Open Source business models


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A presentation describing the various open source business models, show casing the MARSSA open source project which is hosted by MARSEC-XL.

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Open Source business models

  1. 1. University of Manchester trip to Malta Zak Borg MARSSA project Lead
  2. 2. The business of Open Source softwareMARSEC12-819 MARSEC-XL Foundation
  3. 3. What do we mean by open source?
  4. 4. “Describes practices in production anddevelopment that promote access to the end products source materials”
  5. 5. The leaders driving open source
  6. 6. Why use open source ?
  7. 7. The Pizza modelToo often, businesses need to develop software with the same "ingredients"as everyone else, and this offers no competitive advantage. If everyone wantsthe same pizza, why not share the cost?
  8. 8. Projected cost to come up with another Linux… €8 Billion
  9. 9. In the late 90s, Microsoft secretlydeveloped its own version of Linux, but shelved it after quality controlresearchers deemed it "too stable“Instead spent €421 to fight Linux !!
  10. 10. Collaboration is the key to success!
  11. 11. Community driven development
  12. 12. People from different walks of live all working together on the same challenge.A community of developers, designers all dedicating their free time to the development of the project Thousands of testers & developers
  13. 13. Innovative business models
  14. 14. “We’ve got a shot at really pulling together toturn upside down the way we approach thechallenges we are facing in the world and lookat them in a brand new entrepreneurial way.”
  15. 15. Open source business models
  16. 16. Flip side business models
  17. 17. • Per-unit royalties• NREs (non-recurring engineering fees) for integration & production• Subscriptions for product updates & support• Certification and compliance testing fees• Hardware sales• Insurance for product liability and indemnification• Sharing development costs• Dual licensing
  18. 18. Apple Inc. offers Darwin for free, while selling Mac OS X.MySQL is offered for free, but with the enterprise version includes supportand additional features.Oracle - Virtual Box is free and open-source to anyone, but the VirtualBoxextension pack can only be used for free at home, therefore requiringpayment for businessSun Microsystems offer for free, while selling Star Office.
  19. 19. Use open source technologies and have zero start up costs
  20. 20. Open source projects
  21. 21. = An “innovation hotspot” for all marinesoftware systems. MARSEC-XL serves as aneutral ground where internationallyleading brands, start-up companies andacademic institutions workcollaboratively.
  22. 22. MARine Systems Software Architecture
  23. 23. Opening what is closedThe first open source project in the marine industry
  24. 24. Instead of competing on the platform, MARSSA enables companies around the globe to compete on the innovations. Music Route planner Navigation Infotainment Sensor data Motors MARSSA
  25. 25. The fast pathJanuary 2010 – Concept launchedFebruary 2011 – Work started on Reference Architecture & MARSSA footprintMarch 2011 – MARSSA Officially launchedApril 2011 – MARSSA concept presented at LinuxCon in San FranciscoMay 2011 – MARSSA invited by Intel to show case in San FranciscoAugust 2011 – MARSSA Demonstrator launchedSeptember 2011 – MARSSA Reference architecture V1 released.October 2011 – Isle Of Open Source, First MARSSA conference.November 2011 – 120 active members!.2012 – MARSSA FP7 project
  26. 26. € 200For hardware &software € 150 For installing software
  27. 27. We all interact with Open Source Software