This document discusses several business models for open source software, including: 1) Large organizations collaborating on an open source platform to reduce costs and publish new technologies; 2) An open source foundation providing infrastructure and community management in exchange for membership fees and events; 3) Service companies specializing in open source integration or support; 4) Infrastructure companies leveraging open source software to provide integrated solutions; and 5) Hardware companies using open source software to develop industry-ready products. The document emphasizes that open source is an enabler for collaboration and standards promotion rather than a business model itself.

1. Insights about OSS Business Models
Gaël Blondelle
Director of European Ecosystem Development
Eclipse Foundation Europe
@gblondelle
June 2017 – Paris

2. Reminder: Business friendly ecosystems
Based on extensible platforms
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 2

3. Inspired by the OPEES project team
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
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 3
Public deliverable
of the ITEA2 OPEES
project
Editor and lead author:
Romain Berrendonner
(Adacore)
With the participation of
Airbus, CNES, CS, Indra,
Obeo, SQS, Univ of Skövde,
Xipp, Combitech, TCPSI,
Thales

4. Large Organizations cooperation (1/2)
Open Source extensible platform
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 4
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

5. Large Organizations cooperation (1/2)
Open Source extensible platform
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 5
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

6. Large Organizations cooperation (2/2)
Open Source Foundation
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 6
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

7. Large Organizations cooperation (2/2)
Open Source Foundation
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 7
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

8. Pure Service Business model
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 8
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

9. Pure Service Business model
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 9
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

10. Leveraged Service Business model
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 10
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

11. Focus on RedHat
cf http://www.slideshare.net/djwallis/red-hat-essentials
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 11
50,000+
packages
Collaboration with partners and
open source contributors to develop
technology

12. Focus on RedHat
cf http://www.slideshare.net/djwallis/red-hat-essentials
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 12
App. 5,000
packages
1st
Stage
Fedora
(the R&D vehicle)
- two releases
per year
- unsupported
- fast moving
- latest
technology

13. Focus on RedHat
cf http://www.slideshare.net/djwallis/red-hat-essentials
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 13
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

14. Focus on RedHat
cf http://www.slideshare.net/djwallis/red-hat-essentials
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 14

15. Infrastructure provider
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 15
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

16. Infrastructure provider
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 16
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

17. Free Software / Leverage Hardware
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 17
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

18. Free Software / Leverage Hardware
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 18
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

19. Open Source is not a
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 19

20. Open Source is an enabler
• A way to promote or establish standards
• A powerful marketing channel
• An ticket to collaboration
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 20

21. Few advices to make your life easier
with open source
• Manage Intellectual Property
• Don’t do it alone
• Don’t reinvent the wheel
• Choose a business friendly license
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 21

22. More questions?
Gaël Blondelle
Director of European Ecosystem Development
gael.blondelle@eclipse.org
@gblondelle
+33 673 392 185
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 22

23. Credits
• Silver bullet by Sprott Money
June-2017 Copyright (c) 2017, Eclipse Foundation, Inc. Made available under the Eclipse Public License 1.0 23