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Can We Really Run Our Businesses On Open Source Software

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Danny Windham, CEO of Digium describes how non-profits, enterprises and countries are using open source software

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Can We Really Run Our Businesses On Open Source Software

  1. 1. Can we really runour businesses on<br />Open Source Software?<br />Danny Windham, CEO, Digium, Inc.<br />
  2. 2. 2<br />
  3. 3. OK, but why would you?<br />#1:<br />To save money<br />Estimates suggest that adoption of<br />open-source software has resulted in savings<br />of about $60 billion per year to consumers<br />#2:<br />Protection<br />against a vendor ‘owning’ the IT infrastructure<br />#3:<br />Ease<br />of customization<br />Source: Gartner & Standish Group<br />
  4. 4. What is Open Source Software?<br />Open-source software (OSS) is...<br />Computer software that is available in source code form<br />Normally delivered under a software license that permits<br />users to study, change, and improve the software<br />Open source software is very often developed<br />in a public, collaborative manner<br />Some open source software is licensed in a fashion<br />that meets the requirements of the Open Source Definition<br />
  5. 5. What is the Open Source Definition?<br />Software meets the Open Source<br />Definition if the license...<br /><ul><li>Requires the source code to be made available
  6. 6. Demands license terms must apply to all
  7. 7. Permits Derived Works
  8. 8. Requires free redistribution (as in speech)
  9. 9. Does not restrict other software
  10. 10. Is technology-neutral
  11. 11. Does not discriminate against persons or groups
  12. 12. Does not discriminate against fields of endeavor
  13. 13. Is not specific to a product </li></li></ul><li>Types of Open Source Software<br />Free and Open Source Software (FOSS) <br /><ul><li>Source code is freely available
  14. 14. License meets Open Source Definition</li></ul>Commercial Open Source Software (COSS)<br /><ul><li>Contains some element of FOSS, but constrained in some way by commercial terms
  15. 15. Mixed source applications
  16. 16. Some free and some closed source
  17. 17. Freemium business model</li></ul>Dual license model<br /><ul><li>FOSS that is also available under a proprietary license</li></li></ul><li>What is Open Source?<br />Open Source is NOT a business model<br />Open Source IS a development model<br />Open Source CAN be a marketing model<br />
  18. 18. Open Sourcede facto Standards<br />Function/ApplicationOpen Source<br />Solution<br />Operating System Linux<br />Web Server Apache<br />Browser Firefox<br />Telephony/Communications Asterisk<br />Database MySQL<br />Customer Relationship SugarCRM<br /> Management<br />Backup Zmanda<br />Productivity Suite Open Office<br />Collaboration Suite Zimbra<br />
  19. 19. Asterisk Telephony/Communications<br />eZ Publish Web Content Management<br />Apache Web Server<br />Talend Open Studio Data integration, migration, synchronization<br />Knowledge Tree Document Management<br />Wordpress MU BLOG platform<br />Pentaho Business Intelligence<br />SugarCRM Customer Relationship Management<br />Zencart E-Commerce tools<br />Eucalyptus Web Services<br />Zenoss Systems Management<br />Open Office Productivity Suite<br />SelectedOSSBusinessApps<br />
  20. 20. SelectedOSSBusinessApps<br />Vicidial Predictive Dialer (Asterisk companion)<br />Firefox Web Browser<br />Openproj Project Management<br />Openmeetings Meeting collaboration<br />Mediawiki Wiki creation/management<br />LimeSurvey Online surveys<br />OpenBravo Enterprise Requirements Planning <br />Ekiga “Skype-like” functionality<br />Dolphin Smart Community building<br />Community Builder<br />Compiere ERP<br />Community Edition<br />OTRS Help Desk/Support <br />Zimbra Collaboration<br />
  21. 21. OSS Adoption<br />
  22. 22. Who Uses Open Source Software?<br />Open Source adoption spans the<br />gamut of business applications <br />from non-profit to small business to enterprise to governments<br />
  23. 23. Who uses OSS?<br />Gartner says …<br />85% of organizations surveyed use OSS<br />Organizations surveyed included:<br />small, medium and large organizations<br />Cross sections of industries:<br />Manufacturing, education, financial services, service organizations, etc.<br />Cross section of applications:<br />Mission critical and non-mission critical<br />
  24. 24. OpenSourceAdoptionTrends<br />Source: Forrester Research 2/2009<br />
