Open Source + Big Data=
Big Money
May 2011
10.20.2005

http://redmonk.com/public/osbc.pdf
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What do these vendors
have in common?
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These are PwC's
Global Software Top 20
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Source: PwC
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What else do these vendors
have in common?
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All were founded
before 1989
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1989 was twenty-two years ago
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Things that happened in 1989
•
The Soviet Union left Afghanistan
•
Time and Warner Merge
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The Exxon Valdez oil spill
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Tiananmen Square
•
Rain Man won best picture
•
Sega Genesis is released
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Oh, and some show called
Seinfeld premiered
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The average age of the
Top 20 Software Companies, in fact, is
47 years
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That's partially skewed by the likes
of IBM (1911) NEC (1899!), though
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Less outliers? 31 years
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So?
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Big, older companies outsource risk
By acquiring smaller, younger ones
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But if older = bigger
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Why is Microsoft the biggest?
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And there's a bigger problem
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Question:
Is Google a software company?
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Exactly
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Growth through software sales
is slowing
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Growth through data is not
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The Four Stages of
Software Producers
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STAGE 1
“The money is in the hardware,
not the software”
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STAGE 2
“Actually, the money is in the software”
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STAGE 3
“The money is not in the software,
but it is differentiating”
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STAGE 4
“Software is not even differentiating,
the value is the data”
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What happens when
companies of one stage
compete with another stage
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Microsoft's Share Price
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Share Price in Context
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The Age of Data is upon us
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The Age of Software The Age of Data
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What does this mean?
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Software is a means
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What are you bad at?
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Customer conversion
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If you're in open source,
you're good at distribution
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If you're good at
distribution, you're good at
generating data
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USE IT
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Open Source is not Growth
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Open Source enables data
Which enables growth
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So if you're in open source
and you're ignoring data
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You're doing it wrong
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QUESTIONS
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