open source software business models redux · open source software business models redux stephen r....
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OpenSourceSoftwareBusinessModelsRedux
StephenR.Walli@stephenrwalli
stephen.walli@gmail.com
ThereisNO OpenSourceBusinessModel
StephenR.Walli@stephenrwalli
stephen.walli@gmail.com
A Story
1997~750,000LoC~$10,000,000
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Interix~$100,000
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Interix+ACT~$140,000
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Buildvs.Buy
Buildvs.Buyvs.Borrow
Buildvs.Buyvs.(Borrow&Share)
OpenSourceSoftwareisaboutEngineeringEconomics
1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
We’vesharedsoftwaresincewe’vewrittensoftware
1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
We’vesharedsoftwaresincewe’vewrittensoftwareWritinggoodsoftwareishardwork
1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
CompaniessharedsoftwarebeforewehadtheOSD
DECUltrix1984
SunOS1983
OSF/11992
RedHat1993
1950 1960 1970 200019901980 2010
CodesharingAtPrincetonIASinlate1940s
IBM“SHARE”Conf &LibraryBegins1953
DECUSConf &LibraryBegins1962
MITProjectAthenaBegins
1983
1BSDReleased1977
AT&TSharesFirstUNIXtapes
early-70s
FreeSoftwareFoundation
Launches1985
2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”
1969IBMresponseistounbundleHW,SW,&
servicespricing
1st DoJ vs IBMConsentDecree
“HardwareBundlingisAnti-competitive”
1956
OpenSourceDefinition1997
USENIXBegins1975
LinusReleasesLinux1991
ApachehttpdReleased1995
ApacheSoftwareFoundation1999
OSDLForms2000
OSDLRe-formsasLinuxFoundation
2007
U.S.CongressAddsComputerSoftwareto
CopyrightLaw1980
GCC1987
emacs1975
CompaniessharedsoftwarebeforewehadtheOSD(Writinggoodsoftwareishardwork)
DECUltrix1984
SunOS1983
OSF/11992
RedHat1993
Collaboratively-DevelopedLiberally-LicensedSoftwareisaboutEngineeringEconomics
AnotherStory
AStoryofRedHatinThreeCEOs
1994 1999 2008
AStoryofRedHatinThreeCEOs
1994 1999 2008
AStoryofRedHatinThreeCEOs
1994 1999 2008
AStoryofRedHatinThreeCEOs
RedHatisasoftwarecompanythatisfocusedonmakingitscustomerssuccessful
RedHatisasoftwarecompanythatisverygoodattheengineeringeconomicsofopensourcesoftware
SoWhatAbouttheBusinessModel?!?!!?
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
TheEvolutionofanOpenSourceProject
Committer(s)+
Code
Developers
Committers+
Code
Developers
Committers+
Code
Developers
Users
Committers+
Code
Developers
Users
Committers+
Code
Developers
Users
Committers+
Code
Books
Contractors
Products
Distributions
Consulting
Training
Support
BuildingtheEcosystem
Howdoyouincreaseyouruserbase?
Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)
Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)
Howdoyouencouragedevelopers?(Becausetheseareyourfuturecontributors)
Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)
Howdoyouencouragedevelopers?(Becausetheseareyourfuturecontributors)
Howdoyoumakeiteasytocontribute?(Becausethisisthegrowthandsuccessofyourcommunity)
Howdoyouincreaseyouruserbase?(Howdoyoumakeiteasytoinstall/configure/usethesoftware?)
Howdoyouencouragedevelopers?(Howdoyoumakeiteasytobuild/test/experiment?)
