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Making Money with Open Source and
Not Losing Your Soul:
A Practical Guide
Patrick McFadin
@PatrickMcFadin
Intro to me
Why you might want
to listen to this
clown
OSS advocate
1992 - Linux .9 Apache TomcatHTTP
Started a service company…
Current Status
Chief Evangelist for Apache Cassandra
Work at a OSS company, DataStax
I love my job!!!
A Little Background
Is commercial OSS evil?
Lock it down and
make the freeloaders
PAAYYYY!!!
Give it all away!
Some say it’s all evil
Cathedral - Code is developed behind closed
doors and final release is available as source code
Bazaar - All code is developed out in
the open
Why would someone buy OSS?
Tour de Open Licenses
The Restrictives
License Can Can’t Must Special Case
GPLv2
• Commercial

• Modify

• Distribute
• Place Warranty
• Sublicense

• Hold Liable
• Include Original

• Disclose Source
All changes have to stay GPL
GPLv3
• Commercial

• Modify

• Distribute
• Place Warranty
• Sublicense

• Hold Liable
• Include Original

• Disclose Source
• State changes
Fixed “Tivo Hole” in GPLv2
AGPL
• Commercial

• Modify

• Distribute
• Place Warranty
• Sublicense

• Hold Liable
• Include Original

• Disclose Source
• State changes

• Include Copyright
Made clause for “Network
Software”
Source: tldrlegal.com
Internal Use: Safe, SAAS Application: Warn,
Product Distribution: Danger
The Permissives
License Can Can’t Must Special Case
Apache
• Commercial

• Modify

• Distribute
• Place Warranty

• Sublicense

• Private use
• Use Trademark
• Hold Liable
• Include Copyright
• Include License

• State Changes

• Include Notice
Provide a notice in each file
changed. Explicit patent
license from contibuter.
BSD
• Commercial

• Modify

• Distribute
• Place Warranty

• Sublicense
• Use Trademark
• Hold Liable
• Include Copyright
Do anything you want, just
include the BSD copyright
MIT
• Commercial

• Modify

• Distribute
• Private use

• Sublicense
• Hold Liable
• Include Copyright

• Include License
Do whatever. Include license
and copyright
Internal Use: Safe, SAAS Application: Safe,
Product Distribution: Safe
Source: tldrlegal.com
Business Models
Services
Support
Consulting Training
Product
Added features and tooling
Selling a license at a unit cost
Open Source
Software
Tooling
Commercial
extensions
Commercial
Product
Dual License
AGPL or Commercial GPL and Commercial
Embedded revenue
Make money inside your
product
Finding the fine line
Don’t hurt the small teams Build things large
organizations will pay for
Open Closed
Pitfalls
SugarCRM
So called "Crippleware"
Limited use license. You can only use X amount of…
Engaging the Community
Be an important part of
your projects community
Work together!
Being open and transparent
Talk about what you are doing
Acknowledge mistakes
Avoid the "hidden agenda"
Missteps
Eucalyptus Systems is pulled by Ubuntu
Eucalyptus was once "the" open source cloud computing project.
It was the core of Ubuntu's cloud strategy, and more or less the
only game in town. Unfortunately, it was not a particularly open
project. While most of the code was available under an open
source license, it wasn't developed in the open and failed to
develop much of a community…
!
Joe Brockmeier
Nov 17, 2011
Competing with Commercial
Alternatives
Take the high road
Don't get dragged into a dog fight
Marketing and FUD
Marketing is about awareness
OSS is the anecdote to FUD
Here is the source
code
I now know the
1000 truths
The Selling Process
It's all about the
relationship
Make salespeople better community members
Commercial relationships complete the picture
Effective OSS selling
Know that some will never buy
Know your target customer
Probably a
Sales vs Users
Commercial Open Source
Total users
Total users
Sale
Sale
Wrap up
Pick your license carefully
Product over services
Be good to your community
50% off Training Day Pass
(~$350 value!)!
!
Discount Code: OSCON50!
*Valid through Thursday, July 24th!
 !
Register: datastax.com/
cassandrasummit14
Exclusive OSCON Promotion
Thank you and good luck!
We’re hiring awesome engineers! Ask me about it.
!
Follow me for more musings
@PatrickMcFadin

