This document discusses the challenges of building successful businesses with open source code. While there are millions of open source code repositories, more than 80% of open source projects fail, and only 20% succeed to some degree. Key factors for open source code to succeed include gaining traction among consumers and developers by being easy to use and targeting specific needs. Successful open source businesses then monetize through business-to-consumer models like advertising or premium services, or business-to-business models offering consulting, support, and licensing. Examples discussed include Videolab, which monetizes its video player through advertising, and Wakanda which sells its open source framework to enterprises.

1. © 2016 SAAKAI Pte. Ltd. Confidential information owned by SAAKAI, to be used by the recipient only.
This document or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from SAAKAI Pte. Ltd.
From Code to Product to Startup
The Challenges for Building Successful Business
Model with Open Source Code
Roger Essoh, September 21, 2016

2. >> +18 years experience in IT and open source Industry
! Chief Strategy Officer at Saakai PTE – Singapore (Startups Studio)
! Venture Partner at Quorumm Digital Venture
! Strategic Advisor for various startups including Videolabs and Wakanda
! Join Objectweb Consortium (former OW2) in 2004 to represent Atos
! Various positions at Atos Public Sector France including as Open
Source Director and 2 years at Atos International as Global Business
Development Director for the Digital market.
About me

3. CODE
PRODUCT
STARTUP
>> Today, Open Source Code is the engine of
Innovation with million of repositories on
Github, Bitbucket, Sourceforge, Ohloh, …
From Code to Product to Startup
>> But the road to build successful
companies with open source business
models is paved with a lot of failures and
a limited number of success stories.

4. More than 80% of Open Source Projects Failed
+800 Open Source Startups
listed on Crunchbase in 2016
80% have
failed or
will…
Only 20% will
succeed
someway…

5. What makes Open Source Code Succeed ?
Consumers Traction
Make it K.I.S.S to buy
and to access by
target users
Developers Traction
Build an empowering
community
Technology Foundation
Target a specific
developer, enterprise
and/or end-user need

6. How to monetize successful open source code?
In B2C Positioning
Convince Your End-Users
and your community
To accept monetization
(advertising, premium
services).
In B2B Positioning
Provide Consulting and
Development Services,
License, Support, Training
and Maintenance.
A lot of effort are made on:
" Product Engineering,
" Field and Online Marketing
" Channel Program
A lot of effort are made on:
" Community engagement to
convince core members and
end-users.

7. Business Cases: Videolab (B2C) – Wakanda (B2B)CODEPRODUCTMONETIZATION
Videolab.io Wakanda.io
Github traction
" 2,123 stars
" 1,036 forks
Core committers
work for Videolab
VLC: +2 Billion
downloads since
2005
Challenges to find
the right
monetization model
the community will
tolerate.
Github traction
Very low
Core developers
work for Wakanda
+10K unique
visitors / month
+40 qualified
leads /month
Challenges to
convince
enterprises to buy
Wakanda.

8. © 2016 SAAKAI Pte. Ltd. Confidential information owned by SAAKAI, to be used by the recipient only.
This document or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from SAAKAI Pte. Ltd.
Contact
Roger Essoh – LinkedIn : : http://www.linkedin.com/in/ressoh
Cell (Australia): +61 472 599 135
Cell (France): +33 668 377 780
roger.essoh@saakai.com
Questions / Answers