04/13/2023

+

From Service to ProductAn Open Source Software Business Model Transformation

企業經營模式與財務策略 Final Assignment指導教授：江炯聰、林筠、程淑芬助教：陳育萍 P01746035 王議德 P01747019 林玲如 P01748015 黃峻崢 P01748038 馮妙芬

04/13/2023

+

Who is Jouston?

Active Open Source Evangelist since 1998(15yrs)

Doing Linux business from 2000 (13yrs)

OS Architect(Software) background, learning to be a Well-Rounded Open Source businessman.

Professional Career Highlights:

Head of Technical Marketing, Shuttle

FAE team builder, Canonical

Chairman, COSCUP 2010

COO, OpenMoko

Country Manager, HancomLinux

For more Info visit http://www.linkedin.com/in/jouston

2

04/13/2023

3+What is Open Source Software?

+

04/13/2023

4

OSS Checklist

Source Code

Free Distribution

Derived Works

Non-Discriminatory

Non-Restrictive

Free as in Speech, not as in beer

04/13/2023

5+Culture and Believes

Release early and often, delegate everything you can, be open to the point of promiscuity. – Eric Raymond

Given enough eyeballs, all bugs are shallow. – Linus Torvalds

+

04/13/2023

6

Important Open Source Software

http://www.slideshare.net/ellyssa/open-source-software-and-libraries-presentation

+

04/13/2023

7

Can’t Live Without Open Source

http://www.slideshare.net/kshitiz_goel/open-source-revenue-model

04/13/2023

8+Open Source Business Models

Dual License Model

Distribution and Service Model

Distribution and Monetize Model (Freemium Model)

+

04/13/2023

9

What Roles Community Play?

Customer / User

Key Partner / Vendor

Opinion Leader / WOM Marketing Pool

External Engineer

Community is almost Everything you need but directly monetize from it.

Double Edge Blade Or Say:

04/13/2023 10

+

Dual License ModelI have a product with two licenses: one for free and one for money.

04/13/2023

11+Dual License Model

One product, Two licenses One for free distribution and free use Another for proprietary use

Copyright and Control of the product development is on the original developer’s hand.

KSF: Market Leader

Why Buy: Customer like it’s open source version and need it for commercial use.

04/13/2023

12+Case: Trolltech’s Qt(Pronounce: Cute)

KP- Qt

Community

- KDE Community

- SUSE Linux

KA- Produce

high quality Qt Libraries

- Porting to varies OS platforms

VP- Best in

Class GUI Library.

- Very easy to program

- Cross-Platform (Write once, run everywhere)

CRHigh-touched 24x7 community maintenance

CSAny GUI Application programmer

KR- Key

Engineers- Community

CHInternet

C$- High engineering cost- High community maintain cost- Sample devices

R$Sell proprietary version of Qt

04/13/2023 13

+Distribution and Service ModelBecause your support, I have power to ask money for my service.

04/13/2023

14+Distribution and Service Model

Support and Customization and other Professional Services: Consulting Training Brand Licensing Post-Sales Support

KSF: Large base of users who Wants to use the product, Release Cycle for different market.

Why buy: Enough amount of user, Waive MS tax(or Piracy)

04/13/2023

15+Case: Red Hat Linux

KP- Red Hat

Community- CentOS

Community- Linux

Kernel Community

- World Class software vendors: SAP, EMC, IBM…etc.

KA- Leading the

OS technology development

- 24x7 support

VP- Earliest and

Most Solid Linux distribution

- World-class enterprise level support

- Slower but On-Schedule release cycle

CR- 24x7 IT

support- Low-

touched CentOS community

CSFortune 500Eg. Banking, Industrial…etc.

KR- Key

Engineers- Community- Reputation

CH- Internet- CD- Site

License

C$- High engineering cost- High customer service cost- Low community maintain cost

R$- Training/RHCE Certification- 24x7 Customer support

04/13/2023

16+Case: Canonical / Ubuntu

KP- Ubuntu

community- Dell / HP /

Toshiba / Lenovo / Asus / Acer

- France, China Government

KA- Leading

Desktop Linux development

- Hardware Enablement

VP- Most widely

used Desktop / Server Linux distribution

- Ubuntu-Ready PC

- 6 month / 24 month(LTS) release cycle

CR- Hardware

Enablement- LaunchPad

support

CS- Dell, HP,

Toshiba, Lenovo, Asus, Acer and other PC vendors

- France / China government

- Google- Amazon

KR- Key

Engineers- Community- User

mindshare

CH- Internet- Free CD- OEM team

in Taiwan and US

C$- High engineering cost- High customer service cost- Very low community maintain cost

(All engineers are community member)

R$- Training/UCP Certification- OEM Support- LaunchPad (bug/software maintain)- LandScape (Mass Management)

04/13/2023

17+Case: Cavium NetworkMontaVista

KP- Linux kernel

community- AP vendors,

Intel, ARM, Marvell, Freescale…etc.

KA- Leading

Embedded Linux development

- Customer Support

VP- Most widely

used Embedded Realtime Linux distribution

- Strong customer support

- Best SDK- Release

cycle follows major Kernel Jump

CR- Professional

Customer support

CS- ARM- Intel- Medical /

Healthcare- Automotive

KR- Key

Engineers- Customer

support team

- User Mindshare

CH- Internet- OEM team

worldwide

C$High engineering costHigh customer service cost

R$- OEM Support and Site

License

04/13/2023 18

+Distribution and Monetize ModelMake you happy so I can earn money from somewhere else.

04/13/2023

19+Distribution and Monetize Model

Freemium model derivation, Free for use, Monetize from somewhere else.

KSF: Large base of users who Using the product.

Why buy: Enough amount of user

04/13/2023

20+Case: Google Android

KP- OHA(Open

Handset Alliance)

- Samsung / HTC / LG

KA- Leading

mobile Linux development

- App Store- Mobile

Advertisement

VP- Most widely

used Mobile Linux distribution

- OHA- Open Source- Compete with

Apple iOS- Controlled

Fragmentation

CR- Android

Community

- Mobile AD dashboard

CS- End User- Mobile

Advertise Buyer

KR- Key Engineers- Community- OHA- Patent

CH- Internet- Telecom

operator- Handset

vendor

C$High engineering costHigh supporting costModerate marketing cost

R$- Mobile AD- App Download

04/13/2023

21+Case: Mozilla Firefox

KP- Google- Community

KA- Community

engagement

VP- Most widely

used browser

- Most “Plugable” Browser, thousands of plug-ins

CR- Coopetion

with Google- High-Touched

community maintenance

CS- Google- Community

KR- Key

Engineers- Community

CH- Internet

C$High engineering costMiddle community maintain cost(All engineers are community members)

R$- Mobile AD through Google

(Default search/Landing Page)

04/13/2023

+

Open Source Business Models

Dual License Model

Distribution and Service Model

Distribution and Monetize Model (Freemium Model)

From Service to Product

22

+

04/13/2023

Footnote

http://www.slideshare.net/kshitiz_goel/open-source-revenue-model

http://www.slideshare.net/faberNovel/businessmodels-opensource-en-125492

http://www.slideshare.net/vimal0212/open-source-library-management-systems

http://www.redhat.com/

http://www.mvista.com/

http://www.mozilla.org/en-US/

http://www.android.com/

http://www.openhandsetalliance.com/index.html

http://www.ubuntu.com/

http://www.canonical.com/

http://en.wikipedia.org/wiki/Qt_Development_Frameworks

http://www.linkedin.com/in/jouston