Open Source Business Models: building a business in the Joomla community


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Building a successful business on free software and open source software can seem like an impossible task to many business professionals; however, as this presentations shows, there are many ways in which businesses can make money successfully working within open source communities like Joomla! On March 31, 2010, I gave this presentation to Imperial College Business School in London. You can learn more about the event here:

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Open Source Business Models: building a business in the Joomla community

  1. 1. Biz meets open source CMS A short, practical example of business success in a “free stuff” marketplace Ryan Ozimek Imperial College Business School March 31, 2010
  2. 2. Who am I? <ul><li>Ryan Ozimek </li></ul><ul><li>Chief Executive Officer, PICnet </li></ul><ul><li>President, Open Source Matters </li></ul><ul><li>Evangelist, open source software </li></ul>
  3. 3. Overview <ul><li>Joomla!: an open source success story </li></ul><ul><li>Business ecology around the Joomla software </li></ul><ul><li>Micro-level implementation and success </li></ul>
  4. 4. The key market opportunity <ul><li>Open source “freedom” means “free” as in “free kittens” </li></ul><ul><li>An ecology of businesses blossom around providing services and extended the value of open source software </li></ul>
  5. 5. The key market opportunity – deliverables <ul><li>Infrastructure tools and services </li></ul><ul><li>Productized add-on functionalities </li></ul><ul><li>Implementation services </li></ul><ul><li>Customization services </li></ul><ul><li>Education and training </li></ul><ul><li>Support services </li></ul>
  6. 6. A short story of open source success
  7. 7. Joomla’s success story
  8. 8. Joomla’s success story <ul><li>Content management system (Web framework) </li></ul><ul><li>Created by a corporation in Australia </li></ul><ul><li>Open sourced to the community </li></ul><ul><li>Community involvement skyrockets, development boom </li></ul><ul><li>Small businesses begin selling add-ons </li></ul><ul><li>Consulting firms provide implementation services </li></ul><ul><li>Cloud computing firms virtualize services </li></ul><ul><li>The results… </li></ul>
  9. 9. Joomla’s success story <ul><li>15,605,591 downloads of Joomla </li></ul><ul><li>1,992,970 posts on the Joomla forums </li></ul><ul><li>365,883 registered community members </li></ul><ul><li>201,200+ registered developers </li></ul><ul><li>2,000,000+ estimated live sites </li></ul><ul><li>4,565 registered extensions (add-ons), all GPL licensed </li></ul>
  10. 10. Possible business models? <ul><li>Products </li></ul><ul><li>Services </li></ul>
  11. 11. Product models <ul><li>Design templates </li></ul><ul><li>Development extensions </li></ul><ul><li>Packaged suite offerings </li></ul>
  12. 12. Design templates
  13. 13. Develop productized extensions
  14. 14. Service models <ul><li>Custom design/development services </li></ul><ul><li>Retained support services </li></ul><ul><li>Product delivery models </li></ul>
  15. 15. Success is in servicing the niche markets
  16. 16. Success is also in the long tail
  17. 17. A short story of an OSS + biz relationship
  18. 18. PICnet’s short history <ul><li>1999 – an NGO trip to Kosovo </li></ul>
  19. 19. PICnet’s short history <ul><li>2001 – a political Web portal </li></ul>
  20. 20. PICnet’s short history <ul><li>2003 – open source Web development firm </li></ul>
  21. 21. PICnet’s short history <ul><li>2007 – software as a service provider platform </li></ul>
  22. 22. Integrate, don’t reinvent <ul><li>Open source tools can provide the pivot point </li></ul><ul><li>It’s 2010, there’s TONS of great software and Web services out there. Add value by delivering the niche solutions to the marketplace. </li></ul><ul><li>Use the right tools for the problem </li></ul>
  23. 23. Be a bridge builder
  24. 24. How to build bridges Build it yourself Build it together with the community
  25. 25. Relationships are greater than the tools >
  26. 26. What to look for in your OSS community <ul><li>Active communities with strong diversity (engineers, businesses, users, views and values) </li></ul><ul><li>Strong local language community </li></ul>
  27. 27. What to look for in your OSS community <ul><li>Lots and lots of users, leverage the crowds </li></ul><ul><li>Joomla has more than 300k registered and active users, with more than 15.6 million downloads </li></ul>
  28. 28. Nurture relationships with the community <ul><li>Free support! </li></ul><ul><li>Easier access to thought leaders and experts your business might need for future solutions </li></ul><ul><li>Opportunity to reach large community of potential users </li></ul><ul><li>Cultivate relationships, don’t just use tools </li></ul>
  29. 29. Economic impact of Joomla’s success <ul><li>More than 2 million easy to manage sites published </li></ul><ul><li>Code valued at more than US$2,000,000 </li></ul><ul><li>Provisioning of powerful and affordable software to those who normally couldn’t afford it </li></ul>
  30. 30. Thanks! <ul><li>Ryan Ozimek </li></ul><ul><li>CEO, PICnet </li></ul><ul><li> </li></ul><ul><li>President, Open Source Matters </li></ul><ul><li> </li></ul><ul><li>Twitter: @cozimek </li></ul><ul><li>[email_address] </li></ul>