2012
THE
FUTURE
OF
OPEN SOURCE
The Open Source Leadership
Panel at OSBC
May 21, 2012

2
THE LEADERSHIP PANEL
Tim Yeaton Tom Erickson Michael Skok Ryan Garner Gil Yehuda
CEO CEO General Partner VP, Dir.-to-Consumer Dir. of Open Source
@black_duck_sw @tom_eric @mjskok Services and Open Standards
@ryanTgarner @gyehuda
FUTURE OF OPEN SOURCE 2012

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AGENDA
Markets
Community
Investment & Innovation
LOOK FOR LIVE VOTING!
FUTURE OF OPEN SOURCE 2012

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OPEN SOURCE COLLABORATORS
FUTURE OF OPEN SOURCE 2012

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SURVEY RESPONSES
FUTURE OF OPEN SOURCE 2012

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SURVEY RESPONDENTS
Vendors Non-Vendors
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SURVEY RESPONDENTS’ TITLES
Architect/Engineer
Software
VP/Director
Engineer/Developer
Systems
IT
President/GM IT
CEO/Founder/ Management/IT
Co- Staff
Marketing/
Founder/Principal Advertising, PR
Educator
Line of Business Sales/Business
CIO/CTO/ Manager
Development Professional
CSO/COO/ Services
(Lawyer/Investor)
CFO/CMO Analyst
Director
Non-IT
VP/
FUTURE OF OPEN SOURCE 2012

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AGENDA
Markets
Community
Innovation & Investment
FUTURE OF OPEN SOURCE 2012

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OSS DEPLOYED IN YOUR ORGANIZATION
Open Source deployment is reaching a
tipping point
Open source deployment Open source will make up
has reached >75% 51%–75% of deployment
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VENDORS VS. NON-VENDOR COMPANIES
OSS DEPLOYMENT IN 5 YEARS
50%
45%
40%
% of Responses
30% 31% 30%
29%
Vendor
23% Non Vendor
20%
18%
14%
10%
10%
0%
Over 75% 51%-75% 26%-50% Up to 25%
OSS as a % of Deployed Code
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WHAT % OF SOFTWARE PURCHASES WILL BE OSS
IN 5 YEARS?
3%
increase
50% or more on OSS
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OPEN SOURCE TRENDS DRIVING INNOVATION
Adoption of open source into Enterprise adoption of
non-technical segments open source
42% 40%
Enterprise adoption of OSS is rated most important
by companies with >1,000 employees
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WHAT MAKES OSS ATTRACTIVE?
2009 2010 2011 2012
Freedom from
Lower costs Lower costs
VENDOR lock-in Freedom from
VENDOR lock-in
Freedom from
Superior security Lower costs
VENDOR lock-in
Freedom from Rapid pace of
Flexibility
VENDOR lock-in innovation
Lower costs
Quality
FUTURE OF OPEN SOURCE 2012

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TOP BARRIERS TO OPEN SOURCE SELECTION
48%
35%
47%
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INDUSTRIES MOST IMPACTED BY OSS IN 2012
44%
Data
23%
Health/Medical/Life
12%
Financial Services
Management Sciences
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CHARACTERISTICS THAT MAKE INDUSTRIES
LIKEY TO BE IMPACTED BY OSS
51% 50% 46%
Software development
Profit margins/ability Technology is an essential strategic
to invest in IT centric process
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THE VIRTUOUS CYCLE – INNOVATION & OSS
OSS
Innovation
600,000+ OSS projects
100+ billion lines of code
10 million person-years of work
“
…we are living in a golden age of open source innovation, with many of the
most exciting computing ideas…being explored through [FOSS].
Glyn Moody, H-Online.com
(March 2012)
Source:
FUTURE OF OPEN SOURCE 2012

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REVENUE STRATEGIES THAT CREATE THE
MOST VALUE FOR OPEN SOURCE VENDORS
52%
41% 40%
SaaS
Support Service Supprt
Service Value-Added
Subcription Support Subscription
FUTURE OF OPEN SOURCE 2012

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AGENDA
Markets
Community
Innovation & Investment
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FACTORS INFLUENCING CHOICE OF OSS PROJECTS
OSS PROJECTS
Size of
community 19%
Availability of
commercial support 23%
Project maturity 43%
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FACTORS INFLUENCING CHOICE OF OSS PROJECTS
Non-Vendor
OSS PROJECTS
Size of
community 19% 20%
Availability of
commercial support 23% 21%
Project maturity 43% 46%
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INDUSTRY CASE STUDY: AUTOMOTIVE
What is Your Company’s Relationship to Using Open Source Software in Products?
The Study The Results:
We use it 59%
CONDUCTED BY:
We are evaluating use 35%  OSS has arrived
in automotive
software
We contribute to it 21%
development
Prof, Dr. Dirk Riehle
We do not use it 15%  Management
Head of the Open Source Institute and control of
University of Erlangen-Nuremberg
We have started one or OSS lags
more projects
9%
adoption
We are head of one or
more projects
6%
0% 20% 40% 60%
Source:
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HIRING: WHAT ASPECT OF OSS EXPERIENCE IS
MOST IMPORTANT?
Experience
with a variety Code
of projects contributions
35% 28%
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AGENDA
Markets
Community
Innovation & Investment
FUTURE OF OPEN SOURCE 2012

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SIGNIFICANT TECHNOLOGY INNOVATION FROM
NEW PROJECTS IN THE OSS COMMUNITY
Cloud 40%
Mobile Apps 19%
Mobile Enterprise 15%
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OPEN SOURCE DRIVES MOBILE INNOVATION
New Mobile OSS Projects Share of Projects*
 >18,000 cumulative
projects
 10,000 new in 2011
alone!
* Based on OSS projects that specify a mobile platform
 Android gaining momentum,
share > 70%
 iOS share declined, but number
of projects increased
Source:
FUTURE OF OPEN SOURCE 2012

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OSS INVESTMENTS BY THE NUMBERS
2011 $674.9m $10.1M $192.7M
49% 48.5% 63.3%
Dollars Deals Avg. Deal Seed,
Invested Completed Size Series A
2010 $452.8M 73 $6.8M $118.7M
1.4%
72
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HOT OSS COMPANIES
2010 2011 2012
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Quality Innovation
= Growth
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WITH GROWTH COMES…
Revenue
Enterprise
Adoption
Super-
Communities
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THANK YOU! OPEN SOURCE COLLABORATORS
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FIND OUT MORE
http://www.northbridge.com/software http://www.opensourcedelivers.com/
Contact:
Michael J. Skok: mjskok@northbridge.com
Tim Yeaton: tyeaton@blackducksoftware.com
FUTURE OF OPEN SOURCE 2012