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Which relationship between enterprises
                  and the free software community?




                                            Gabriele Ruffatti
                                         Research & Innovation
                                         Engineering Group
                                         gabriele.ruffatti@eng.it



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Free software / Open Source




   DISTRIBUTION
   COMMUNITY
   COMMERCIAL MODEL




                                                                   2
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Industry-grade free software




         … and its relationship with the COMMUNITY




                                                                    3
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Different kinds of community




                                                        Simon Phipps, http://webmink.com/essays/community-types/


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Different kinds of community




                                     conference
where open source meets academia
http://fossa2010.inrialpes.fr




                         end-users, adopters, committers


                        a varied community is a healthy community




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Different kinds of community


                    open source communities evolution over time




                                                                            Communities, Consortia,
 Actors              Individuals                            Community        Competence Centers


                                                                                    Networks
 Management        Hacker ethics                            Governance             Ecosystems


 Goals                                                       Technology            Technology
                   Technology
                                                                                    Business

                                                                             source: Cedric Thomas, OW2 Consortium, 2008




A collective business model: collaboration to increase the value of the organization as a whole

Co-opetition relations: availability of technology and of a business platform



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What is the community

Safe place for personal achievement (love/gift)
Restrictions: reception and exclusion
Personal and collective identity




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What is the network

Unsafe ever-evolving place (gain/loss)
Openness: connection and disconnection
Personal identity and collective marketing




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New commercial model: business ecosystem


     Community             Channel                                         Network           Ecosystem
     Upstream flow of added value                                          Value-added sharing
     Vendor-buyer relationships                                            Coopetition relationships
     Quantitative rationale                                                Qualitative and quantitative rationale




Efficiency – Differentiation – Customer relations                                Network externalities

                                                                                    from: Cedric Thomas, OW2 Consortium, 2008




        from profit-based to value-based economic models


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From the ecosystem to the ecology of value




                                                             Enterprises
                                                             End users

                                                             Developers

                                                             Integrators
                                                             Service providers

                                                             Network aggregators




          Community and Network coexistence
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Motivations and incentives


Motivations at the individual and organizational level
Need to recognize contributions and successes, to award incentives
Ego-altruism

                                                         learn and develop new skills

                                                          share knowledge and skills

                                             participate in a new form of cooperation
                                                                                                                                   Social
                                                      participate in the OS/FS scene

                                 think that software should not be a proprietary good
                                                                                                                                 Political
                                         limit the power of large software companies

                     solve a problem that could not be solved by proprietary software
                                                                                                                           Product-related
                              get help in realizing a good idea for a software product

                                       improve OS/FS products of other developers

                                                       improve my job opportunities
                                                                                                                         Signaling
                                                get a reputation in OS/FS community

                                         distribute not marketable software products

                                                               make money                                       Monetary

                        Reason to continue with F/LOSS                                   0    10     20    30     40        50        60        70         80        90
                        Reason to start F/LOSS                                               % of Respondents
                                                                                                                             © 2002 International Institute of Infonomics

                                                                          source: Free/Libre/Open Source Software (FLOSS) Study of Developers


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Comunity and the enterprise: the Engineering Group’s case study




FREE SOFTWARE AS THE KNOWLEDGE SPREAD AND
SHARING (COMMONS)
PARTICIPATION IN GLOBAL COMMUNITIES
ECOSYSTEM-BASED MODEL




                                                               economic model based on
                                                                   pure open source


                                                                                12
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Economic models based on FLOSS


 PRODUCT-CENTRIC                                                                   PROJECT-CENTRIC




dual-licensing/open-core
proprietary licensing sale
the project adapts itself to the product
                                                                                      pure open source
                                                                            purchase of support and consulting services
                                                                           the product includes the users’ requirements:
                                                                              - it adapts itself to the project needs (real value)
                                                                              - it grows over time integrating innovations

                                                                                                       13
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SpagoBI



                                                                                            Services and solutions:
                                                                                             Cloud BI
                                                                                             Mobile BI
The only BI suite 100% Open                                                                  On-demand BI
Source forever, suitable to the                                                              Real-time BI
development of Business                                                                      Agile BI
Intelligence projects in an                                                                  Location Intelligence
integrated and very flexible
environment




                                                                                       14
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SpagoBI community




Integrators
Developers
Users
Analysts, researchers and students




                                                                 15
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Motivations and expectations of SpagoBI community




Free of charge and available:
   software
   documentation
   easy of use
   support
   information



                                      Poor sharing, scanty of feedbacks!



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Free software




     Free software is not free of charge,
       but it is collaboration and sharing



            giving is no-sense
      unless we give in order to share




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Communications and incentives




   Participants categorization
   Different languages to different categories
   Preparation of incentives
   Reaffirmation of basic values




     “Why contributors should trust Engineering Group?
Because of the concreteness of its statements and of its actions.”




