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A New Developer Career
                    Prof. Dr. Dirk Riehle, M.B.A.

Friedrich­Alexander­University of Erlangen­Nürnberg

                  Linux­Tag 2010: June 10, 2010
     This document is licensed under the Creative Commons BY­SA 3.0 license.
   © Copyright 2010 Dirk Riehle, see http://dirkriehle.com. Some Rights Reserved.




                        © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Talk Overview




                   Community Open Source

                 Software Developer Careers

                Economic Value of Participation

                    Becoming a Committer

                               Conclusions



                                                                                                                                 2
                     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
PART I


Community Open Source




      © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Community vs. Single­Vendor Open Source [1]



                                                                      Project Type

                                                    Single product                              Multi­product
                                                    or product line                              assembly


                                                Community                                   Community
                       Community­owned          Open Source                                 Distribution
           Ownership




                                               (e.g. Linux, Apache)                             (e.g. Debian)


                                               Single­Vendor                              Single­Vendor
                         Single owner or
                        dominant vendor        Open Source                                 Distribution
                                            (e.g. MySQL, Alfresco)                         (e.g. RHEL, SLES)



[1] Dirk Riehle. "The Economic Motivation of Open Source: Stakeholder Perspectives." IEEE                                                       4
    Computer, vol. 40, no. 4 (April 2007). Page 25­32.
                                    © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Point by Point Comparison [1]




            Community Open Source                             Single­Vendor Open Source
                 Community of owners                                         Single proprietor

                     Single license                                          Multiple licenses

               No functionality withheld                                 Feature differentiated

                   Cross­subsidized                                    Venture­capital backed

                Minimal direct revenues                             Significant direct revenues

                 Community of equals                                   Asymmetric community




[1] Dirk Riehle. "The Commercial Open Source Business Model." Information Systems and e­Business                                              5
    Management. Springer Verlag, 2010. To appear.
                                  © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Recent Open Source Time­Line


     1991: Linux project started

                                         1998: Open Source Initiative founded

                        Traditional Community Open Source

                                                 1999: Apache Software Foundation founded
                                                                                        2004: Eclipse Foundation founded

                      Managed Community Open Source [1]

                        1995: MySQL AB founded

                                                                 2001: MySQL AB funded

                   Single Vendor (“Commercial”) Open Source

[1] Dirk Riehle. "The Economic Case for Open Source Foundations." IEEE Computer, vol. 43, no. 1                                                6
    (January 2010). Page 86­90.
                                   © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Open vs. Closed Development



                                                                    Openness

                                           Open development                         Closed development



                                           Open Source                                Open Source
                  Community­owned          Foundations                                 Consortia
      Ownership




                                        (e.g. Apache, Gnome)                         (e.g. OW2, GenIVI)


                                                                                     Single­Vendor
                    Single owner or
                   dominant vendor                                                   Open Source
                                                                                  (e.g. MySQL, Alfresco)



                                                                                                                                           7
                               © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Open (Source) Collaboration [1]




                                                           Egalitarian


                                                         Meritocratic


                                                   Self­Organizing



[1] Dirk Riehle, John Ellenberger, Tamir Menahem, Boris Mikhailovski, Yuri Natchetoi, Barak Naveh, Thomas                                             8
    Odenwald. "Open Collaboration within Corporations Using Software Forges." IEEE Software, vol. 26, no. 2 
    (March/April 2009). Page 52­58.      © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Open Collaboration vs. Traditional Work



      Open Collaboration                                                 Traditional Work
   • Egalitarian                                              • Hierarchical
      −   Open for contribution                                      −     Closed and hidden silos
      −   Everyone can contribute                                    −     Assigned to project


   • Meritocratic                                             • Status­oriented
      −   Public discussion process                                  −     Public and private discussions
      −   Decisions based on merit                                   −     Hierarchical status decides


   • Self­organizing                                          • Assigned tasks
      −   People find their own process                              −     Prescribed process
      −   People find their best project                             −     Prescribed jobs




                                                                                                                                              9
                                  © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
PART II


Software Developer Careers




        © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Traditional Developer Careers



       Other Career               Managerial Career                                   Technical Career

