The Business Of Open Source

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Presentation for OpenWest Conference May 2013

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  • Here is alittle bit about me, but the important thing to remember is that I am a technologist first, marketer second….which is interesting, because…
  • Backstory; Reason for Presentation;
  • Disclosure on my stance re: opensource
  • Business Models
  • Agenda: Different Business Models, Licenses, Industries,Case Studies
  • Takeaways from presentation;
  • Industries: Operating Systems, Databases, Server/Cloud Management, Enterprise Software: Portels;DocManagement;CRM;BI;Marketing, Security, CMS, eCommerce, Education, Application Development, Video, Ads/Media, Browsers
  • Industries: Operating Systems, Databases, Server/Cloud Management, Enterprise Software: Portels;DocManagement;CRM;BI;Marketing, Security, CMS, eCommerce, Education, Application Development, Video, Ads/Media, Browsers
  • Industries: Operating Systems, Databases, Server/Cloud Management, Enterprise Software: Portels;DocManagement;CRM;BI;Marketing, Security, CMS, eCommerce, Education, Application Development, Video, Ads/Media, Browsers
  • LicensesIANALThere are different versions of some that make a difference
  • Case Studies: Sourcefire, Redhat, SugarCRM, Automattic, Magento, Instructure, Liferay, Jboss, MySQL, Pentaho, SaltStack, Alfresco, MindTouch, OpenX, Kaltura, Eucalyptics;
  • Case Studies: Sourcefire, Redhat, SugarCRM, Automattic, Magento, Instructure, Liferay, Jboss, MySQL, Pentaho, SaltStack, Alfresco, MindTouch, OpenX, Kaltura, Eucalyptics;
  • Business Models
  • Case Studies: Sourcefire, Redhat, SugarCRM, Automattic, Magento, Instructure, Liferay, Jboss, MySQL, Pentaho, SaltStack, Alfresco, MindTouch, OpenX, Kaltura, Eucalyptics;
  • Final Takeway: Inherit cap, but lower risk
  • Final Takeway: Inherit cap, but lower risk
  • The Business Of Open Source

    1. 1. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsTheBusinessofOpenSourceDan(Danny)Fellars
    2. 2. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsaboutmeM.S. Computer Science BuyDansHouse.comChileOPENSIDE
    3. 3. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars“HowCanYouMake$$GivingItAway”
    4. 4. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars“OpenisforLosers”-Dave McClure (500 Startups)
    5. 5. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsTheHeatedDilemmahttp://youtu.be/X0R0toLhmwk
    6. 6. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsOpenSourceBusinessModels“Free software” means software that respects users freedom and community. Roughly, the usershave the freedom to run, copy, distribute, study, change and improve the software. With thesefreedoms, the users (both individually and collectively) control the program and what it does forthem.When users dont control the program, the program controls the users. The developer controlsthe program, and through it controls the users. This nonfree or “proprietary” program istherefore an instrument of unjust power.Thus, “free software” is a matter of liberty, not price. To understand the concept, you shouldthink of “free” as in “free speech,” not as in “free beer”.A program is free software if the programs users have the four essential freedoms:•The freedom to run the program, for any purpose (freedom 0).•The freedom to study how the program works, and change it so it does your computing as youwish (freedom 1). Access to the source code is a precondition for this.•The freedom to redistribute copies so you can help your neighbor (freedom 2).•The freedom to distribute copies of your modified versions to others (freedom 3). By doing thisyou can give the whole community a chance to benefit from your changes. Access to the sourcecode is a precondition for this.- GNU.org (GPL)
    7. 7. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsAgenda●Walk thru of my quest foranswers– Locations– Industries– Licenses– Languages– Lifespan– Investability– Business Models●The Impact of Cloud/SAAS●Commercial Benefits ofOpen Source●Company Case Studies●Bees & Trees Analogy●Final Key Takeaways
    8. 8. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsKeyTakeaways• Commercial Open Source does not have to bea oxy-moron• Find the right time and place for when to goopen source• The model and license matter, a lot• The move to cloud is both good and bad foropen source• Limits of Commercial Open Source
    9. 9. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsLocations
    10. 10. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsLocations
    11. 11. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsOperatingSystemsIndustryImpactDatabases Server/Cloud EnterpriseSoftware
    12. 12. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCMSIndustryImpactEducation eCommerce Security
    13. 13. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsApplicationDevelopmentIndustryImpactConsumer Mobile Ads/Media
    14. 14. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBSDOpenSourceLicensesMIT APACHEGPL AGPLLGPLMozillaEclipse OSL
    15. 15. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBSD/MITLicensesAPACHE GPL AGPLMPL/CPL/OSL LGPL
    16. 16. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsJAVALanguagePHPPython.NETC/C++ErlangRuby Javascript
    17. 17. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars2010+ 2008/09 2006/07 2004/052002/03 2000/01 1998/99 <1998AgeofCommercialOpenSource
    18. 18. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellars$100M+ $80-$100M $60-$80M $40-$60M$20-$40M $10-$20M $5-$10MInvestmentReceived
    19. 19. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsDual LicenseOpenSourceBusinessModelsSupport /ServicesTieredProductPartnerProgramOnDemandAccessKeyMulti/Add-onProducts
    20. 20. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSupport/ServicesBusinessModelsTiered/Dual-LicenseOnDemand/Multi-ProductPartnerProgramDonations
    21. 21. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsImpactofCloud/SAASonOpenSource•Cons• GPL Loophole• Less motivation to contribute back to opensource projects• Full applications less likely to be opensourced•Pros• On Demand Business Model• More Libraries being open sourced
    22. 22. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBenefitstoCommercialOpenSourceThanks toJamie Dixon (Pentaho) - jamesdixon.wordpress.com● Making Open Source a Whole Product (Crossing the Chasm)● Market Optimization● Company Culture and Management● Collaborative Development● Customer Focus● Talent Acquisition● Quality Assurance● Community, Community, Community● Quicker Adoption
    23. 23. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCaseStudiesLicenseWordpress/b2-cafepressOpenX/phpMyAdsAndroidBusinessModelSugarCRMMozillaIndustry/CompetitionEducationBusinessIntelligence
    24. 24. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSugarCRMFull Price Discrimination
    25. 25. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsEducationIncumbent PureOpen SourceCommercialOpen Source
    26. 26. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsBusinessIntelligenceIncumbants SAAS Open Source
    27. 27. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCaseStudy:OpenSideMarketMarketingAutomationLicenseAGPLBusinessModelAccess KeysOnDemandTechnology StackPHP/MongoDB/Backbone.js
    28. 28. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsPureOpenSource
    29. 29. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsProprietary
    30. 30. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCommercialOpenSource
    31. 31. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCommercialOpenSource
    32. 32. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsCommercialOpenSource
    33. 33. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSupport&Services
    34. 34. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsSupport&Services
    35. 35. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsKeyTakeaways• Commercial Open Source is not an oxy-moron• Find the right time and place for when to goopen source• The model and license matter• The move to cloud is both good and bad foropen source• Financial Limits of Commercial Open Source
    36. 36. OpenSidePhone: (801) 319-6764 | e-mail: dan@fellars.com | twitter: @DannyFellarsThankYou• Feel free to contact me with any questions• Dan Fellars dan@fellars.com @DannyFellars

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