open source @ sap · open source @ sap deriving business value from co-innovation mark yolton...
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Open Source @ SAPDeriving business value from co-innovation
Mark YoltonSenior Vice PresidentSAP Community Network
29 January 2009
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The world is becomingmore customer and
user centric ...
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Open Innovation at LEGO
http://factory.lego.com/
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Open Innovation at DELL
http://www.ideastorm.com/
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Open Innovation at PEUGEOT
http://www.peugeot.com/fr/design/concours-de-design.aspx/
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... and SAP teams upwith customers, too ...
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Customer-Focused EcosystemAlways connected, always on
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Trusted and Relevant PartnerSolutions and Services Communities of Innovation
IndustryValue Networks
Business ProcessExpert Community
Enterprise ServicesCommunity
SAP DeveloperNetwork
ChannelPartners
Software SolutionPartners
TechnologyPartners
ServicePartners
Customers
Indu
stry
Stan
dard
sU
ser
Gro
ups
Customers
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Communities at SAP
Two typesLarge, open, focused on the individualPrivate, orchestrated, focused on companies
Web 2.0 technologyBlogsWikisForumsRatings
Successful by many measuresMore than 1.5 million members25,000 new members per month>700,000 unique visitors monthly20 million pages consumed per month>6,000 posts per day
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The majority of the SAP Business Suiteenterprise services were defined and/or
reviewed by the Enterprise ServicesCommunity, e.g.:
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SAP tapping into the „Wisdom of the Crowds“via Innocentive
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On the SAP EcoHub customers can search for,comment on and rate SAP solutions
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A growing number of SAP-related communityprojects, e.g. ESME
http://blog.esme.us/
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SAP Mentors
Role models for the community, providing passion and energy
Mentors take on a leadership role
Create a sense of belonging
Candid feedback and direction to SAP
Trusted semi-privatecommunication channel
Special status to exceptional and high-value members of ourSDN, BPX, and Business Objects communities
Picture: Dennis Howlett
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From Co-Innovation toCo-Development ...
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Open Source isbecoming increasingly
important ...
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October 28, 2008
“Microsoft opens newopen source technologycenter”
http://www.linuxnewstoday.org/linux-news-oct-2008-archives/1108-oct-28-2008-linux-news.shtml
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October 29, 2008
“EC to publish opensource procurementguidelines”
http://www.heise-online.co.uk/open/EC-to-publish-open-source-procurement-guidelines--/news/111826
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November 3, 2008
“Firefox breaks 20%market share mark inOctober”
http://mozillalinks.org/wp/2008/11/firefox-breaks-20-market-share-mark-in-october/
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November 17, 2008
“Gartner: 85 percent ofcompanies using opensource”
http://news.zdnet.com/2424-9595_22-249842.html
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So, why is OpenSource successful?
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No License CostsVendor Independence
Easy to Evaluate
Developer Productivity
Shared Development Costs
Access to Latest Technologies / Developments
Community Experience
Interoperability
No Hidden Backdoors
Customization Support for Multiple Operating Systems
Has Become A De-facto Standard
Influence on Features
Low TCO
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... but the borderbetween open sourceand closed source is
blurring ...
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Two completely different worlds in the past
closedsource
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December 1, 2008
“The open-source business modelthat relies solely on support andservice revenue streams is failing tomeet the expectations of investors”[Stuart Cohen, CEO of Collaborative Software Initiative,former CEO of the Open Source Development Labs]
http://www.businessweek.com/technology/content/nov2008/tc20081130_276152.htm
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November 17, 2008
“The idea of simply sellingsupport fell by the wayside formost companies at least oneyear ago.”[Dave Rosenberg, Co-founder of MuleSource]
http://news.cnet.com/8301-13846_3-10098692-62.html
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December 2, 2008
“We're definitely seeing convergence inthe market: proprietary vendors embracingopen-source complements, and open-source vendors embracing proprietarycomplements.”
[Matt Asay, General Manager of the Americas and VicePresident of Business Development at Alfresco]
http://news.cnet.com/8301-13505_3-10110902-16.html
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December 11, 2008
“Duffner said he expects to seemore mixed sourceenvironments.”[Robert Duffner is the Director of Platform Strategy at Microsoft]
http://searchwinit.techtarget.com/news/article/0,289142,sid1_gci1342176,00.html#
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October 1, 2007
“So for us, the business goal is tooptimize this hybrid mix of proprietaryand open-source software to give ourcustomers what they need.”[Bob Sutor, Vice President of Standards and Open Source for theIBM Corporation]
http://m.linuxjournal.com/article/9797
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August 19, 2008
“Maybe “commercial opensource” isn’t an oxymoronafter all.”
http://www.itbusinessedge.com/blogs/osb/?p=436
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October 13, 2008
“The line between proprietarysoftware and open sourcesoftware is becomingincreasingly blurred ...”
http://blogs.the451group.com/opensource/2008/10/13/open-source-is-not-a-business-model/
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December 24, 2008
“Typically we now see an "opencore" freely available with"exclusive" or proprietaryfeatures only available when youpay.” [Dave Rosenberg, Co-founder of MuleSource]
http://news.cnet.com/8301-1001_3-10128801-92.html
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The “pure plays” seem to have lost inimportance today
closedsource
closedsource
closedsource
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SAP has an active rolein Open Source...
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10 Year Anniversary
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... SAP startedsupporting Linux as
early as 1999?
Did you know …
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... most of the key Linux playershave a presence in the SAP
LinuxLab?
Did you know …
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... SAP has support forOpenOffice.org and the
OpenDocument Format (ODF)?