                                        VP Engineering                                             CTO




             ...                          Eng. Director                                        Architect




       Product Manager                   Eng. Manager                                        Sr. Engineer




                                         (Jr.) Engineer




                                                                                                                                   11
                         © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Community Open Source Career Path



                                             •     Formally: Has commit (write) rights
       committer
                                             •     Performs bulk of work; quality assurance

                   explicit promotion


                                             •     Provides small features, bug fixes
       contributor
                                             •     Submits patches (no commit rights)

                   implicit promotion


                                             •     Knows and uses software
          user
                                             •     If at all, helps with comments, feedback




                                                                                                                                       12
                             © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Earned vs. Assigned Status




                  In community open source, and
                under and open development model,

              committer status is earned

               while in single­vendor open source, or
                under a closed development model,

            committer status is assigned


                                                                                                                               13
                     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Managed Community Open Source Career


foundation
                                                                                                      member                    ...
management
                                                                            PMC chair


                                                  PMC member


development
                              committer


              contributor


       user




                                                                                                                                      14
                            © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
PART III


Economic Value of Participation




          © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Economic Value of Open Source Participation




                         Project Skills


                    Peer Certification


                  Leadership Position



                                                                                                                               16
                     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Expected Economic Benefits to Participation


                                                               Project Member Status

                                             user                                 contributor                                 committer
                       low / none
   Project Relevance




                                                                           Peer Certification                         Peer Certification
                       high / some




                                                                           Peer Certification                             Project Skills
                                                                                                                      Peer Certification
                                         Project Skills                        Project Skills                          Leadership Role


  Legend                             0           1                         2                      3                       4                      5




                                                                                                                                                               17
                                                     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Expected Economic Value of Position to Employer




        What Position Affords                                   Value to Employer

         Validated technical abilities                              Reduced hiring risk


       Deeper insight, more leverage                        Better work product quality


       Community visibility, reputation                   Higher reputation, more sales


       Strategic alignment with project                 Lower costs, more predictability




                                                                                                                                     18
                           © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Peer Certification Implies Reduced Hiring Risk

• Successful open source contribution implies technical skills

• Skills are “peer­certified” and publicly documented (rather than hidden)

• Validated technical abilities (peer certification) reduce hiring risk

• Reduced hiring risk lowers uncertainty discount in wage negotiations




                                                                                                                                     19
                           © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Leadership Position Implies Better Work Quality

• Leadership position first implies deeper insight, higher leverage
   − A committer has a deeper understand and insight into the project
   − A committer knows who to talk to and which knobs to turn


• Deeper insight, higher leverage implies better work quality
   − Problems get identified and fixed faster




                                                                                                                                       20
                             © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Leadership Position Implies More and Better Sales

• Leadership position first implies higher reputation with user community
   − Higher reputation and visibility make leader a go­to­person wrt project
   − Higher likelihood for talks, panels, articles follows


• Higher reputation of leader transfers to employer
   − Higher reputation of employer implies higher work quality wrt project
   − Higher reputation and expected work quality imply more sales
   − Higher reputation imply fee premium for services




                                                                                                                                         21
                               © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Leadership Position Implies Lower Costs

• Leadership position first implies better alignment with project
   − Inside view allows for faster recognition of what's likely to happen
   − Leadership position helps form future strategic direction of project


• Better strategic alignment improves predictability, lowers costs
   − Being aligned earlier, better, removes uncertainty and waste, thus lowers costs
   − Being aligned sets up employer to utilize new opportunities faster than others




                                                                                                                                        22
                              © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Benefits that Accrue to Employee




                           Higher Salary

                     More Job Security

                   Higher Job Versatility

                   Richer Job Experience



                                                                                                                               23
                     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Economics Research on “Career Concerns”

  • Lerner and Tirole's “signaling hypothesis” [1]
         − Developers offset opportunity costs by signaling marketable skills to future employers
         − Open source performance is public, more precisely measurable, and less captive
         − At the publication's time (2002), authors say volunteer developers were dominant


  • Hann et al.'s 2000 empirical investigation [2]
         − Open source contributions in themselves don't correlate with higher wages
         − Higher status within merit­based Apache Software Foundation project does
                 » Rank “committer” or higher showed 29% higher salary after controlling for most variables
                 » Study indicates that committer status is a proxy for otherwise unobservable skills


