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The Four Secrets of a
               Successful Open
               Source Business



                          Miguel Valdés-Faura
                          BonitaSoft CEO & Co-Founder



08/08/2012                                       1
What makes a Successful Open Source Business?

  There are four secrets:


  The Market Analysis
  The Democratization Process
  Community Management
  A High-Volume Sales Machine
The Market Analysis
Do your homework. What is your opportunity?


    Is your market mature and fully evangelized?
    What is your value proposition… besides being open
   source?
    How your business model is going to be disruptive?
    Can you expand your opportunity?
Define your differentiators
                                           Quick time to value

                                                                      1-Day
                                                                    Deployment
                                                                                              Costs 10 times less than traditional
                                                                                                           software
   Improvements from thousands of
           contributors

                                                                                         Cost
                                           Extensibility
                                                                                     Effectiveness




                     Easy to connect                                                              Access to source code
             to external and internal systems

                                                     Connectivity                Low risk




                                                                                                                                     5
The Democratization Process
Shake things up

   Democratization is:
    Creating options
    Offering alternatives
    Challenging the status quo
    Disrupting traditional pricing models


       Bring your Solution to the masses… Stay away from the elite



                                                                     7
How do you do it?


              Create great software

                Build an active community

                 High volume business

                Develop partnerships (Do not be open source exclusive)

              Viral marketing: get the word out!


 08/08/2012                                                              8
Community Management
Best practices for community management


    Invest in a dedicated community manager or team
    Identify product extension points or contributions
    Work on content that encourages technology and product
     adoption
    Develop product tools or features that foster contributions
Best practices for community management


    Monitor and participate in your forums & analyze
     discussions
    Highlight active community members and get their
     feedback
    Engage in other communities
A High-Volume Sales
      Machine
Measurement

               Define your key performance indicators (KPIs)
               Acquire technology that allows you to track
               Constantly monitor performance
               Make adjustments quickly
    14000



    12000



    10000



     8000



     6000



     4000



     2000



        0
               Feb   Mar   Apr   May   June   July   August   Sept   Oct   Nov   Dec   Jan-12   Feb-12   Mar-12   Apr-12   May-12   June-12




 08/08/2012                                                                                                                                   13
Define your revenue model




                            14
The result
#1 Growing BPM vendor                                                • €8M Series B: Serena, Ventech & Auriga
                                                                     • 250 customers
 1.5 million downloads                                               • +1M downloads



 20,000 community members                                   • 100 customers
                                                            • +500k downloads

 400 customers                                              • New offices in France,
                                                            US and China
                                • BonitaSoft is founded
                                • €4,5M Series A: Ventech & Auriga
                                •100k downloads
    • Bonita project creation
    • INRIA Labs (France)
    • Open Sourced


          March 2001                 June 2009                       December 2010               October 2011
BonitaSoft Is:

    +250k website       1 new customer every     +300 connectors to
 visitors every month       business day          enterprise & cloud
                                                       systems
     +60k product       50% -50% deals new      +50 System Integrators
      downloads         business vs upselling       partners in 30
     every month            every quarter              countries
    +10.000 leads       400 customers in 50     +35.000 discussions in
     every month         different countries      community forums
THANK YOU!




      October 10, 2010
                         18

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Four Secrets of a Successful Open Source business

  • 1. The Four Secrets of a Successful Open Source Business Miguel Valdés-Faura BonitaSoft CEO & Co-Founder 08/08/2012 1
  • 2. What makes a Successful Open Source Business? There are four secrets: The Market Analysis The Democratization Process Community Management A High-Volume Sales Machine
  • 4. Do your homework. What is your opportunity?  Is your market mature and fully evangelized?  What is your value proposition… besides being open source?  How your business model is going to be disruptive?  Can you expand your opportunity?
  • 5. Define your differentiators Quick time to value 1-Day Deployment Costs 10 times less than traditional software Improvements from thousands of contributors Cost Extensibility Effectiveness Easy to connect Access to source code to external and internal systems Connectivity Low risk 5
  • 7. Shake things up Democratization is:  Creating options  Offering alternatives  Challenging the status quo  Disrupting traditional pricing models Bring your Solution to the masses… Stay away from the elite 7
  • 8. How do you do it? Create great software Build an active community High volume business Develop partnerships (Do not be open source exclusive) Viral marketing: get the word out! 08/08/2012 8
  • 10. Best practices for community management  Invest in a dedicated community manager or team  Identify product extension points or contributions  Work on content that encourages technology and product adoption  Develop product tools or features that foster contributions
  • 11. Best practices for community management  Monitor and participate in your forums & analyze discussions  Highlight active community members and get their feedback  Engage in other communities
  • 13. Measurement  Define your key performance indicators (KPIs)  Acquire technology that allows you to track  Constantly monitor performance  Make adjustments quickly 14000 12000 10000 8000 6000 4000 2000 0 Feb Mar Apr May June July August Sept Oct Nov Dec Jan-12 Feb-12 Mar-12 Apr-12 May-12 June-12 08/08/2012 13
  • 16. #1 Growing BPM vendor • €8M Series B: Serena, Ventech & Auriga • 250 customers 1.5 million downloads • +1M downloads 20,000 community members • 100 customers • +500k downloads 400 customers • New offices in France, US and China • BonitaSoft is founded • €4,5M Series A: Ventech & Auriga •100k downloads • Bonita project creation • INRIA Labs (France) • Open Sourced March 2001 June 2009 December 2010 October 2011
  • 17. BonitaSoft Is: +250k website 1 new customer every +300 connectors to visitors every month business day enterprise & cloud systems +60k product 50% -50% deals new +50 System Integrators downloads business vs upselling partners in 30 every month every quarter countries +10.000 leads 400 customers in 50 +35.000 discussions in every month different countries community forums
  • 18. THANK YOU! October 10, 2010 18