Business by open source manners. Two hours talk on open-source infrastructure for start-ups + how to start an open-source business

1. Business by open-source manners – Jose Teixeira Apr 2013

2. Business by open-source manners
=
1- Open-Source Software 4 Startups
+
2-Starting an Open-Source Software Business
Jose Teixeira

3. Schedule:
18:00 - 18:10 Opening words
18:10 - 18:30 Open Source Software solutions for startups
18:30 - 18:50 How to venture into an open-source business?
18:50 - 19:00 Discussion about Open Source Software in business.
19:00 --> Snacks, Drinks, Networking, Chatting
Presenter:
Jose Teixeira
“Disposable”¹ Researcher
Information Systems Science
University of Turku
Jose.Teixeira@utu.fi
www.jteixeira.eu
Jose Teixeira

4. International
DHL
UTU Open-source
Retail
Triathlon
Immit
Portugal Tesco
Sonae
Computer science
IT
Boost Finland
Nokia
Airbus
Research
Debian
TSE
Software
EU Orienteering anti-
ACTA
Startups
Jose Teixeira

5. Business by open-source manners
=
1- Open-Source Software 4 Startups
+
2-Starting an Open-Source Software Business
Jose Teixeira

6. Open-source software for startups
1) What is Open-Source? What is not Open-
Source?
2) Why it matters? 4 startups?
3) Contrasting open-source with commercial
software.
4) Open-source solutions for small business
problems.
5) “To checklist” of Open-Source Software 4
startups.
Jose Teixeira

7. OSS? What?
Free != free
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8. OSS? What?
Free as in freedom not as in beer
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9. Free != Free OSS? What?
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10. OSS? What?
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11. OSS? What?
Free != Free
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12. OSS? What?
An analogy with Tangram
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13. OSS? What?
Open-source vs closed-source
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14. OSS? What?
Open-source vs closed-source
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15. OSS? What?
Open-source vs closed-source
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16. OSS? What?
FSF four freedoms
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17. OSS? What?
OSI open-source definition
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18. OSS? What?
FLOSS licensing
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19. OSS? What?
My open-source definition
Availability of the blueprint (source code)
Standard compliance
Absence of lock-in mechanims Source: Teixeira 2011
Jose Teixeira

20. OSS? What is not?
What open-source is not:
➔
Freeware
➔
Shareware
➔
Shared-source
➔
Co-creation
➔
Participatory design
➔
Crowd-sourcing
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21. OSS? Why?
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22. OSS? Why?
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23. OSS? Why?
Most important enablers of high-tech
entrepreneurship?
1- Open-source software
2- Affordable cloud computing services
3- Social networking graphs for viral marketing
Source: Interviews with entrepreneurs by Jose Teixeira @ http://www.startupday.se/
2012
Jose Teixeira

24. OSS? Why?
Finnish high-tech startups and open-source
1- 19/20 claim to use open-source software;
2- 4/20 claim to offer open-source components;
3- 2/20 plan to offer open-source components;
4- 11/20 claim to work up-stream;
Source: Interviews with 20 Startups at Slush 2011
Presented by Jose Teixeira and Joni Salminen at ICCE 2012 conference
Jose Teixeira

25. Contrast!
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26. Contrast!
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27. Contrast!
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28. Contrast!
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29. Contrast!
Software pricing (i.e. ERP)
source: pemeco
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30. Contrast!
Software pricing (i.e. ERP)
License costs
Implementations costs
Maintenance costs
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31. Solutions :)
Classical OSS infrastructure supporting
common business problems

Desktop PC's

E-mail

Group-ware

Customer relationship management

Finance

Document management

Disaster recovery

Security

Web-servers Source: http://www.linuxjournal.com/article/7825
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32. Solutions :)
A book on OSS infrastructure
Available from UTU e-library at http://site.ebrary.com/lib/uniturku/docDetail.action?docID=10061218
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33. Solutions :)
But OSS infrastructure can go much beyond
ERP
E-commerce
Analytics
VoIP telephony
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34. + OSS offers thousands of components in
public domain for business R&D initiatives
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35. To know more ...
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36. END part 1
Jose Teixeira

37. Business by open-source manners – Jose Teixeira Apr 2013
Jose Teixeira

38. Business by open-source manners
=
1- Open-Source Software 4 Startups
+
2-Starting an Open-Source Software Business
Jose Teixeira