  • Bitzer et al.'s 2006/07 “c't wage survey” empirical investigation [3]
         − 61% of respondents believe open source activity benefits their career
         − Study shows no wage premium for voluntary open source contributions

[1] Lerner, J. and J. Tirole (2002). “Some Simple Economics of Open Source.” Journal of Industrial Economics, vol. 50, no. 2, pp. 197­234. 24
[2] Hann, I­H. et al. (2002). “Why Do Developers Contribute to Open Source Projects?” 2nd OSS Workshop, 2002.
[3] Bitzer, J. et al. (2010). “Returns to Open Source Engagement: An Empirical Test of the Signaling Hypothesis.” Univ. Oldenburg, 2010.
                                                   © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Anecdotal Evidence to the Contrary

• Developers view open source contributions as beneficiary

• Explicit signaling of committer status on social networks

• Explicit inclusion on resume and with links to contributions

• Informal discussions with hiring managers indicating preference

• Increased hiring for open source work on company time

• Hiring with set performance goal to become committer in defined time

• Hiring specific committers with added loyalty incentives

                                                                                                                                   25
                         © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
PART IV


Becoming a Committer




     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Skills Profile of a Committer

• Need technical competence on project
   − Typically programming skills, but real projects need more
   − Configuration, administration, documentation, website, and ...
   − An understanding of the processes of how systems are built


• Social skills are equally important if not more so
   − Need communication and collaboration skills for team work
   − Need good reading and writing skills (email communication)
   − Leadership skills are always rare and in demand
   − Need to understand peer behavior, subculture


• All things being equal, social skills are more important



                                                                                                                                       27
                             © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
How to Become a Committer?

• Achieving committer status is a communal process
   − Users work their way up from user through contributor to committer status
   − This creates acquaintance, credibility, reduces risk of wrong decision
   − Eventually, contributor is put up for committer status
   − Decision is typically made by vote of existing committers


• There is good and there is bad timing
   − A growing project needs more people, will give more responsibility early on
   − A mature project with slowing growth rarely needs more committers
   − Try to get in early when every helping hand is needed


• The prospective committer’s dilemma: Which project to bet on?



                                                                                                                                        28
                              © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
PART V


Conclusions




© Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
The Software Developer Labor Market

• A typical asymmetric market (less employers than employees)
   − Traditionally, work remains hidden (cf. reduced hiring risk)


• Contributor status does not provide a sustainable advantage
   − Everyone who is smart enough can contribute and gain recognition
   − No barriers to entry, there is always one more feature to implement
   − No barriers, because open source is freely available to everyone


• Committer status does provide sustainable positional advantage
   − Status has economic value, is not achieved or handed out easily
   − Mature projects are largely closed to new committers
   − Once achieved, committer status is not taken away easily




                                                                                                                                        30
                              © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Economic Value of Position in Project




        What Position Affords                                   Value to Employer

         Validated technical abilities                              Reduced hiring risk


       Deeper insight, more leverage                              Better product quality


       Community visibility, reputation                   Higher reputation, more sales


       Strategic alignment with project                 Lower costs, more predictability




                                                                                                                                     31
                           © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Benefits that Accrue to Employee




                           Higher Salary

                     More Job Security

                   Higher Job Versatility

                   Richer Job Experience



                                                                                                                               32
                     © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
The Long­Run Perspective

• Regular developers
   − Employed to develop proprietary custom code
   − Know and use open source, may or may not contribute
   − Not having contributed to any open source project becomes a stigma
   − Lower barriers to labor market entry push down salaries


• Open source committers
   − Employed to work (full­time) on commercially relevant open source
   − Committers’ economic value (and loyalty?) is with open source project
   − Committers likely to behave more like free agents than employees
   − Scarcity of committer status may provide superior compensation


• Developer labor market may become a two­class society



                                                                                                                                       33
                             © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Conclusions

• New career path emerged; is related but different to prior paths

• In the short­run, open source developers may improve their wages

• In the long­run, some form of peer­certification becomes a must

• Reduced barriers to market entry make life harder for developers

• The way out is to become a committer, but that is a scarce status

• Committers to relevant open source projects will benefit well




                                                                                                                                   34
                         © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Document License CC­BY­SA 3.0

This document is licensed under the Creative Commons license BY­SA 3.0,
see http://creativecommons.org/licenses/by­sa/3.0/

The document's original author and copyright holder is Dirk Riehle. The author can
be reached at dirk@riehle.org. The document can be found at http://dirkriehle.com.

