Oss: From Tactic To Strategy
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IP Forum
From Tactic To Strategy Gilad Ben-Yossef Codefidence Ltd.
(C) 2008,2009 Codefidence
About Me, About US
CTO of Codefidence Ltd. Open Source experts boutique Assisting our customers make use of Open Source software on a tactic and strategist level Startup to NASDAQ clients
(C) 2008,2009 Codefidence
What is Open Source?
Software requires effort and costs to build Software does not require effort and cost to duplicate No 1:1 relation between cost to number of users Free Software: Ideology, equality, the digital divide, democratization of technology. Open Source: Interesting business qualities.
(C) 2008,2009 Codefidence
What Gartner Says on OSS Use
e r A r e g n t n r o a r G W
"By 2012, 80 per cent of all commercial software will include elements of open-source technology.” (http://tr.im/nT99) "By 2012, more than 90 percent of enterprises will use open source in direct or embedded forms." (http://tr.im/nTdl) ”... 85 percent of companies currently using OSS and the remaining 15 percent expecting to in the next 12 months.” (http://tr.im/nTd7)
(C) 2008,2009 Codefidence
The Truth
There is no single organization in the world which does not make use of Open Source right now. Most are not aware of it. Many uses are skunk work initiatives, unknown to management. Many other embedded as part of commercial products and services.
(C) 2008,2009 Codefidence
Spot the Open Source Users
Microsoft Bing search engine
Edimax Wireless Router
The Marker web site
New York Stock Exchange
Cisco new Blade Servers
HTC G1, Apple iPhone and Palm Pre cell phones 88% of the top 500 super computer site (C) 2008,2009 Codefidence
What About Your Organization?
Does your organization use Open Source software? Do you use it wisely? Do you use Open Source at a Strategy or Tactic level?
(C) 2008,2009 Codefidence
Open Source Project Life Cycle
Delivery ”This is useful!”
Promise
”This is cool!”
Idea ”I want this to happen!”
Monetization, O'reilly book, Conference Corporate users, 20/80 dev/users i18n / L10n, Windows port, GSoC Comes with RedHat / Suse
Plausible promise, Work 4 me Early adopters, 80/20 dev/users Working code, rough consensus Download RPM/Deb
Scratching an itch Closely knit team ,100/0 dev/users Pure promise, little code Build from source code only (C) 2008,2009 Codefidence
Open Source Life Cycle Examples
Delivery ”This is useful!”
Promise
”This is cool!”
Idea ”I want this to happen!”
Linux Firefox MySQL Apache PHP Wordpress Xen SugarCRM KVM Asterisk Alfresco DimDim OpenBravo OpenVPN Wireshark QemuClamAV Thunderbird Wine Gimp Gaim DimDim GNUCash GNU Octave Almost everything on SourceForge.net (C) 2008,2009 Codefidence
OSS Involvement Motives
Tactic
Delivery
Treadmill
”This is useful!”
Promise
”I want this to happen!”
Complimenters
Coopetition
Freemium
Strategy
”This is cool!”
Idea
Free Lunch
(C) 2008,2009 Codefidence
The Free Lunch Model
An intermediate COCOMO model evaluation l estimates the cost to re-develop the Linux kernel at $612 million US.
David A. Wheeler, http://tr.im/nvDl
Google generates a lot of cash using its estimated 500k Linux servers Apple makes a lot of cash from sales of BSD running Macs and iPhones.
(C) 2008,2009 Codefidence
The Treadmill
Client requirement: Sprocket support
Your company
Evaluate cost of in-house vs. outside Create a work plan, allocate staff and execute or create SRS, engage vendor, manage development Integrate, Test, Fix & Deliver
Cheap Chinese Competitor
apt-get install libsprocket
Integrate, Test, Fix & Deliver (C) 2008,2009 Codefidence
Complimenters
Anything required by my customer to use my product and which I do not sell is a complimenter to my product. Software for hardware makers
OS for Database, firewall, backup software vendors.
Intel financing KVM.
Checkpoint providing hardened Linux distribution.
Browsers and smart phones for SAAS vendors
Google building Android OSS mobile phone stack (C) 2008,2009 Codefidence
Coopetition
Cooperation between Competitors Same needs, competitive advantage not justifiable by cost. Advantage of single platform outweighs competitive advantage Apache was formed by first web hosting companies Both Google and Apple use WebKit as basis for their web browser (C) 2008,2009 Codefidence
Freemium
Free with a Premium
Price Discrimination with entry level of zero
Business class gets assurance and support.
The Open Core variant: free core, proprietary add-ons. (C) 2008,2009 Codefidence
Build OSS Into Your IP Strategy
Delivery ”This is useful!”
Tactic
Promise ”This is cool!”
Idea ”I want this to happen!”
Strategy (C) 2008,2009 Codefidence
Thank You For Listening! Questions?
Codefidece Ltd.: http://codefidence.com
Community site: http://tuxology.net
My personal Blog : http://firstpost.org
Email: [email protected]
Phone: +972-52-8260388
Twitter: @giladby
(C) 2008,2009 Codefidence
From Tactic To Strategy Gilad Ben-Yossef Codefidence Ltd.
