business by open source manners turku april 2013

Business by open-source manners – Jose Teixeira Apr 2013

Business by open-source manners

=

1- Open-Source Software 4 Startups

2-Starting an Open-Source Software Business

+

Jose Teixeira

Schedule:

18:00 - 18:10 Opening words18:10 - 18:30 Open Source Software solutions for startups18:30 - 18:50 How to venture into an open-source business?18:50 - 19:00 Discussion about Open Source Software in business.19:00 --> Snacks, Drinks, Networking, Chatting

Presenter:Jose Teixeira“Disposable”¹ ResearcherInformation Systems ScienceUniversity of Turku

Jose.Teixeira@utu.fiwww.jteixeira.eu

Jose Teixeira

Jose Teixeira

Open-sourceRetail

Orienteering

TescoSonae

DHL

AirbusNokia

Debian

Immit

Software

International

IT

Research

EU

Triathlon

Computer science

Finland

TSEanti-

ACTA

Boost

UTU

Startups

Finland

Portugal

Jose Teixeira

Business by open-source manners

=

1- Open-Source Software 4 Startups

2-Starting an Open-Source Software Business

+

Jose Teixeira

Open-source software for startups

1) What is Open-Source? What is not Open-Source?

2) Why it matters? 4 startups?

3) Contrasting open-source with commercial software.

4) Open-source solutions for small business problems.

5) “To checklist” of Open-Source Software 4 startups.

Jose Teixeira

Free != free

OSS? What?

Jose Teixeira

OSS? What?

Free as in freedom not as in beer

Jose Teixeira

OSS? What?Free != Free

Jose Teixeira

OSS? What?

Jose Teixeira

Free != FreeOSS? What?

Jose Teixeira

An analogy with Tangram

OSS? What?

Jose Teixeira

Open-source vs closed-source

OSS? What?

Jose Teixeira

Open-source vs closed-source

OSS? What?

Jose Teixeira

Open-source vs closed-source

OSS? What?

Jose Teixeira

FSF four freedoms

OSS? What?

Jose Teixeira

OSI open-source definition

OSS? What?

Jose Teixeira

FLOSS licensing

OSS? What?

Jose Teixeira

Source: Teixeira 2011

Availability of the blueprint (source code)

Standard compliance

Absence of lock-in mechanims

My open-source definition

OSS? What?

Jose Teixeira

What open-source is not:

➔Freeware➔Shareware➔Shared-source➔Co-creation➔Participatory design➔Crowd-sourcing

OSS? What is not?

Jose Teixeira

OSS? Why?

Jose Teixeira

OSS? Why?

Jose Teixeira

OSS? Why?

Most important enablers of high-tech entrepreneurship?

1- Open-source software

2- Affordable cloud computing services

3- Social networking graphs for viral marketing

Source: Interviews with entrepreneurs by Jose Teixeira @ http://www.startupday.se/ 2012

Jose Teixeira

OSS? Why?

Finnish high-tech startups and open-source

1- 19/20 claim to use open-source software;

2- 4/20 claim to offer open-source components;

3- 2/20 plan to offer open-source components;

4- 11/20 claim to work up-stream;

Source: Interviews with 20 Startups at Slush 2011Presented by Jose Teixeira and Joni Salminen at ICCE 2012 conference

Jose Teixeira

Contrast!

Jose Teixeira

Contrast!

Jose Teixeira

Contrast!

Jose Teixeira

Contrast!

Jose Teixeira

Contrast!

Software pricing (i.e. ERP)

source: pemeco

Jose Teixeira

Contrast!

Software pricing (i.e. ERP)

License costs

Implementations costs

Maintenance costs

Jose Teixeira

Solutions :)

Classical OSS infrastructure supporting common business problems

Desktop PC's E-mail Group-ware Customer relationship management Finance Document management Disaster recovery Security Web-servers

Source: http://www.linuxjournal.com/article/7825

Jose Teixeira

Solutions :)

A book on OSS infrastructure

Available from UTU e-library at http://site.ebrary.com/lib/uniturku/docDetail.action?docID=10061218

Jose Teixeira

Solutions :)

But OSS infrastructure can go much beyond

ERP

E-commerce

Analytics

VoIP telephony

Jose Teixeira

+ OSS offers thousands of components in public domain for business R&D initiatives

Jose Teixeira

To know more ...