You are allowed to share and create derivatives of this document, even for
commercial purposes, but you must keep this attribution page included in the
document and you must show it as part of your performance. The title slide must
visibly bear the following two lines of text:

      This document is licensed under the Creative Commons BY­SA 3.0 license.
   © Copyright 2010 Dirk Riehle, see http://dirkriehle.com. Some Rights Reserved.

You may add your own copyright notice for the portions of the document you added.



                                                                                                                                      35
                            © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
Questions? Feedback!

http://osr.cs.fau.de ­ dirk.riehle@cs.fau.de ­ @osrgroup
  http://dirkriehle.com ­ dirk@riehle.org ­ @dirkriehle




               Thank you!

                © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg

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Open Source: A New Developer Career

  • 1. A New Developer Career Prof. Dr. Dirk Riehle, M.B.A. Friedrich­Alexander­University of Erlangen­Nürnberg Linux­Tag 2010: June 10, 2010 This document is licensed under the Creative Commons BY­SA 3.0 license. © Copyright 2010 Dirk Riehle, see http://dirkriehle.com. Some Rights Reserved. © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 2. Talk Overview Community Open Source Software Developer Careers Economic Value of Participation Becoming a Committer Conclusions 2 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 3. PART I Community Open Source © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 4. Community vs. Single­Vendor Open Source [1] Project Type Single product Multi­product or product line assembly Community Community Community­owned Open Source Distribution Ownership (e.g. Linux, Apache) (e.g. Debian) Single­Vendor Single­Vendor Single owner or dominant vendor Open Source Distribution (e.g. MySQL, Alfresco) (e.g. RHEL, SLES) [1] Dirk Riehle. "The Economic Motivation of Open Source: Stakeholder Perspectives." IEEE  4 Computer, vol. 40, no. 4 (April 2007). Page 25­32. © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 5. Point by Point Comparison [1] Community Open Source Single­Vendor Open Source Community of owners Single proprietor Single license Multiple licenses No functionality withheld Feature differentiated Cross­subsidized Venture­capital backed Minimal direct revenues Significant direct revenues Community of equals Asymmetric community [1] Dirk Riehle. "The Commercial Open Source Business Model." Information Systems and e­Business  5 Management. Springer Verlag, 2010. To appear. © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 6. Recent Open Source Time­Line 1991: Linux project started 1998: Open Source Initiative founded Traditional Community Open Source 1999: Apache Software Foundation founded 2004: Eclipse Foundation founded Managed Community Open Source [1] 1995: MySQL AB founded 2001: MySQL AB funded Single Vendor (“Commercial”) Open Source [1] Dirk Riehle. "The Economic Case for Open Source Foundations." IEEE Computer, vol. 43, no. 1  6 (January 2010). Page 86­90. © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 7. Open vs. Closed Development Openness Open development Closed development Open Source Open Source Community­owned Foundations Consortia Ownership (e.g. Apache, Gnome) (e.g. OW2, GenIVI) Single­Vendor Single owner or dominant vendor Open Source (e.g. MySQL, Alfresco) 7 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 8. Open (Source) Collaboration [1] Egalitarian Meritocratic Self­Organizing [1] Dirk Riehle, John Ellenberger, Tamir Menahem, Boris Mikhailovski, Yuri Natchetoi, Barak Naveh, Thomas  8 Odenwald. "Open Collaboration within Corporations Using Software Forges." IEEE Software, vol. 26, no. 2  (March/April 2009). Page 52­58. © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 9. Open Collaboration vs. Traditional Work Open Collaboration Traditional Work • Egalitarian • Hierarchical − Open for contribution − Closed and hidden silos − Everyone can contribute − Assigned to project • Meritocratic • Status­oriented − Public discussion process − Public and private discussions − Decisions based on merit − Hierarchical status decides • Self­organizing • Assigned tasks − People find their own process − Prescribed process − People find their best project − Prescribed jobs 9 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 10. PART II Software Developer Careers © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 11. Traditional Developer Careers Other Career Managerial Career Technical Career VP Engineering CTO ... Eng. Director Architect Product Manager Eng. Manager Sr. Engineer (Jr.) Engineer 11 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 12. Community Open Source Career Path • Formally: Has commit (write) rights committer • Performs bulk of work; quality assurance explicit promotion • Provides small features, bug fixes contributor • Submits patches (no commit rights) implicit promotion • Knows and uses software user • If at all, helps with comments, feedback 12 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 