Patrice Bertrand - Foss models revisited, Is freemium a bad word ?

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Patrice Bertrand - Foss models revisited, Is freemium a bad word ?

  1. 1. Foss models revisited,Is freemium a bad word ? Patrice Bertrand – Is freemium a bad word ?
  2. 2. Foss models revisited,Is freemium a bad word ? Patrice Bertrand Chairman OWF 2012 Chairman CNLL Founder and manager, Smile Patrice Bertrand – Is freemium a bad word ?
  3. 3. No free beer ?● Free, not as in « free beer »...● Sure, but in real life, who wants to pay ? And how ?● Most FOSS developpers are paid, and deserve it !● A CIO is into cost-cutting all day long● Why would he or she want to pay if its optionnal ?● If its for the good of mankind, then its not really in his/her scope and mission● How about us ? Do we pay if we dont have to ? Patrice Bertrand – Is freemium a bad word ?
  4. 4. French government advocates free software● French prime ministers letter on free software in public bodies IT● Underlines the need for contributions, both for moral and practical reasons● Contribution should aim for 5 to 10 % of licence cost saved. Better than most do. Is it the fair rule of thumb ?● Recommends third party global support, not linked to usage Patrice Bertrand – Is freemium a bad word ?
  5. 5. FOSS Business Models3 flavours of FOSS, 3 types of models● Foundations : shared funding of R&D● Communities : unpaid volonteers + shared funding● Vendors : for profit / invest and reapIn the past 10 years vendor FOSS hascomplemented the available FOSS assets Patrice Bertrand – Is freemium a bad word ?
  6. 6. Why do vendors go for FOSS ?● A sure way to make lots of money ?● Its trendy ?● It will get the product known worldwide in no time (if its good). Open source is free marketing ?● Can use wealth of OSS components ?● Can have some of the development done by others for free ?● Only way to break monopolies ? Patrice Bertrand – Is freemium a bad word ?
  7. 7. Open Source Vendors● Some open source software vendors have a hard time making a living● The same guys that claim FOSS means not free will scold you if your sales pitch is too demanding● Heed the cry of the lone FOSS developper : « no-one wants to pay even 100 €, but they all ask for help and fixes. How am I to pay the rent ? » Patrice Bertrand – Is freemium a bad word ?
  8. 8. Open Source Vendors● FOSS vendors are for-profit, normal companies● They have invested a lot in creating the software● Some have a VC on their back too● They need some ROI, or they will die.● How should they get the money ?● Distribution ? Not any more.● Integration ? Maybe for a start, but not scalable... Patrice Bertrand – Is freemium a bad word ?
  9. 9. Open Source Vendors● Selling support ? Politically correct, but not so easy● Support bills should pay for development as well● Customers should accept that support is a way of paying the software. Not all do.● Thus not turn to third party for support● And probably accept that support cost is dependant on usage. Patrice Bertrand – Is freemium a bad word ?
  10. 10. Selling SupportHard to live on support :● Its so good, why would I need support ?● Do I really get my moneys worth ?● If I use at scale x100, I dont want to pay x100 (thats whats good about OSS !)● I might turn to someone else for support, they give it for less ! Patrice Bertrand – Is freemium a bad word ?
  11. 11. Dual licence / dual versionsDistributing under 2 licences is becomingthe favoured modelAn enterprise (ie not open source) version,either :● Same code with vendor support● More stable code● More advanced features Patrice Bertrand – Is freemium a bad word ?
  12. 12. Is freemium a bad word ?To some, freemium is a scam...Whats wrong with freemium, really ?● It blurs the line between open source and proprietary software● It boasts all the benefits of open source, but delivers only some● It sometimes hires rough salesmen with little knowledge or fondness of free software Patrice Bertrand – Is freemium a bad word ?
  13. 13. Whats good with freemium ?● It adds open source in areas where there is little● It does offer a wealth of code under GPL licence, for everyone to use, modify and distribute● The « community version » is used as such by (tens of) thousands● The « enterprise version » is very good value for the money● It still is exposed to forks● It does no harm to « traditional » open source Patrice Bertrand – Is freemium a bad word ?
  14. 14. Vendor FOSS never competes with traditionnal open source● Freemium is just one of the models available to open source software vendor● Vendor FOSS never competes with traditionnal open source :● If the Apache Foundation offers a DMS, ETL, BPM, that is as good and complete as Hadoop, has a strong community and becomes a standard, then vendors are dead. Patrice Bertrand – Is freemium a bad word ?
  15. 15. Vendor and community● The « hub and spoke », « kernel and extensions » model combines vendor and community● A software architecture model, but also a business model● Drupal a good example● Kernel is worth little without extensions.● Vendor benefits from much development at no cost● Vendor still controls kernel and guaranties quality Patrice Bertrand – Is freemium a bad word ?
  16. 16. My personnal view on freemium● Does more good than wrong, by far● Programmers must get paid ! Thats one way● Does not compete with rest of Foss, is in different domains● Does help getting Foss into enterprise● True, some vendors are getting borderline● A problem with community versions that are deemed unfit for real use● I would love Foss associations to rank the openness of major vendors Patrice Bertrand – Is freemium a bad word ?

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