Infrastructure Computing for the Enterprise Summit 18 September 2008 The Mirage Hotel Las Vegas, Nevada The Rise of Open Source Content Management Kathleen

Infrastructure Computing for the Enterprise Summit18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

The Rise of Open Source Content Management

Kathleen Reidy, Senior Analyst, The 451 GroupSeth Gottlieb, Principal, Content Here

Gilbane ConferenceDecember 2nd, 2009

Boston, MA


Agenda

• Open source adoption drivers• What makes open source different?• Open source content management

market

• Business models• Buying (& selling) behavior• Recommendations


About The 451 Group & 451 CAOS ResearchIndependent technology industry analyst

company• Focused on the business of enterprise IT innovation• 40 analysts, 80+ total employees• Offices in New York (HQ), Boston, London, SF

Commercial Adoption of Open Source (CAOS)• The impact of open source on software vendors, end

users, and investors• Dedicated team of open source analysts with

research reports, podcasts, blog and advisory


Open source


Open source today – is it CAOS?

• It’s everywhere!• Disruptive force in the software

industry• Knowledge and comfort-level

expansion• Adoption is increasing dramatically• It’s still largely a cost-reduction story• But not the only one…


Open source adoption drivers

Source: The 451 Group. Preliminary results from 451 Group market survey of 1711 open source users, November 2009. Results not yet published.

What was the primary reason that your organization decided to use open source software?

28.3% Increased flexibility

13.4% Reduce vendor

lock-in

45%Lower cost 4.7%

Performance

2% Security

5.8% Reliability


Open source adoption drivers

Source: The 451 Group. Preliminary results from 451 Group market survey of 1711 open source users, November 2009. Results not yet published.

45%

13.4%

28.3%

5.8%

4.7%

2%

After your organization adopted open source software, what was the primary benefit of its use?

Security

Reliability

Lower cost

Reduce vendor lock-

inIncreased

flexibility

Performance

After your organization adopted open source software, what was the primary benefit of its use?

40.4% Increased flexibility

32.1%Lower cost

8.1%Performance

9.8% Reduce vendor lock-in

8.1% Reliability


How is OSS different?


Categorizing open sourceDevelopment model

• Project vs. vendor• Vendor vs. community

Software license choice• Terms and restrictions of open source license (e.g.,

Apache vs. GPL)• What’s included?

Vendor licensing strategy• Commercial vs. open source• Dual license

Revenue triggers• How does the vendor make $$?


Open source vendor revenue strategies

Source: The 451 Group. Open Source is Not a Business Model: How Vendors Generate Revenue from Open Source Software


OSS is a business tactic

• There is no single business model that defines open source vendors

• Most vendors are taking a hybrid approach to development and/or licensing

• Vendors use both open source and proprietary development and licensing models to maximize opportunities for revenue and profit

• Open source is a business tactic, not a business model


Open source in content management


Open source in content management• Broader acceptance– Of open source generally– And content management specifically

• More commercial options– Particularly in WCM– Also in ECM– The “Alfresco effect”

• Influenced by economic factors– Cost savings

• WCM market consolidation helps


They’re Coming to America

Company Founded Employees FundingLicense / Business model HQ US office

Acquia 2007 40 $15mGPL v2 / support subscriptions Andover, MA ""

Alfresco 2005 100 $19mGPL v2 / dual license London Palo Alto

eZ Systems 1999 75 $14mGPL v2 / support subscriptions Skien, Norway Chicago

Hippo 1999 50 -

Apache license / support & services Amsterdam San Francisco

Jahia 2002 30 -GPL v2 / dual license

Acacias, Switzerland Washington DC

KnowledgeTree 2006 381 round, undisclosed

GPL v3 / dual license

Cape Town, South Africa Raleigh, NC

Magnolia 2003 15 N/AGPL v3 / dual license

Basel, Switzerland New York

Nuxeo 2000 50 $2.5mLGPL / support subscriptions Paris Boston

Squiz 1998 200 - GPL v3 / services and support Sydney New York


WCM Vendor Landscape

High-end products & platforms

Mid-range products

Lower-end products (for

SMBs and small /

simpler sites)

open sourcesoftware-as-a-service

Autonomy Interwoven

Open Text (Vignette)

FatWire Software

SDL Tridion

EPiServer

Ektron

Sitecore

Percussion Software

Paperthin

Crownpeak Technologies

Clickability

Microsoft

Oracle

IBM

Open Text (RedDot) Alterian

Ingeniux Hannon Hill

Lyris

Coremedia

Alfresco

eZ Systems

Magnolia

Squiz

Jahia

Hippo

Drupal (Acquia)

DotNetNuke

PloneTYPO3

Joomla

Wordpress

Day Software


ECM Vendor Landscape

High-end, enterprise &

platform plays

Large / upper mid-market

Mass mid-market &

SMBs

software-as-a-service

Autonomy

EMC Documentum

Hyland Software

SpringCMAdobe

Oracle

IBMOpen Text

Microsoft

Lots of smaller, often regional players

Alfresco Nuxeo

Knowledgetree

open source


What now?

Documents

Infrastructure Computing for the Enterprise Summit 18 September 2008 The Mirage Hotel Las Vegas, Nevada The Rise of Open Source Content Management Kathleen