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From Service to ProductAn Open Source Software Business Model Transformation
企業經營模式與財務策略 Final Assignment指導教授:江炯聰、林筠、程淑芬助教:陳育萍 P01746035 王議德 P01747019 林玲如 P01748015 黃峻崢 P01748038 馮妙芬
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Who is Jouston?
Active Open Source Evangelist since 1998(15yrs)
Doing Linux business from 2000 (13yrs)
OS Architect(Software) background, learning to be a Well-Rounded Open Source businessman.
Professional Career Highlights:
Head of Technical Marketing, Shuttle
FAE team builder, Canonical
Chairman, COSCUP 2010
COO, OpenMoko
Country Manager, HancomLinux
For more Info visit http://www.linkedin.com/in/jouston
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3+What is Open Source Software?
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4
OSS Checklist
Source Code
Free Distribution
Derived Works
Non-Discriminatory
Non-Restrictive
Free as in Speech, not as in beer
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5+Culture and Believes
Release early and often, delegate everything you can, be open to the point of promiscuity. – Eric Raymond
Given enough eyeballs, all bugs are shallow. – Linus Torvalds
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Important Open Source Software
http://www.slideshare.net/ellyssa/open-source-software-and-libraries-presentation
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Can’t Live Without Open Source
http://www.slideshare.net/kshitiz_goel/open-source-revenue-model
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8+Open Source Business Models
Dual License Model
Distribution and Service Model
Distribution and Monetize Model (Freemium Model)
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What Roles Community Play?
Customer / User
Key Partner / Vendor
Opinion Leader / WOM Marketing Pool
External Engineer
Community is almost Everything you need but directly monetize from it.
Double Edge Blade Or Say:
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Dual License ModelI have a product with two licenses: one for free and one for money.
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11+Dual License Model
One product, Two licenses One for free distribution and free use Another for proprietary use
Copyright and Control of the product development is on the original developer’s hand.
KSF: Market Leader
Why Buy: Customer like it’s open source version and need it for commercial use.
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12+Case: Trolltech’s Qt(Pronounce: Cute)
KP- Qt
Community
- KDE Community
- SUSE Linux
KA- Produce
high quality Qt Libraries
- Porting to varies OS platforms
VP- Best in
Class GUI Library.
- Very easy to program
- Cross-Platform (Write once, run everywhere)
CRHigh-touched 24x7 community maintenance
CSAny GUI Application programmer
KR- Key
Engineers- Community
CHInternet
C$- High engineering cost- High community maintain cost- Sample devices
R$Sell proprietary version of Qt
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+Distribution and Service ModelBecause your support, I have power to ask money for my service.
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14+Distribution and Service Model
Support and Customization and other Professional Services: Consulting Training Brand Licensing Post-Sales Support
KSF: Large base of users who Wants to use the product, Release Cycle for different market.
Why buy: Enough amount of user, Waive MS tax(or Piracy)
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15+Case: Red Hat Linux
KP- Red Hat
Community- CentOS
Community- Linux
Kernel Community
- World Class software vendors: SAP, EMC, IBM…etc.
KA- Leading the
OS technology development
- 24x7 support
VP- Earliest and
Most Solid Linux distribution
- World-class enterprise level support
- Slower but On-Schedule release cycle
CR- 24x7 IT
support- Low-
touched CentOS community
CSFortune 500Eg. Banking, Industrial…etc.
KR- Key
Engineers- Community- Reputation
CH- Internet- CD- Site
License
C$- High engineering cost- High customer service cost- Low community maintain cost
R$- Training/RHCE Certification- 24x7 Customer support
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16+Case: Canonical / Ubuntu
KP- Ubuntu
community- Dell / HP /
Toshiba / Lenovo / Asus / Acer
- France, China Government
KA- Leading
Desktop Linux development
- Hardware Enablement
VP- Most widely
used Desktop / Server Linux distribution
- Ubuntu-Ready PC
- 6 month / 24 month(LTS) release cycle
CR- Hardware
Enablement- LaunchPad
support
CS- Dell, HP,
Toshiba, Lenovo, Asus, Acer and other PC vendors
- France / China government
- Google- Amazon
KR- Key
Engineers- Community- User
mindshare
CH- Internet- Free CD- OEM team
in Taiwan and US
C$- High engineering cost- High customer service cost- Very low community maintain cost
(All engineers are community member)
R$- Training/UCP Certification- OEM Support- LaunchPad (bug/software maintain)- LandScape (Mass Management)
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17+Case: Cavium NetworkMontaVista
KP- Linux kernel
community- AP vendors,
Intel, ARM, Marvell, Freescale…etc.
KA- Leading
Embedded Linux development
- Customer Support
VP- Most widely
used Embedded Realtime Linux distribution
- Strong customer support
- Best SDK- Release
cycle follows major Kernel Jump
CR- Professional
Customer support
CS- ARM- Intel- Medical /
Healthcare- Automotive
KR- Key
Engineers- Customer
support team
- User Mindshare
CH- Internet- OEM team
worldwide
C$High engineering costHigh customer service cost
R$- OEM Support and Site
License
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+Distribution and Monetize ModelMake you happy so I can earn money from somewhere else.
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19+Distribution and Monetize Model
Freemium model derivation, Free for use, Monetize from somewhere else.
KSF: Large base of users who Using the product.
Why buy: Enough amount of user
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20+Case: Google Android
KP- OHA(Open
Handset Alliance)
- Samsung / HTC / LG
KA- Leading
mobile Linux development
- App Store- Mobile
Advertisement
VP- Most widely
used Mobile Linux distribution
- OHA- Open Source- Compete with
Apple iOS- Controlled
Fragmentation
CR- Android
Community
- Mobile AD dashboard
CS- End User- Mobile
Advertise Buyer
KR- Key Engineers- Community- OHA- Patent
CH- Internet- Telecom
operator- Handset
vendor
C$High engineering costHigh supporting costModerate marketing cost
R$- Mobile AD- App Download
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21+Case: Mozilla Firefox
KP- Google- Community
KA- Community
engagement
VP- Most widely
used browser
- Most “Plugable” Browser, thousands of plug-ins
CR- Coopetion
with Google- High-Touched
community maintenance
CS- Google- Community
KR- Key
Engineers- Community
CH- Internet
C$High engineering costMiddle community maintain cost(All engineers are community members)
R$- Mobile AD through Google
(Default search/Landing Page)
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Open Source Business Models
Dual License Model
Distribution and Service Model
Distribution and Monetize Model (Freemium Model)
From Service to Product
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Footnote
http://www.slideshare.net/kshitiz_goel/open-source-revenue-model
http://www.slideshare.net/faberNovel/businessmodels-opensource-en-125492
http://www.slideshare.net/vimal0212/open-source-library-management-systems
http://www.redhat.com/
http://www.mvista.com/
http://www.mozilla.org/en-US/
http://www.android.com/
http://www.openhandsetalliance.com/index.html
http://www.ubuntu.com/
http://www.canonical.com/
http://en.wikipedia.org/wiki/Qt_Development_Frameworks
http://www.linkedin.com/in/jouston