+ SOURCE OPEN 2015 the
future of

2 2015 the future of
OPEN SOURCE @FUTUREOFOSS #FUTUREOSS

AGENDA PERVASIVE CORPORATE USE OF
OPEN SOURCESECTION 2 THE OPEN SOURCE ADVANTAGESECTION 3 SHAPING THE FUTURE OF TECHNOLOGY AND SECURITY SECTION 4 THE BUSINESS OF OPEN SOURCESECTION 5 CONCLUSIONSSECTION 6 SECTION 1 DEMOGRAPHICS @FUTUREOFOSS #FUTUREOSS

SECTION1
DEMOGRAPHICS
DEMOGRAPHICS
@FUTUREOFOSS
#FUTUREOSS

THE FUTURE OF OPEN SOURCE
5 SURVEY RESPONDENTS RECORD-BREAKING RESPONSES 822 2013 453 2011 1300 2015 SECTION1 DEMOGRAPHICS @FUTUREOFOSS #FUTUREOSS

Software engineer/ developer Analyst CEO/founder
CIO Educator Line of Business Manager Marketing System Architect/EngineerOther VP Sales/Business Development Lawyer/ Investor President SURVEY RESPONDENTS ROLES SECTION1 DEMOGRAPHICS @FUTUREOFOSS #FUTUREOSS

PERVASIVE CORPORATE USE OF OPEN
SOURCE SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

78% OF COMPANIES RUN ON
OPEN SOURCE LESS THAN 3% DON’T USE OSS IN ANY WAY SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

SECTION2 CORPORATEUSE 2XSINCE 2010 USE
OF OPEN SOURCE TO RUN BUSINESS IT ENVIRONMENTS HAS GONE UP @FUTUREOFOSS #FUTUREOSS

“The numbers don’t lie. It
has been another incredible year for OSS, with organizations large and small adopting open source solutions in greater numbers. The survey confirms what we’ve known all along, that open source is driving innovation for the world's most successful companies, and investors and Global 2000 brands are taking notice. As one of the most trafficked websites on earth, weather.com’s adoption of an open source platform is a testament that the old ways of delivering digital experiences are being replaced by newer, more agile solutions. The weather.com team gains the agility to deliver on customers’ increasing expectations, and is leading the way with contextual weather insight that anticipates every user’s needs." DRIES BUYTAERT, CTO & CO-FOUNDER, ACQUIA @DRIES @ACQUIA @FUTUREOFOSS #FUTUREOSS

CASE STUDY CUSTOMER CASE STUDY
FOR weather.com by the numbers: • 100 million+ unique visitors every month • 50 million+ page views a day • 20 million+ different pages of content weather.com needed an open delivery platform to help it adapt to fast changes in technology. Millions of people rely on weather.com every day; it is transforming how we interact with weather news. People expect accurate weather forecasts on-demand, and they want to be alerted to events that may impact their life, work, travel, and leisure. weather.com started using Drupal last year to deliver dynamic experiences for its site visitors to meet ever-changing consumer demands. With Drupal, weather.com gains the right combination of agility and connectedness that allows it to expand its platform and maintain quality at the same time. Now it can better: • Present contextual weather insight that anticipates every user’s needs • Create and distribute content quickly • Ensure great performance through an elastic cloud infrastructure @ACQUIA @FUTUREOFOSS #FUTUREOSS

UP 14% YOY CORPORATE PARTICIPATION
IN OPEN SOURCE PROJECTS ON THE RISE 64% SAID THEIR COMPANIES CURRENTLY PARTICIPATE IN OPEN SOURCE PROJECTS OF ORGANIZATIONS WITH OVER 5,000 EMPLOYEES, 67% SAID THEY PARTICIPATE IN OSS PROJECTS SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

SAY THAT MORE THAN HALF
OF THEIR ENGINEERS ARE WORKING ON OPEN SOURCE >50% SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

IN THE NEXT 2-3 YEARS
CORPORATE ENGAGEMENT WITH OPEN SOURCE WILL DEEPEN UP FROM 56% EXPECTED GROWTH IN 2014 88% EXPECT THEIR COMPANIES TO INCREASE CONTRIBUTIONS TO OPEN SOURCE PROJECTS SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

IN THE NEXT 2-3 YEARS
CORPORATE PARTICIPATION WILL DEEPEN FURTHER 53%EXPECT TO REDUCE BARRIERS TO EMPLOYEE PARTICIPATION IN OSS 47%WILL RELEASE INTERNAL TOOLS AND PROJECTS AS OPEN SOURCE 39%PLAN TO START OWN EXTERNAL OSS PROJECT UP 13% FROM 2014UP 9% FROM 2014 A 18% INCREASE FROM 2014 SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