Did you know …
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... SAP web applications can beaccessed using Mozilla Firefox?
Did you know …
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... SAP offers a client that runs onLinux?
Did you know …
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... SAP has been shipping thesource code together with thebusiness applications since
the beginning?
Did you know ...
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… SAP has invested inthese open source
companies?
Did you know …
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... SAP was a founding member ofthe Eclipse Foundation and has aleading role in a number of Eclipse
projects?
Did you know …
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So, why does SAP doOpen Source?
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A few specific examples ofhow customers, partners and SAP benefit
CustomersSAP’s Linux support enables customers to run SAP solutions on reliable and cost-effectiveplatform which reduces TCOSAP’s support for Firefox and OpenOffice.org gives customers choice, platform and vendorindependence on the desktop
PartnersPartners can reuse their Eclipse skills when developing with the SAP NetWeaver DeveloperStudio which reduces development costs and simplifies the reallocation of developersSAP’s support for open source opens the SAP ecosystem to partners focusing on opensource (e.g. Novell with respect to Linux)
SAPSAP Hosting like any customer runs SAP software on Linux and commodity hardware in orderto reduce cost of operationSAP’s usage of Eclipse technology leverages a de-facto industry standard while allowing ashared development approach at the same time
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Customers want choice and protection ofinvestments
Database
OperatingSystem
Third-PartyApplication
CompositeApplication
Business ProcessPlatform (BPP)
Frontend
Domain
MaxDBDB2
Success Stories available at: www.novell.com/sap
Novell and SAP share satisfied customers
• Novell is at the heart of SAP applications:- 1,000+ joint customers- 5,000+ Installations
• Novell is the only OS providing a fastinstallation wizard for SAP Business All-in-One solution
• Doubled customer base YOY with theSUSE® Linux Enterprise Server PrioritySupport for SAP offering
• SUSE Linux Enterprise is the only OS thatruns SAP BI Accelerator
• SUSE Linux Enterprise is the ReferencePlatform for SAP development
• SAP Hosting service runs on SUSE LinuxEnterprise Server
Novell® and SAP – The Power of Partnership
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Eclipse has become a broadly used “standard”for development and management tools
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How Siemens benefits from SAP’s Eclipsestrategy
“NetWeaver's support for common standards andOpen Source is very important to Siemens because ithelps to protect investments, reduce costs, andincrease flexibility for both ourselves and ourcustomers. For example, due to SAP's usage oftechnologies like Eclipse as well as SAP’s support forSOA standards, users of the Siemens EnergyManagement Suite can reuse their existing Java EE,SOA and Eclipse skills.”
Jens NeuhausSolution Architect, Siemens AG
More customers can choose SAP and itspartners’ solutions due SAP’s open platform
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So, how does SAP doOpen Source?
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SAP supporting open source
CriteriaCustomer demandMarket shareLong-term viability of the open source technology / projectAvailability of reliable support (internally or external support partner)Quality of the open source technology
Customer BenefitsChoiceVendor independenceLow TCO
Benefits for SAPLarger addressable marketVendor independenceLow TCO
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SAP integrating / embedding / usingopen source
CriteriaProblem fitMarket shareLong-term viability of the open source technology / projectAvailability of reliable support (internally or external support partner)Quality of the open source technologyPermissive licenseQuality of the code (both from a technical and legal point of view)
Customer BenefitsReuse of skills and technologyDeveloper productivityInteroperability
Benefits for SAPStandards support based on open source standards / reference implementations(OEM) vendor independence
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SAP contributing to open source
CriteriaOpen source technology used, included and/or supported by SAPPermissive licenseOpen governance / participation modelQuality of the code (both from a technical and legal point of view)
Customer BenefitsComprehensive end-to-end supportLong-term viability of the open sourcetechnologyInvestment protection
Benefits for SAPShared development costsInfluence on feature roadmapInvestment protection
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And what does this allmean?
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What customers care about
What else matters toorganizations
Problem fit of solutionIntegrated easy-to-use solutionsCompliance, security andreliabilityAvailability of supportand servicesProduct liability & indemnificationLong-term viability of a selectedsolutionPredictable & reliable releasecycle
Why customers wantOpen Source
Influence on product roadmapAbility to customizeAbility to quickly react to changesInteroperability with open andclosed source solutionsReduced vendor dependenceLow TCODeveloper productivity
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... and how SAP addresses these needs
Comprehensive portfolio covering allkey business areas
Solutions for small, midsize and largeorganizations
Integrated product stack
Broad and increasing support forstandards and open source
Diligent integration of open sourcetechnologies
Customizability
Large, global community
Co-Innovation and collaboration
Long-term end-to-end support© SAP 2008 / Page 62
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Summary
The border between open source and closedsource is blurring
“Open source companies” sell closed source add-oncomponents on top of their free open source technologies“Closed source companies” integrate, support and contribute toopen source technologies
SAP is an active supporter of and contributorto open source
Linux, Eclipse, OpenOffice.org, Firefox, etc.More code contributions planned for the future
SAP addresses customer needs by offeringthe best of both worlds
Customer choice via support for open source and openstandardsCustomer influence via collaboration and co-innovationInvestment protection by using standard technologyIntegrated solutions, security, reliability, long-term viability andglobal end-to-end support
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Mark YoltonSenior Vice PresidentSAP Community Network
http://bpx.sap.comhttp://sdn.sap.comhttp://boc.sap.comhttp://sapteched.com
T +1 650-687-4656E [email protected]
Thank You! Danke schön!
https://www.sdn.sap.com/irj/sdn/standards-and-opensource