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Open Source + Big Data=
       Big Money
May 2011
10.20.2005
http://redmonk.com/public/osbc.pdf




                2
What do these vendors
  have in common?

          3
4
These are PwC's
Global Software Top 20


          5
Source: PwC



6
What else do these vendors
    have in common?


             7
All were founded
   before 1989


        8
1989 was twenty-two years ago



              9
Things that happened in 1989
•
  The Soviet Union left Afghanistan
•
  Time and Warner Merge
•
  The Exxon Valdez oil spil...
Oh, and some show called
    Seinfeld premiered


           11
The average age of the
Top 20 Software Companies, in fact, is
              47 years


                  12
That's partially skewed by the likes
 of IBM (1911) NEC (1899!), though



                 13
Less outliers? 31 years


           14
So?


 15
Big, older companies outsource risk
By acquiring smaller, younger ones



                16
But if older = bigger


          17
Why is Microsoft the biggest?




             18
And there's a bigger problem




             19
20
Question:
Is Google a software company?



              21
Exactly


   22
23
24
25
26
Growth through software sales
          is slowing


              27
Growth through data is not



            28
The Four Stages of
Software Producers


        29
STAGE 1




“The money is in the hardware,
      not the software”
              30
STAGE 2


“Actually, the money is in the software”



                   31
STAGE 3




“The money is not in the software,
     but it is differentiating”
                32
STAGE 4




“Software is not even differentiating,
       the value is the data”
                   33
What happens when
  companies of one stage
compete with another stage

            34
Microsoft's Share Price




           35
Share Price in Context




           36
The Age of Data is upon us


            37
The Age of Software        The Age of Data




                      38
What does this mean?


         39
Software is a means


         40
What are you bad at?


         41
Customer conversion


         42
If you're in open source,
you're good at distribution


             43
If you're good at
distribution, you're good at
       generating data

             44
USE IT


  45
Open Source is not Growth


            46
Open Source enables data
 Which enables growth

           47
So if you're in open source
 and you're ignoring data


             48
You're doing it wrong


          49
QUESTIONS

    50
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Open Source + Big Data = Big Money  Slide 1 Open Source + Big Data = Big Money  Slide 2 Open Source + Big Data = Big Money  Slide 3 Open Source + Big Data = Big Money  Slide 4 Open Source + Big Data = Big Money  Slide 5 Open Source + Big Data = Big Money  Slide 6 Open Source + Big Data = Big Money  Slide 7 Open Source + Big Data = Big Money  Slide 8 Open Source + Big Data = Big Money  Slide 9 Open Source + Big Data = Big Money  Slide 10 Open Source + Big Data = Big Money  Slide 11 Open Source + Big Data = Big Money  Slide 12 Open Source + Big Data = Big Money  Slide 13 Open Source + Big Data = Big Money  Slide 14 Open Source + Big Data = Big Money  Slide 15 Open Source + Big Data = Big Money  Slide 16 Open Source + Big Data = Big Money  Slide 17 Open Source + Big Data = Big Money  Slide 18 Open Source + Big Data = Big Money  Slide 19 Open Source + Big Data = Big Money  Slide 20 Open Source + Big Data = Big Money  Slide 21 Open Source + Big Data = Big Money  Slide 22 Open Source + Big Data = Big Money  Slide 23 Open Source + Big Data = Big Money  Slide 24 Open Source + Big Data = Big Money  Slide 25 Open Source + Big Data = Big Money  Slide 26 Open Source + Big Data = Big Money  Slide 27 Open Source + Big Data = Big Money  Slide 28 Open Source + Big Data = Big Money  Slide 29 Open Source + Big Data = Big Money  Slide 30 Open Source + Big Data = Big Money  Slide 31 Open Source + Big Data = Big Money  Slide 32 Open Source + Big Data = Big Money  Slide 33 Open Source + Big Data = Big Money  Slide 34 Open Source + Big Data = Big Money  Slide 35 Open Source + Big Data = Big Money  Slide 36 Open Source + Big Data = Big Money  Slide 37 Open Source + Big Data = Big Money  Slide 38 Open Source + Big Data = Big Money  Slide 39 Open Source + Big Data = Big Money  Slide 40 Open Source + Big Data = Big Money  Slide 41 Open Source + Big Data = Big Money  Slide 42 Open Source + Big Data = Big Money  Slide 43 Open Source + Big Data = Big Money  Slide 44 Open Source + Big Data = Big Money  Slide 45 Open Source + Big Data = Big Money  Slide 46 Open Source + Big Data = Big Money  Slide 47 Open Source + Big Data = Big Money  Slide 48 Open Source + Big Data = Big Money  Slide 49 Open Source + Big Data = Big Money  Slide 50
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Presented at OSBC, this presentation examines the growth opportunity for firms whose primary revenue mechanism is software sales and licensing. Specifically, it compares and contrasts them with data oriented revenue opportunities.

