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1Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Siemens Platform for OpenSource Applications
(SPOSA).Jose C. Lacal
Product Manager,OpenSource Applications
s
2Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Table of Contents
• Jose C. Lacal• Introducing GNU/Linux and OpenSource• The numbers behind Open Source• „Competing for the Future“• Open Software + Open Hardware + Open Networks• Market Potential Pyramid• Where is the money?• IBM profits fromOpenSource• The Siemens Platform for OpenSource Applications• Benefits of SPOSA
s
3Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Jose C. Lacal
• 1986-1994 First business at age 21.– Founder, President of industrial bakery in Miami, FL.
Managed 40 employees. US$2 Mill/year sales.– In charge of Sales, Customer Care, Marketing and PR.
• 1995-1996: First ISP in SE Mexico.– Founder, investor and Chief Vision Officer. 10 employees.– Introduced the Internet culture to this area.
• 1997-now– Siemens ICN Boca Raton. Customer Service engineer, daily
contact with large telco operators in the US and worldwide.– Munich: PM VoIP, developed concept of „Business over IP“
• These are NOT just ideas. I know business, I know telcos.
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4Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Introducing OpenSource and GNU/Linux
• OpenSource software (OSS)– Freely distributed with source code
• Widespread acceptance– OSS is at the heart of the Internet:
• Apache ( >65% of all websites)• DNS and BIND (all name resolution)• Perl (behind most CGI scripts)• sendmail (processes 90% of e-mail)
• GNU/Linux, best example of OSS:– Beat common Operating Systems (OSs)– Superior stability and usability*– GNU/Linux, fastest growing Network OS
* - OS of the year, InfoWorld magazine
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5Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
The numbers behind Open Source
• Red Hat: Linux distributor. IPO 30 days ago. US$90/share.• Cobalt: Linux mini-servers. IPO 10 days ago. US$100/share.• Hewlett-Packard: entire business unit only for Open Source;
free e-speak (broker system) and mail server software.• Sun Mycrosystems: will release source code of Solaris; free
Star Office package; publicly available Sparc64 spec files.• IBM Consulting Group: 300 out of 1,800 are Linux experts.• SCO (Santa Cruz Operation): Linux consulting group.
• Microsoft was recently declared a monopoly by a US judge. That will generate a cascade of interest in Open Source.
s
6Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
„Competing for the Future“
01 02 03 04 05 06
10
20
30
40
50
60
70
80
90
100
-03 -02 -01Years
Relative (%)opportunity cost
07 08
Today
• Always-on "IP Tone“• Telecom + IT "to the wall“• No more charges for long-
distance and local calls– Packet-based calls– Circuit-switched calls
• Empowering the individual
s
7Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
SiemensIPRs
Customs´ lawexpertise
Commerciallaw expertise
Wireless
01SNI
Carrier
Remotereality
Videoconference
02 03 04 05 06 07 0801
01 Open core standards WDM, TDM, SONET, etc.
02 Core equipment
03 Open equipment API
Currently proprietary (Cisco IOS)
Parlay Group (http://www.parlay.org)
04 Open transport standards ATM, TCP/IP
05 Open hardware standards
06 Open source software
ISA, PCI, VGA, OpenTelecom, etc.
Linux, GNU C/C++, Perl. Python
07
08
Open source applications Apache, Open H.323, GNOME, KDE
New business models [to be created]
Open Software + Open Hardware + Open Networks
s
8Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Market Potential Pyramid
Wires and fiber
Routers, switches
Service providers
?? unknowntoday
Content creationand delivery
Contentaggregation
Communitybuilding
DWDM SONET
IP ATM
Industry elements.
Voice, data, video, fax.
Sensoryaugmentation
Avatars, VR,on-line auctions
Application and developmentsoftware, specialized hardware
Multimedia content for sale,real-time IP voice and video.
?
s
9Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Where is the money?
Wires and fiber
Routers, switches
Service providers
?? unknowntoday
Content creationand delivery
Contentaggregation
Communitybuilding
Mark
et va
lue /
phys
ical a
ssets
ratio
Verylow
Low
Medium
High
Huge
ROI (
Retu
rn on
Inve
stmen
t), EV
ACo
st of
entry
(req
uired
inve
stmen
t)
Verylow
Huge
High
Low
Medium
Financial analysis.
