1. Moderator: Joe Bachana, DPCI Panelists: Steve Kotrch, Simon & Schuster Jeremiah Owyang, The Forrester Group Kieran Lal, Acquia Living With Free: Business Strategies in a Google World 2009 DPCI. All Rights Reserved.

2. Problem Statement

Consumers expect goods and services to be had for free

Author Kevin Kelly coins the phrase Generosity as a Business Model

How are businesses leveraging this state of affairs to make money?

2009 DPCI. All Rights Reserved. 3. Examples of free goods & services

Googles free business and consumer applications

Wikipedia, Flickr, Twitter, Facebook, YouTube, Hulu, etc.

Freely downloadable open source software offerings

Free news content on major media sites

Microsoft BizSpark

Movement by some authors to distribute their works for free under Creative Commons licensing

• Notable examples:

• • Cory Doctorow ( Little Brother ,Content )

• • Chris Anderson ( Free )

Free games, music, other content

2009 DPCI. All Rights Reserved. 4. Free Is Not New

1904: King Gillette gives razors away for free in order to sell blades

1982: Warnock/Geschke make PostScript format free

1993: Adobe makes PDF format free

Late 1990s: Adobe gives Adobe InDesign away for free to University students

2009 DPCI. All Rights Reserved. 5. Free Business Models*

Freemium (kickapps, linkedin, skype, pandora, etc)

Access in exchange for Advertising (Google apps, media sites, etc.)

Cross-Subsidies (Gillette model)

Zero Marginal Cost (Music + game downloads)

Labor Exchange (open source?, other?)

Gift Economy (wikipedia, other?)

* cit. Chris Anderson

2009 DPCI. All Rights Reserved. 6. Session Goal

Taking a look at how companies are using free goods or services to actually generate revenues

• Steven Kotrch, Director of Publishing Technologies, Simon & Schuster

• Kieran Lal, Drupal Community Adventure Guide, Acquia

• Jeremiah Owyang, Analyst/Web strategist,The Forrester Group

2009 DPCI. All Rights Reserved. 7. Resources

http://craphound.com/content/download/

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

http://www.kk.org/thetechnium

http://www.longtail.com/the_long_tail/2008/07/how-big-is-the.html

http://www.wired.com/wired/archive/5.09/newrules.html

http://online.wsj.com/article/SB123335678420235003.html

2009 DPCI. All Rights Reserved. 8. Question/Response Period Info about speakers: Jeremiah Owyang,http://www.web-strategist.com/blog/ Twitter: jowyang Kieran Lal,http://acquia.com/blog/3 Twitter: Amazonk Steve Kotrch,http://wiki.firebrandz.com/images/e/eb/Digital_Content_Steve_Kotrch-Firebrand_2008.pdf Twitter: Steveko Joe Bachana,www.databasepublish.com/blog/jbachana Twitter: joebachana Linkedin: Joseph Bachana 2009 DPCI. All Rights Reserved.