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Foss Biz Model - Holden Hao

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Foss Biz Model - Holden Hao

  1. 1. FOSS BUSINESS IN THE PHILIPPINES by: Holden M. Hao
  2. 2. The Business Side of FOSS FOSS is not free as in cost, rather the emphasis is in ● FREEDOM In using FOSS, as in other things in life, there is always a ● cost But with FOSS, the cost is most likely to be less ● Thus, there is business to be made ●
  3. 3. Costs of Using FOSS acquisition cost ● implementation cost ● installation – configuration – customisation – training cost ● maintenance cost ● upgrade cost ●
  4. 4. International Business Models for FOSS
  5. 5. International Business Models for FOSS
  6. 6. International Business Models for FOSS
  7. 7. Applied Models in the Philippines software development ● outsourced development (PHP/ Java) – Winston Demarilo sold GlueCode (Java products) to IBM for – $100M solutions provider ● technical support ● training ●
  8. 8. Organizational Structures of Philippine FOSS Businesses Traditional companies ● Independent Consultants ● Partnerships ●
  9. 9. Market Acceptability of FOSS in the Philippines many companies use unlicensed software ● threat of raids is now regular ● great improvement in terms of ease of use of FOSS ● cost savings ●
  10. 10. Hindrances to FOSS Marketability fears of migration ● perceived difficulty – incompatibility issues – productivity loss – human resistance to change ● lack of technical support/ human resource ● high initial cost of migration ●
  11. 11. Strategies to Counter Hindrances Marketing Stage ● Highlight future cost savings – Highlight open standards and compatibility – Do not insist on FOSS as the only solution – Do not call your potential clients as pirates! Use the term – unlicensed software
  12. 12. Strategies to Counter Hindrances Pre-deployment Stage ● Conduct group discussions with management and employees – before migration address issues raised from meetings – provide test systems –
  13. 13. Strategies to Counter Hindrances Deployment Stage ● deploy in stages – minimize disruptions –
  14. 14. Strategies to Counter Hindrances After Deployment ● conduct trainings – convince management to lead by example – be there for technical support –
  15. 15. Afterfive A division under Kimbrez Corporation ● provides FOSS solutions and technical ● support composed of a team of consultants with ● different fields of expertise
  16. 16. Afterfive Experiences Marketing ● most of our clients are from referrals – the market is very sensitive to price for service – clarify scope of job/contract –
  17. 17. Afterfive Experiences Deployments ● client wants to see you physically as you work – insist on proper implementation (hardware, bandwidth, – equipment storage, etc.)
  18. 18. Afterfive Experiences Technical Support ● sell monthly support contracts – train company technicians or in-house techies to provide first – level support be there when you are most needed –
  19. 19. Afterfive Experiences Human Resource ● A FOSS developer is more valuable; his/her tools are free – you most likely need to train – find people from a FOSS group –
  20. 20. Other Opportunities embedded applications/ appliances ● software as a service model ●
  21. 21. Have Fun with Your FOSS Business!

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