Business Models of Open Source Software

Transcription

1 Business Models of Open Source Software Nov Prof. Kim, Jong Bae(Ph.D.)

2 Professor Name: Kim Jong Bae Department: Graduate School of Software, Soongsil University <Books> - Open Source 2.0(2010) - Open Source Software: A Survey from 10,000 Feet(2013, Translation Book) - The Definitive ANTLR4 Reference(2014, Translation Book) - Agile Technologies in Open Source Development(2015, Translation Book) - Software Development: An Open Source Approach(2016, Translation Book) - An Introduction to R for Spatial Analsis & Mapping(2016, Translation Book) - The Business Model for Open Source Software(2017)

3 Value? Use Vs. Mystical Use Value: "The utility of a thing makes it a use value... Use-values become a reality only by use or consumption."

4 Use Value Vs. Exchange(Sale) Value Exchange Value: a relation, "as the proportion in which values in use of one sort are exchanged for those of another sort," an equation of commensurability... and then some.

5 costs price price value Value Price manufacturer profit extra value consumer A product in the eyes of the manufacturer A product in the eyes of the consumer

6 Value & Price "Price is what you pay. Value is what you get." -Warren Buffett

7 Market share for top Web servers across all domains according to Netcraft (

8 Evolution of Open Source Software Applications OS & Web Server Middleware WAS: JBOSS, Jonas, Geronimo DB: MySQL, PostGres, Cloudscape, Ingres, SAPdb, BerkeleyDB Development Tool: Eclipse Stack Mgmt Tools: OpenPKG, Integration SASH: Spring, Axis, Struts, Hibernate BI: Pentaho BPM: JBPM CMS: Alfresco LDAP: OpenLDAP ERP: Compiere CRM: SugarCRM, Compiere Healthcare: MedSphere Management: Nagio, OpenNMS OS: FreeBSD Linux RedHat, SuSE WS: Apache Linux Apache HTTP Server Tomcat Servlet Engine Jboss J2EE Container MySQL Linux Stack Management Apache HTTP Server SASH Tomcat Servlet Engine Jboss J2EE Container MySQL/PostgreSQL Linux Security Tool Stack Management BI BPM CMS Apache HTTP Server SASH Tomcat Servlet Engine Jboss J2EE Container MySQL/PostgreSQL XenSecure Linux CRM LDAP Security Tool

9 Business and Strategic Advantages of Moving into OSS User base and community User base development Information about market Innovation dissemination Productivity increase Access to customer needs External developers use Access to new skills and Practices Market placement and competition Approach restricted markets Increase reputation Attack competitors Preempt development of closed standards Embrace underdog mentality Escape from vendor lock-in Revenue stream and financials Enable new services Increase demand for complementary services Reduce development costs Lower break-even points Introduce new revenue Streams

10 Actors of OSS Project Communities

11 Typical OSS Business Models & OSS Ecosystem Players by Stephanos Androutsellis-Theotokis

12 Business Opportunities with Software(1/2) identification of solutions purchas e & acq requirements gathering uisition develop installati on integrati on test training mainten ance migratio n ment design "Process of technology adoption"

13 Business Opportunities with Software(2/2) Development X X (Sales &) Installation X X Integration X X Certification X X Training X X Maintenance & support X X Migration X X SW1 SW2 SW3 SWn "Vertical specialisation or Horizontal specialisation" SW1 SW2 SW3 SWn Development (Sales &) Installation Integration Certification Training X X X X Maintenance & support X X X X Migration

14 Business Models of Open Source Software Pure Product Models Use Value Acquisition Distributed Sale Cost Sharing Risk Sharing - Apach - Cisco Development Dual Licensing Funambol, MySQL, Sleepycat DB, TrollTech Mixed Models OSS-Proprietary Accessories Sendmail, Hyperic, Sourcefire, Zimbra Platform Distribution SourceLabs, Spikesource, Red Hat Provision of Services Consulting/SI IBM, Ayamon, Enomaly, Navica OSS biz. Training/Support & Maintenance Easter-eggs Models Development-Service Hybrid Ancillary Markets (H/W) OSS-Specialist OSS-SaaS Community & velopment De Alfresco, Compiere, vtiger, Openbravo Collabnet, SugarCRM, SocialText, JasperSoft IBM, Digium, Avanzada7, Chumby SourceForge, CollabNet Other Ancillary Legal Certification Black Duck, Palamida Markets Sale of Books O'Reilly Merchandising ThinkGeek Advertising Mozila, Digium

15 Prerequisites, Deciding Factors and Concerns Evaluate the Market for the Target Product Determine Development Community Interest Decide what Parts of the Product to Open-Source Balance Short Term Switching Costs Consider New Processes, Infrastructure and Environment Ensure the Correct Mentality is Present Sanitize Code Select Appropriate Business Model Select Appropriate License Decide on Marketing Approach

16 Conclusions Q & A

17 THANK YOU!