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

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

4 OPEN SOURCE COLLABORATORS FUTURE
OF OPEN SOURCE 2012

5 SURVEY RESPONSES FUTURE OF
OPEN SOURCE 2012

6 SURVEY RESPONDENTS Vendors Non-Vendors
FUTURE OF OPEN SOURCE 2012

7 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

8 AGENDA Markets Community Innovation
& Investment FUTURE OF OPEN SOURCE 2012

9 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 FUTURE OF OPEN SOURCE 2012

10 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 FUTURE OF OPEN SOURCE 2012

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

12 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 FUTURE OF OPEN SOURCE 2012

13 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

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

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

16 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 FUTURE OF OPEN SOURCE 2012

17 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

18 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

19 AGENDA Markets Community Innovation
& Investment FUTURE OF OPEN SOURCE 2012

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

21 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% FUTURE OF OPEN SOURCE 2012

22 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: FUTURE OF OPEN SOURCE 2012

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

24 AGENDA Markets Community Innovation
& Investment FUTURE OF OPEN SOURCE 2012

25 SIGNIFICANT TECHNOLOGY INNOVATION FROM
NEW 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 increased Source: FUTURE OF OPEN SOURCE 2012

27 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 FUTURE OF OPEN SOURCE 2012

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

29 Quality Innovation = Growth
FUTURE OF OPEN SOURCE 2012

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

31 THANK YOU! OPEN SOURCE
COLLABORATORS FUTURE OF OPEN SOURCE 2012

32 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