how can large open source projects be monetized?

© 2016, iText Group NV© 2016, iText Group NV

EUROSTAFF Connect – GentHow can large open source projects be monetized?Bruno Lowagie, CTO iText Group NV

© 2016, iText Group NV

How can large open source projects be monetized?2

Introduction: who and what?Bruno Lowagie

Original developer of iTextex-CEO, current CTO at iText Group



Awards

•BelCham Entrepreneurship Award: “Most Promising Company of the Year 2014” (New York)•Deloitte’s Technology Fast 50: Winner in Belgium (Brussels)

2014

•Best In Business International 2015 Silver Award: “Product of the Year” (USA)•American Business Awards 2015 Bronze Stevie: “Most Innovative Company of the Year” (San Francisco)•European Business Awards 2015/16 National Champion: “Entrepreneur of the Year” (Brussels)•Deloitte’s Technology Fast 50: 2nd place in Belgium (Brussels)•JavaOne Rockstar Award: “IANAL: What developers should know about IP and Legal” (San Francisco)

2015

•European Business Awards 2015/16 National Public Champion: winner of the national vote in Belgium (Milan)•Flanders Investment & Trade 2016: top 3 in the “Lion of the Export” (Brussels)•American Business Awards 2016 Bronze Stevie: “Most Innovative Company of the Year” (New York)•International Business Awards 2016 Silver Stevie: “Most Innovative Company of the Year in Europe” (Rome)•European Business Awards National Champion 2016/17: “Business of the Year with Revenue of 0 to 20M euro” (Brussels)

2016



An economic law



You’re an open source developer…



… What are the implications?

Users will ask questions on how to

use it,

Users will demand that you fix bugs,

Companies will expect warranties (even if the

license says they accept FOSS as-is),

Companies will want 100% clarity with respect to the IP,

Companies will expect you to maintain and update the software,

Companies will want you to upgrade to the newest specifications,

You will be cursed if you don’t answer fast /

friendly / accurate enough!

What if you can’t live up to all these expectations?



What can you do about it?



Create a business model

http://www.theserverside.com/news/2240234582/Reflecting-on-open-source-software-Java-9-and-startup-strategies-at-Devoxx-2014http://www.zdnet.com/article/openssl-needs-corporate-funding-to-avoid-heartbleed-repeat/

http://arstechnica.com/information-technology/2014/04/tech-giants-chastened-by-heartbleed-finally-agree-to-fund-openssl/

http://www.theserverside.com/news/2240234582/Reflecting-on-open-source-software-Java-9-and-startup-strategies-at-Devoxx-2014

http://www.zdnet.com/article/openssl-needs-corporate-funding-to-avoid-heartbleed-repeat/

http://arstechnica.com/information-technology/2014/04/tech-giants-chastened-by-heartbleed-finally-agree-to-fund-openssl/



Ideas to monetize your project



iText: the early years



Donations



Generating revenue using adsFree online tutorial:• Google AdSense

• 2004: $8,900• 2005: $14,500• 2006: $6,200• 2007: $2,350• 2008: $1,900• 2009: $1,500• 2010: $280• 2011: $520• 2012: $350• 2013: $160



Making money with ads?



Writing documentation

1st Edition: 2006• 11.600 copies• Approx. $33K

2nd Edition: 2010• 9.200 copies• Approx. $30K



Selling support



Selling professional servicesNot scalable

There are only so many hours in a dayAll time spent on a tailor-made application is time you don’t spend on your product

Are you really going to compete against these guys:



What did we do at iText?



Copyright versus CopyleftCopyright law

• allows an author to prohibit others from reproducing, adapting, or distributing copies of the author's work.

Copyleft

• gives every person who receives a copy of a work permission to reproduce, adapt or distribute the work as long as any resulting copies or adaptations are also bound by the same copyleft licensing scheme.

©

©



Open Source License overview

Original iText license: MPL/LGPLIn 2009: switched to AGPLv3



GPL-style software licensesIt’s all about distribution

License: MPL / LGPL GPL AGPL

Car distribution(e.g. OEM)

Commercial use? OK for gratis commercial use Commercial license needed Commercial license needed

Bus service(e.g. SaaS)

Commercial use? OK for gratis commercial use OK for gratis commercial use Commercial license needed

Free/Proprietary Before iText 5:Improvements engine: LGPL

Car or bus: can be proprietaryCar: must be GPL

Bus: can be proprietary

Since iText 5:Car or bus: must be AGPL

Or: buy commercial license



Dual licensingViral effect of the open source

license

• The product is available for free for those who accept and comply with the F/OSS license

• As soon as the product is also distributed under another license, a commercial license is needed

Commercial license for commercial use

• The product is available under a custom license for those who pay for the product• Support• Warranty, Indemnification• Release from the

requirements of the F/OSS license



Open Core licensing: e.g. iText 7

Open source

Closed source



Business Source License: e.g. MariaDB

All source code is open, but not “open source”: it’s “business source”.

MaxScale is only needed in case of heavy use of MariaDB.

This prevents perceived abuse by GAFA & co.



What are GAFA companies doing?

Googleplex, Mountain View, CA



When to use a permissive license?Suppose that you’re Google, Apple, Facebook, Amazon, or a similar big corporation



Beware of “anti GPL” propagandaSuppose that you want to be the next big GAFA company



Questions from the audience?

iText Group [email protected]+32 9 298 02 31itextpdf.com