                                                                           18
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Actions




More information (use, extensions, promotion, contributions)
More tools (mail, forum, wiki, tracker, continuous integration, test)
More communication (suggestions, actions, visibility)
Quality data (product, process, participation)
More success stories (project plus user experiences)
More support to research and education (presentations, master thesis,
stages)




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Expectations



Transparency, openness, collaboration, trust
Knowledge and experience sharing
Value is not only profit, but:


“a factor not just resulting from the sum of the values coming from the
single contributions, but it is set on the background of the values and
interdependencies shared by the different actors voluntarily and
actively contributing to its creation.”
                                                                      Source : Pilotti, Ganzaroli, 2006




                                                                              20
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Lessons learned




CREATION OF COMMUNITIES AND NETWORKS
NON-QUANTITATIVE VALUE
RELATIONSHIP OF TRUST




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Is it the right time now?


Yesterday (2003)
“The present generations are living through a period requiring intense social and
institutional creativity. There is a growing sense of urgency that leads to many
proposals coming forth, of greater or lesser scope, with greater or lesser ambition,
going from alternative economic theories to practical measures and policies.
There is also ample scope for redirecting business imagination and
technological innovation towards the deeper transformation of world
society, through developing truly knowledge intensive ways of producing
and living.”
                                              Technological Revolutions and Financial Capital, Carlota Perez, 2003

        Today:
                         New rules and values




                                                                          http://www.thenation.com/reimagining-capitalism

                                                                                                  22
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A possible model of growth


 We must stand on the sidelines in a proactive way, pre-adapting
 ourselves to what is going to happen. We have to generate a potential
 stock and, even if we don’t know “when” we will have to use it, we must
 have a clear knowledge of “how” we will use it.




                                   Looking at the value to produce sustainability.
                                   Veering if the wind turns




We must look at the future, keeping our eyes and mind open:
- investing in network relations feeding our own ecosystem
- develop knowledge complementarity in order to adopt a way of
thinking which is pre-adapted to future changes.


                                                                            Credits to: http://fr.freepik.com e www.clipartgratis.it

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Live the community

Sharing and open collaboration
Altruism and trustworthiness as the base of the knowledge society
Gift and gratuitousness along with sharing and participation




                                         creation of the “right value”

                                                                             24
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Throw the net




                                                               Thanks to this unknown Cambodian fishermen

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References



more resources:                                                    www.spagoworld.org


ecology of value:                                                  www.spagoworld.org/blog/


comments:                                                          www.linkedin.com (gruppo: SpagoWorld)

                                                                   www.twitter.com (@gruffatti)


mailto:                                                           gabriele.ruffatti@eng.it



bibliografy:                              Quale rapporto tra aziende e comunità nel software libero?
                                          Conference proceedings




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ConfSL 2011: Which relationship between enterprises and the free software community?

