THE MANY BUSINESSMODELS OF       JEFF WALPOLE  CEO, PHASE2 TECHNOLOGY
THE DRUPAL  EXPAND THE DRUPAL MARKETPLACE INTO ADIVERSE, SUSTAINABLE, ROBUST ECOSYSTEM OFCOMPLIMENTARY PRODUCTS AND SERVIC...
OPEN SOURCE   FACTS
FOUR FREEDOMS OF• Freedom 0: The freedom to run the program for any purpose.• Freedom 1: The freedom to study how the prog...
GPL CHALLENGES• You build an open source product and distribute it.• The market uses it, demands features, requests releas...
COMMERCIAL USE• open source is about distribution and use / not licensing• open-source licenses do not preclude the commer...
BUSINESS MODELS• open-source software is copyrighted, but released under licenses  which allow free use and re-distributio...
THERE ARE TWO MAIN1. use Drupal’s intellectual property to attract peoples attention   and then realize money from our exp...
OPEN SOURCE  BUSINESS  MODELS
SERVICE(ISH)              Model                          ExamplesConsulting and Implementation                            ...
PRODUCT(ISH)                 Model             ExamplesFreemium                              Alfresco, EZ PublishDual lice...
DISTRIBUTIONSBUT THEY ALLOW FOR...• Re-use• Standardization• Interoperability• Use case targeting• Building blocks for oth...
DISTRIBUTIONS DON’TALLOW IP CONTROL.• marketing (for everyone)• lead gen and marketing for the creator/ maintainer• platfo...
INTEGRATIONS               Model                           ExamplesAdd-ons (apps/plugins/themes)            Wordpress, EzP...
APPS & ADD-ONS• Extends the module -> features concept• Externalizes functionality• Allows for separate development path, ...
EXTERNAL PRODUCT• Extends the “solution” for things Drupal doesn’t do or isn’t  good at• e.g. Salesforce integration for C...
APPLICATION• Fully hosted stack, from environment to distribution to add-  ons in a single solution• Can be more easily pr...
potential                                                not recommended  Low Feasibility                                 ...
DISCUSSION• Which of these might work and how?• Who is doing these models?• What other models should we be considering?
phase2technology.com    @phase2tech
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The Many Business Models of Drupal

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These are slides from Jeff Walpole's Keynote presentation at the BADCamp Drupal Product Summit

The Many Business Models of Drupal

  1. 1. THE MANY BUSINESSMODELS OF JEFF WALPOLE CEO, PHASE2 TECHNOLOGY
  2. 2. THE DRUPAL EXPAND THE DRUPAL MARKETPLACE INTO ADIVERSE, SUSTAINABLE, ROBUST ECOSYSTEM OFCOMPLIMENTARY PRODUCTS AND SERVICES THATREINFORCE AND COMPLIMENT THE OPEN SOURCE PLATFORM BUT ALSO EXPAND PROFIT
  3. 3. OPEN SOURCE FACTS
  4. 4. FOUR FREEDOMS OF• Freedom 0: The freedom to run the program for any purpose.• Freedom 1: The freedom to study how the program works, and change it to make it do what you wish.• Freedom 2: The freedom to redistribute copies.• Freedom 3: The freedom to improve the program, and release your improvements (and modified versions in general) to the public, so that the whole community benefits.
  5. 5. GPL CHALLENGES• You build an open source product and distribute it.• The market uses it, demands features, requests releases.• You CAN sell it, but...• Selling can be undone by any buyer who then distributes it for free.• “Selling services around it” is not productization.
  6. 6. COMMERCIAL USE• open source is about distribution and use / not licensing• open-source licenses do not preclude the commercial exploitation of the software (i.e. selling)• you can add to open source and then repurpose it• you can package it with licensed commercial software• open-source licenses are not anti-commercial, they are anti lock-in•
  7. 7. BUSINESS MODELS• open-source software is copyrighted, but released under licenses which allow free use and re-distribution which do not preclude other’s creating business models.• But...the open-source revenue model is typically one based on a service revenue stream rather than a license revenue stream.• Proprietary software can also be built with open source tools or be linked to open-source libraries and run on open source.
  8. 8. THERE ARE TWO MAIN1. use Drupal’s intellectual property to attract peoples attention and then realize money from our expertise (e.g., as in lead generation/advertising).2. providing services tied to the intellectual property (i.e. consulting)3. more are emerging...
  9. 9. OPEN SOURCE BUSINESS MODELS
  10. 10. SERVICE(ISH) Model ExamplesConsulting and Implementation Every “Drupal shop” out there(e.g. professional services) Redhat, Build-a-Module,Documentation and training Drupalize.meSupport retainers & subscriptions Acquia, Redhat
  11. 11. PRODUCT(ISH) Model ExamplesFreemium Alfresco, EZ PublishDual licensing JBoss, MySQLDistributions Commons, OpenPublish, Atrium
  12. 12. DISTRIBUTIONSBUT THEY ALLOW FOR...• Re-use• Standardization• Interoperability• Use case targeting• Building blocks for other models
  13. 13. DISTRIBUTIONS DON’TALLOW IP CONTROL.• marketing (for everyone)• lead gen and marketing for the creator/ maintainer• platforms for more sophisticated services/ tie-ins• better platforms for application stacks• could allow for support models
  14. 14. INTEGRATIONS Model ExamplesAdd-ons (apps/plugins/themes) Wordpress, EzPublishExternal Product Integration cloud services, Drupal Commerce Redhat OpenShiftApplication bundles (SaaS & PaaS) “Moonlight” (hosted OpenAtrium)
  15. 15. APPS & ADD-ONS• Extends the module -> features concept• Externalizes functionality• Allows for separate development path, independent upgrade path, & separate ownership• Makes distributions an “integration point” for paid services --> Commerce Kickstart and payment processing service• Keeps base product (or distro) lighter
  16. 16. EXTERNAL PRODUCT• Extends the “solution” for things Drupal doesn’t do or isn’t good at• e.g. Salesforce integration for CRM• Connects a product (built in anything) and a Drupal site with module or API• Creates a stack of functionality
  17. 17. APPLICATION• Fully hosted stack, from environment to distribution to add- ons in a single solution• Can be more easily priced and sold as a single “product”• huge operational responsibility• can be a partnering challenge unless you own the full stack
  18. 18. potential not recommended Low Feasibility Dual Licensing Support Freemium WHICH ONES Retainers/ Subscriptions Competitive/Legal Feasibility where we started where to focus Product WORK Distributions Integration Add-ons & Plug-ins Documentation & Training Consulting and Application Implementation bundles (stacks) High Feasibility Low Barriers to Entry High Barriers to Entry Complexity
  19. 19. DISCUSSION• Which of these might work and how?• Who is doing these models?• What other models should we be considering?
  20. 20. phase2technology.com @phase2tech

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