Huge
High
Medium
Low
Verylow
Verylow
Huge
High
Low
Medium
Corp
orate
and o
perat
iona
l ove
rhea
d
Revenue potential / time.
Dupont,Ciena
Alcatel,Lucent,Nortel
British Telecom,AT&T, MCI
AOL, Compuserve, eBay, eWorlds,ICQ, slashdot
amazon.com, Yahoo,most portal sites
Inktomi, Microsoft,Netscape, SoundBlaster
Un-born, un-named entities.
Un-born, un-named entities.
s
10Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
IBM profits from OpenSource
• IBM OpenSource business model– Bundle with own solutions– Offer support packages– Enhance with proprietary
extensions
• Commitment to OpenSource– Funding Apache group– Porting DB2 to GNU/Linux– Offering GNU/Linux pre-
installed and supported in IBM servers
Proprietary Solutions
Support Contracts
Websphere
Apache
OpenSourceTcl / Tk core
BundledOpenSourceextensions
Proprietaryextensions
Serv
ices
Tool
s
s
11Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
The Siemens Platform for OpenSource Applications
Siemens'profit
Cost ofcommercialapplications
Siemens' value add
Tota
l cos
t
Currently
OpenSource
Siemens'value add
Tota
l cos
t
Proposed
Siemens'profit
SPOSA: Siemens Platform for OpenSource Applications
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12Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Benefits of SPOSA
• For Siemens:– Control its own future– Take a leadership position– Offer add-on services– Faster "Time To Revenue“– Offer an "end to end solution"
• For Customers:– Long-term viability– True adherence to standards– 100% customer control via modules (plug and play)– Lower overall prices– „Security by transparency“
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14Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Support issues
• Irish call center?• Back to back support
contracts?
Customer reportsproblem /
running a patch.
Finalsolution?
SPOSA'sCall Center
Yes
SPOSA'sCustomer
Service
Open / queryTicket #
CloseTicket #
No
Deliver andverify solution
Send patchto customer
Query / updateticket info
Send fixor patch
Tier 01 FAQ,Knowledge base
Tier 02 FAQ,Knowledge base
Vendor'sContracted
Support
Passticket info
Getfix
Confirm ticket issue,reproduce problem
Query
Update
Query
Update
Test Verify
Vendors' support:
Apache.comPostgreSQL.org
sendmail.com
s
15Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
The Siemens Platform for OpenSource Applications
InfrastructureHardware
SRI (Service Ready Infrastructure)
User ApplicationsBuilding Tools
User-centered Communities
01 02
04
03
05
06
SSS
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16Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Phases of SPOSA‘s development
App 01 App 03 App 05 App 07
App 02 App 04 App 06 App 08 App 10
App 09
App 01 App 03 App 05 App 07
App 02 App 04 App 06 App 08 App 10
App 09
App 01 App 03 App 05 App 07
App 02 App 04 App 06 App 08 App 10
App 09
Phase 01 => B10
Phase 02 => B130
Phase 03 => B600
Identification andselection of theapplications to beincluded as basiccomponents ofSPOSA for rel 1.0
Integration of theapplications viacommon interfaceelements.
Creation of aSiemens-brandedcoherent bundle ofapplications. Withsupport and othervalue-addedelements.
Integration and supportCustomization services
Business development servicess
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17Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
.
Global TCP / IP infrastructure
GNU/Linux
SQL Perl 5.x
RFC-compliant software
Interchangeablemodules
SPOSA v. 1.0 - Module plug-in framework.
Application
Application
App
s
18Jose C. Lacal
ICN ISA CCI BoIPSPOSA -19 November 1999
Common codebase
(OpenSource)
TCP / IP
GNU / Linux
RFC-compliant services
Embedded and extended by each Siemens unit.
W N CA IB ICP
HiC
om
Uni
sphe
re
Global s
ales fo
rceGlob
al sup
port
Financ
ing op
tions
Instal
led po
rt base
Siemens ́non-technical capabilities and resources.
Voice e
xpert
iseLarg
e syst
ems k
now.
Softw
are de
velop
mentManu
factur
ing ba
se
HiN
et ? ?
Offer saleable products, services and applications.
Integr
ation
exper
tiseTes
ting, h
omolo
gation
Custom
s, busi
ness la
w
New products, new services,new applications,
new revenue streams.
Plus Siemens´unique value-
added
Each unit usescommon code
base
Brings revenueimmediately and
in the near future.