open source for start-ups, prof. rahul de
Post on 13-Sep-2014
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pen Source For Startups Doing Business With Open Source Traditional business wisdom suggests knowledge captured in methods, intellectual property form a crucial competitive advantage, and yield profitable commercialization opportunities for firms. The Open-source model turns the traditional wisdom on its head and suggests product development as a collaborative effort. The application development process benefits from community wisdom allowing feature improvements across competition and clones. Open source licenses helps the entire ecosystem commercially but the contributor(copyright holder) which may lead to less contributors The commercialization challenge of the open-source models is steadily easening with approaches like dual licensing, software as a service, freemium, crowd-funding etc.TRANSCRIPT
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS for Startups
Rahul De’
Hewlett-Packard Chair Professor
Indian Institute of Management Bangalore
5 April, 2014
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
1 FOSS Basics
2 FOSS Economics
3 FOSS & IT Strategy
4 FOSS for Startups
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS Basics
FOSS is Free and Open Source Software
FOSS is defined by
How the software is madeHow the software is licensed
FOSS is distinguished from proprietary software, which ismade in the “cathedral” whereas FOSS is made in the“bazaar”
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
The GPL
The GNU General Public License
Freedom to run the software
Freedom to inspect and change the source code
Freedom to share the software
Freedom to distribute a modified version of the code
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS Economics
FOSS is based on social/peer production1
The final product is non-proprietary
There is no price signalling in the market
No central command and control of production
No large inputs of capital required
Relies on distributed computing facilities and networks
1Based on Benkler’s Wealth of Networks
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS Economics
The Feedback Loop of Innovation
Social/ PeerProduction
Inputs:Information
Output:InformationGoods
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS as Information Good
FOSS is an information good
Low cost of final product enables
InnovationFurther growth through peer productionSustains low-cost production process
For Indian economy
Reduces costs of innovation and technology developmentEnables entrepreneurship to flourish
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS for StartupsCompetitiveDynamics
IT in Hyper-CompetitiveEnvironments
FOSS forReuse
FOSS forDynamic ITCapabilities
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
Changing Competitive Dynamics
Hyper-competitive environment
Schumpeterian economics
Dynamic process of a series of market disruptions
IT creates market disruptions
Advantages from specific competitive moves is temporary
Need for agility and flexibility
Identify market imperfectionsAssemble dynamic competenciesSense and respondContinuous entrepreneurial actions
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
Role of IT in Hyper-Competitive Environment
IT Differentiation
Ability to innovate from knowledge, assets, and resources
Assemble IT competencies in iterative loops
Co-evolve assets, capabilities and knowledge
Systems thinking and not just “tool” thinking
Improvisational capabilities: the ability to spontaneouslyreconfigure existing resources
Agility
Entrepreneurial alertnessResponding to changing customer, partner and business needs
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS as a Reusable Repository
Systematic reuse of available FOSS
FOSS as a reusable repository
The largest external repository of reusable componentsHigh quality software codeEmbedded knowledgeBut not “designed for reuse”Not abstracted for reuse: high cost of searching for reusableartifacts
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS: For Dynamic IT Capabilities
Time-to-market advantages
Adherence to open standards and open architecturePossible to deploy hybrid solutions of diverse components
Technological advantages (examples)
Performance optimization through usage of best-of-breedsolutionsFOSS database found to be highly scalableMore stable systems derived from superior quality of code baseLesser points of failureReduced security threats
Cost savings
Higher ROI from technology spend
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS: Agility and Entrepreneurial Action
Agility
Enables co-evolving of assets with customers / partnersHigh interoperability of FOSS systemsReduced vendor dependence
Flexibility and faster time-to-market
Initiate preemptive movesRespond to competition
Develop entrepreneurial spirit
Spirit of using FOSSAssembling innovation in continuous loops
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
FOSS for Startups: Questions and Issues
1 Which licence is best suited for FOSS reuse?
2 Can components under different licences be combined?
3 What happens if the FOSS project, from which code is reused,goes under?
4 What about warranties for performance? What strategy canbe deployed for that?
5 When should code be upstreamed or given back to thecommunity?
FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups
Thank you for listening! Any Questions???