  • 1. Which relationship between enterprises and the free software community? Gabriele Ruffatti Research & Innovation Engineering Group gabriele.ruffatti@eng.it 1 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 2. Free software / Open Source DISTRIBUTION COMMUNITY COMMERCIAL MODEL 2 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 3. Industry-grade free software … and its relationship with the COMMUNITY 3 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 4. Different kinds of community Simon Phipps, http://webmink.com/essays/community-types/ 4 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 5. Different kinds of community conference where open source meets academia http://fossa2010.inrialpes.fr end-users, adopters, committers a varied community is a healthy community 5 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 6. Different kinds of community open source communities evolution over time Communities, Consortia, Actors Individuals Community Competence Centers Networks Management Hacker ethics Governance Ecosystems Goals Technology Technology Technology Business source: Cedric Thomas, OW2 Consortium, 2008 A collective business model: collaboration to increase the value of the organization as a whole Co-opetition relations: availability of technology and of a business platform 6 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 7. What is the community Safe place for personal achievement (love/gift) Restrictions: reception and exclusion Personal and collective identity 7 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 8. What is the network Unsafe ever-evolving place (gain/loss) Openness: connection and disconnection Personal identity and collective marketing 8 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 9. New commercial model: business ecosystem Community Channel Network Ecosystem Upstream flow of added value Value-added sharing Vendor-buyer relationships Coopetition relationships Quantitative rationale Qualitative and quantitative rationale Efficiency – Differentiation – Customer relations Network externalities from: Cedric Thomas, OW2 Consortium, 2008 from profit-based to value-based economic models 9 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 10. From the ecosystem to the ecology of value Enterprises End users Developers Integrators Service providers Network aggregators Community and Network coexistence 10 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 11. Motivations and incentives Motivations at the individual and organizational level Need to recognize contributions and successes, to award incentives Ego-altruism learn and develop new skills share knowledge and skills participate in a new form of cooperation Social participate in the OS/FS scene think that software should not be a proprietary good Political limit the power of large software companies solve a problem that could not be solved by proprietary software Product-related get help in realizing a good idea for a software product improve OS/FS products of other developers improve my job opportunities Signaling get a reputation in OS/FS community distribute not marketable software products make money Monetary Reason to continue with F/LOSS 0 10 20 30 40 50 60 70 80 90 Reason to start F/LOSS % of Respondents © 2002 International Institute of Infonomics source: Free/Libre/Open Source Software (FLOSS) Study of Developers 11 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 12. Comunity and the enterprise: the Engineering Group’s case study FREE SOFTWARE AS THE KNOWLEDGE SPREAD AND SHARING (COMMONS) PARTICIPATION IN GLOBAL COMMUNITIES ECOSYSTEM-BASED MODEL economic model based on pure open source 12 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 13. Economic models based on FLOSS PRODUCT-CENTRIC PROJECT-CENTRIC dual-licensing/open-core proprietary licensing sale the project adapts itself to the product pure open source purchase of support and consulting services the product includes the users’ requirements: - it adapts itself to the project needs (real value) - it grows over time integrating innovations 13 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 14. SpagoBI Services and solutions: Cloud BI Mobile BI The only BI suite 100% Open On-demand BI Source forever, suitable to the Real-time BI development of Business Agile BI Intelligence projects in an Location Intelligence integrated and very flexible environment 14 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 15. SpagoBI community Integrators Developers Users Analysts, researchers and students 15 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 16. Motivations and expectations of SpagoBI community Free of charge and available: software documentation easy of use support information Poor sharing, scanty of feedbacks! 16 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 17. Free software Free software is not free of charge, but it is collaboration and sharing giving is no-sense unless we give in order to share 17 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 18. Communications and incentives Participants categorization Different languages to different categories Preparation of incentives Reaffirmation of basic values “Why contributors should trust Engineering Group? Because of the concreteness of its statements and of its actions.” 18 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 19. Actions More information (use, extensions, promotion, contributions) More tools (mail, forum, wiki, tracker, continuous integration, test) More communication (suggestions, actions, visibility) Quality data (product, process, participation) More success stories (project plus user experiences) More support to research and education (presentations, master thesis, stages) 19 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 20. Expectations Transparency, openness, collaboration, trust Knowledge and experience sharing Value is not only profit, but: “a factor not just resulting from the sum of the values coming from the single contributions, but it is set on the background of the values and interdependencies shared by the different actors voluntarily and actively contributing to its creation.” Source : Pilotti, Ganzaroli, 2006 20 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 21. Lessons learned CREATION OF COMMUNITIES AND NETWORKS NON-QUANTITATIVE VALUE RELATIONSHIP OF TRUST 21 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 22. Is it the right time now? Yesterday (2003) “The present generations are living through a period requiring intense social and institutional creativity. There is a growing sense of urgency that leads to many proposals coming forth, of greater or lesser scope, with greater or lesser ambition, going from alternative economic theories to practical measures and policies. There is also ample scope for redirecting business imagination and technological innovation towards the deeper transformation of world society, through developing truly knowledge intensive ways of producing and living.” Technological Revolutions and Financial Capital, Carlota Perez, 2003 Today: New rules and values http://www.thenation.com/reimagining-capitalism 22 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 23. A possible model of growth We must stand on the sidelines in a proactive way, pre-adapting ourselves to what is going to happen. We have to generate a potential stock and, even if we don’t know “when” we will have to use it, we must have a clear knowledge of “how” we will use it. Looking at the value to produce sustainability. Veering if the wind turns We must look at the future, keeping our eyes and mind open: - investing in network relations feeding our own ecosystem - develop knowledge complementarity in order to adopt a way of thinking which is pre-adapted to future changes. Credits to: http://fr.freepik.com e www.clipartgratis.it 23 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 24. Live the community Sharing and open collaboration Altruism and trustworthiness as the base of the knowledge society Gift and gratuitousness along with sharing and participation creation of the “right value” 24 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 25. Throw the net Thanks to this unknown Cambodian fishermen 25 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it
  • 26. References more resources: www.spagoworld.org ecology of value: www.spagoworld.org/blog/ comments: www.linkedin.com (gruppo: SpagoWorld) www.twitter.com (@gruffatti) mailto: gabriele.ruffatti@eng.it bibliografy: Quale rapporto tra aziende e comunità nel software libero? Conference proceedings 26 Creative Commons Attribution-Share Alike 2.5 Italy License www.eng.it gabriele.ruffatti AT eng.it