How to make money out of open source software?

•

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SANGHEE SHIN

You can watch real presentation of this material at this URL : http://www.youtube.com/watch?v=Ls7TaVQXK0Q

Business Technologie Actualités & Politique

한국어 지부

28th, Oct 2011
FOSS4G Korea 2011 Keynote Talk

OSGeo Korean Language Chapter
Shin, Sanghee(endofcap@gmail.com)

1.  Lower cost of innovation
2.  Faster time to market
3.  Share risk with others

Price Price

Demand Curve Demand Curve
Supply Curve Supply Curve 1

Supply Curve 2

Quantity Quantity

“ If it’s digital, sooner or later
it’s going to be free.

”

Community Open Source Software Developing Model

Roadmap
Design
Software
‘The Project’
Core Developers
Contributions
Administrators
Community
Engineers Contributions

Peer Review
Use Cases
Testing
Documentation
Translations
Features
Forum Help
Bug Fixes

* Source : James Dixon, The Beekeeper

Open Source Software Advantages over Proprietary
* Source : Barracuda Networks

Price 80%

Source Code Access 57%

Community Code Review 41%

Don’t Know 20%

Bug Fix Turnaround 18%

Security 15%

Code Quality 15%

Best Product Functionality 15%

Easier to Adopt in Organization 10%

Other 6%

IP Protection 5%

0% 20% 40% 60% 80% 100%

Proprietary Software Advantages over Open Source
* Source : Barracuda Networks

Vendor Professional Services 65%

Easier to Adopt in Organization 47%

Automated Updates 44%

Reduced IT Support 35%

Best Product Functionality 28%

Security 23%

Code Quality 17%

Don't Know 9%

IP Protection 7%

Other 4%

Price 3%

0% 10% 20% 30% 40% 50% 60% 70%

1. Lack of formal support
and services

2. Velocity of change

3. Lack of roadmap

4. Functional Gaps

5. License Types

6. Lack of endorsements
by independent ISVs

* Source : Ray Lane, 6 barriers to open source adoption

Commercial Open Source Software

Advantages Advantages
of of
Proprietary Open Source
1.  Professional service 1.  Cheaper price
2.  Continuous support 2.  Source code access
3.  Easy to use 3.  Community review
4.  Reliability 4.  Quicker bug fix
5.  Functionalities 5.  More standard based

‘Whole Product’

Installation
Integration
<Open Source SW>

Support
Services

Software
Software
Other
VARs
SW/HW

Certification
Training

<Whole Product>

Commercial Open Source Software Business Model
Community can hear more functionalities & requests

+
The bigger community
Commercial Open Source
the more resources
Company

Customers
‘Go To Market’
Open
Partners
Sales, Marketing, Support,
Services, Engineering, Pro
Source
Software
+
OEMs
Community
duct Mgmt.

+
Customers can gain higher quality software at a better price

Next Demand

SKILL
A
C
C M
E O
S N
S E
Customer Y
TIME

Next Market

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