers
- 16. The simplification is causing expenses
- 17. Vendors charge for the convenience They call it a
- 18. Customers see design-to-order custom built code
- 19. uniqueness grants competitive potential Vendors see business model #1 contracting • Project Ware • Program Ware (Need something done? Specify. We will code it, delivery and service included)
- 20. The most lucrative model contracting secure, up-front customer unique, expensive, efficient quality isn’t granted no-risk, no scaling, get paid a lot of vendor before you hand- deliver, holding limited QA
- 22. Companies use business model #2 software vendor We have already coded and shipped a software that does many things. Adjust your needs. We will help. • Product Ware, Share Ware (buy the box or license) • Cloud Ware (buy the functionality set) • SaaS Ware (rent the license) • Open Source Ware (buy the license, fix and service the code yourself)
- 23. lucrative and robust model software vendor universal, up-front customer cheap, costs, immediately quality available isn’t detailed scaling, up-front no depen- investment, vendor dency on a many eye- single cus- balls track tomer quality
- 24. A buyer wants customization or on demand fixed code
- 25. Vendors think business model #3 free, free open source We have a software that can do some things. It is delivered to your door and free to try • Free Ware (use it or leave it) • Share Ware (take it, pay for updates and support) • Free & Open Source Ware (take it, adjust it or pay us to do so)
- 26. easy to enter model free & open source no up-front limited or customer investment, expensive quality is features, granted or hassle no payment scaling, huge up- simple front vendor shipping, investment, cheapest return is foot in the not granted door
- 28. How can I eat my
- 29. three options to bite #2 #1 #3
- 30. bake it
- 31. Buy all ingredients progress bar time costs quality
- 32. let them mix & put it in stove progress bar time costs quality
- 33. pull out and eat progress bar time costs quality
- 34. buy it
- 35. Figure out what kind of cake progress bar do you need time costs quality
- 36. go to the store. does it smell progress bar like cake? buy time costs quality
- 37. eat progress bar time costs quality
- 38. junk yard feast
- 39. sneak to the buffet at a late night progress bar party time costs quality
- 40. grab what likely has been a cake progress bar time costs quality
- 41. mix it with salt, sugar and pepper progress bar to taste. eat time costs quality
- 42. get a drink progress bar time costs quality
- 44. HOW can I eat my
- 45. There are three options #1 #2 #3
- 46. #1 If you know what you do…
- 47. #1 …and can afford it
- 48. #1 Go ahead. Buy a locomotive
- 49. #1 your custom built wagons are complimentary code delivery use time
- 50. #1 so you can reach your destinations
- 51. #2 If you are short of money or time
- 52. #2 Buy ready-to-ship solutions delivery
- 53. #2 Buy ready-to-ship solutions One ticket to Choo-Choo City!
- 54. #2 Your wagon is meant to be there delivery use
- 55. #2 But don’t expect much
- 56. #2 It is one size fits all somewhere
- 57. #2 The trouble there: it is hard to find right train One ticket to There is no such Choo-Choo City! destination
- 58. #2 You know it after you bought software. Media reviews don’t consider your specific needs I’m sorry, we’ve sold you a ticket to Cha-Cha One ticket to Choo-Choo City!
- 59. #3 Outgrown it?
- 60. #3 Can’t stand it? Wait!
- 61. #3 or no money to invest now?
- 62. #3 Here you are. Free software code delivery use
- 63. #3 …if it moves the wagon won't be roomy
- 64. #3 Free and open source software enables you any wagon size
- 65. #3 …but eventually you will need to spend money & time code delivery use
- 66. #3 More likely like this some day
- 67. #1 Then you start to think about this
- 69. Basically the entire spectrum of business models can be placed on a line
- 70. pick yours by setting up a screen
- 71. Project Ware Program Ware Cloud Ware Product Ware SaaS Ware Share Ware Support Ware Open Source Ware Free Ware Ad Ware Beg, Mascot Ware Sponsor Ware
- 72. line is looped
- 73. A software product drifts the cycle over time
- 74. …following business sense for a consumable value that The idea is picked up. the product contains Mass product A text editor is created 1 2 as custom built code 4 The editor’s functionality 3 is integrated in other products as a component Cheaper and adjustable replicas of the editor
- 75. From an innovative code to a standard component. New loops continue the life cycle pervasion inception Text editor’s life cycle as a product component Text editor’s life cycle as a stand-alone product
- 76. So.. do I really choose? http://www.flickr.com/photos/mrtruffle/140233326
- 77. Do I choose how I get my ?
