The document discusses open source business models, focusing on the reasons for open sourcing, successful and sustainable models, and revenue generation strategies. It highlights the importance of open source in technology platforms, the role of large organizations, and various business models, including pure service and leveraged service approaches. Additionally, it emphasizes the need for collaboration and careful management of intellectual property in open source ventures.

1. About Open Source Business Models
Gaël Blondelle
Director of European Ecosystem Development
Eclipse Founda>on Europe
@gblondelle
October 12th 2016 – Vienna – IoT-EPI TF Business Models

2. 12 years in Open Source and Business Development
• 2004-2010: Co-founder @ PetalsLink
• 2007-2010: Chairman of the Technology Council @OW2
• 2010-2013: Open Source Bizdev @ Obeo
• 2010-2012: OPEES project manager
• 2011-2013: Board member @Kagilum
• Since 2013: Director @ the Eclipse Founda>on
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 2

3. Your ques>ons
• Why open sourcing when you can sell?
• What are the successful and sustainable models?
• What are the success drivers and real life examples?
• Can you give an ontology (or a couple of cases)?
• What are the relevant revenue models?
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 3

4. Some trends
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 4

5. Some trends
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 5
Source: http://www.bloomberg.com/news/articles/2015-02-05/six-things-technology-has-made-insanely-cheap

6. A must read
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 6
Easily downloadable
in PDF form
With stories about
• Free bikes
• Free razors
• Free cars
• Free air travel
Take away
• Don’t ask users to
pay for what is free
• But free stuff
makes customer
pay for a product

7. Some trends
New technologies like
big data
cloud
are available firstly in open source
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 7

8. Open Source works well for pla`orms
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 8

9. Inspired by the OPEES project team
OPEES (ITEA 2 08019) – WP1
Task 1.2: Business Models
D1.2.1 deliverable
OPEES
Open Platform for the Engineering of Embedded Systems
••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Open-source
business models
for
Polarsys
Project number: ITEA 2 08019
Work package: WP1
Task: 1.2
Edited by: Romain Berrendonner (AdaCore)
Date: 14/02/2013
Document version no: 1
Disclaimer: Contractors participating to this report shall incur no liability whatsoever for any
damage or loss which may result from the use or exploitation of Information and/or Rights
contained in this report.
This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 France License:
http://creativecommons.org/licenses/by-sa/3.0/legalcode
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 9
Public deliverable
of the ITEA2 OPEES
project
Editor and lead author:
Romain Berrendonner
(Adacore)
With the par?cipa?on of
Airbus, CNES, CS, Indra,
Obeo, SQS, Univ of Skövde,
Xipp, Combitech, TCPSI,
Thales

10. Large Organiza>ons coopera>on (1/2)
Open Source extensible pla`orm
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 10
Open source
Communities
• Large labs
workforce
• Technology
leaders
• Extensible
platform
Publish a
“game
changing”
technology in
Open Source
Reduce platform cost
Developers
Large
organizations
Open Source
Foundation
Events
Revenues from service/
products built on top of the
platform
Design and
implement a
rock solid
extensible
software
Loose
• IBM with Eclipse
• RackSpace/Nasa with OpenStack
• Bosch and al. with IoT@Eclipse

11. Large Organiza>ons coopera>on (1/2)
Open Source extensible pla`orm
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 11
Open source
Communities
• Large labs
workforce
• Technology
leaders
• Extensible
platform
Publish a
“game
changing”
technology in
Open Source
Reduce platform cost
Developers
Large
organizations
Open Source
Foundation
Events
Revenues from service/
products built on top of the
platform
Design and
implement a
rock solid
extensible
software
Loose

12. Large Organiza>ons coopera>on (2/2)
Open Source Founda>on
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 12
Leading /
Producing
organization
End-users
Providers
A community
of Software
Developers
Infrastructure
and Processes
Tight
Loose
Internet
Events
Corporations
(paying)
Individuals
(free)
Recurring membership fees
Events registrations
Team
Bandwidth and infra
Events organization
Governance
IP and Project
management
Ecosystem
Infrastructure
Community
management
• Eclipse Founda?on
• OpenStack Founda?on

13. Large Organiza>ons coopera>on (2/2)
Open Source Founda>on
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 13
Leading /
Producing
organization
End-users
Providers
A community
of Software
Developers
Infrastructure
and Processes
Tight
Loose
Internet
Events
Corporations
(paying)
Individuals
(free)
Recurring membership fees
Events registrations
Team
Bandwidth and infra
Events organization
Governance
IP and Project
management
Ecosystem
Infrastructure
Community
management