  25. 25. OpenSourceUsers<br />15<br />
  26. 26. OpenSourceUsers<br />16<br />
  27. 27. Let’s Look at<br />Real World Examples<br />
  28. 28. Case StudyHumanitarian Relief<br />Challenge:<br />The devastating January 12th,<br />2010 earthquake in Haiti left the people and organizations unable to reach emergency services.<br />
  29. 29. Case Study<br />Humanitarian Relief<br />Solution:<br />Rele Anmwe (Humanitarian Project), using OSS software, quickly and inexpensively created a communications system which enabled individuals to reach emergency services (hospital, pharmacies, food, shelter and distribution centers)<br />OSS voice recognition technology allowed<br />the callers to receive information in their<br />native language – and allowed those<br />individuals who due to injuries were unable<br />to use a telephone keypad.<br />Result:<br />The Haitian people were able to contact emergency services in their area<br />
  30. 30. Case Study<br />Not-for-Profit Adoption<br />Challenge:<br />Over one billion people in under served countries around the world do not have basic access to clean water, sanitation, electricity or telecommunications<br />
  31. 31. Case Study<br />Not-for-Profit Adoption<br />Solution:<br />INVENEO (Not-for-Profit Entity in CA) uses OSS software along with solar-powered PCs to provide basic computing and communications capabilities to villages in need<br />Result:<br /><ul><li>The difference between life and death (medical applications)
  32. 32. An increase of 50% - 100%+ profit on crops(commerce applications)
  33. 33. A better future for the children (education applications)
  34. 34. The ability to communicate ideas with the rest of the world</li></li></ul><li>Case Study<br />SMB Adoption<br />Challenge:<br />Can you lower the cost of running the<br />IT infrastructure of a small to mid-sized<br />company by using predominately<br />Open Source Software?<br />Yes you can!<br />Digium is doing it today.<br />
  35. 35. Case Study<br />SBM Adoption<br />Solution:<br />Use OSS alternatives in any application where it does not represent a compromise decision. <br /><ul><li>No OSS edict
  36. 36. OSS preference</li></ul>Result:<br />Significant cost savings versus proprietary solutions<br />
  37. 37. OSS Software in use at Digium<br />Product/Project Application<br />Linux Desktop and Server OS<br />(Ubuntu, CentOS, Debian, Fedora) <br />Firefox Web browser<br />OpenOffice Productivity suite<br />OpenVPN Virtual Private Network client<br />Zimbra Email/ contacts/ calendaring<br />Pidgin Chat client<br />Android Mobile OS<br />24<br />
  38. 38. OSS Software in use at Digium<br />Product/Project Application<br />Asterisk PBX<br />Jabber (ejabberd) Chat server<br />OS Commerce ERP<br />Apache HTTPD Web Server<br />MySQL, PostgreSQL Database<br />Drupal Content Management System<br />Knowledge Tree Document Management <br />Pentaho Business Intelligence Tool<br />Xen Virtualization engine<br />Nagios Network management<br />Cacti Network graphing Tool<br />25<br />
  39. 39. OSS Software in use at Digium<br />Product/Project Application<br />Subversion Revision control system<br />Git Version control system<br />GCC (Gnu Compiler Collection) Complier<br />Mantis Bug tracker<br />ReviewBoard Code review system<br />Python, PHP, Bash Programming languages<br />26<br />
  40. 40. Case Study<br />Enterprise Adoption<br />Challenge:<br />Can you run the systems that power one of the world’s largest stock trading floors on open source software?<br />Yes you can!<br />London Stock Exchange is doing it today.<br />
  41. 41. Case Study<br />Enterprise Adoption<br />Solution:<br />Use OSS for better performance and greater cost savings. Move from a .NET-based platform to Linux/OSS-based alternative to lower the total cost of supporting a high performance, demanding trading platform. <br />Result:<br />London Stock Exchange predicts annual cost savings of at least £10 million ($14.7 million) from 2011-2012. <br />
  42. 42. Case Study<br />Government<br />Challenge:<br />Can you lower the cost of running the IT infrastructure of a large city by utilizing open source software?<br />Yes you can!<br />The city of Amsterdam is<br />doing it today.<br />
  43. 43. Case Study<br />Government<br />Solution:<br />City of Amsterdam set out to move as<br />many proprietary applications to Open Source<br />as practical.<br />Windows > Linux<br />Microsoft Outlook > Zimbra<br />Microsoft Office > OpenOffice<br />Siemens PBX > OSS Asterisk-based PBX<br />Result:<br />Millions of Euros of cost savings versus the incumbent proprietary solutions<br />
