Proudly Found Elsewhere: The Open Source Bonanza

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This is the Open Source Era! Over the past decade, software isn’t just something to make money from, but something to make money with. How are some of the highest growth businesses in the world using open source software and network services to fuel their grand ambitions?

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Proudly Found Elsewhere: The Open Source Bonanza

  1. 1. Proudly Found Elsewhere The Open Source Bonanza October 2011
  2. 2. http://redmonk.com/public/ innovate .pdf
  3. 3. What do these vendors have in common ?
  4. 5. These are PwC's Global Software Top 20
  5. 6. Source: PwC
  6. 7. What else do these vendors have in common?
  7. 8. All were founded before 1989
  8. 9. 1989 was twenty-two years ago
  9. 10. <ul><li>Things that happened in 1989 </li></ul><ul><li>The Soviet Union left Afghanistan </li></ul><ul><li>Time and Warner Merge </li></ul><ul><li>The Exxon Valdez oil spill </li></ul><ul><li>Tiananmen Square </li></ul><ul><li>Rain Man won best picture </li></ul><ul><li>Sega Genesis is released </li></ul>
  10. 11. Oh, and some show called Seinfeld premiered
  11. 12. The average age of the Top 20 Software Companies, in fact, is 47 years
  12. 13. That's partially skewed by the likes of IBM (1911) NEC (1899!), though
  13. 14. Less outliers? 31 years
  14. 15. So ?
  15. 16. Big, older companies outsource risk By acquiring smaller, younger ones
  16. 17. But if older = bigger
  17. 18. Why is Microsoft the biggest ?
  18. 19. And there's a bigger problem
  19. 22. When was eBay founded?
  20. 23. 199 5
  21. 24. And PayPal ?
  22. 25. 199 8
  23. 26. The lesson ?
  24. 27. Correlation between revenue and age is weak
  25. 28. Building software is just one path to revenue
  26. 29. Make money with software rather than from it
  27. 30. The Four Stages of Software Producers
  28. 31. STAGE 1 “ The money is in the hardware , not the software ”
  29. 32. STAGE 2 “ Actually, the money is in the software ”
  30. 33. STAGE 3 “ The money is not in the software , but it is differentiating ”
  31. 34. STAGE 4 Web 2.0 “ Software is not even differentiating ”
  32. 35. The lesson?
  33. 36. Open Source is everywhere
  34. 37. Using projects like
  35. 38. And of course
  36. 39. The net ?
  37. 40. “ In a nutshell, the Oracle Exadata capital expenses for hardware and software total $589.4 million compared to an open source and commodity hardware cost of $104.2 million. ” Larry Dignan, ZDNet
  38. 41. This realization triggered waves of innovation
  39. 42. It ’ s not only software costs that are coming down
  40. 43. “ EC2 means anyone with a $10 bill can rent a 10-machine cluster with 1TB of distributed storage for 8 hours. ” Flip Kromer, Infochimps
  41. 44. How to connect everything?
  42. 45. “ So one day Jeff Bezos issued a mandate… 1) All teams will henceforth expose their data and functionality through service interfaces. 2) Teams must communicate with each other through these interfaces. ” Steve Yegge, Google
  43. 46. Which means ?
  44. 47. That the world is increasingly composed of open source and services
  45. 48. So think about what makes you different
  46. 49. QUESTIONS

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