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Product: Open Source, Ecosystems, and Intellectual Property issues
- 1. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: What ? Software: • Distributed with source code • Includes a license that allows users to modify etc. Establishes other “rules” • Version is available for free • Open standards versus Closed / Proprietary Digital Marketing alexbr.brown@gmail.com University of Delaware
- 2. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Examples • Linux: 1991, Operating System (Businesses) • Apache: 1995, Web Server, 45% market share • Firefox: 2003, Web Browser, 19% market share • Wordpress: 2003, Blogging Platform Digital Marketing alexbr.brown@gmail.com University of Delaware
- 3. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Examples • Hadoop: 2005, Big Data • Android: 2007, Mobile Operating System (Linux Fork) • Bitcoin: 2009, Cryptocurrency • OpenStack: 2010, Cloud • OpenSSL: 1998, Encryption (Heartbleed) – Core Infrastructure Initiative Digital Marketing alexbr.brown@gmail.com University of Delaware
- 4. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Evolution • Life Cycle curve • From Philosophy to: • Business cases Digital Marketing alexbr.brown@gmail.com University of Delaware
- 5. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source • Free Software movement to: – Richard Stallman (Idealist) • Open Source movement – Eric Raymond, Linus Torvalds (Pragmatist) – Linux, Cathedral & Bazaar • Fertile ground for Linux project Digital Marketing alexbr.brown@gmail.com University of Delaware
- 6. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: License Expresses use, for Copyrighted software: • Right to share, use and spread, versus hoard • GPL (Copyleft): Stallman FSF – Source code freely available – Free version – Changes back to project – License remains with derivative works – Anyone can distribute product • Apache: Expands business case – More permissive: license does not have to remain with derivatives Digital Marketing alexbr.brown@gmail.com University of Delaware
- 7. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Requirements • Leadership, examples: – Linux Foundation, Linus Torvalds – Apache Software Foundation • Effective communications infrastructure • License • Developer Community: nurture • Useful Project (stage of life cycle) – Compete with incumbent re: price and utility – Innovate (Hadoop) Digital Marketing alexbr.brown@gmail.com University of Delaware
- 8. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Requirements • Rewards – Ego – Instant gratification – Network effects (Product) – Utility • Corporate contributions – Red Hat: Linux – Google: Linux – Yahoo: Hadoop Digital Marketing alexbr.brown@gmail.com University of Delaware
- 9. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Advantages • Network Effects • Rapid Development Cycles • Cost Savings • Protected from Lock-in – Alternate vendors – Life of code (Windows XP) Digital Marketing alexbr.brown@gmail.com University of Delaware
- 10. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Advantages • Flexibility in implementation • Influence development • Developer community support • Spread the code, sharing Digital Marketing alexbr.brown@gmail.com University of Delaware
- 11. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Risks • Free rider effect ? • IP risk? (Apple versus Samsung) • Forking (Android / Kindle Fire) • Security (OpenSSL versus Linux) Digital Marketing alexbr.brown@gmail.com University of Delaware
- 12. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Business Models • Cost and innovation sharing – Apache – Facebook (storage) – Hadoop • Market Position – Firefox - defensive • Market Share – Android Digital Marketing alexbr.brown@gmail.com University of Delaware
- 13. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Open Source: Business Models • Support model – Red Hat (Linux) – Cloudera / HortonWorks (Hadoop) • As a Service: hybrid with proprietary code – Facebook, GitHub, Amazon Digital Marketing alexbr.brown@gmail.com University of Delaware
- 14. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Crowdsourcing: Examples • The product – Open Source – Wikipedia – Machine learning (Waze) • The service offering – Uber – Airbnb Digital Marketing alexbr.brown@gmail.com University of Delaware
- 15. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Crowdsourcing: Examples • The funding (Crowdfunding) – Kickstarter, Indiegogo, Gofundeme – Funding (not capital investing) – Community around an idea – $1bn on Kickstarter, longtail – Oculus, raised $2.4m on Kickstarter • The Marketing / Events – #hashtags Digital Marketing alexbr.brown@gmail.com University of Delaware
- 16. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Ecosystems: Examples • Mobile – BlackBerry – iOS (developer $s leader) – Android (market share leader) – Windows (Gaming?) • Social Networks – Facebook (lost gaming F8 returned) – Twitter (developer conference returned) • Apple Pay: retailers, banks • Wearables: Nike out, Android Wear, Google Glass • Auto-interface: Apple versus Android Auto versus Industry Digital Marketing alexbr.brown@gmail.com University of Delaware
- 17. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Ecosystems: APIs • Application Programming Interface (API) • Gateway between app developer community and platform • Set of rules developer needs to know that the app works Digital Marketing alexbr.brown@gmail.com University of Delaware
- 18. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Ecosystems: APIs • API communicates platform updates • Open versus closed (relatively) • Stage of lifecycle impacts API strategy for platform Digital Marketing alexbr.brown@gmail.com University of Delaware
- 19. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Ecosystems • Build community around platform – Conferences: updates / roadmaps / APIs • Positive sum relationship – Outsource development expands possibilities (resources & imagination) • Increasing returns • Consumer lock-in hinders new entrants Digital Marketing alexbr.brown@gmail.com University of Delaware
- 20. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Ecosystems • App developer community priorities • Customer experience depends on entire ecosystem • Versus closed system: Car Digital Marketing alexbr.brown@gmail.com University of Delaware
- 21. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Intellectual Property: Patent • Novel and useful invention • Need to file: USPTO • 14 or 20 years, from file date • Standards Essential Patents • Patent Trolls Digital Marketing alexbr.brown@gmail.com University of Delaware
- 22. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Intellectual Property: Patent • Invent, license or litigate • Google Contact Lense • Amazon 1 click Patent (with shopping cart) • Apple versus Samsung (Google’s Android) • Tesla • China Digital Marketing alexbr.brown@gmail.com University of Delaware
- 23. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Intellectual Property: Copyright • Expression of work • Subsists (no requirement to file) • 70 years after death of author • Digital Millennium Copyright Act: Safe Harbor • SOPA (Internet blackout) Digital Marketing alexbr.brown@gmail.com University of Delaware
- 24. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Intellectual Property: Copyright • Napster / MegaUpload • RIAA, MPAO • Google’s YouTube versus Viacom • Getty Images • Aereo loses • Vine and World Cup: Fair Use ? Digital Marketing alexbr.brown@gmail.com University of Delaware
- 25. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Intellectual Property: Trademark • Name protection – Permanent while in use, build brand • Apple versus Apple: 30 year dispute • Google: Glass • Apple: App Store • Trade Secret – Search algorithm Digital Marketing alexbr.brown@gmail.com University of Delaware