Jose Teixeira

END part 1

Jose Teixeira

Business by open-source manners – Jose Teixeira Apr 2013

Jose Teixeira

Business by open-source manners

=

1- Open-Source Software 4 Startups

2-Starting an Open-Source Software Business

+

Jose Teixeira

Outline

Intro

OSS licenses

OSS business models

OSS entrepreneurial business modeling

Jose Teixeira

You don't need to to create or work on a OSS organization to work with OSS;

Source: http://go.linuxfoundation.org/who-writes-linux-2012

TOP 10 Linux Kernel Contributors

Intro

Jose Teixeira

You don't need to be an OSS company to contribute and be respected in the OSS community

Intro

Jose Teixeira

A) Based in part on the work of the Independent JPEG groupB) Use zlib by Jean-loup Gailly and Mark AdlerC) Based on the work of the FFmpeg project under the LGPL 2.1 license

Intro

Jose Teixeira

Protect your IP

• Very often does not work for startups • But with OSS you are creating prior art

The Håkan Lans case:

* Swedish inventor of a satellite navigation system, the computer mouse, colour graphics systems in computer displays and many other inventions

US patents:* Arrangement for producing a pattern on a light-sensitive surface* Color graphics processor* Position indicating system

IP

Jose Teixeira

IP

Legal terminology

Copyright

Trademarks

Patents

Intellectual Property (IP)

Trade secrets

Jose Teixeira

IP

Legal terminology

Copyright

Trademarks

Patents

Intellectual Property (IP)

Trade secrets

Jose Teixeira

IP

FLOSS licensing

Jose Teixeira

IP

Permissive

Jose Teixeira

IP

Copyleft

Jose Teixeira

IP

ISC license

Copyright (c) Year(s), Company or Person's Name <E-mail address>

Permission to use, copy, modify, and/or distribute this software for any purpose with or without fee is hereby granted,

provided that the above copyright notice and this permission notice appear in all copies.

THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES WITH REGARD TO

THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS. IN NO EVENT

SHALL THE AUTHOR BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR

ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN

ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION

WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.

Jose Teixeira

IP

FLOSS licensing once again

Credit the community Contribute to the community

Jose Teixeira

IP

Jose Teixeira

IP

Complicated Open-Source licenses?

Check then:http://www.microsoft.com/licensing/

http://www.oracle.com/us/corporate/contracts/license-service-agreement/index.html

http://www.sap.com/corporate-en/our-company/agreements/western-europe/index.epx

After hours and thousands or pages you are done. But no worries there

are books, vendors, lawyers and consultants that will understand it for

you.

Jose Teixeira

11 open-source business models

Subscription Model

Offering Commercial and Open Source Products

Support and Training Model

Dual License Model

Hosted Service

Advertising Model

Commercial Enhancement

Embedding Model

Consulting and Integration Strategy

Patronage Modelsource: Wasserman 2009

Business Models

Jose Teixeira

1- Commercial and open-source products

Source: Wasserman 2012

Business Models

Jose Teixeira

Source: Wasserman 2012

2 - Subscription model

Business Models

Jose Teixeira

3 - Consulting

Source: Wasserman 2012

Business Models

Jose Teixeira

4 - Support and training model

Source: Wasserman 2012

Business Models

Jose Teixeira

5 - Hosted service

Source: Wasserman 2012

Business Models

Jose Teixeira

6 – Dual license

Source: Wasserman 2012

Business Models

Jose Teixeira

7 - Commercial enhancement

Source: Wasserman 2012

Business Models

Jose Teixeira

8 - Advertising

Source: Wasserman 2012

Business Models

Jose Teixeira

8 - Patronage

Source: Wasserman 2012

Business Models

Jose Teixeira

10 - Hardware

Source: Wasserman 2012

Business Models

Jose Teixeira

11 – Platform / Eco-system

Business Models

Jose Teixeira

To know more

Tony Wasserman works

COSS.fi - Avoimien tietojärjestelmien keskus COSS ry

Economic aspects and business models of Free Software by Free Technology Academy

Business Models

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

1st we took Osterwalder, A., and Y. Pigneur. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, 2010. The popular business “canvas”

Jose Teixeira

OSS Business Modeling

We took also Sawy, O. A. E., and F Pereira. Business Modelling in the Dynamic Digital Space: An Ecosystem Approach. Springer, 2013. A business modelling framework for IT industry.

Jose Teixeira

OSS Business Modeling

3rd – We combined them … test it with business cases

Jose Teixeira

4th – We add OSS academic literature driven components on it … and test it again

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

OSS Business Modeling

Jose Teixeira

Exercise: The PickRide case

http://www.youtube.com/watch?v=omcA5DN97jE

How could it be made by FLOSS manners?

Jose Teixeira

END