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Making money with open source and not losing your soul: A practical guide

  • 1. Making Money with Open Source and Not Losing Your Soul: A Practical Guide Patrick McFadin @PatrickMcFadin
  • 2. Intro to me Why you might want to listen to this clown
  • 3. OSS advocate 1992 - Linux .9 Apache TomcatHTTP
  • 4. Started a service company…
  • 5. Current Status Chief Evangelist for Apache Cassandra Work at a OSS company, DataStax I love my job!!!
  • 7. Is commercial OSS evil? Lock it down and make the freeloaders PAAYYYY!!! Give it all away!
  • 8. Some say it’s all evil
  • 9. Cathedral - Code is developed behind closed doors and final release is available as source code Bazaar - All code is developed out in the open
  • 10. Why would someone buy OSS?
  • 11. Tour de Open Licenses
  • 12. The Restrictives License Can Can’t Must Special Case GPLv2 • Commercial • Modify • Distribute • Place Warranty • Sublicense • Hold Liable • Include Original • Disclose Source All changes have to stay GPL GPLv3 • Commercial • Modify • Distribute • Place Warranty • Sublicense • Hold Liable • Include Original • Disclose Source • State changes Fixed “Tivo Hole” in GPLv2 AGPL • Commercial • Modify • Distribute • Place Warranty • Sublicense • Hold Liable • Include Original • Disclose Source • State changes • Include Copyright Made clause for “Network Software” Source: tldrlegal.com Internal Use: Safe, SAAS Application: Warn, Product Distribution: Danger
  • 13. The Permissives License Can Can’t Must Special Case Apache • Commercial • Modify • Distribute • Place Warranty • Sublicense • Private use • Use Trademark • Hold Liable • Include Copyright • Include License • State Changes • Include Notice Provide a notice in each file changed. Explicit patent license from contibuter. BSD • Commercial • Modify • Distribute • Place Warranty • Sublicense • Use Trademark • Hold Liable • Include Copyright Do anything you want, just include the BSD copyright MIT • Commercial • Modify • Distribute • Private use • Sublicense • Hold Liable • Include Copyright • Include License Do whatever. Include license and copyright Internal Use: Safe, SAAS Application: Safe, Product Distribution: Safe Source: tldrlegal.com
  • 16. Product Added features and tooling Selling a license at a unit cost Open Source Software Tooling Commercial extensions Commercial Product
  • 17. Dual License AGPL or Commercial GPL and Commercial
  • 18. Embedded revenue Make money inside your product
  • 19. Finding the fine line Don’t hurt the small teams Build things large organizations will pay for Open Closed
  • 20. Pitfalls SugarCRM So called "Crippleware" Limited use license. You can only use X amount of…
  • 22. Be an important part of your projects community Work together!
  • 23. Being open and transparent Talk about what you are doing Acknowledge mistakes Avoid the "hidden agenda"
  • 24. Missteps Eucalyptus Systems is pulled by Ubuntu Eucalyptus was once "the" open source cloud computing project. It was the core of Ubuntu's cloud strategy, and more or less the only game in town. Unfortunately, it was not a particularly open project. While most of the code was available under an open source license, it wasn't developed in the open and failed to develop much of a community… ! Joe Brockmeier Nov 17, 2011
  • 26. Take the high road Don't get dragged into a dog fight
  • 27. Marketing and FUD Marketing is about awareness OSS is the anecdote to FUD Here is the source code I now know the 1000 truths
  • 29. It's all about the relationship Make salespeople better community members Commercial relationships complete the picture
  • 30. Effective OSS selling Know that some will never buy Know your target customer Probably a
  • 31. Sales vs Users Commercial Open Source Total users Total users Sale Sale
  • 32. Wrap up Pick your license carefully Product over services Be good to your community
  • 33. 50% off Training Day Pass (~$350 value!)! ! Discount Code: OSCON50! *Valid through Thursday, July 24th!  ! Register: datastax.com/ cassandrasummit14 Exclusive OSCON Promotion
  • 34. Thank you and good luck! We’re hiring awesome engineers! Ask me about it. ! Follow me for more musings @PatrickMcFadin