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Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli [email protected]

Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli [email protected]. There is NOOpen Source Business Model

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Page 1: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

OpenSourceSoftwareBusinessModelsRedux

StephenR.Walli@stephenrwalli

[email protected]

Page 2: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

ThereisNO OpenSourceBusinessModel

StephenR.Walli@stephenrwalli

[email protected]

Page 3: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

A Story

Page 4: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model
Page 5: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1997~750,000LoC~$10,000,000

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Page 6: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Interix~$100,000

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Page 7: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Interix+ACT~$140,000

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Page 8: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Page 9: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Page 10: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Buildvs.Buy

Page 11: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Buildvs.Buyvs.Borrow

Page 12: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Buildvs.Buyvs.(Borrow&Share)

Page 13: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

OpenSourceSoftwareisaboutEngineeringEconomics

Page 14: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1950 1960 1970 200019901980 2010

CodesharingAtPrincetonIASinlate1940s

IBM“SHARE”Conf &LibraryBegins1953

DECUSConf &LibraryBegins1962

MITProjectAthenaBegins

1983

1BSDReleased1977

AT&TSharesFirstUNIXtapes

early-70s

FreeSoftwareFoundation

Launches1985

2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”

1969IBMresponseistounbundleHW,SW,&

servicespricing

1st DoJ vs IBMConsentDecree

“HardwareBundlingisAnti-competitive”

1956

OpenSourceDefinition1997

USENIXBegins1975

LinusReleasesLinux1991

ApachehttpdReleased1995

ApacheSoftwareFoundation1999

OSDLForms2000

OSDLRe-formsasLinuxFoundation

2007

U.S.CongressAddsComputerSoftwareto

CopyrightLaw1980

GCC1987

emacs1975

We’vesharedsoftwaresincewe’vewrittensoftware

Page 15: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1950 1960 1970 200019901980 2010

CodesharingAtPrincetonIASinlate1940s

IBM“SHARE”Conf &LibraryBegins1953

DECUSConf &LibraryBegins1962

MITProjectAthenaBegins

1983

1BSDReleased1977

AT&TSharesFirstUNIXtapes

early-70s

FreeSoftwareFoundation

Launches1985

2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”

1969IBMresponseistounbundleHW,SW,&

servicespricing

1st DoJ vs IBMConsentDecree

“HardwareBundlingisAnti-competitive”

1956

OpenSourceDefinition1997

USENIXBegins1975

LinusReleasesLinux1991

ApachehttpdReleased1995

ApacheSoftwareFoundation1999

OSDLForms2000

OSDLRe-formsasLinuxFoundation

2007

U.S.CongressAddsComputerSoftwareto

CopyrightLaw1980

GCC1987

emacs1975

We’vesharedsoftwaresincewe’vewrittensoftwareWritinggoodsoftwareishardwork

Page 16: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1950 1960 1970 200019901980 2010

CodesharingAtPrincetonIASinlate1940s

IBM“SHARE”Conf &LibraryBegins1953

DECUSConf &LibraryBegins1962

MITProjectAthenaBegins

1983

1BSDReleased1977

AT&TSharesFirstUNIXtapes

early-70s

FreeSoftwareFoundation

Launches1985

2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”

1969IBMresponseistounbundleHW,SW,&

servicespricing

1st DoJ vs IBMConsentDecree

“HardwareBundlingisAnti-competitive”

1956

OpenSourceDefinition1997

USENIXBegins1975

LinusReleasesLinux1991

ApachehttpdReleased1995

ApacheSoftwareFoundation1999

OSDLForms2000

OSDLRe-formsasLinuxFoundation

2007

U.S.CongressAddsComputerSoftwareto

CopyrightLaw1980

GCC1987

emacs1975

CompaniessharedsoftwarebeforewehadtheOSD

DECUltrix1984

SunOS1983

OSF/11992

RedHat1993

Page 17: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1950 1960 1970 200019901980 2010

CodesharingAtPrincetonIASinlate1940s

IBM“SHARE”Conf &LibraryBegins1953

DECUSConf &LibraryBegins1962

MITProjectAthenaBegins

1983

1BSDReleased1977

AT&TSharesFirstUNIXtapes

early-70s

FreeSoftwareFoundation

Launches1985

2nd DoJ vsIBMbegins“SoftwareBundlingisAnti-competitive”

1969IBMresponseistounbundleHW,SW,&

servicespricing

1st DoJ vs IBMConsentDecree

“HardwareBundlingisAnti-competitive”

1956

OpenSourceDefinition1997

USENIXBegins1975

LinusReleasesLinux1991

ApachehttpdReleased1995

ApacheSoftwareFoundation1999

OSDLForms2000

OSDLRe-formsasLinuxFoundation

2007

U.S.CongressAddsComputerSoftwareto

CopyrightLaw1980

GCC1987

emacs1975

CompaniessharedsoftwarebeforewehadtheOSD(Writinggoodsoftwareishardwork)