  44. 44. Case Study<br />Government<br />Challenge:<br />Can you develop and install a communications infrastructure for an entire island using only OSS?<br />Yes you can!<br />The island of Niue is doing it today.<br />
  45. 45. Case Study<br />Government<br />Solution:<br />The people of Niue – an island nation in the South Pacific – where there is no GSM operator, outfitted all inhabitants with mobile phones and created a switching infrastructure using OSS Software and off-the-shelf hardware.<br />OpenBTS + Asterisk + My SQL<br />Result:<br />Anyone on the island can talk to anyone else for free. System is easily replaced in case of a disaster (Hurricane!)<br />
  46. 46. Case Study<br />Government<br />Challenge:<br />Can you lower the cost of running a country using Open Source software?<br />Yes you can!<br />The government of Malaysia is doing it today.<br />
  47. 47. Case Study<br />Government<br />Solution:<br />Malaysian government set out to convert 30% of the agencies using desktop apps and 80% of the agencies using back-end apps to Open Source.<br />Result:<br />By 2010, 97% of the agencies had converted some portion of their infrastructures to Open Source<br />
  48. 48. Case Study<br />Government<br />Solution:<br />Russian Prime Minister, Vladimir Putin, issued an order in 2010 that all Russian federal bodies and agencies switch to free and/or Open Source software by 2015<br />Result:<br />TBD<br />
  49. 49. If the software is free…<br />does that mean it doesn’t cost anything?<br />Yes<br />the software is free<br />
  50. 50. If the software is free…<br />does that mean it doesn’t cost anything?<br />Yes<br />the software is free<br />No<br />the total cost of ownership is not $0<br />
  51. 51. Total Cost of Ownership includes:<br />Acquisition costs<br />Hardware costs (or lease expenses)<br />Training costs<br />System admin costs (personnel related)<br />Maintenance costs (internal or third party)<br />
  52. 52. OSS Cost Comparison<br />OSS typically lowers:<br /><ul><li> Software Acquisition Costs
  53. 53. Hardware costs
  54. 54. Ongoing traditional maintenance and support costs </li></ul>OSS typically increases:<br /><ul><li> Internal administration/development costs
  55. 55. Can increase training costs</li></li></ul><li>OSSAdopters<br />FOSS then ideally suited for:<br />Organizations with in-house IT/software expertise<br /><ul><li>Technology companies of all sizes
  56. 56. Enterprises
  57. 57. Universities
  58. 58. Government agencies
  59. 59. etc.</li></ul>Replacing applications with per-user license fees<br />
  60. 60. What about everyone else?<br />Other organizations can benefit from OSS<br />through commercial derivativesof OSS projects<br />Selected<br />COSS Applications:<br />SugarCRM<br />Alfresco<br />Pentaho<br />Drupal<br />Red Hat Enterprise Linux<br />Knowledge Tree<br />Bacula<br />etc.<br />Digium example:<br />Switchvox is a packaged<br />IP PBX based upon Asterisk<br />
  61. 61. TCO Analysis<br />42<br />
  62. 62. Challenges to OSS adoption?<br />Gartner says ... <br /><ul><li>Lack of license knowledge
  63. 63. Lack of policy or governance</li></li></ul><li>What are popular OSS licenses?<br />
  64. 64. Overcoming license issues<br />Lack of license knowledge<br /> Utilize available resources<br /><ul><li>opensource.org (Open Source Initiative)
  65. 65. GNU.org
  66. 66. Protecode License comparison
  67. 67. Wikipedia OSS License Comparison Charts
  68. 68. License experts
  69. 69. Restrictions are often significantly less for internal use versus external distribution</li></li></ul><li>Overcoming policy issues<br />Lack of Policy<br /><ul><li> Create an IP/legal compliance policy
  70. 70. Analyze license requirements of candidate software
  71. 71. Provide in-house training on license compliance
  72. 72. Utilize tools for source code portfolio management
  73. 73. Review completed projects for compliance</li></li></ul><li>OSS Adoption Recommendations<br /><ul><li>Determine the best method for your organization to benefit from OSS
  74. 74. Develop an understanding of Open Source license options
  75. 75. Develop polices around adoption of Open Source software
  76. 76. Assess OSS projects based upon maturity and profile of existing adopters
  77. 77. Consider commercial Open Source support to augment internal skills and expertise</li></ul> Source: Gartner<br />
  78. 78. So, can you really runyour businesses on<br />Open Source Software?<br />
  79. 79. 49<br />
  80. 80. Thank you!<br />www.digium.com<br />