OPEN SOURCE IS THE DEFAULT
APPROACH FOR SOFTWARE >66% CONSIDER OSS OPTIONS BEFORE PROPRIETARY SOFTWARE ALTERNATIVES SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

“Open source has solidified its
position as the default base for software development. It is infiltrating almost every facet of the modern enterprise and is outperforming proprietary packages on quality, cost, customization and security. In the startup community we are seeing a continued wave of open source born companies – the next wave of Red Hat, Acquia and Ubuntu while at the same time seeing traditional IT leaders such as H-P and Microsoft grafting open source DNA into their core. In the coming years, we will see open source unlock the potential of a new generation of technologies – the Internet of Things, big data and cloud computing creating many billions in value.” PAUL SANTINELLI, GENERAL PARTNER, NORTH BRIDGE @PAULSANTINELLI @NORTH_BRIDGE @FUTUREOFOSS #FUTUREOSS

INCREASING ABUNDANCE Open Source Projects
Source: Black Duck Software BLACK DUCK KNOWLEDGEBASE 0 200000 400000 600000 800000 1000000 1200000 1400000 2007 2009 2011 2013 2015 SECTION2 CORPORATEUSE @FUTUREOFOSS #FUTUREOSS

THE OPEN SOURCE ADVANTAGE SECTION3
OPENSOURCE ADVANTAGE @FUTUREOFOSS #FUTUREOSS

OPEN SOURCE ATTRACTS TOP TALENT
50% SAID THEIR COMPANY’S PARTICIPATION IN OSS HELPS THEM FIND AND RECRUIT TOP TALENT 2014 2015 37% 51% SECTION3 OPENSOURCE ADVANTAGE @FUTUREOFOSS #FUTUREOSS

"As adoption of open source
continues to grow aggressively, so too does the need for a highly qualified workforce. At the Linux Professional Institute, we've spent the last 15 years creating programs to help IT professionals differentiate their skills and help employers find the talent they need." JIM LACEY, CEO, LINUX PROFESSIONAL INSTITUTE @LPICONNECT @FUTUREOFOSS #FUTUREOSS

OVER 65%GAIN COMPETITIVE ADVANTAGE OPEN
SOURCE PARTICIPATION FUELS ENTERPRISE COMPETITIVE ADVANTAGE UP FROM 45% IN 2014 SECTION3 OPENSOURCE ADVANTAGE @FUTUREOFOSS #FUTUREOSS

OPEN SOURCE SEEN AS SUPERIOR
TO PROPRIETARY 43% SAID OSS PROVIDES GREATER EASE OF DEPLOYMENT 58% BELIEVE OPEN SOURCE AFFORDS THE GREATEST ABILITY TO SCALE 43% SAID OSS PROVIDES BETTER COMPETITIVE FEATURES SECTION3 OPENSOURCE ADVANTAGE @FUTUREOFOSS #FUTUREOSS

CASE STUDY CUSTOMER CASE STUDY
FOR Bastø Fosen: Ferry operator in Norway. Operating in Norway’s busiest marine traffic area. 31,722 voyages per year. 3.4 million passengers and 1.8 million vehicles per year. Consumes 10 million liters of marine diesel per year. Problem solved: Real time route planning and optimization leading to 15% fuel savings per annum. Increased safety of operations and improved passenger comfort. The Voice of the Customer: Capt. Torleif Bakken: “This I believe in! It’s so simple to use!” Capt. Gisle Stava: “Current solutions are far too complicated to use and do not provide us with the right information at the right time. This is what MARSEC has solved for us and now we can make informed decisions on time.” The Solution: Open Bridge Platform with the REX app for Route Exchange based on MARSSA and Linux open source artifacts. PROBLEM SOLVED @MARSEC_XL @FUTUREOFOSS #FUTUREOSS

AND THE GAP WILL WIDEN
IN THE FUTURE IN THE NEXT 2-3 YEARS OPEN SOURCE ADVANTAGES OVER PROPRIETARY OPTIONS EXPECTED TO WIDEN 57%ANTICIPATE INCREASED QUALITY OF OSS 61%SEE OPEN SOURCE SECURITY ON THE RISE 59%BELIEVE OSS WILL BE EASIER TO DEPLOY 52%EXPECT EASE OF USE TO INCREASE SECTION3 OPENSOURCE ADVANTAGE @FUTUREOFOSS #FUTUREOSS