DECUltrix1984

SunOS1983

OSF/11992

RedHat1993

Page 18: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Collaboratively-DevelopedLiberally-LicensedSoftwareisaboutEngineeringEconomics

Page 19: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

AnotherStory

Page 20: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

AStoryofRedHatinThreeCEOs

Page 21: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1994 1999 2008

AStoryofRedHatinThreeCEOs

Page 22: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1994 1999 2008

AStoryofRedHatinThreeCEOs

Page 23: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

1994 1999 2008

AStoryofRedHatinThreeCEOs

Page 24: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

RedHatisasoftwarecompanythatisfocusedonmakingitscustomerssuccessful

RedHatisasoftwarecompanythatisverygoodattheengineeringeconomicsofopensourcesoftware

Page 25: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

SoWhatAbouttheBusinessModel?!?!!?

Page 26: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Committers ContributorsCommunity

EcosystemProject

ProductsServices

Books

Training

TheEvolutionofanOpenSourceProject

Page 27: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Committer(s)+

Code

Page 28: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Developers

Committers+

Code

Page 29: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Developers

Committers+

Code

Page 30: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Developers

Users

Committers+

Code

Page 31: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Developers

Users

Committers+

Code

Page 32: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Developers

Users

Committers+

Code

Books

Contractors

Products

Distributions

Consulting

Training

Support

BuildingtheEcosystem

Page 33: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyouincreaseyouruserbase?

Page 34: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)

Page 35: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)

Howdoyouencouragedevelopers?(Becausetheseareyourfuturecontributors)

Page 36: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyouincreaseyouruserbase?(Becausethat’swhereyou’llfindyourdevelopers)

Howdoyouencouragedevelopers?(Becausetheseareyourfuturecontributors)

Howdoyoumakeiteasytocontribute?(Becausethisisthegrowthandsuccessofyourcommunity)

Page 37: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyouincreaseyouruserbase?(Howdoyoumakeiteasytoinstall/configure/usethesoftware?)

Howdoyouencouragedevelopers?(Howdoyoumakeiteasytobuild/test/experiment?)

Howdoyoumakeiteasytocontribute?(Whatdoyoucommunicatetoyourcommunity)

Page 38: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

OpenSourceCom

mun

ityPractices

ProjectE

xes

publish

ed

ProjectB

uild

Automated

I

ProjectInstall

Automated

CompleteSrc

publish

ed

Project

BugTracking

ProjectB

uild

Automated

II

ProjectTest

Automated

I

ProjectTest

Automated

II

Basic

Arch

Descrip

tion

Project

License

Mission

Statem

ent

Code

of

Cond

uct

Forums,Em

ail

Comms

Platform

FAQs,Ho

wto

Governance

Contrib

utoion

Guidelines

Even

ts

CommunityDevelopment

SoftwareConstructionMaturity

Page 39: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

OpenSourceCom

mun

ityPatterns

ProjectE

xes

publish

ed

ProjectB

uild

Automated

I

ProjectInstall

Automated

CompleteSrc

publish

ed

Project

BugTracking

ProjectB

uild

Automated

II

ProjectTest

Automated

I

ProjectTest

Automated

II

Basic

Arch

Descrip

tion

Project

License

Mission

Statem

ent

Code

of

Cond

uct

Forums,Em

ail

Comms

Platform

FAQs,Ho

wto

Governance

Contrib

utoion

Guidelines

Even

ts

CommunityDevelopment

SoftwareConstructionMaturity

EncourageUsers

EncourageContributorsEncourageDevelopers

Page 40: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Committers ContributorsCommunity

EcosystemProject

ProductsServices

Books

Training

TheEvolutionofanOpenSourceProject

Page 41: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Committers ContributorsCommunity

EcosystemProject

ProductsServices

Books

Training

CorporateContributors

TheEvolutionofanOpenSourceProject

Page 42: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Committers ContributorsCommunity

