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© 2017 CloudBees, Inc. All Rights Reserved. 1
Hackers Gotta Eat
Building a Company Around an
Open Source Project
Kohsuke Kawaguchi
@kohsukekawa
© 2017 CloudBees, Inc. All Rights Reserved. 2
Hello World
© 2017 CloudBees, Inc. All Rights Reserved. 3
Kohsuke
• Hacker
• Created Hudson while working at Sun Microsystems
• Founded the Jenkins project
• Created InfraDNA after leaving Oracle
• Merged with CloudBees
• Now, CTO of CloudBees
© 2017 CloudBees, Inc. All Rights Reserved. 4
• Open source automation server
• 140k known "master" instances
• Running on 500k+ machines worldwide
• Helps over 1M people implement continuous integration
and continuous delivery
Jenkins
© 2017 CloudBees, Inc. All Rights Reserved. 5
CloudBees
• Deep DevOps and Jenkins expertise.
• Enterprise-grade platform.
• Expert-level support.
• Major contributor to the Jenkins project
© 2017 CloudBees, Inc. All Rights Reserved. 6
Open Source
Business Models
© 2017 CloudBees, Inc. All Rights Reserved. 7
Professional Services
© 2017 CloudBees, Inc. All Rights Reserved. 8
Professional Services
• Consulting on best practices
• Custom, per-company, development on top of the project
© 2017 CloudBees, Inc. All Rights Reserved. 9
Enterprise Products
© 2017 CloudBees, Inc. All Rights Reserved. 10
Enterprise Products
• Build once and sell multiple times
• Enterprise software does not sell itself
• OSS is good enough
• Need critical mass, story, & sales
• Recurring revenue vs one-time revenue
© 2017 CloudBees, Inc. All Rights Reserved. 11
Software as a Service
© 2017 CloudBees, Inc. All Rights Reserved. 12
Software as a Service
• We'll run a version of the open source project for a monthly fee
• Pros:
• Easy to understand product for most customers
• Economies of scale for running the project.
• Cons:
• Undervalued "I can run X on my workstation, it's not that hard."
• Can easily spiral into custom requirements per-customer
© 2017 CloudBees, Inc. All Rights Reserved. 13
Support
© 2017 CloudBees, Inc. All Rights Reserved. 14
Support
• Provide experts-as-a-service!
• Pros:
• Valued by larger organizations.
• Cons:
• You need a bigger organization, process, and system
• You have to hire the experts!
© 2017 CloudBees, Inc. All Rights Reserved. 15
Hiring from
the project
© 2017 CloudBees, Inc. All Rights Reserved. 16
Pros: Hiring from the project
• Straightforward to find motivated and qualified developers
• Open source developers already know how to work together (usually)
• Employing developers gives them more time to solve big problems
• Paying developers to work on their passion project can give them the adequate
support to make big break-throughs
• Often bring in sales leads :-)
© 2017 CloudBees, Inc. All Rights Reserved. 17
Cons: Hiring from the project
• Can cause ambiguity for developers
• "Am I on work-time or my-time?"
• "The company wants to do X, but I want Y."
• Can risk the company being seen as "co-opting" the project.
• When all the most vocal contributors are now employees…
• Can remove otherwise active participants from the project
• Especially if you hire people and put them on Enterprise products
© 2017 CloudBees, Inc. All Rights Reserved. 18
Interacting with
the project
© 2017 CloudBees, Inc. All Rights Reserved. 19
Interacting with the Project
• Define the boundaries within the company for interacting with the project
• Ensure the company is "on the same page" before spinning cycles in the
project
• Volunteer contributors don't have patience for inconsistencies from a company
• Accommodate community feedback in development time
© 2017 CloudBees, Inc. All Rights Reserved. 20
Development
and Collaboration
© 2017 CloudBees, Inc. All Rights Reserved. 21
Development and Collaboration
• Best to follow the Red Hat model and "work upstream" as much as possible
• Use "upstream" repositories
• Manage backlogs (when possible) in "upstream" issue trackers
• Follow "upstream" review and merging practices
• Determining transparency in product roadmap can be a challenge
• Teams might be working on upstream and "enterprise" functionality in the same
sprint
© 2017 CloudBees, Inc. All Rights Reserved. 22
Branding, Trademarks,
and Legalese
© 2017 CloudBees, Inc. All Rights Reserved. 23
Branding, Trademarks, and Legalese
• Being recognized as "the X people" is beneficial
• This is a big part of how people perceive value in what you offer
• Who owns the trademark?
• Extremely important to have clarity on where trademark ownership lies.
• Company must respect the mark's usage restrictions and guidelines.
© 2017 CloudBees, Inc. All Rights Reserved. 24
Branding, Trademarks, and Legalese
• Licenses 101
• Comply with existing licenses of software used/extended.
• Explain to employees copyright ownership of their work.