14. Pure Service Business model
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 14
Open source
communities
Software
Developers
Tight
Direct contact
Large
Organizations
Mainly call for tender
Outsourced
integration
service
Expertise
Time based
OSS
communities
Integration of
open source
software
Contribution to
the communities
• Freelancers
• Most large service providers
• Competency centers in large
organiza?ons

15. Pure Service Business model
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 15
Open source
communities
Software
Developers
Tight
Direct contact
Large
Organizations
Mainly call for tender
Outsourced
integration
service
Expertise
Time based
OSS
communities
Integration of
open source
software
Contribution to
the communities

16. Leveraged Service Business model
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 16
Open source
communities
Software
Developers
Tight
Internet
support
Large
Organizations
Recurring subscription contracts
Supported
products
In proportion of the number/
complexity of the products
Integration of
free software
Product
management
& QA

17. Focus on RedHat
cf hdp://www.slideshare.net/djwallis/red-hat-essen>als
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 17
50,000+
packages
Collaboration with partners and
open source contributors to develop
technology

18. Focus on RedHat
cf hdp://www.slideshare.net/djwallis/red-hat-essen>als
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 18
App. 5,000
packages
1st
Stage
Fedora
(the R&D vehicle)
- two releases
per year
- unsupported
- fast moving
- latest
technology

19. Focus on RedHat
cf hdp://www.slideshare.net/djwallis/red-hat-essen>als
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 19
1,500
packages
Red Hat Enterprise
Linux
* Real Time Support
* 24x 7
* 9 x5
* Web Only
Approximately every 18
months Stable, Mature,
Certified and Tested
Technology
VIDEO

20. Focus on RedHat
cf hdp://www.slideshare.net/djwallis/red-hat-essen>als
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 20

21. Infrastructure provider
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 21
Open source
communities
Software
Developers
Evangelists
Very loose
(free users)
Tight
(customers)
Internet
Hobbyists,
academics
(free users)
Large
organizations
Recurring professional contracts
Integrated
infrastructure
Hardware can be an important cost
factor
Integration of
open source
software
Develop an infra
on top of open
source software
• GitHub
• Amazon AWS
• Azure

22. Infrastructure provider
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 22
Open source
communities
Software
Developers
Evangelists
Very loose
(free users)
Tight
(customers)
Internet
Hobbyists,
academics
(free users)
Large
organizations
Recurring professional contracts
Integrated
infrastructure
Hardware can be an important cost
factor
Integration of
open source
software
Develop an infra
on top of open
source software

23. Free Sofware / Leverage Hardware
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 23
Open source
communities
Open
Hardware /
Makers
communities
Software
Developers
HW designers
Very loose
(free users)
Tight
(customers)
Internet for
hobbyists
Conventional
channels
Hobbyists
(free users)
Cities
Large
organizations
Sell hardware
OSS software
+
Open
Hardware for
hobbyist
OSS software
+
Industry
ready
hardware
Integration of open
source software
Develop a product
on top of open
source software
• Fits well with IoT
• Eurotech
• Libellium
• OEM crea?ng media center

24. Free Sofware / Leverage Hardware
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 24
Open source
communities
Open
Hardware /
Makers
communities
Software
Developers
HW designers
Very loose
(free users)
Tight
(customers)
Internet for
hobbyists
Conventional
channels
Hobbyists
(free users)
Cities
Large
organizations
Sell hardware
OSS software
+
Open
Hardware for
hobbyist
OSS software
+
Industry
ready
hardware
Integration of open
source software
Develop a product
on top of open
source software

25. Open Source is not a
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 25

26. Revenue models
• Sell a product that extends open source sofware
• Sell an appliance built with open source sofware
• Sell exper>se
• Sell access to an infrastructure
• May sell support subscrip>on
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 26

27. Open Source is an enabler
• A way to promote or establish standards
• A powerful marke>ng channel
• An >cket to collabora>on
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 27

28. Few advices to make your life easier
with open source
• Manage your Intellectual
Property
• Don’t do it alone
• Don’t reinvent the wheel
• Choose a business friendly
license
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 28

29. Open Source is a journey, not a des>na>on
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 29

30. Your ques>ons
• Why open sourcing when you can sell?
• What are the successful and sustainable models
• What are the success drivers and real life examples?
• Can you give an ontology (or a couple of cases)?
• What are the relevant revenue models?
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 30

31. More ques>ons?
Gaël Blondelle
Director of European Ecosystem Development
gael.blondelle@eclipse.org
@gblondelle
+33 673 392 185
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 31

32. Credits
• Startup Dream by .waldec
• Silver bullet by Sprod Money
• Success/Failure by ccPixs.com
• Please donate - (CC BY-SA 2.0) by hdps://www.flickr.com/photos/howardlake/
• Cow-boy - (CC BY-ND 2.0) by hdps://www.flickr.com/photos/16210667@N02/
Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 32