EcosystemProject

ProductsServices

Books

Training

CorporateContributors

Customers

TheEvolutionofanOpenSourceProject

Page 43: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

OpenSourceCom

mun

ityPractices

ProjectE

xes

publish

ed

ProjectB

uild

Automated

I

ProjectInstall

Automated

CompleteSrc

publish

ed

Project

BugTracking

ProjectB

uild

Automated

II

ProjectTest

Automated

I

ProjectTest

Automated

II

Basic

Arch

Descrip

tion

Project

License

Project

License

Mission

Statem

ent

Code

of

Cond

uct

Forums,Em

ail

Comms

Platform

FAQs,Ho

wto

Governance

Contrib

utoion

Guidelines

Even

ts

Proven

ance

Tracking

Repo

sitories

Protected

Depe

nden

cies

Documen

ted

Contrib

utions

Auditte

d

Proven

ance

Managem

ent

Committers

Inde

mnifie

d

Committer

Governance

Tradem

ark

Managem

ent

IPManagementActivities

CommunityDevelopment

SoftwareConstructionMaturity

Page 44: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

OpenSourceCom

mun

ityPatterns

ProjectE

xes

publish

ed

ProjectB

uild

Automated

I

ProjectInstall

Automated

CompleteSrc

publish

ed

Project

BugTracking

ProjectB

uild

Automated

II

ProjectTest

Automated

I

ProjectTest

Automated

II

Basic

Arch

Descrip

tion

Project

License

Project

License

Mission

Statem

ent

Code

of

Cond

uct

Forums,Em

ail

Comms

Platform

FAQs,Ho

wto

Governance

Contrib

utoion

Guidelines

Even

ts

Proven

ance

Tracking

Repo

sitories

Protected

Depe

nden

cies

Documen

ted

Contrib

utions

Auditte

d

Proven

ance

Managem

ent

Committers

Inde

mnifie

d

Committer

Governance

Tradem

ark

Managem

ent

IPManagementActivities

CommunityDevelopment

SoftwareConstructionMaturity

EncourageUsers

EncourageContributorsEncourageDevelopers

Encourage/ManageCorpContributions

Page 45: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Committers ContributorsCommunity

EcosystemProject

ProductsServices

Books

Training

CorporateContributors

Customers

TheEvolutionofanOpenSourceProject

Page 46: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

TRANSISION

Page 47: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Engineering/Partner?/Customer?/Committers

Engineering/Partner?/Customer?/Contributors

Community

EcosystemProject

ProductsServices

Books

Training

Partner/CustomerContributors

TheEvolutionofaCorporateOpenSourceProject

SettingCustomerandPartnerExpectationsinCommunityisCritical

Page 48: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Engineering/Partner?/Customer?/Committers

Engineering/Partner?/Customer?/Contributors

Community

EcosystemProject

ProductsServices

Books

Training

Partner/CustomerContributors

TheRealityofaCorporateOpenSourceProject

SettingCustomerandPartnerExpectationsinCommunityisCritical

Page 49: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)

Page 50: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)

PartnersversusCommunity(Don’tmixbusinesswithcommunity)

Page 51: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

CustomersversusCommunity(Moneyvs.Time;Expectationsaredifferent;Conversationsaredifferent)

PartnersversusCommunity(Don’tmixbusinesswithcommunity)

ProductsversusProjects(Successmetricsaredifferent;OKRsandKPIsaredifferent)

Page 52: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Engineering/Partner?/Customer?/Competitors?/Committers

Engineering/Partner?/Customer?/Competitors?/Contributors

Community

EcosystemProject

ProductsServices

Books

Training

Partners/CompetitorsContributors

TheRealityofCorporateOpenSourceProjects

SettingCustomerandPartnerExpectationsinCommunityisCritical

Page 53: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative

(We’veSharedSoftwareSinceWe’veWrittenSoftware)

Page 54: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative

(We’veSharedSoftwareSinceWe’veWrittenSoftware)

ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)

Page 55: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative

(We’veSharedSoftwareSinceWe’veWrittenSoftware)

ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)

SuccessfulOpenSourceProjectsFollowWellKnownPatterns(NoScalewithoutDiscipline)

Page 56: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Collaboratively-DevelopedLiberally-LicensedSoftwareisanEngineeringEconomicImperative

(We’veSharedSoftwareSinceWe’veWrittenSoftware)

ThereisnoOpenSourceBusinessModel(GoodCompaniesSolveCustomerProblems)

SuccessfulOpenSourceProjectsFollowWellKnownPatterns(NoScalewithoutDiscipline)

Don’tConfuseCustomers,Partners,Community,Products&Projects(CorporateOpenSourceProjectsRequireDifferentThinking)

Page 57: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyoumakemoneywhenyougiveawaytheproductforfree?

Page 58: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Howdoyoumakemoneywhenyougiveawaytheproductforfree?

Page 59: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Whatproblemarewesolvingforourcustomers?

Page 60: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?

Page 61: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?Whatcanwedotomakeourcommunityhealthier?

Page 62: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Whatproblemarewesolvingforourcustomers?Howdowemakeourcustomerssuccessful?Whatcanwedotomakeourcommunityhealthier?Howdowemakeourcommunitysuccessful?

Page 63: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

Questions&Commentsstephen r walli

[email protected]@stephenrwalli

http://stephesblog.blogs.comhttp://opensource.com

https://medium.com/@stephenrwalli/

Page 64: Open Source Software Business Models Redux · Open Source Software Business Models Redux Stephen R. Walli @stephenrwalli stephen.walli@gmail.com. There is NOOpen Source Business Model

NoScalewithoutDiscipline(ThisisanAttributeofSoftware)

OrdersofMagnitude(1000:100:10:1)

Freeloadersareimportant!(Itmeansyou’redoingitright)