CASE STUDY CUSTOMER CASE STUDY
FOR The Bay Area Rapid Transit website (BART.gov) provides real-time train schedules, trip planning and fare calculations, as well as a catalogue of third-party apps for more than 400,000 daily riders. BART.gov delivers 30M pages to approximately 1M unique visitors every month, with around 20% of traffic coming from mobile devices. PROBLEM SOLVED Supporting a large ridership (over 400,000 daily riders), with an exceptional digital experience to keep them connected and informed. OUR WORK @appnovation @AppnoWay CASE STUDY @FUTUREOFOSS #FUTUREOSS

“The Future of Open Source
survey results demonstrate that open source technologies continue to play an increasingly important part in organizations and are now considered just as reliable, if not more so than their proprietary counterparts. It's information like this that further supports Appnovation’s continued expansion of its portfolio of open source and open technology-based services and solutions.” ARNOLD LEUNG, CEO, APPNOVATION @APPNOVATION @FUTUREOFOSS #FUTUREOSS

SECTION4 TECHNOLOGY SHAPING THE FUTURE
OF TECHNOLOGY AND SECURITY @FUTUREOFOSS #FUTUREOSS

OSS IMPACTS TECH CLOUD BIG
DATA OPERATING SYSTEMS CONNECTED PRODUCT/IoT SECTION4 TECHNOLOGY @FUTUREOFOSS #FUTUREOSS

CASE STUDY CUSTOMER CASE STUDY
FOR With an expensive upgrade to its hardware-based load balancer on the horizon, growth in its domestic customer base and expansion into international markets — Discovery Education was motivated to find a solution for managing site traffic that could scale out quickly on demand. The company also needed to modernize its infrastructure for streaming video to customers. SOLUTION Discovery Education turned to NGINX Plus for proper test environments, evenly distributed and normalized traffic, and 24/7 on-the-spot support from the NGINX team, which includes access to the core developers. The company deployed NGINX Plus for streaming media, enabling seamless streaming of video content to its growing customer base, at scale, and across all devices. RESULTS • Greater Stability & Flexibility • Cost Effectiveness • Seamless Integration • Around-the-Clock Support PROBLEM @FUTUREOFOSS #FUTUREOSS

“A decade ago, companies went
open source to save money. Now, companies need OSS for agility, especially in the age of mobility and IoT. Some of the world’s most disruptive companies are exponentially growing with no signs of stopping. Why? These early adopters built business around OSS—delivering the always-on performance consumers now expect. We’re in the midst of a revolution—shifting from legacy hardware and software to the OSS technology suite. The modern web architecture delivers flexibility, scale and power enterprises need to stay competitive.” GUS ROBERTSON, CEO, NGINX @GUSROBERTSON @NGINX @FUTUREOFOSS #FUTUREOSS

MOST VALUABLE OPEN SOURCE PROJECT?
SECTION4 TECHNOLOGY @FUTUREOFOSS #FUTUREOSS

CASE STUDY CUSTOMER CASE STUDY
FOR The Document Foundation is a not for profit foundation based in Germany, and the house of LibreOffice: the best free office suite, and as such the best alternative to proprietary solutions. Migrating to LibreOffice is an opportunity for both enterprises and public administrations, to switch to standard document formats and reduce desktop TCO. In order to ease the process and make it predictable, The Document Foundation has developed a protocol for migrations based on best practices, which has helped several large organizations to succeed. The workflow and the timeline on the right provide a visual representation of a migration project, which should always be backed by certified professionals. Information are available on the website at http://www.documentfoundation.org/ certification. PROBLEM SOLVED Migration Protocol Workflow Migration Protocol Timeline Enterprises & Public Administrations @FUTUREOFOSS #FUTUREOSS

“The number of organizations migrating
to open source applications - such as LibreOffice - on the desktop is increasing. This is due to the maturity of the software, and a growing ecosystem of companies able to provide value added services on top of free software. Business opportunities are attracting both enterprises and volunteers, and fostering the development of a stronger community.” THORSTEN BEHRENS, CHAIRMAN, THE DOCUMENT FOUNDATION @LIBREOFFICE @TDFORG @FUTUREOFOSS #FUTUREOSS