Open Source + Big Data = Big Money

  1. 1. Open Source + Big Data= Big Money May 2011 10.20.2005
  2. 2. http://redmonk.com/public/osbc.pdf 2
  3. 3. What do these vendors have in common? 3
  4. 4. 4
  5. 5. These are PwC's Global Software Top 20 5
  6. 6. Source: PwC 6
  7. 7. What else do these vendors have in common? 7
  8. 8. All were founded before 1989 8
  9. 9. 1989 was twenty-two years ago 9
  10. 10. Things that happened in 1989 • The Soviet Union left Afghanistan • Time and Warner Merge • The Exxon Valdez oil spill • Tiananmen Square • Rain Man won best picture • Sega Genesis is released 10
  11. 11. Oh, and some show called Seinfeld premiered 11
  12. 12. The average age of the Top 20 Software Companies, in fact, is 47 years 12
  13. 13. That's partially skewed by the likes of IBM (1911) NEC (1899!), though 13
  14. 14. Less outliers? 31 years 14
  15. 15. So? 15
  16. 16. Big, older companies outsource risk By acquiring smaller, younger ones 16
  17. 17. But if older = bigger 17
  18. 18. Why is Microsoft the biggest? 18
  19. 19. And there's a bigger problem 19
  20. 20. 20
  21. 21. Question: Is Google a software company? 21
  22. 22. Exactly 22
  23. 23. 23
  24. 24. 24
  25. 25. 25
  26. 26. 26
  27. 27. Growth through software sales is slowing 27
  28. 28. Growth through data is not 28
  29. 29. The Four Stages of Software Producers 29
  30. 30. STAGE 1 “The money is in the hardware, not the software” 30
  31. 31. STAGE 2 “Actually, the money is in the software” 31
  32. 32. STAGE 3 “The money is not in the software, but it is differentiating” 32
  33. 33. STAGE 4 “Software is not even differentiating, the value is the data” 33
  34. 34. What happens when companies of one stage compete with another stage 34
  35. 35. Microsoft's Share Price 35
  36. 36. Share Price in Context 36
  37. 37. The Age of Data is upon us 37
  38. 38. The Age of Software The Age of Data 38
  39. 39. What does this mean? 39
  40. 40. Software is a means 40
  41. 41. What are you bad at? 41
  42. 42. Customer conversion 42
  43. 43. If you're in open source, you're good at distribution 43
  44. 44. If you're good at distribution, you're good at generating data 44
  45. 45. USE IT 45
  46. 46. Open Source is not Growth 46
  47. 47. Open Source enables data Which enables growth 47
  48. 48. So if you're in open source and you're ignoring data 48
  49. 49. You're doing it wrong 49
  50. 50. QUESTIONS 50
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Presented at OSBC, this presentation examines the growth opportunity for firms whose primary revenue mechanism is software sales and licensing. Specifically, it compares and contrasts them with data oriented revenue opportunities.

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