39. Outline
Intro
OSS licenses
OSS business models
OSS entrepreneurial business modeling
Jose Teixeira

40. Intro
You don't need to to create or work on a OSS
organization to work with OSS;
TOP 10 Linux Kernel Contributors
Source: http://go.linuxfoundation.org/who-writes-linux-2012
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41. Intro
You don't need to be an OSS company to contribute
and be respected in the OSS community
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42. Intro
A) Based in part on the work of the
Independent JPEG group
B) Use zlib by Jean-loup Gailly and
Mark Adler
C) Based on the work of the FFmpeg
project under the LGPL 2.1 license
Jose Teixeira

43. IP
Protect your IP
•
Very often does not work for startups
•
But with OSS you are creating prior art
The Håkan Lans case:
* Swedish inventor of a satellite navigation system, the computer mouse, colour
graphics systems in computer displays and many other inventions
US patents:
* Arrangement for producing a pattern on a light-sensitive surface
* Color graphics processor
* Position indicating system
Jose Teixeira

44. IP
Legal terminology
Copyright
Trademarks
Patents
Intellectual Property (IP)
Trade secrets
Jose Teixeira

45. IP
Legal terminology
Copyright
Trademarks
Patents
Intellectual Property (IP)
Trade secrets
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46. IP
FLOSS licensing
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47. IP
Permissive
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48. IP
Copyleft
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49. IP
ISC license
Copyright (c) Year(s), Company or Person's Name <E-mail address>
Permission to use, copy, modify, and/or distribute this software for any purpose with or without fee is hereby
granted,
provided that the above copyright notice and this permission notice appear in all copies.
THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES WITH REGARD TO
THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS. IN NO EVENT
SHALL THE AUTHOR BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR
ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION
WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
Jose Teixeira

50. IP
FLOSS licensing once again
Credit the community Contribute to the community
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51. IP
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52. IP
Complicated Open-Source licenses?
Check then:
http://www.microsoft.com/licensing/
http://www.oracle.com/us/corporate/contracts/license-service-agreement/index.html
http://www.sap.com/corporate-en/our-company/agreements/western-europe/index.epx
After hours and thousands or pages you are done. But no worries there
are books, vendors, lawyers and consultants that will understand it for
you.
Jose Teixeira

53. Business Models
11 open-source business models
Subscription Model
Offering Commercial and Open Source Products
Support and Training Model
Dual License Model
Hosted Service
Advertising Model
Commercial Enhancement
Embedding Model
Consulting and Integration Strategy
source: Wasserman 2009
Patronage Model
Jose Teixeira

54. Business Models
1- Commercial and open-source products
Source: Wasserman 2012
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55. Business Models
2 - Subscription model
Source: Wasserman 2012
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56. Business Models
3 - Consulting
Source: Wasserman 2012
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57. Business Models
4 - Support and training model
Source: Wasserman 2012
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58. Business Models
5 - Hosted service
Source: Wasserman 2012
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59. Business Models
6 – Dual license
Source: Wasserman 2012
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60. Business Models
7 - Commercial enhancement
Source: Wasserman 2012
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61. Business Models
8 - Advertising
Source: Wasserman 2012
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62. Business Models
8 - Patronage
Source: Wasserman 2012
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63. Business Models
10 - Hardware
Source: Wasserman 2012
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64. Business Models
11 – Platform / Eco-system
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65. Business Models
To know more
Tony Wasserman works
COSS.fi - Avoimien tietojärjestelmien keskus COSS ry
Economic aspects and business models of Free Software by
Free Technology Academy
Jose Teixeira

66. OSS Business Modeling
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67. OSS Business Modeling
1st we took Osterwalder, A., and Y. Pigneur. Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers. Wiley, 2010. The popular business “canvas”
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68. OSS Business Modeling
We took also Sawy, O. A. E., and F Pereira. Business Modelling in the Dynamic Digital Space: An
Ecosystem Approach. Springer, 2013. A business modelling framework for IT industry.
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69. OSS Business Modeling
3rd – We combined them … test it with business cases
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70. OSS Business Modeling
4th – We add OSS academic literature driven components on it … and test it again
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71. OSS Business Modeling
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72. OSS Business Modeling
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73. OSS Business Modeling
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74. OSS Business Modeling
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75. OSS Business Modeling
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76. OSS Business Modeling
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77. OSS Business Modeling
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78. OSS Business Modeling
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79. OSS Business Modeling
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80. OSS Business Modeling
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81. OSS Business Modeling
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82. OSS Business Modeling
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83. OSS Business Modeling
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84. Exercise: The PickRide case
http://www.youtube.com/watch?v=omcA5DN97jE
How could it be made by FLOSS manners?
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85. END
Jose Teixeira