• Determine suitable licenses for new software created and open sourced.
• "Open Source" vs. "Free Software"
• Important to understand the differences.
© 2017 CloudBees, Inc. All Rights Reserved. 25
Why Bother
© 2017 CloudBees, Inc. All Rights Reserved. 26
Open Source is
"eating the world"
© 2017 CloudBees, Inc. All Rights Reserved. 27
Open source is "eating the world"
• For more and more organizations open source is a better choice
• More flexible
• Higher quality
• Lower barrier to adoption means a larger potential market for companies built
around open source projects
© 2017 CloudBees, Inc. All Rights Reserved. 28
We can solve better problems
© 2017 CloudBees, Inc. All Rights Reserved. 29
We can solve better problems
• Participation exposes the project to a broad set of perspectives
• Open source users and contributors will use software very differently than you
might expect.
• Open source means many "itches" and low-hanging fruit are resolved by
contributors.
Blue Ocean
Blue Ocean
●New user experience for Jenkins
●jenkins.io/projects/blueocean
●Built from the ground up for Continuous Delivery and modern developer needs
© 2017 CloudBees, Inc. All Rights Reserved. 34
Benefits to the Project
© 2017 CloudBees, Inc. All Rights Reserved. 35
Benefits to the Project
• More people, not just code contributors, can help move the project forward
• Designers
• Writers
• Many, many, more
• Corporate involvement lends credibility to "main street" businesses
• The company can become a lightning rod for bringing new corporate contributions
© 2017 CloudBees, Inc. All Rights Reserved. 36
Hackers Gotta Eat
© 2017 CloudBees, Inc. All Rights Reserved. 37
Hackers Gotta Eat
• Open source software is valuable.
• People's time is valuable.
© 2017 CloudBees, Inc. All Rights Reserved. 38
Questions?
© 2017 CloudBees, Inc. All Rights Reserved. 39
Thank you
© 2017 CloudBees, Inc. All Rights Reserved. 40
Boundaries
and Challenges
© 2017 CloudBees, Inc. All Rights Reserved. 41
Boundaries and Challenges
• Becoming an "Elephant in the Room."
• If the majority of active contributors are employees, it can discourage other
contributors and cause mistrust.
• Challenging to invest in deeper architectural changes.
• Hard to "sell" internal refactorings and updates.

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Hackers gotta eat

  • 1. © 2017 CloudBees, Inc. All Rights Reserved. 1 Hackers Gotta Eat Building a Company Around an Open Source Project Kohsuke Kawaguchi @kohsukekawa
  • 2. © 2017 CloudBees, Inc. All Rights Reserved. 2 Hello World
  • 3. © 2017 CloudBees, Inc. All Rights Reserved. 3 Kohsuke • Hacker • Created Hudson while working at Sun Microsystems • Founded the Jenkins project • Created InfraDNA after leaving Oracle • Merged with CloudBees • Now, CTO of CloudBees
  • 4. © 2017 CloudBees, Inc. All Rights Reserved. 4 • Open source automation server • 140k known "master" instances • Running on 500k+ machines worldwide • Helps over 1M people implement continuous integration and continuous delivery Jenkins
  • 5. © 2017 CloudBees, Inc. All Rights Reserved. 5 CloudBees • Deep DevOps and Jenkins expertise. • Enterprise-grade platform. • Expert-level support. • Major contributor to the Jenkins project
  • 6. © 2017 CloudBees, Inc. All Rights Reserved. 6 Open Source Business Models
  • 7. © 2017 CloudBees, Inc. All Rights Reserved. 7 Professional Services
  • 8. © 2017 CloudBees, Inc. All Rights Reserved. 8 Professional Services • Consulting on best practices • Custom, per-company, development on top of the project
  • 9. © 2017 CloudBees, Inc. All Rights Reserved. 9 Enterprise Products
  • 10. © 2017 CloudBees, Inc. All Rights Reserved. 10 Enterprise Products • Build once and sell multiple times • Enterprise software does not sell itself • OSS is good enough • Need critical mass, story, & sales • Recurring revenue vs one-time revenue
  • 11. © 2017 CloudBees, Inc. All Rights Reserved. 11 Software as a Service
  • 12. © 2017 CloudBees, Inc. All Rights Reserved. 12 Software as a Service • We'll run a version of the open source project for a monthly fee • Pros: • Easy to understand product for most customers • Economies of scale for running the project. • Cons: • Undervalued "I can run X on my workstation, it's not that hard." • Can easily spiral into custom requirements per-customer
  • 13. © 2017 CloudBees, Inc. All Rights Reserved. 13 Support
  • 14. © 2017 CloudBees, Inc. All Rights Reserved. 14 Support • Provide experts-as-a-service! • Pros: • Valued by larger organizations. • Cons: • You need a bigger organization, process, and system • You have to hire the experts!
