2012 Future of Open Source - 6th Annual Survey results

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

2THE 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 @gyehudaFUTURE OF OPEN SOURCE 2012

3AGENDA Markets Community Investment & Innovation LOOK FOR LIVE VOTING!FUTURE OF OPEN SOURCE 2012

4OPEN SOURCE COLLABORATORSFUTURE OF OPEN SOURCE 2012

5SURVEY RESPONSESFUTURE OF OPEN SOURCE 2012

6SURVEY RESPONDENTS Vendors Non-VendorsFUTURE OF OPEN SOURCE 2012

7SURVEY 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

8AGENDA Markets Community Innovation & InvestmentFUTURE OF OPEN SOURCE 2012

9OSS 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 deploymentFUTURE OF OPEN SOURCE 2012

10VENDORS VS. NON-VENDOR COMPANIESOSS 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 CodeFUTURE OF OPEN SOURCE 2012

11WHAT % OF SOFTWARE PURCHASES WILL BE OSS IN 5 YEARS? 3% increase 50% or more on OSSFUTURE OF OPEN SOURCE 2012

12OPEN 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 employeesFUTURE OF OPEN SOURCE 2012

13WHAT 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 QualityFUTURE OF OPEN SOURCE 2012

14TOP BARRIERS TO OPEN SOURCE SELECTION 48% 35% 47%FUTURE OF OPEN SOURCE 2012

15INDUSTRIES MOST IMPACTED BY OSS IN 2012 44% Data 23% Health/Medical/Life 12% Financial Services Management SciencesFUTURE OF OPEN SOURCE 2012

16CHARACTERISTICS THAT MAKE INDUSTRIESLIKEY TO BE IMPACTED BY OSS 51% 50% 46% Software development Profit margins/ability Technology is an essential strategic to invest in IT centric processFUTURE OF OPEN SOURCE 2012

17THE 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

18REVENUE STRATEGIES THAT CREATE THEMOST VALUE FOR OPEN SOURCE VENDORS 52% 41% 40% SaaS Support Service Supprt Service Value-Added Subcription Support SubscriptionFUTURE OF OPEN SOURCE 2012

20FACTORS INFLUENCING CHOICE OF OSS PROJECTS OSS PROJECTS Size of community 19% Availability of commercial support 23% Project maturity 43%FUTURE OF OPEN SOURCE 2012

21FACTORS INFLUENCING CHOICE OF OSS PROJECTS Non-Vendor OSS PROJECTS Size of community 19% 20% Availability of commercial support 23% 21% Project maturity 43% 46%FUTURE OF OPEN SOURCE 2012

22INDUSTRY CASE STUDY: AUTOMOTIVEWhat 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:FUTURE OF OPEN SOURCE 2012

23HIRING: WHAT ASPECT OF OSS EXPERIENCE ISMOST IMPORTANT? Experience with a variety Code of projects contributions 35% 28%FUTURE OF OPEN SOURCE 2012

25SIGNIFICANT TECHNOLOGY INNOVATION FROMNEW PROJECTS IN THE OSS COMMUNITY Cloud 40% Mobile Apps 19% Mobile Enterprise 15%FUTURE OF OPEN SOURCE 2012

26 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 increasedSource: FUTURE OF OPEN SOURCE 2012

27OSS INVESTMENTS BY THE NUMBERS2011 $674.9m $10.1M $192.7M 49% 48.5% 63.3% Dollars Deals Avg. Deal Seed, Invested Completed Size Series A2010 $452.8M 73 $6.8M $118.7M 1.4% 72FUTURE OF OPEN SOURCE 2012

28HOT OSS COMPANIES 2010 2011 2012FUTURE OF OPEN SOURCE 2012

29 Quality Innovation = GrowthFUTURE OF OPEN SOURCE 2012

30WITH GROWTH COMES… Revenue Enterprise Adoption Super- CommunitiesFUTURE OF OPEN SOURCE 2012

31THANK YOU! OPEN SOURCE COLLABORATORSFUTURE OF OPEN SOURCE 2012

32FIND OUT MORE http://www.northbridge.com/software http://www.opensourcedelivers.com/ Contact: Michael J. Skok: mjskok@northbridge.com Tim Yeaton: tyeaton@blackducksoftware.comFUTURE OF OPEN SOURCE 2012