13. Earned vs. Assigned Status In community open source, and under and open development model, committer status is earned while in single­vendor open source, or under a closed development model, committer status is assigned 13 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 14. Managed Community Open Source Career foundation member ... management PMC chair PMC member development committer contributor user 14 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 15. PART III Economic Value of Participation © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 16. Economic Value of Open Source Participation Project Skills Peer Certification Leadership Position 16 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 17. Expected Economic Benefits to Participation Project Member Status user contributor committer low / none Project Relevance Peer Certification Peer Certification high / some Peer Certification Project Skills Peer Certification Project Skills Project Skills Leadership Role Legend 0 1 2 3 4 5 17 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 18. Expected Economic Value of Position to Employer What Position Affords Value to Employer Validated technical abilities Reduced hiring risk Deeper insight, more leverage Better work product quality Community visibility, reputation Higher reputation, more sales Strategic alignment with project Lower costs, more predictability 18 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 19. Peer Certification Implies Reduced Hiring Risk • Successful open source contribution implies technical skills • Skills are “peer­certified” and publicly documented (rather than hidden) • Validated technical abilities (peer certification) reduce hiring risk • Reduced hiring risk lowers uncertainty discount in wage negotiations 19 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 20. Leadership Position Implies Better Work Quality • Leadership position first implies deeper insight, higher leverage − A committer has a deeper understand and insight into the project − A committer knows who to talk to and which knobs to turn • Deeper insight, higher leverage implies better work quality − Problems get identified and fixed faster 20 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 21. Leadership Position Implies More and Better Sales • Leadership position first implies higher reputation with user community − Higher reputation and visibility make leader a go­to­person wrt project − Higher likelihood for talks, panels, articles follows • Higher reputation of leader transfers to employer − Higher reputation of employer implies higher work quality wrt project − Higher reputation and expected work quality imply more sales − Higher reputation imply fee premium for services 21 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 22. Leadership Position Implies Lower Costs • Leadership position first implies better alignment with project − Inside view allows for faster recognition of what's likely to happen − Leadership position helps form future strategic direction of project • Better strategic alignment improves predictability, lowers costs − Being aligned earlier, better, removes uncertainty and waste, thus lowers costs − Being aligned sets up employer to utilize new opportunities faster than others 22 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 23. Benefits that Accrue to Employee Higher Salary More Job Security Higher Job Versatility Richer Job Experience 23 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 24. Economics Research on “Career Concerns” • Lerner and Tirole's “signaling hypothesis” [1] − Developers offset opportunity costs by signaling marketable skills to future employers − Open source performance is public, more precisely measurable, and less captive − At the publication's time (2002), authors say volunteer developers were dominant • Hann et al.'s 2000 empirical investigation [2] − Open source contributions in themselves don't correlate with higher wages − Higher status within merit­based Apache Software Foundation project does » Rank “committer” or higher showed 29% higher salary after controlling for most variables » Study indicates that committer status is a proxy for otherwise unobservable skills • Bitzer et al.'s 2006/07 “c't wage survey” empirical investigation [3] − 61% of respondents believe open source activity benefits their career − Study shows no wage premium for voluntary open source contributions [1] Lerner, J. and J. Tirole (2002). “Some Simple Economics of Open Source.” Journal of Industrial Economics, vol. 50, no. 2, pp. 197­234. 24 [2] Hann, I­H. et al. (2002). “Why Do Developers Contribute to Open Source Projects?” 