THE SECURITY OF OPEN SOURCE
55%SAID OPEN SOURCE DELIVERS SUPERIOR SECURITY 46%GIVE OSS FIRST CONSIDERATION AMONG SECURITY TECHNOLOGIES HOWEVER, 67%DON’T MONITOR OPEN SOURCE CODE FOR SECURITY VULNERABILITIES. SECTION4 TECHNOLOGY @FUTUREOFOSS #FUTUREOSS

“We envisage significant growth of
open source in the area of Industrial Internet of Things. The transport sector including maritime will benefit greatly from this paradigm shift. This year’s survey results point in the direction of increased security by using open source. This is another important factor for the maritime sector." KRYSTYNA WOJNAROWICZ, CHAIR & CO-FOUNDER, MARSEC INC. @MARSEC_XL @FUTUREOFOSS #FUTUREOSS

THE BUSINESS OF OPEN SOURCE
SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

OPEN SOURCE = GOOD BUSINESS
NEARLY 9in 10 SAY THAT OPEN SOURCE GREATLY IMPACTS THE SPEED OF INNOVATION – ALIGNING WITH TIME TO MARKET FOR NEW PRODUCTS 89% SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

“Nowhere is the effect of
open source software (OSS) more pronounced than in the growth markets of Fast + Big Data, Cloud, and IoT. As enterprises move beyond collecting Big Data for later analysis to driving value in real time from fast streams of incoming data, their reliance on OSS will continue to grow. Developers prefer to use OSS, CIOs are breaking down institutional barriers to enable use of OSS tools, and consumers are snapping up OSS in nearly everything they buy, from mobile phones to connected cars. The 2015 Future of Open Source Survey reflects these market trends, and points the way to cross- industry innovation and opportunity.” BRUCE READING, CEO, VOLTDB @VOLTDB @BRUCEMREADING @FUTUREOFOSS #FUTUREOSS

OPEN SOURCE = GOOD BUSINESS
NEARLY 8in 10 SAY THAT OPEN SOURCE IMPROVES MARGINS AND GROWS REVENUES 78% IMPROVES MARGINS 75% GROWS REVENUE SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

CASE STUDY CUSTOMER CASE STUDY
FOR There was an urgent need for the client to move numerous internal applications to open source to grow revenue across multiple divisions and ensure better application performance, response time and flexibility. The client selected Wipro for its knowledge, expertise and deep experience in large-scale open source-based project implementations. Wipro’s open source team took ownership of the transformation and consolidation, implementing an open source adoption strategy that helped migrate 300+ Java/J2EE applications to private cloud, and adopt an open source ESB platform based on Apache Camel and JBoss Fuse technologies. The financial services company was able to seamlessly migrate applications and adopt open-source in their environment, delivering: • Faster time-to-market • Increased scalability and flexibility of existing applications • Significant reduction in hardware and software licensing cost • More control of IT environment and reduced vendor lock-in A LEADING FINANCIAL SERVICES COMPANY @FUTUREOFOSS #FUTUREOSS

OSS AT FIRST GLANCE WHEN
INCLUDING OPEN SOURCE IN ITS CODE BASE, NEARLY 3/4 OF COMPANIES ARE MORE THAN SATISFIED WITH THEIR COMPLIANCE WITH LICENSES AND GETTING APPROVAL FOR OSS COMPONENTS SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

MORE THAN 55% HAVE NO
POLICIES AND PROCEDURES ONLY 27% REPORT HAVING A FORMAL POLICY FOR EMPLOYEE CONTRIBUTIONS TO OSS PROJECTS A MERE 16% REPORT HAVING AN AUTOMATED CODE APPROVAL PROCESS SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

WHAT DRIVES OPEN SOURCE POLICY
TWO THIRDS HIGHLIGHT DISCOVERY AND MAINTENANCE/SUPPORT AS DRIVING OSS POLICY 54% CITE SOURCE CODE MANAGEMENT AS KEY 49% CALL OUT COMMUNITY INTERACTION SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

VENTURE INVESTMENTS IN OPEN SOURCE
$ $ $ 2011 2012 2013 INVESTMENTS $398M AVERAGE DEAL SIZE $8M INVESTMENTS $669M AVERAGE DEAL SIZE $14M INVESTMENTS $920M AVERAGE DEAL SIZE $18M DEALS 49 DEALS 49 DEALS 51 SOURCE: DOW JONES/VENTURESOURCE 45 $ 2014 INVESTMENTS $1.3B AVERAGE DEAL SIZE $33.9M DEALS 39 SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

IN OPEN SOURCE $1.3B VALUATION
UP 86% YOY @ACQUIA @CONFERINC @COUCHBASE @REVOLUTIONR @WPENGINE SECTION5 BUSINESS @COOLANCO @FUTUREOFOSS #FUTUREOSS

