A brief discussion on Open Source Business Models - advantages, limitations and revenue generation.

2. Economic Paradox
If Open Source Software
is distributed for free, where will the
money come from?

3. Most Common Business Models
Open Source and Commercial versions
Advertising on free software
New product development (based on existing OSS)
Software Engineering Services (using OSS tools & frameworks/
components)
Consulting Services (Migration to OSS & customization)
Technical Support
Training
Documentation
3

4. Open Source
Business Models
in G2iX

5. G2iX
Founded 2001
Focused on enabling businesses with
innovative solutions
Award-winning engineering team Globally Delivered Engineering Services
World-class open source engineering
automation
Leading open source applications
Scalable cloud computing platform Build and Test Automation
Our employees from Australia to Germany,
from US to the Philippines consistently
deliver innovation for our worldwide
customers
Cloud Computing Infrastructure
5

6. G2iX
important milestones
Gluecode acquisition by IBM
Logicblaze acquisition by IONA
Open Source
OSCON in Portland, POSS in PH, Software Freedom Day
Eclipse Foundation & Apache Software Foundation
Speakers in ApacheCon, Committers in Apache, Eclipse & OpenQA projects, First (and
only) Filipina VP in Apache
Awards
6

7. Software Development
OS cuts down research & development cost
Tools
Redmine, Eclipse IDE, Maven, Selenium, etc.
OS speeds up delivery
examples
For a telecom company, Liferay Portal was used as the core of their client facing portal
For NPN, a financing company in LA, Spring framework was utilized to build the
foundation of their loan & mortgage management system
7

8. Proprietary components to OSS
Oakgrove BPM
Proprietary Open Source
8

9. New Product :: Maestro
Distributed Engineering
with a common build
mapping
Asynchronous Extensive re-use
Development of software
around the artifacts
world (Ingredients)
Frequent testing of
integration and functions
Adapting the best practices of Open Source development processes to the Enterprise
9

10. Challenging Business Model
Technical Support
“Ad hoc support services are used by nearly 70% of the
vendors assessed, but represent the primary revenue
stream for fewer than 8% of open-source-related vendors”
Codes in established OSS are really good
Actual developers in the OS project
Technical Support Engineers & Highly skilled Software Engineers
10

11. Other points
revenue not from the main product but from ancillary services
skills needed
Technical
Management (Financial, Marketing, etc)
11

12. Thank You
Questions?
Jaque Sara
jaque@g2ix.com
www.g2ix.com
www.exist.com www.maestrodev.com www.mor.ph

13. G2iX University
Code Camp (April 2010)
OJT (April 2010)
inquire-ecc@g2ix.com
apply-ecc@g2ix.com
G2iXU
existcodecamp