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Open Source Business

    January 12th 2010
Who are we?
• Spin-off company of IBBT & UGent (2007)

• Experts in Mobile Web Engineering

• Professional Open Source company

• Venture Capital backed startup

• Located in Belgium | UK | US




                      2
How does Siruna work?

                                      Automatic
                                       Content
      Device             Content      Adaptation
     Detection          Adaptation
                         Engine
                                        Select
      Content                           Menu
      Fetcher
                                     Select mobile
                                        content


                                     Adapt Style




                                                     3
Siruna Vision

          Siruna has the ambition to become the
       leading service provider for mobile internet
         applications based upon its open source
                   mobile internet gateway




4
Open Source fundamentals

    •   Strategic Goal
    •   Dual License Strategy
    •   Copyright
    •   AGPL license




5
Open source versus Closed
                source
             Revenue from services        Selling software licenses
             Source code is publically    Source code protected as
            available « Copyleft »        intellectual property
             Source can be adapted /      Customer can’t get the
            improved                      source code
             Development by a            Development inside the
            community                     company


The business models are linked with the license model:
 GPL/LGPL business models
 BSD/Apache models
 Multilicense business models
First Generation Business Models

                    Revenues are generated through support, consulting,
Services based      training, documentation



                    A free OS product is used to create a market position for
Loss leader         the traditional commercial software.




                    Vendors as IBM, Apple, Novell, Oracle.. realize that OS provides a way to
                    compete against Microsoft because:
Fight competition   • They can reduce R&D costs
                           • Eliminate dependencies on competitor’s technology
                           • Of the access to a large, external development community

                    Example: instead of competing with Symbian, Motorola committed to OS




              7
Hybrid Business Models




 Right to:
     Use
     View
     Modify
     Distribute
The Dual Licensing Business
           Model
   Dual licensing allows open
   source vendors
   to stay committed to
   free software
   while building
   a sustainable, profitable
   business.
Dual Licensing
•   Product available under a regular commercial
    license for commercial customers and under a free
    software licence (AGPL) for those who live by the
    principles of free software
•   The product is technically identical under both
    licences, but the financials and the legal
    ramifications are different
•   It is up to the customer to decide what path he wants
    to follow and what licence to use but restricted by our
    policy & commercial strategy.
•   MySQL AB, Sleepycat Software & Trolltech AS use
    dual licensing


         Siruna is the copyright holder
Siruna OSS strategy
     • Is NOT to create a large developer
       community
       – Can be a side effect
       – We control it through the Contributor License
         Agreement. (CLA)
     • Disruptive business model
       –   People can try the code, see the internals
       –   They buy what they like (quality)
       –   They can modify the code for their customer
       –   Create a developer/user pull

11
Copyright of Siruna
• Necessary condition for dual licensing.
• Gives us rights and protection
     – We decide what license is used by who:
        • Commercial
        • AGPL
     – We can introduce “golden lines” or credentials.
• Our “golden lines”
     – “Adapted for Mobile by Siruna”
     – Google Analytics transformer insert



12
Affero GPL license
 • GPL license:
     – Everything that touches it becomes GPL
       (viral)
     – If you redistribute a GPL software package,
       you need to publish your code
     – Service provider loophole
 • AGPL license:
     – Closes the MSP loophole
     – Software distribution & network access


13
OSS Sales Funnel




14
OSS Sales & Marketing




15
www.osmobi.com
Worldwide coverage
Romania, Italy, France, New Sealand, The Netherlands, UK, US,
Denmark, Russia, Panama, Finland, Greece, Austria, Canada,
South Africa, Seychelles, Kenya, Portugal, Spanje, Thailand,
Indonesia, China, Madagascar, Sweden, Taiwan, Slovenia, India,
Estonia
Contact Us

     SIRUNA nv
     Zuiderpoort Office Park
     Gaston Crommenlaan 10/101
     9050 Gent, Belgium
     Tel +32 (0)9 331 48 55
     contact@siruna.com

Visit us @ www.siruna.com/showcase   m.bekaert.be
                                      m.gent.be
                                       m.zita.be



18

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Open Source Business Models and Strategies

  • 1. Open Source Business January 12th 2010
  • 2. Who are we? • Spin-off company of IBBT & UGent (2007) • Experts in Mobile Web Engineering • Professional Open Source company • Venture Capital backed startup • Located in Belgium | UK | US 2
  • 3. How does Siruna work? Automatic Content Device Content Adaptation Detection Adaptation Engine Select Content Menu Fetcher Select mobile content Adapt Style 3
  • 4. Siruna Vision Siruna has the ambition to become the leading service provider for mobile internet applications based upon its open source mobile internet gateway 4
  • 5. Open Source fundamentals • Strategic Goal • Dual License Strategy • Copyright • AGPL license 5
  • 6. Open source versus Closed source  Revenue from services  Selling software licenses  Source code is publically  Source code protected as available « Copyleft » intellectual property  Source can be adapted /  Customer can’t get the improved source code  Development by a Development inside the community company The business models are linked with the license model:  GPL/LGPL business models  BSD/Apache models  Multilicense business models
  • 7. First Generation Business Models Revenues are generated through support, consulting, Services based training, documentation A free OS product is used to create a market position for Loss leader the traditional commercial software. Vendors as IBM, Apple, Novell, Oracle.. realize that OS provides a way to compete against Microsoft because: Fight competition • They can reduce R&D costs • Eliminate dependencies on competitor’s technology • Of the access to a large, external development community Example: instead of competing with Symbian, Motorola committed to OS 7
  • 8. Hybrid Business Models  Right to:  Use  View  Modify  Distribute
  • 9. The Dual Licensing Business Model Dual licensing allows open source vendors to stay committed to free software while building a sustainable, profitable business.
  • 10. Dual Licensing • Product available under a regular commercial license for commercial customers and under a free software licence (AGPL) for those who live by the principles of free software • The product is technically identical under both licences, but the financials and the legal ramifications are different • It is up to the customer to decide what path he wants to follow and what licence to use but restricted by our policy & commercial strategy. • MySQL AB, Sleepycat Software & Trolltech AS use dual licensing Siruna is the copyright holder
  • 11. Siruna OSS strategy • Is NOT to create a large developer community – Can be a side effect – We control it through the Contributor License Agreement. (CLA) • Disruptive business model – People can try the code, see the internals – They buy what they like (quality) – They can modify the code for their customer – Create a developer/user pull 11
  • 12. Copyright of Siruna • Necessary condition for dual licensing. • Gives us rights and protection – We decide what license is used by who: • Commercial • AGPL – We can introduce “golden lines” or credentials. • Our “golden lines” – “Adapted for Mobile by Siruna” – Google Analytics transformer insert 12
  • 13. Affero GPL license • GPL license: – Everything that touches it becomes GPL (viral) – If you redistribute a GPL software package, you need to publish your code – Service provider loophole • AGPL license: – Closes the MSP loophole – Software distribution & network access 13
  • 15. OSS Sales & Marketing 15
  • 17. Worldwide coverage Romania, Italy, France, New Sealand, The Netherlands, UK, US, Denmark, Russia, Panama, Finland, Greece, Austria, Canada, South Africa, Seychelles, Kenya, Portugal, Spanje, Thailand, Indonesia, China, Madagascar, Sweden, Taiwan, Slovenia, India, Estonia
  • 18. Contact Us SIRUNA nv Zuiderpoort Office Park Gaston Crommenlaan 10/101 9050 Gent, Belgium Tel +32 (0)9 331 48 55 contact@siruna.com Visit us @ www.siruna.com/showcase m.bekaert.be m.gent.be m.zita.be 18