How Open is Eating the World (and What it Means for Marketing) Open source has been one of the biggest stories in the world of software over the past decade and more. And, today, the principles underpinning the open source software movement are cropping up in more and more different forms in more and more different places. If you have any connection to marketing in just about any field, these trends are affecting you. This presentation will take you through what open source really means. (Hint, it's not just free software.) It will discuss the bigger trends around openness and collaboration. And it will look at some of the business model implications, both of working with open and competing with it. This presentation will have a broader scope and will focus less on the technical aspects, but it will have common threads with this one that I presented at the Linux Collaboration Summit in San Francisco earlier in April: http://bitmason.blogspot.com/2013/04/my-presentation-from-linux.html

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How Open is Eating the World
(and what it means for marketing)
Gordon Haff
Cloud Evangelist
Red Hat
4 May 2013

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About Me
• Red Hat Cloud Evangelist
• Twitter: @ghaff
• Google+: Gordon Haff
• Email: ghaff@redhat.com
• Blog: http://bitmason.blogspot.com
• Flickr: http://www.flickr.com/photos/bitmason/
• Formerly: Illuminata (industry analyst), Data
General (minicomputers/Unix/NUMA/etc.),
shareware developer

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“The open-source movement is
a free speech movement.
Source code looks like poetry,
but it’s also a machine —
words that do. Unix opens up
the discourse in the machinery
because the words in Unix
literally cause action, and those
actions will cause other
actions.”
John Gage Mario Savio at Berkeley 1964

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“When we call software
‘free,’ we mean that it
respects the users' essential
freedoms: the freedom to
run it, to study and change it,
and to redistribute copies
with or without changes.
This is a matter of freedom,
not price, so think of ‘free
speech, not ‘free beer.’”

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Software Freedom Was ~= Open Source
• Early Unix source code
was widely shared
• Mechanisms to share file
and communicate
electronically were
available in relevant
communities
• Source code was useful
to port between
incompatible hardware

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The Old Ways Matter Less
But Open Still Matter a Great Deal
Copyright 2008 Illuminata, Inc.
• Standards
• Community
• Collaboration
• Content
• Cloud
• APIs
• Data & Decisions

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Flickr/CC by Sebastiaan ter Burg http://www.flickr.com/photos/ter-burg/5520203986/
Community Matters:
The Open Source Development Model

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A Trend Towards Permissive Licensing
• Proven success of
development
model
• Commercialization
• Increased emphasis
on communities
Source: Donnie Berkholz, RedMonk, April 2013

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Flickr/CC by http://www.flickr.com/photos/photohome_uk/1494590209/
Standards Enable New Ways of Doing Things

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Collaboration:
The Wisdom of Crowds
Francis Galton: “The average competitor was
probably as well fitted for a just estimate of the
dressed weight of an ox, as an average voter is
of judging the merits of most political issues on
which he votes.”

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WITHIN
ONE
POUND

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0
5
10
15
20
25
30
35
40
19871988198919901991199219931994 1995199619971998199920002001200220032004 200520062007200820092010 2011 2012
Oscar contest results: 3 year moving averages
Mean
Consensus
Winner Score
Median
Data courtesy Steve Meretzky

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DATA
Data is the new oil?
But widespread
availability of “open
data”
Data ownership and use

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Jer Thorpe: Making Data “More Human”
• People need to understand and experience data ownership
• We need to have a more open conversation about data
and ethics
• We need to change the way that we collectively think
about data, so that it is not a new oil, but instead a new
kind of resource entirely

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The Expression of Emotions in 20th Century Books
Acerbi, Lampos, Garnett, Bentley

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The Rise of the Accidental Sensor?
Eric Fischer, http://www.flickr.com/photos/walkingsf/4671581511/in/set-72157624209158632

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Open Content
(Under GNU Free Documentation License)

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Source: GOOD, http://blog.programmableweb.com/wp-content/good-apitimeline.png
APIs Increasingly Central to App Development

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What Does “Open” Mean?
• “Open access”
o Anyone can use it but data in and out controlled by
company offering the service (Facebook Open Graph
API)
• API that leverages open standards such as XML and HTTP
o Leverage best practices but aren’t necessarily
themselves open
• Open standard APIs
o Clear definition that can be utilized by multiple providers
in an interoperable way (OpenID, AtomPub)

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John Musser: What Makes a Great Open API?
• A valuable service
• A plan and a business model
• Simple, flexible, easily adopted
• Managed and measured
• Great developer support
http://www.slideshare.net/jmusser/what-makes-a-great-open-api

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“Smartphone Wars”: Oracle v. Google

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The Mobile Web. Or are App Stores Evil?
(One Aspect of “Cloud”)

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Are App Stores a Passing Fad?
Probably not…
Monetization, distribution, retailing, functionality

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TWELVE
INTERSECTIONS
WITH
MARKETING

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1. You Can Sell Open

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2. You May Compete with Open Directly
http://www.flickr.com/photos/bostontx/4461314652/

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3. You WILL Compete with Those Using Open

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4. Your Customers are Conversing in the Open
http://www.businessinsider.com/13-epic-twitter-fails-by-big-brands-2012-2?op=1

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5. There are Business
Opportunities to
Aggregate, Curate,
Share, and Augment
Open Data
http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Market%20insights/Deloitte%20Analytics/uk-insights-deloitte-analytics-open-data-june-2012.pdf

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6. Open Decreases Innovation Friction
OpenStack Grizzly release commits by company
Source: Bitergia, April 2013

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7. Bundling is Increasingly Ineffective

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8. Pull Marketing
can be Much More
Important

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9. Openness can be a Valued Feature

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10. Your Customers are in Control

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11. Data Matters: The Good
• Data makes better decisions possible
• Data as new oil?
• You can know your customer better
• Explosion of available information and data

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12. Data Matters: The Bad
• You have to use data (and do so intelligently)
• Customer data can raise (real and perceived) privacy
concerns
• Drowning in data

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QUESTIONS & LEARN MORE
MY INFO
Twitter: @ghaff
Google+: Gordon Haff
Email: ghaff@redhat.com
Blog: http://bitmason.blogspot.com
RED HAT
www.redhat.com/solutions/cloud
Google+: Red Hat Open Hybrid Cloud