community capitalism: the art of corporate involvement in open source communities
DESCRIPTION
As enterprises, government organizations, and educational institutions increasingly turn to open source for lower costs, improved innovation, and better software, they are also discovering that a project's community largely determines the relative value of each of these. In other words, the stronger a community, the better the software and the less it costs. But community is hard to come by in any product - open source or proprietary source. This presentation will identify the most successful mechanism commercial open source vendors and community open source projects have found to improve the depth and breadth of their communities, and how end users can derive significant benefits from participating in and contributing to relevant open source communities.TRANSCRIPT
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Community Software:The Why and How of Open Source Participation
Matt AsayGeneral Manager, Americas
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Agenda
● Leaving the cave● Why it matters● The power of open source● How it can help you
● Engaging with open source communities● Principles of community involvement● Making OpenBravo successful
● The future is open
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The Open Source Opportunity
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Beyond the cave
You have shown me a strange image, and they are strange prisoners.
Like ourselves, I replied; and they see only their own shadows, or the shadows of one another, which the fire throws on the opposite wall of the cave?
True, he said; how could they see anything but the shadows if they were never allowed to move their heads?...
And if they were able to converse with one another, would they not suppose that they were naming what was actually before them?...
To them, I said, the truth would be literally nothing but the shadows of the images.
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Different ways to develop software
No man is an island, entire of itselfevery man is a piece of the continent, a part of the mainif a clod be washed away by the sea, Europe is the less, as well as if a promontory were, as well as if a manor of thy friends or of thine own wereany man's death diminishes me, because I am involved in mankindand therefore never send to know for whom the bell tollsit tolls for thee.
I've built walls,A fortress deep and mightyThat none may penetrate...I am a rock, I am an island...I have my booksand my poetry to protect meI am shielded in my armourHiding in my room, safe within my womb,I touch no one and no one touches me.
I am a rock, I am an island
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6
The world is discovering an alternative
● IP protection first, customers second (?)
● Achieve ubiquity through● Expensive sales and marketing● Focus on sales, not product● High conversion rate of limited prospects
● Customers first, product follows customer needs
● Achieve ubiquity through● Exceptional software● Focus on product to drive self-selected sales● Low (but growing) conversion rate of hundreds
of thousands of leads● Superior service
20th Century
21st Century
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Connected world, connected software
The significant problems we face cannot be solved at the same level of thinking that created them.
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10/27/07
Unstoppable
● “Open source software solutions will directly compete with closed-source products in all …markets.”
● By 2008, 95% of Global 2000 organizations will have formal open source acquisition and management strategies
● Approximately 10% of key enterprise on-premise software in 2007, increasing to between 15% and 20% by 2010
● Today, 81% have deployed or are considering deploying open source applications
● 60% believe that open source drives “significant business value”
● 72% plan to expand its use
Sources: Gartner (2005), CIO Insight (2006), IDC (2006), Saugatuck (2007)
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10/27/07
The secrets of open source's success
● Why? ● 65% say open source has
sparked innovation inside their companies
● 67% … for lowered costs● 81% … for better quality software
● Other reasons, according to a Saugatuck survey (2007):
● Ability to customize and use the however required (Flexibility)
● Reduced vendor dependence
● My experience?● Price● Involvement (Community)● Value
Sources: Gartner (2005), CIO Insight (2006), IDC (2006), Saugatuck (2007)
“Open source produces better software.”
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Open source delivers value
● Open source respects IT's time● Support direct from the engineers
who write the code● Domain experts on staff
● Open source respects IT's money
● Pay for value, not licenses● Dramatically lower cost
● Open source respects IT's intelligence
● Aligns vendor interests with customer interests
● Deliver customer value or the customer doesn't pay – allocates risk appropriately
Term Proprietary Software Open Source
License Fees Large Initial Fee
Upgrades Additional Fee
Maintenance Additional Fee
Support Additional Fee
License Term Perpetual or Time-Based Perpetual*
Included in annual subscription fee
Included in annual subscription fee
Included in annual subscription fee
Included in annual subscription fee
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10/27/07
Every proprietary vendor is vulnerable
Consider Oracle's customers:
● >33% are running production open source DBs
● 13% are running >50% of applications on open source
● >50% will increase their use of open source in the next year
● “Express” editions have not slowed open source penetration
● Use cases?● 63% for single function systems;● 37% for departmental applications;● 34% for customer facing web sites;● 12% each for ERP and BI;● 7% for transactional
But not in the ERP market!
● Oh, really?● SAP introduces Business ByDesign● Oracle “owns” NetSuite
● Weak attempts to be OpenBravo● Likely to fail – difficult for big vendors
with heavy cost structure to go “down-market”
● No community help ● Open source allows ERP to be
developed by and for disparate users
● SMEs don't look to proprietary incumbents for agile, open source and/or SaaS
Sources: Independent Oracle Users Group survey (2007)
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The open source ecosystem: Alfresco example
Evaluation
Breakdown of Linux Variants
14%
16%
13%
21%
14%
22%
Linux - DebianLinux - Fedora CoreLinux - OtherLinux - RHELLinux - SUSELinux - Ubuntu
Deployment
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The open source ecosystem:Application servers
Evaluation Deployment
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The open source ecosystem:Databases
Evaluation Deployment
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Building and Engaging Communities
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How open source can help you
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Open source focuses innovation
Innovation
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Open source opens doors to customer innovation
Let OpenBravo partners and customers and community members customize OpenBravo to suit their individual needs
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10/27/07
Community is very hard
● Project sponsor will do 85-100% of core development
● 1000/10/1 (Users/ Bug Reporters/ Patch Submitters)
● <15 core developers will always do 85% of dev
● Most projects (55%) get no outside involvement at all, and 72% have fewer than 2
● The key to community?● Interesting project● Accessible code (Modularity +
documentation)● Transparent roadmap and
interaction
Sources: Marten Mickos (MySQLUC 2005); O’Mahony & West, 2005; Mockus et al., 2005)
Portrait of the Successful Company as a Young Project
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Make it interesting
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Licensing is critical
● The license sets the tone for a project
● Helps to overcome barriers to trust ● Project must be bigger than the
company behind it● Right to fork essential
● GPL best for commercial projects
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Embrace open source
● “Open source” is not a marketing gimmick
● Open source success depends on being different, on disruption
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“Control” comes from sharing
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Sharing can be profitable
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Can you do succeed here?
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Among the most significant open source projects.
Not a single one of which was born in Silicon Valley
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One final warning
● A true community gives and takes
● Systems integration partners should not be parasites● Feed the project and its sponsor or it will die● Customers benefit from a strong project sponsor, and not merely zero-cost
software acquisition● Contribute code and cash to ensure a rich, symbiotic relationship
● Project sponsors must be careful not to consume all revenue opportunities
● Avoid professional services (Alfresco limits its PS involvement to two weeks)
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Conclusory Remarks
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The opportunity is ripe
● ~10 open source vendors will do over $10M in sales in FY 2007
● “Free” as in price no longer the primary driver of open source
● Open source = value
● Geographical differences● US: Corporates | EMEA:
Governments | APAC: No one ● More free use in EMEA; more paid
use in the US● Partner-driven in EMEA; more direct
in the US
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The open source manifesto(Burn the boats)