Howdoyoumakeiteasytocontribute?(Whatdoyoucommunicatetoyourcommunity)
OpenSourceCom
mun
ityPractices
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
CommunityDevelopment
SoftwareConstructionMaturity
OpenSourceCom
mun
ityPatterns
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
CommunityDevelopment
SoftwareConstructionMaturity
EncourageUsers
EncourageContributorsEncourageDevelopers
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
TheEvolutionofanOpenSourceProject
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
CorporateContributors
TheEvolutionofanOpenSourceProject
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
CorporateContributors
Customers
TheEvolutionofanOpenSourceProject
OpenSourceCom
mun
ityPractices
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
Proven
ance
Tracking
Repo
sitories
Protected
Depe
nden
cies
Documen
ted
Contrib
utions
Auditte
d
Proven
ance
Managem
ent
Committers
Inde
mnifie
d
Committer
Governance
Tradem
ark
Managem
ent
IPManagementActivities
CommunityDevelopment
SoftwareConstructionMaturity
OpenSourceCom
mun
ityPatterns
ProjectE
xes
publish
ed
ProjectB
uild
Automated
I
ProjectInstall
Automated
CompleteSrc
publish
ed
Project
BugTracking
ProjectB
uild
Automated
II
ProjectTest
Automated
I
ProjectTest
Automated
II
Basic
Arch
Descrip
tion
Project
License
Project
License
Mission
Statem
ent
Code
of
Cond
uct
Forums,Em
ail
Comms
Platform
FAQs,Ho
wto
Governance
Contrib
utoion
Guidelines
Even
ts
Proven
ance
Tracking
Repo
sitories
Protected
Depe
nden
cies
Documen
ted
Contrib
utions
Auditte
d
Proven
ance
Managem
ent
Committers
Inde
mnifie
d
Committer
Governance
Tradem
ark
Managem
ent
IPManagementActivities
CommunityDevelopment
SoftwareConstructionMaturity
EncourageUsers
EncourageContributorsEncourageDevelopers
Encourage/ManageCorpContributions
Committers ContributorsCommunity
EcosystemProject
ProductsServices
Books
Training
CorporateContributors
Customers
TheEvolutionofanOpenSourceProject
TRANSISION
Engineering/Partner?/Customer?/Committers
Engineering/Partner?/Customer?/Contributors
Community
EcosystemProject
ProductsServices
Books
Training
Partner/CustomerContributors
TheEvolutionofaCorporateOpenSourceProject
SettingCustomerandPartnerExpectationsinCommunityisCritical
Engineering/Partner?/Customer?/Committers
Engineering/Partner?/Customer?/Contributors
Community
EcosystemProject
ProductsServices
Books
Training
Partner/CustomerContributors
TheRealityofaCorporateOpenSourceProject
SettingCustomerandPartnerExpectationsinCommunityisCritical
CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)
CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)
PartnersversusCommunity(Don’tmixbusinesswithcommunity)
CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)
PartnersversusCommunity(Don’tmixbusinesswithcommunity)
ProductsversusProjects(Successmetricsaredifferent;OKRsandKPIsaredifferent)
Engineering/Partner?/Customer?/Competitors?/Committers
Engineering/Partner?/Customer?/Competitors?/Contributors
Community
EcosystemProject
ProductsServices
Books
Training
Partners/CompetitorsContributors
TheRealityofCorporateOpenSourceProjects
SettingCustomerandPartnerExpectationsinCommunityisCritical
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)
SuccessfulOpenSourceProjectsFollowWellKnownPatterns(NoScalewithoutDiscipline)
Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative
(We’veSharedSoftwareSinceWe’veWrittenSoftware)
ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)
SuccessfulOpenSourceProjectsFollowWellKnownPatterns(NoScalewithoutDiscipline)
Don’tConfuseCustomers,Partners,Community,Products&Projects(CorporateOpenSourceProjectsRequireDifferentThinking)
Howdoyoumakemoneywhenyougiveawaytheproductforfree?
Howdoyoumakemoneywhenyougiveawaytheproductforfree?
Whatproblemarewesolvingforourcustomers?
Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?
Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?Whatcanwedotomakeourcommunityhealthier?
Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?Whatcanwedotomakeourcommunityhealthier?Howdowemakeourcommunitysuccessful?
Questions&Commentsstephen r walli
stephen.walli@gmail.com@stephenrwalli
http://stephesblog.blogs.comhttp://opensource.com
https://medium.com/@stephenrwalli/
NoScalewithoutDiscipline(ThisisanAttributeofSoftware)
OrdersofMagnitude(1000:100:10:1)
Freeloadersareimportant!(Itmeansyou’redoingitright)
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