Open source softwares, 2011


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ESSEC Business School, IS/IT Management.
Presentation about Open Source Softwares.

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  • IDC numbers– International Data Corporation – research company about IT
  • Sell related products and services (participate in elaborating the core innovation in order to sell complements).Example: IBM participated in the Apache OSS and now sells complements WS Studio, WS Portal and WS App Server.Marketing buzz
  • Open source softwares, 2011

    1. 1. OPEN SOURCE SOFTWARE Open source software GROUP 2 
    2. 2. Introduction  Definition: the software source code and certain other rights normally reserved for copyright holders are provided under an open-source license that’s permits users to study, change, improve and at times also to distribute the software.  Origins: the free software movement (1983) Enhance freedoms of software users:  Run the software  Study and change the software  Redistribute copies with or without changes  Very common at the beginning of the computer era (1960’s), but disappeared in the 70s (because of competition, and difficulty of maintenance)  Worldwide OSS market: $1.6 billion in 2006, $5.8 billion in 2011 Thousands of projects today: mozilla firefox, open office, android…
    3. 3. Functioning of an OSS  Access to the source code… but what is a source code ?  Files before Compilation  Because after compilation (translation into Binary code), we can’t access to that anymore.
    4. 4. Functioning of an OSS  With OSS:  If I want to change the software for my use, I can access to the files written by the developer (which is not the case if I only have the ‘.exe’ file, already in binary language, for example)  If I want to check if the software is well secured (and doesn’t sent my credit card numbers to the developer), I can. Or I also can trust the community of developers that did it before me, if the software is famous.  It is possible to create/use several declination of the same software, depending on the needs.
    5. 5. Functioning of an OSS The values behind OSS :  It is free (free = no cost, and free of use/modification)  Ethic : access to “generic” softwares (you don’t have to pay 300€ to open a .docx file).  “copyleft” : respect of the work of the author  Allows creativity, collaboration, in constant improvement => innovation.  Security, transparence : you can know the recipe, you can’t be poisoned.  Respect the open standards (W3C, UTF-8…), in addition to the free licenses.
    6. 6. Supplier of OSS  Tough OSS is not a proprietary software, here is a list of some OSS project with the name of the founder company* *Challenges of open innovation: the paradox of firm investment in open-source software J.West 1 G.Gallager
    7. 7. Access To The Technology • A study released in August 2010 by Accenture revealed that 98% of companies use open source software and that 29% contributes back to the software. • These figures are going to increase in the coming years • In addition to advantages such as the low cost of using the software, transparency, and flexibility, to use open source software might have a positive effect on the image of a company as it carries values such as team spirit and collaboration Companies using OSS Vrs Companies refusing to use it Companies using open source softwares Companies not using open source softwares
    8. 8. Benefits from open source projects  Motivational problem2 : people”? o Divers profiles : different know-how, interests and user needs. Direct utility, either to the individual or to the employer o Intrinsic benefit from the work : personal fulfillment, prestige and visibility o Signaling of quality of human capital : gain respect from one’s peer o Self-production by “filling an unfilled market”3  Who are these “crazy o Individuals who have no interest in this matter o People for whom computer is a hobby but insufficient !! o “Hacker Culture” 2. Paradox of open-source software? J.West & S.Gallagher 3. Economics of Open Source Software. L.Green Open Source Softwares have changed profoundly the nature of software good which became a collective good.
    9. 9. Benefits from open source projects Coordination problem : The governance Diffusion of OSS structure oThe diffusion process of OSS seems to permit an o Open Source Projects posted on the Net, have some shared characteristics :Project lifecycle, network of the relations among its members, the linkages with the Open Source Community and the proprietary closed source software. alternation of standards to the dominance of inferior technologies. oA successful project starts when an individual oThere are interaction effects between network have a particular problem. This person will group people who are facing the same problem in her social network. oAs the project goes by, the “embryonic” group will look for feedback making the results publicly available to attract more participation. => Always selecting the best fitting solutions. oThe authority of project leaders arises from the bottom up contribution. investiture resulting from the long-term oOSS become more user-friendly => diffusion in increasingly broad-band of population. topology, network density and interoperability costs, which strongly influence the diffusion dynamics of OSS.
    10. 10. Benefits from open source projects B. Advantages and Drawbacks Advantages •Ideal for people trying to start their own company, (costs savings). Free Evolution / integrate external innovations Easy to manipulate •Unrestricted access anyone is able to use them, modify them and as a new technological advance is made, it is propagated. This will inevitably improve because of the collaboration. •You can go many upgrades and modifications by yourself if you know a bit of programming. You don’t need to hire professional programmers •Learning skills for employees as participating in a software development + integration of external innovation Intrinsic benefit No Production No Support Features ? Hybrid Strategies Drawbacks •Not everyone has the same motivation to work on OSS •When buying a product with a license, after sale support is provided. •Some features that are developed are not adequate for all types of businesses. Some others are needed and not developed. •Some firms developed hybrid strategies that combines the benefits of the OSS with some of the control of proprietary approaches. What about the others ??
    11. 11. Should FFTW use open source softwares?  Free use of IT resources (Open office…) => cost savings  Easy to procure – easy to integrate external innovation  Will enable FFTW to test some options before determining more precisely its needs (test before you buy)  Reliable technology as it has been improved by many users  OSS are very popular on server application: enables to share data among different departments FFTW is building its IT department with limited resources and knowledge Using OSS is relevant
    12. 12. Should FFTW invest in OSS? FFTW is a company that is building its IT department:  OSS is easy to change in order to fit better the business needs  Motivates IT people to work on a new, cutting edge software But:  Regarding to flowers’ specific business, the community of developers is not large enough in order to make open source collaboration beneficial  No technical and functional support in IT development, which can be a handicap with a company without any IT knowledge  FFTW cannot afford to have weak or unstable IT regarding to its core business activities  FFTW is not an IT company: it won’t be able to make profit out of selling OSS-related products Investing in OSS can be a cost rather than a benefit for FFTW It is not a good investment, for a young and small company that is not IT oriented, to spend a lot of money, time and people resources in OSS