- 78. Yes! read again slide 28
- 79. No! You have no choice if the desired functionality is at the technology edge
- 80. Industry produces pies “on a conveyor belt”
- 81. Industry has its own dynamic and macro-sized forces you industry
- 82. You probably can’t pull the rope alone
- 83. …but at any moment you can choose the best bit #2 #1 #3
- 85. Organizational constrains theory
- 86. Two organizational forms as a Fn of product complexity Market exchange is more efficient Coase’s firm theory In-house production is better than procuring the product
- 87. Two ownership forms as a Fn of asset building costs Property is more Implementation valuable than costs are higher implementation than the value of costs property that controls an opportunity Demsetz’s property theory
- 88. Organizational forms as a function of relative costs Value > Costs > property costs property value exchange Cheaper goods Markets Commons in-house to build Cheaper Property Firms regimes Coase’s firm theory + Demsetz’s property theory
- 89. Organizational forms as a Fn of software eco-cycle Value > Costs > property Costs property value exchange Goods Markets Commons in-house Property Build Firms regimes
- 90. Efficient production forms as a Fn of product attributes Abundance Commodity of market product players, that serves universal significant product need Hygienic Complex, product in unique an inapt product in providers’ monopoly market
- 91. product-market-costs-time optimization cycle Product A buying entities Product B costs/profit
- 92. Break-through products pop share entities coverage demands next level infrastructure phase the tipping point “final touch” phase costs/profit
- 93. Mass market products pop share entities coverage demands costs/profit
- 94. Saturation products common base standards pop share entities coverage demands This phase delivers flavors to any taste. That makes the core functionality a common good and knowledge costs/profit
- 95. You can use any product form from the previous complexity cycle pervasion inception components cycle
- 98. Resources constrains theory
- 99. Producing software requires resources infrastructure skills money
- 100. Somebody has to pay to keep the talent alive train, feed work supply FOSS
- 101. Resources come from 1 institutions 2 individuals
- 102. 1 seeking an infrastructure leap in the “final touch” phase typical product is an integrated system complexity system components are open sourced
- 103. 1 requirements A. ambitious to wait until a system becomes ubiquitous B. creative to dare the proliferation semi-cycle C. resourceful to support the components development
- 104. Others 9% Asia & Oceania 7% 41% United Europe 38% North America Debian developers reside in rich countries http://widi.berlios.de/paper/study.html
- 105. 1 constrains A. resources B.incentive to close the source after the tipping point BOTTOM LINE: projects are rarely started, and eventually shut off
- 106. 2 the skilled workers bridging the gap of underemployment civilians unemployed 27+ weeks Bureau of Labor Statistics
- 107. 2 requirements A. critical mass, i.e. industry wide unemployment trigger B. personal resources, i.e. credit access or savings
- 108. 2 constrains A. industry changes B. limited personal resources can’t sustain the movement in the long run BOTTOM LINE: rare temporary opportunity
- 110. CAN I eat my
- 112. Free, collectively built software is essential enabling expedient leaps into the next generation software products
- 113. FOSS does to software what universities did to knowledge mass production commercialization 1 2 4 ideation by individuals knowledge propagation and settle down to standards
- 114. today huge ”fired” IT-force seeds the FOSS US information services employees This is a life time opportunity that is not sustainable unless systemic Bureau of Labor Statistics changes occur
- 115. software proliferation is a fragile business process entities Customization driven development Startup driven development costs/profit
- 116. an overarching system is required a raw model for free software on a sustainability rail
- 117. Contributors Konstantyn Spasokukotskiy Mykola Dimura References Dana Blankenhorn - ZD Net publication on software business models Yochai Benkler http://www.yale.edu/yalelj/112/BenklerWEB.pdf http://widi.berlios.de/paper/study.html http://modeledbehavior.files.wordpress.com/2010/07/image5.png free to copy and reuse with proper attribution