2nd OSS Workshop, 2002. [3] Bitzer, J. et al. (2010). “Returns to Open Source Engagement: An Empirical Test of the Signaling Hypothesis.” Univ. Oldenburg, 2010. © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 25. Anecdotal Evidence to the Contrary • Developers view open source contributions as beneficiary • Explicit signaling of committer status on social networks • Explicit inclusion on resume and with links to contributions • Informal discussions with hiring managers indicating preference • Increased hiring for open source work on company time • Hiring with set performance goal to become committer in defined time • Hiring specific committers with added loyalty incentives 25 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 26. PART IV Becoming a Committer © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 27. Skills Profile of a Committer • Need technical competence on project − Typically programming skills, but real projects need more − Configuration, administration, documentation, website, and ... − An understanding of the processes of how systems are built • Social skills are equally important if not more so − Need communication and collaboration skills for team work − Need good reading and writing skills (email communication) − Leadership skills are always rare and in demand − Need to understand peer behavior, subculture • All things being equal, social skills are more important 27 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 28. How to Become a Committer? • Achieving committer status is a communal process − Users work their way up from user through contributor to committer status − This creates acquaintance, credibility, reduces risk of wrong decision − Eventually, contributor is put up for committer status − Decision is typically made by vote of existing committers • There is good and there is bad timing − A growing project needs more people, will give more responsibility early on − A mature project with slowing growth rarely needs more committers − Try to get in early when every helping hand is needed • The prospective committer’s dilemma: Which project to bet on? 28 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 30. The Software Developer Labor Market • A typical asymmetric market (less employers than employees) − Traditionally, work remains hidden (cf. reduced hiring risk) • Contributor status does not provide a sustainable advantage − Everyone who is smart enough can contribute and gain recognition − No barriers to entry, there is always one more feature to implement − No barriers, because open source is freely available to everyone • Committer status does provide sustainable positional advantage − Status has economic value, is not achieved or handed out easily − Mature projects are largely closed to new committers − Once achieved, committer status is not taken away easily 30 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 31. Economic Value of Position in Project What Position Affords Value to Employer Validated technical abilities Reduced hiring risk Deeper insight, more leverage Better product quality Community visibility, reputation Higher reputation, more sales Strategic alignment with project Lower costs, more predictability 31 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 32. Benefits that Accrue to Employee Higher Salary More Job Security Higher Job Versatility Richer Job Experience 32 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 33. The Long­Run Perspective • Regular developers − Employed to develop proprietary custom code − Know and use open source, may or may not contribute − Not having contributed to any open source project becomes a stigma − Lower barriers to labor market entry push down salaries • Open source committers − Employed to work (full­time) on commercially relevant open source − Committers’ economic value (and loyalty?) is with open source project − Committers likely to behave more like free agents than employees − Scarcity of committer status may provide superior compensation • Developer labor market may become a two­class society 33 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 34. Conclusions • New career path emerged; is related but different to prior paths • In the short­run, open source developers may improve their wages • In the long­run, some form of peer­certification becomes a must • Reduced barriers to market entry make life harder for developers • The way out is to become a committer, but that is a scarce status • Committers to relevant open source projects will benefit well 34 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 35. Document License CC­BY­SA 3.0 This document is licensed under the Creative Commons license BY­SA 3.0, see http://creativecommons.org/licenses/by­sa/3.0/ The document's original author and copyright holder is Dirk Riehle. The author can be reached at dirk@riehle.org. The document can be found at http://dirkriehle.com. You are allowed to share and create derivatives of this document, even for commercial purposes, but you must keep this attribution page included in the document and you must show it as part of your performance. The title slide must visibly bear the following two lines of text:       This document is licensed under the Creative Commons BY­SA 3.0 license.    © Copyright 2010 Dirk Riehle, see http://dirkriehle.com. Some Rights Reserved. You may add your own copyright notice for the portions of the document you added. 35 © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg
  • 36. Questions? Feedback! http://osr.cs.fau.de ­ dirk.riehle@cs.fau.de ­ @osrgroup http://dirkriehle.com ­ dirk@riehle.org ­ @dirkriehle Thank you! © Copyright 2010 Dirk Riehle ∙ Open Source Research Group ∙ Friedrich­Alexander­University of Erlangen­Nürnberg