2009 Future of Open Source study; presented at InfoWorld Open Source Business Conference Keynote Panel: Dries Buytaert, Founder & CTO- Acquia;Ron Hovsepian, CEO Novell;John Lilly, CEO Mozilla; Mårten Mickos, SVP Sun Microsystems; John Roberts, CEO SugarCRM. The panel was chaired by North Bridge. The study, collected from 435 respondents, bring to light a variety of significant issues and topics surrounding open source software, such as the impact of the economic recession, key market drivers, and predictions regarding the types of companies that will drive the next wave of commercial open source success. Disruptive business models are maturing in large markets like Web Content Management and Social Publishing, making it an attractive investment area for the team at North Bridge. However what the survey also shows is that much work remains to evangelize these benefits and establish a credible ecosystem to bring open source solutions to mainstream IT buyers.

1. The Future of Open Source

3. Dries Buytaert, Founder & CTO Acquia
Ron Hovsepian, CEO Novell
John Lilly,CEO Mozilla
Mårten Mickos, SVP Sun Microsystems
John Roberts, CEO SugarCRM
our panelists
Moderated by Michael Skok, General Partner, North Bridge

4. Who Responded?

5. Who Responded?
435
2009 Respondents

6. Who Responded?

7. Describe your organization’s use of
Open Source software?
43
47
52
59
121
143
200
We use open source software exclusively
We are investigating using open source
We use some open source software
We sell SaaS open source solutions
We build custom OS solutions for clients
We use open source software a great deal
We develop and sell open source software

8. Live Voting Question #1
Is the Economy’s turbulence Good or Bad
for Open Source software?
Good Text osbc1 to 66937
Bad Text osbc2 to 66937

9. Is the Economy’s Turbulence Good
or Bad for Open Source software?
Good
Bad
2008
Good
Bad
2009
81% 96%

10. Open Source software
decision criteria is evolving
2008 2009
Lower acquisition & maintenance costs Lower acquisition & maintenance costs
Access to code libraries Superior security
Freedom from vendor lock-in Freedom from vendor lock-in
Rapid pace of innovation Better quality software
Freedom of DIY Access to code libraries
Community support Rapid pace of innovation
Superior security Freedom of DIY

11. Live Voting Question #2
Please choose the most important factor
that makes Open Source software
attractive?
Better quality software Text osbc6 to 66937
Lower Acquisition &
Maintenance Costs
Text osbc7 to 66937
Superior Security Text osbc8 to 66937
Freedom from vendor lock-in Text osbc9 to 66937

12. What are the barriers to
open source software selection?
Application deployment complexity
Total Cost of Ownership concerns
Security concerns
Legal concerns about licensing
Stringent IT operations policies
Lack of formal commercial vendor support
Lack of internal technical skills
Unfamiliarity with open source solutions

13. Which sector is MOST susceptible to
disruption by Open Source within the next 5
years?
database (52%)
operating systems (36%)
business intelligence (28%)
WCM (22%)

14. Which sector is LEAST susceptible to
disruption by Open Source within the next 5
years?
office productivity
security tools
ERP / CRM

15. Who are the up and coming
Open Source software companies?

16. Who are the up and coming
Open Source software companies?

17. Who are the up and coming
Open Source software companies?

18. Live Voting Question #3
How is the growing use of Open Source
components impacting application complexity?
More complex Text osbc3 to 66937
No more or less complex Text osbc4 to 66937
Less Complex Text osbc5 to 66937

19. How is the growing use of Open Source
components impacting application
complexity?

20. experience

21. What impact is Open Source
having on IT operations?

22. Strategies likely to create the most value for
open source vendors:-
5%
9%
9%
9%
31%
38%
Advertising or sponsorships
Dual licensing
Proprietary add-ons
Premium electronic services
Professional services & consulting
Subscription-based technical support

23. Live Voting Question # 4
Which business strategies will create the most value
for Open Source vendors over the next two years?
Subscription-based technical
support
Text osbc10 to 66937
Professional services and
consulting
Text osbc11 to 66937
Premium versions of add-ons Text osbc12 to 66937
Dual licensing to OEM and
corporate customers
Text osbc13 to 66937

24. Which will have the greatest impact
on Open Source vendors?
0% 20% 40% 60%
Cloud Computing
Virtualized Infrastructure
SaaS
2009 2008

25. Live Voting Question #5
In 5 years, what % of software purchases will be
Open Source (vs. Proprietary)?
0 - 25% Text osbc14 to 66937
26 - 50% Text osbc15 to 66937
51 - 75% Text osbc16 to 66937
76 - 100% Text osbc17 to 66937

26. In 5 years, what % of software
purchases will be Open Source?
28%
56%
15%
2%
2007
29%
57%
13%
1%
2008
0 - 25% 26 - 50% 51 - 75% 76 - 100%
21%
53%
22%
4%
2009

27. 28%
56%
15%
2%
2007
29%
57%
13%
1%
2008
21%
53%
22%
2009
79%
71%
72%
In 5 years, what % of software
purchases will be Open Source?

28. ~80%
believe
In 5 years:
>25% of software purchases will be
Open Source

29. future
cost
quality
barriers <opportunity>

30. would like to
thank…