(C) 2008,2009 Codefidence
About Me, About US
CTO of Codefidence Ltd. Open Source experts boutique Assisting our customers make use of Open Source software on a tactic and strategist level Startup to NASDAQ clients
(C) 2008,2009 Codefidence
What is Open Source?
Software requires effort and costs to build Software does not require effort and cost to duplicate No 1:1 relation between cost to number of users Free Software: Ideology, equality, the digital divide, democratization of technology. Open Source: Interesting business qualities.
(C) 2008,2009 Codefidence
What Gartner Says on OSS Use
e r A r e g n t n r o a r G W
"By 2012, 80 per cent of all commercial software will include elements of open-source technology.” (http://tr.im/nT99) "By 2012, more than 90 percent of enterprises will use open source in direct or embedded forms." (http://tr.im/nTdl) ”... 85 percent of companies currently using OSS and the remaining 15 percent expecting to in the next 12 months.” (http://tr.im/nTd7)
(C) 2008,2009 Codefidence
The Truth
There is no single organization in the world which does not make use of Open Source right now. Most are not aware of it. Many uses are skunk work initiatives, unknown to management. Many other embedded as part of commercial products and services.
(C) 2008,2009 Codefidence
Spot the Open Source Users
Microsoft Bing search engine
Edimax Wireless Router
The Marker web site
New York Stock Exchange
Cisco new Blade Servers
HTC G1, Apple iPhone and Palm Pre cell phones 88% of the top 500 super computer site (C) 2008,2009 Codefidence
What About Your Organization?
Does your organization use Open Source software? Do you use it wisely? Do you use Open Source at a Strategy or Tactic level?
(C) 2008,2009 Codefidence
Open Source Project Life Cycle
Delivery ”This is useful!”
Promise
”This is cool!”
Idea ”I want this to happen!”
Monetization, O'reilly book, Conference Corporate users, 20/80 dev/users i18n / L10n, Windows port, GSoC Comes with RedHat / Suse
Plausible promise, Work 4 me Early adopters, 80/20 dev/users Working code, rough consensus Download RPM/Deb
Scratching an itch Closely knit team ,100/0 dev/users Pure promise, little code Build from source code only (C) 2008,2009 Codefidence
Open Source Life Cycle Examples
Delivery ”This is useful!”
Promise
”This is cool!”
Idea ”I want this to happen!”
Linux Firefox MySQL Apache PHP Wordpress Xen SugarCRM KVM Asterisk Alfresco DimDim OpenBravo OpenVPN Wireshark QemuClamAV Thunderbird Wine Gimp Gaim DimDim GNUCash GNU Octave Almost everything on SourceForge.net (C) 2008,2009 Codefidence
OSS Involvement Motives
Tactic
Delivery
Treadmill
”This is useful!”
Promise
”I want this to happen!”
Complimenters
Coopetition
Freemium
Strategy
”This is cool!”
Idea
Free Lunch
(C) 2008,2009 Codefidence
The Free Lunch Model
An intermediate COCOMO model evaluation l estimates the cost to re-develop the Linux kernel at $612 million US.
David A. Wheeler, http://tr.im/nvDl
Google generates a lot of cash using its estimated 500k Linux servers Apple makes a lot of cash from sales of BSD running Macs and iPhones.
(C) 2008,2009 Codefidence
The Treadmill
Client requirement: Sprocket support
Your company
Evaluate cost of in-house vs. outside Create a work plan, allocate staff and execute or create SRS, engage vendor, manage development Integrate, Test, Fix & Deliver
Cheap Chinese Competitor
apt-get install libsprocket
Integrate, Test, Fix & Deliver (C) 2008,2009 Codefidence
Complimenters
Anything required by my customer to use my product and which I do not sell is a complimenter to my product. Software for hardware makers
OS for Database, firewall, backup software vendors.
Intel financing KVM.
Checkpoint providing hardened Linux distribution.
Browsers and smart phones for SAAS vendors
Google building Android OSS mobile phone stack (C) 2008,2009 Codefidence
Coopetition
Cooperation between Competitors Same needs, competitive advantage not justifiable by cost. Advantage of single platform outweighs competitive advantage Apache was formed by first web hosting companies Both Google and Apple use WebKit as basis for their web browser (C) 2008,2009 Codefidence
Freemium
Free with a Premium
Price Discrimination with entry level of zero
Business class gets assurance and support.
The Open Core variant: free core, proprietary add-ons. (C) 2008,2009 Codefidence
Build OSS Into Your IP Strategy
Delivery ”This is useful!”
Tactic
Promise ”This is cool!”
Idea ”I want this to happen!”
Strategy (C) 2008,2009 Codefidence
Thank You For Listening! Questions?
Codefidece Ltd.: http://codefidence.com
Community site: http://tuxology.net
My personal Blog : http://firstpost.org
Email: [email protected]
Phone: +972-52-8260388
Twitter: @giladby
(C) 2008,2009 Codefidence
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