open source software economics, standards, and ip in one lesson

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Talk I gave at OSCON 2008. http://en.oreilly.com/oscon2008/public/schedule/detail/2313

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Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Open Source Software Economics, and Standards, and IP in One Lesson

August, 2008

Stephen R. Walli

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Always question: “And that would be different from other proprietary or closed software how?”

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3

MakersUsersBuyers

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Source code for the software is always available, and the user of the software is licensed (always) to change and redistribute the software without fee, penalty or asking permission

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

10 Lines-of-code per day1 Bug: 1000 lines-of-code

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“Making” Open Source Software

cost

functionality

time

Share the costs of value creation, maintenance, and support

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

“A community is just a group of people that share a common interest – they don’t have to like each other.” – Bob Young, former CEO, Red Hat

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The maintenance cost over an application’s life time (~75%)The number of applications that never get fully deployed (~60%)

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

It’s not a stack – Open your thinking

Hardware

Applications

Tools

RDBMS

App Server

OS

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

It’s not a stack – it’s a network.

Hardware

Applications

Tools

RDBMS

App Server

OS

i.e. the “stack” is a view through the network.

Hardware

Apps

Tools

RDBMS

App Server

OS

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Geoffrey Moore’s“Whole Solution”

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“The early community is willing to trade time to save money; the late community is willing to trade money to save time. My customer is in the late community.” -- Marten Mickos, CEO, MySQL AB

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Value Proposition versus Competency

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Standards

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Standards and FOSS

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IANAL

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The Legal Risks of Open Source Software

vs.

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License Management and Compliance

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20

“All complex ecosystems have parasites.” Cory Doctorow

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Intellectual Property versus Innovation

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#1 Did you buy the Honda over the Toyota because it had more patents?#2 If Toyota then tried to license their patents directly to you: would

you?

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

In Summary

• It’s just software• It’s just economics• It’s just business• It’s just software licensing• There’s nothing inherently “new” about developing

good software, communities, collaboration, standards, or software licensing

Always question: “And that would be different from other proprietary or closed software how?”

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Thank You! stephen.walli@gmail.com

“Once more unto the Breach” http://stephesblog.blogs.com

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