2012 Future of Open Source Study; presented at InfoWorld Open Source Business Conference Keynote Panel:Tim Yeaton, President & CEO, Black Duck Software; Tom Erickson, CEO, Acquia; Ryan Garner, VP, Direct-to-Consumer Services, Warner Music Group; and Gil Yehuda, Director of Open Source and Open Standards, Yahoo! Inc. The panel was chaired by North Bridge. More than 700 respondents – the largest number in the survey’s history – took part in the 2012 survey, including representatives from both vendor and non-vendor communities. The survey, supported by over 25 collaborators, polled industry influencers about open source trends, opportunities and expectations for 2012 and beyond. Respondents were asked about a wide range of issues affecting the OSS landscape, including areas of growth in OSS, key drivers of and barriers to OSS adoption, and suggestions for building and maintaining profitable OSS business models. The 2012 Future of Open Source Survey reveals the OSS market is thriving. This year’s results show an important shift in respondents’ view of OSS, focusing less on cost and more on how OSS can innovate and help create industries. Taken together with applications like mobile and enabled by cloud, we are entering an exciting new era of 'Open Innovation on Demand,' where not only can OSS innovate faster, it can be deployed immediately and consumed as a service from the cloud, states the North Bridge press release.

1. OPEN
The Open Source Leadership
Panel at OSBC
May 21, 2012
SOURCE
THE
FUTURE
OF
2012

2. FUTURE OF OPEN SOURCE 2012
THE LEADERSHIP PANEL
Gil Yehuda
Dir. of Open Source
and Open Standards
@gyehuda
Michael Skok
General Partner
@mjskok
Tim Yeaton
CEO
@black_duck_sw
Tom Erickson
CEO
@tom_eric
Ryan Garner
VP, Dir.-to-Consumer
Services
@ryanTgarner
2

3. FUTURE OF OPEN SOURCE 2012
AGENDA
Markets
Community
Investment & Innovation
3
LOOK FOR LIVE VOTING!

4. FUTURE OF OPEN SOURCE 2012
OPEN SOURCE COLLABORATORS
4

5. FUTURE OF OPEN SOURCE 2012
SURVEY RESPONSES
5

6. FUTURE OF OPEN SOURCE 2012
SURVEY RESPONDENTS
Vendors Non-Vendors
6

7. FUTURE OF OPEN SOURCE 2012
SURVEY RESPONDENTS’ TITLES
7
Marketing/
Advertising, PR
VP/Director
IT
IT
Management/IT
StaffSystems
Architect/Engineer
Professional
Services
(Lawyer/Investor)
CIO/CTO/
CSO/COO/
CFO/CMO Analyst
Educator
CEO/Founder/
Co-
Founder/Principal
President/GM
Software
Engineer/Developer
Sales/Business
Development
VP/
Director
Non-IT
Line of Business
Manager

8. FUTURE OF OPEN SOURCE 2012
AGENDA
Markets
Community
Innovation & Investment
8

9. FUTURE OF OPEN SOURCE 2012
OSS DEPLOYED IN YOUR ORGANIZATION
9
Open Source deployment is reaching a
tipping point
Open source deployment
has reached >75%
Open source will make up
51%–75% of deployment

10. FUTURE OF OPEN SOURCE 2012
VENDORS VS. NON-VENDOR COMPANIES
OSS DEPLOYMENT IN 5 YEARS
OSS as a % of Deployed Code
0%
10%
20%
30%
40%
50%
Over 75% 51%-75% 26%-50% Up to 25%
%ofResponses
Vendor
Non Vendor23%
45%
31%
29%
14%
30%
18%
10%
10

11. FUTURE OF OPEN SOURCE 2012
3%
increase
WHAT % OF SOFTWARE PURCHASES WILL BE OSS
50% or more on OSS
IN 5 YEARS?
11

12. FUTURE OF OPEN SOURCE 2012
OPEN SOURCE TRENDS DRIVING INNOVATION
Enterprise adoption of OSS is rated most important
by companies with >1,000 employees
Adoption of open source into
non-technical segments
42%
Enterprise adoption of
open source
40%
12

13. FUTURE OF OPEN SOURCE 2012
WHAT MAKES OSS ATTRACTIVE?
2009
Lower costs
Superior security
Freedom from
VENDOR lock-in
2010
Lower costs
Rapid pace of
innovation
Freedom from
VENDOR lock-in
2011
Lower costs
Flexibility
Freedom from
VENDOR lock-in
2012
Lower costs
Quality
Freedom from
VENDOR lock-in
13

