FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS for Startups
Rahul De’
Hewlett-Packard Chair Professo...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
1 FOSS Basics
2 FOSS Economics
3 FOSS & IT Strategy
4 FOSS...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS Basics
FOSS is Free and Open Source Software
FOSS is ...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
The GPL
The GNU General Public License
Freedom to run the ...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS Economics
FOSS is based on social/peer production1
Th...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS Economics
The Feedback Loop of Innovation
Social/ Pee...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS as Information Good
FOSS is an information good
Low c...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS for Startups
Competitive
Dynamics
IT in Hyper-
Compet...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
Changing Competitive Dynamics
Hyper-competitive environmen...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
Role of IT in Hyper-Competitive Environment
IT Differentiat...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS as a Reusable Repository
Systematic reuse of availabl...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS: For Dynamic IT Capabilities
Time-to-market advantage...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS: Agility and Entrepreneurial Action
Agility
Enables c...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS for Startups: Questions and Issues
1 Which licence is...
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
Thank you for listening! Any Questions???
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Open Source For Start-ups, Prof. Rahul De

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pen Source For Startups
Doing Business With Open Source



Traditional business wisdom suggests knowledge captured in methods, intellectual property form a crucial competitive advantage, and yield profitable commercialization opportunities for firms. The Open-source model turns the traditional wisdom on its head and suggests product development as a collaborative effort. The application development process benefits from community wisdom allowing feature improvements across competition and clones. Open source licenses helps the entire ecosystem commercially but the contributor(copyright holder) which may lead to less contributors


The commercialization challenge of the open-source models is steadily easening with approaches like dual licensing, software as a service, freemium, crowd-funding etc.

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Open Source For Start-ups, Prof. Rahul De

  1. 1. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS for Startups Rahul De’ Hewlett-Packard Chair Professor Indian Institute of Management Bangalore rahul@iimb.ernet.in 5 April, 2014
  2. 2. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups 1 FOSS Basics 2 FOSS Economics 3 FOSS & IT Strategy 4 FOSS for Startups
  3. 3. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS Basics FOSS is Free and Open Source Software FOSS is defined by How the software is made How the software is licensed FOSS is distinguished from proprietary software, which is made in the “cathedral” whereas FOSS is made in the “bazaar”
  4. 4. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups The GPL The GNU General Public License Freedom to run the software Freedom to inspect and change the source code Freedom to share the software Freedom to distribute a modified version of the code
  5. 5. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS Economics FOSS is based on social/peer production1 The final product is non-proprietary There is no price signalling in the market No central command and control of production No large inputs of capital required Relies on distributed computing facilities and networks 1 Based on Benkler’s Wealth of Networks
  6. 6. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS Economics The Feedback Loop of Innovation Social/ Peer Production Inputs: Information Output: Information Goods
  7. 7. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS as Information Good FOSS is an information good Low cost of final product enables Innovation Further growth through peer production Sustains low-cost production process For Indian economy Reduces costs of innovation and technology development Enables entrepreneurship to flourish
  8. 8. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS for Startups Competitive Dynamics IT in Hyper- Competitive Environments FOSS for Reuse FOSS for Dynamic IT Capabilities
  9. 9. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups Changing Competitive Dynamics Hyper-competitive environment Schumpeterian economics Dynamic process of a series of market disruptions IT creates market disruptions Advantages from specific competitive moves is temporary Need for agility and flexibility Identify market imperfections Assemble dynamic competencies Sense and respond Continuous entrepreneurial actions
  10. 10. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups Role of IT in Hyper-Competitive Environment IT Differentiation Ability to innovate from knowledge, assets, and resources Assemble IT competencies in iterative loops Co-evolve assets, capabilities and knowledge Systems thinking and not just “tool” thinking Improvisational capabilities: the ability to spontaneously reconfigure existing resources Agility Entrepreneurial alertness Responding to changing customer, partner and business needs
  11. 11. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS as a Reusable Repository Systematic reuse of available FOSS FOSS as a reusable repository The largest external repository of reusable components High quality software code Embedded knowledge But not “designed for reuse” Not abstracted for reuse: high cost of searching for reusable artifacts
  12. 12. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS: For Dynamic IT Capabilities Time-to-market advantages Adherence to open standards and open architecture Possible to deploy hybrid solutions of diverse components Technological advantages (examples) Performance optimization through usage of best-of-breed solutions FOSS database found to be highly scalable More stable systems derived from superior quality of code base Lesser points of failure Reduced security threats Cost savings Higher ROI from technology spend
  13. 13. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS: Agility and Entrepreneurial Action Agility Enables co-evolving of assets with customers / partners High interoperability of FOSS systems Reduced vendor dependence Flexibility and faster time-to-market Initiate preemptive moves Respond to competition Develop entrepreneurial spirit Spirit of using FOSS Assembling innovation in continuous loops
  14. 14. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS for Startups: Questions and Issues 1 Which licence is best suited for FOSS reuse? 2 Can components under different licences be combined? 3 What happens if the FOSS project, from which code is reused, goes under? 4 What about warranties for performance? What strategy can be deployed for that? 5 When should code be upstreamed or given back to the community?
  15. 15. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups Thank you for listening! Any Questions???

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