THE IMPORTANCE OF INDEMNIFICATION CONSIDER
OSS INDEMNIFICATION KEY FOR SELVES OR CUSTOMERS 42% WHEN ADDRESSING INDEMNIFICATION, SUPPLY CHAIN EDUCATION IS THE MOST COMMON ISSUE ORGANIZATIONS NEED TO DEAL WITH SECTION5 BUSINESS @FUTUREOFOSS #FUTUREOSS

CONCLUSIONS
SECTION6
CONCLUSIONS
@FUTUREOFOSS
#FUTUREOSS

“It is obvious open source
has entered the main stream of the software industry. At Eclipse, we are seeing more and more companies participate in Eclipse open source projects since it is good for their business. In the future, we expect more and more companies will collaborate at open source foundations, like Eclipse, to create new technology for a wide spectrum industries.” MIKE MILINKOVICH, EXECUTIVE DIRECTOR, ECLIPSE FOUNDATION @MMILINKOV @ECLIPSEFDN @FUTUREOFOSS #FUTUREOSS

CORPORATE USE OF OPEN SOURCE
IS PERVASIVE 64%SAID THEIR COMPANY CURRENTLY PARTIPATES IN OPEN SOURCE PROJECTS OVER66%CONSIDER OSS OPTIONS BEFORE PROPRIETARY SOFTWARE ALTERNATIVES SECTION6 CONCLUSIONS @FUTUREOFOSS #FUTUREOSS

“Open Source has been the
foundation for many key mission critical systems across the globe and its adoption has been increasing at a rapid pace. The research findings confirm that Open Source is expected to have a significant impact on applications, cloud computing, big data, operating systems, and IoT, over the next 2-3 years. This survey also reiterates that enterprises are actively embracing Open Source technologies and are leveraging the talent base of Open Source communities to create modern and scalable architectures.” KRISHNAKUMAR N MENON, VICE PRESIDENT & GLOBAL HEAD, OPEN SOURCE INITIATIVE, WIPRO LTD. @WIPRO @FUTUREOFOSS #FUTUREOSS

CORPORATE USE OF OPEN SOURCE
IS PERVASIVE 87%EXPECT THEIR COMPANY TO INCREASE CONTRIBUTIONS TO OPEN SOURCE PROJECTS IN 2-3 YEARS SECTION6 CONCLUSIONS @FUTUREOFOSS #FUTUREOSS

THERE IS NO SUCH THING
AS PROPRIETARY SOFTWARE ANYMORE OPEN SOURCE IS SO PERVASIVE THAT ALL SOFTWARE CATEGORIES USE IT OR HAVE DEPENDENCIES ON IT SECTION6 CONCLUSIONS @FUTUREOFOSS #FUTUREOSS

MORE THAN 55% HAVE NO
POLICIES AND PROCEDURES IN PLACE FOR CONSUMING OPEN SOURCE GROWING USAGE CALLS FOR PROPER MANAGEMENT & GOVERNANCE SECTION6 CONCLUSIONS @FUTUREOFOSS #FUTUREOSS

“We look forward to analyzing
the results of the Future of Open Source survey each year as it helps us validate the trends we’ve seen through our involvement in the open source community and our work with customers to help discover open source in a company’s code base, identify known security vulnerabilities, and track remediation. In the results this year, it has become more evident that companies need their management and governance of open source to catch up to their usage. This is critical to reducing potential legal, security, and operational risks while allowing companies to reap the full benefits OSS provides.” LOU SHIPLEY, PRESIDENT AND CEO, BLACK DUCK SOFTWARE @LOUSHIPLEY @BLACK_DUCK_SW @FUTUREOFOSS #FUTUREOSS

WHO WILL BE THE NEXT
GREAT OPEN SOURCE COMPANY? SECTION6 CONCLUSIONS @FUTUREOFOSS #FUTUREOSS

57 THANK YOU COLLABORATORS @FUTUREOFOSS
#FUTUREOSS

#FUTUREOSS I @FUTUREOFOSS HTTP://NORTHBRIDGE.COM/OPEN-SOURCE I
@NORTH_BRIDGE HTTP://WWW.BLACKDUCKSOFTWARE.COM/ I @BLACK_DUCK_SW HTTP://OPENSOURCEDELIVERS.COM/ I @OSDELIVERS 58 FIND OUT MORE @FUTUREOFOSS #FUTUREOSS