14. FUTURE OF OPEN SOURCE 2012
TOP BARRIERS TO OPEN SOURCE SELECTION
48%
47%
35%
14

15. FUTURE OF OPEN SOURCE 2012
12%Financial Services
23%Health/Medical/Life
Sciences
INDUSTRIES MOST IMPACTED BY OSS IN 2012
15
44%Data
Management

16. FUTURE OF OPEN SOURCE 2012
CHARACTERISTICS THAT MAKE INDUSTRIES
LIKEY TO BE IMPACTED BY OSS
16
Profit margins/ability
to invest in IT
51% 50%
Technology
centric
46%Software development
is an essential strategic
process

17. FUTURE OF OPEN SOURCE 2012
THE VIRTUOUS CYCLE – INNOVATION & OSS
OSS
Innovation
600,000+ OSS projects
100+ billion lines of code
10 million person-years of work
…we are living in a golden age of open source innovation, with many of the
most exciting computing ideas…being explored through [FOSS].
Glyn Moody, H-Online.com
(March 2012)
“
Source:
17

18. FUTURE OF OPEN SOURCE 2012
REVENUE STRATEGIES THAT CREATE THE
MOST VALUE FOR OPEN SOURCE VENDORS
18
SaaS
52%
41% 40%
Support
Subcription
Service Supprt Value-Added
Subscription
Service
Support

19. FUTURE OF OPEN SOURCE 2012
AGENDA
Markets
Community
Innovation & Investment
19

20. FUTURE OF OPEN SOURCE 2012
OSS PROJECTS
20
Project maturity 43%
Availability of
commercial support 23%
Size of
community 19%
FACTORS INFLUENCING CHOICE OF OSS PROJECTS

21. FUTURE OF OPEN SOURCE 2012
Non-Vendor
OSS PROJECTS
21
Project maturity 43%
Availability of
commercial support 23%
Size of
community 19%
FACTORS INFLUENCING CHOICE OF OSS PROJECTS
46%
21%
20%

22. FUTURE OF OPEN SOURCE 2012
INDUSTRY CASE STUDY: AUTOMOTIVE
What is Your Company’s Relationship to Using Open Source Software in Products?
22
Source:
Prof, Dr. Dirk Riehle
Head of the Open Source Institute
University of Erlangen-Nuremberg
CONDUCTED BY:
6%
9%
15%
21%
35%
59%
0% 20% 40% 60%
We are head of one or
more projects
We have started one or
more projects
We do not use it
We contribute to it
We are evaluating use
We use it
The Results:
 OSS has arrived
in automotive
software
development
 Management
and control of
OSS lags
adoption
The Study

23. FUTURE OF OPEN SOURCE 2012
HIRING: WHAT ASPECT OF OSS EXPERIENCE IS
MOST IMPORTANT?
23
Experience
with a variety
of projects
35%
Code
contributions
28%

24. FUTURE OF OPEN SOURCE 2012
AGENDA
Markets
Community
Innovation & Investment
24

25. FUTURE OF OPEN SOURCE 2012
SIGNIFICANT TECHNOLOGY INNOVATION FROM
NEW PROJECTS IN THE OSS COMMUNITY
25
Cloud 40%
Mobile Apps 19%
Mobile Enterprise 15%

26. FUTURE OF OPEN SOURCE 2012
 Android gaining momentum,
share > 70%
 iOS share declined, but number
of projects increased
OPEN SOURCE DRIVES MOBILE INNOVATION
26
Source:
New Mobile OSS Projects
 >18,000 cumulative
projects
 10,000 new in 2011
alone!
Share of Projects*
* Based on OSS projects that specify a mobile platform

27. FUTURE OF OPEN SOURCE 2012
48.5% 63.3%
1.4%
49%
OSS INVESTMENTS BY THE NUMBERS
Dollars
Invested
Deals
Completed
Avg. Deal
Size
Seed,
Series A
$452.8M 73 $6.8M $118.7M
$674.9m
72
$10.1M $192.7M
2010
2011
27

28. FUTURE OF OPEN SOURCE 2012
201220112010
HOT OSS COMPANIES
28

29. FUTURE OF OPEN SOURCE 2012
= Growth
Quality Innovation
29

30. FUTURE OF OPEN SOURCE 2012
WITH GROWTH COMES…
30
Revenue
Super-
Communities
Enterprise
Adoption

31. FUTURE OF OPEN SOURCE 2012
THANK YOU! OPEN SOURCE COLLABORATORS
31

32. FUTURE OF OPEN SOURCE 2012
FIND OUT MORE
32
http://www.northbridge.com/open-source http://www.opensourcedelivers.com/