  • 15. © 2017 CloudBees, Inc. All Rights Reserved. 15 Hiring from the project
  • 16. © 2017 CloudBees, Inc. All Rights Reserved. 16 Pros: Hiring from the project • Straightforward to find motivated and qualified developers • Open source developers already know how to work together (usually) • Employing developers gives them more time to solve big problems • Paying developers to work on their passion project can give them the adequate support to make big break-throughs • Often bring in sales leads :-)
  • 17. © 2017 CloudBees, Inc. All Rights Reserved. 17 Cons: Hiring from the project • Can cause ambiguity for developers • "Am I on work-time or my-time?" • "The company wants to do X, but I want Y." • Can risk the company being seen as "co-opting" the project. • When all the most vocal contributors are now employees… • Can remove otherwise active participants from the project • Especially if you hire people and put them on Enterprise products
  • 18. © 2017 CloudBees, Inc. All Rights Reserved. 18 Interacting with the project
  • 19. © 2017 CloudBees, Inc. All Rights Reserved. 19 Interacting with the Project • Define the boundaries within the company for interacting with the project • Ensure the company is "on the same page" before spinning cycles in the project • Volunteer contributors don't have patience for inconsistencies from a company • Accommodate community feedback in development time
  • 20. © 2017 CloudBees, Inc. All Rights Reserved. 20 Development and Collaboration
  • 21. © 2017 CloudBees, Inc. All Rights Reserved. 21 Development and Collaboration • Best to follow the Red Hat model and "work upstream" as much as possible • Use "upstream" repositories • Manage backlogs (when possible) in "upstream" issue trackers • Follow "upstream" review and merging practices • Determining transparency in product roadmap can be a challenge • Teams might be working on upstream and "enterprise" functionality in the same sprint
  • 22. © 2017 CloudBees, Inc. All Rights Reserved. 22 Branding, Trademarks, and Legalese
  • 23. © 2017 CloudBees, Inc. All Rights Reserved. 23 Branding, Trademarks, and Legalese • Being recognized as "the X people" is beneficial • This is a big part of how people perceive value in what you offer • Who owns the trademark? • Extremely important to have clarity on where trademark ownership lies. • Company must respect the mark's usage restrictions and guidelines.
  • 24. © 2017 CloudBees, Inc. All Rights Reserved. 24 Branding, Trademarks, and Legalese • Licenses 101 • Comply with existing licenses of software used/extended. • Explain to employees copyright ownership of their work. • Determine suitable licenses for new software created and open sourced. • "Open Source" vs. "Free Software" • Important to understand the differences.
  • 25. © 2017 CloudBees, Inc. All Rights Reserved. 25 Why Bother
  • 26. © 2017 CloudBees, Inc. All Rights Reserved. 26 Open Source is "eating the world"
  • 27. © 2017 CloudBees, Inc. All Rights Reserved. 27 Open source is "eating the world" • For more and more organizations open source is a better choice • More flexible • Higher quality • Lower barrier to adoption means a larger potential market for companies built around open source projects
  • 28. © 2017 CloudBees, Inc. All Rights Reserved. 28 We can solve better problems
  • 29. © 2017 CloudBees, Inc. All Rights Reserved. 29 We can solve better problems • Participation exposes the project to a broad set of perspectives • Open source users and contributors will use software very differently than you might expect. • Open source means many "itches" and low-hanging fruit are resolved by contributors.
  • 31. Blue Ocean ●New user experience for Jenkins ●jenkins.io/projects/blueocean ●Built from the ground up for Continuous Delivery and modern developer needs
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  • 34. © 2017 CloudBees, Inc. All Rights Reserved. 34 Benefits to the Project
  • 35. © 2017 CloudBees, Inc. All Rights Reserved. 35 Benefits to the Project • More people, not just code contributors, can help move the project forward • Designers • Writers • Many, many, more • Corporate involvement lends credibility to "main street" businesses • The company can become a lightning rod for bringing new corporate contributions
  • 36. © 2017 CloudBees, Inc. All Rights Reserved. 36 Hackers Gotta Eat
  • 37. © 2017 CloudBees, Inc. All Rights Reserved. 37 Hackers Gotta Eat • Open source software is valuable. • People's time is valuable.
  • 38. © 2017 CloudBees, Inc. All Rights Reserved. 38 Questions?
  • 39. © 2017 CloudBees, Inc. All Rights Reserved. 39 Thank you
  • 40. © 2017 CloudBees, Inc. All Rights Reserved. 40 Boundaries and Challenges
  • 41. © 2017 CloudBees, Inc. All Rights Reserved. 41 Boundaries and Challenges • Becoming an "Elephant in the Room." • If the majority of active contributors are employees, it can discourage other contributors and cause mistrust. • Challenging to invest in deeper architectural changes. • Hard to "sell" internal refactorings and updates.