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Impact of Open Source Samisa Abeysinghe VP Delivery WSO2

WSO2Con EU 2016: New IT Business Models and Open Source Middleware Economic Value

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ImpactofOpenSource

SamisaAbeysingheVPDeliveryWSO2

WhyuseOpenSource?

•  Buildanecho-systemaroundproductsandservices•  GrowyourusercommuniAes•  Costadvantage…•  Qualityadvantage!

JustbeIersoJwareisn’tenoughtotransformanindustry.

CostvsOtherBenefits

•  MostassumeOSStobecheap•  Itisnotjustaboutfinancialvalue•  Culture

–  IswhatOSSisallabout–  Communitydrivenwithrespectandethicsbeingthecorner

stones•  Resultsinqualityandsecurityaspects•  FosterinnovaAon

OpenSourceasengineeringprocess

•  ModelforeffecAvemassively-distributedcollaboraAon•  LeveragesextensivebaseplaVormoftechnologies•  WriIenwithsharingandreusabilityasfundamentals•  Slashesfeedbackcycle(beIerfit)•  Acceleratesreleasecycle(fasterevoluAon)•  Crowd-sourcedqualitycontrol(manyeyeballsimproves

security)

OpenSourceasanOrganizaAonalModel

•  Convergenceofthetechnicalproblem–fit,quality,support

•  Breaksdownsiloeddepartmentthinking•  InsAllssharedresponsibilityforsaAsfacAon–enabled

flaIerorgstructures•  DistributedgovernanceandmeritocracypracAces

propagatethroughoutthebusiness

EconomicValueofOSS

LaborEconomics

• ResulAngfrompersonalgraAficaAonandreputaAon

Directcostsavings

•  Improvedpricingflexibility

Efficiency

• Technically• Strategically• Socially

Controlovercost

• Gettherightandquickresponses

OpenSourceasaCustomerValue

•  EaseofAdopAon-  Permission-less,foranypurpose-  Amenabletoprototyping,failing-fast,iteraAng,evolving-  Fullytransparent-  Standardlegalterms(minimizereviewburden)-  Transcendscorporatehistoryandstability(escrow)

•  CosteffecAve-  DramaAcdownwardpressureonprices-  AllowsAme/moneytradeoffs

ITSoluAons

Services

SoJware

Hardware

•  Whathaveyougottopayfor?

•  OSSdrivesdownsoJwarecosts–  Loweroverallprojectcost

ProjectEconomicswithOSS

ValueProposiAon

•  SincesoJwarecostsgodownwithOSS–  Moreroomforservices–  CanprovidebeIerqualityservices–  Morevaluetothewholeproject

•  FasterROI•  BroadervalueproposiAon

IntegratedStacks

•  SavesintegraAonAmeandcomponentcostswhenOSSused

•  ReplacesomepartswithOSSifnotalltolowerthetotalcost

•  WhenyousellthesoluAontootherBUsthedemandcanriseifyourpriceislow–  PutsmorepricesensiAvecustomerswithinreach

•  QualityofOSS–  SaAsfiedcustomers

LowerLearning/TrainingCosts

OSSAvailabilityAdvantage

Downloadandplay

Exploreandinnovate

aroundusage

Communitytohelp

Contributeback

OpportuniAes

•  Breakthebarriertoentry–  Tryoutthenewprojects/pilotprojectswithOSSforfree

•  Moveonorthrowawaydecisionbasedonsuccess•  Riskislessevenifyoufail

–  Provision,maintenanceandsupportwillcost•  butlater•  whentheprojectisupandrunning

OpenSourceasaRelaAonshipEqualizer

•  Technologybecomesasharedresource–contribuAon,parAcipaAon,evoluAon

•  ReducesinformaAonasymmetry,cutsoutthemiddleman•  EncouragescollaboraAon,educaAon•  MaintainconstantdemonstraAonofclearandpresent

value(thelock-inproblem)

OpenSourceasaRecruiAngVehicle

•  AIractsandretainstoptalent•  WidelyusedineducaAonalinsAtuAonsandresearch

projects•  Extendscommunitybeyondcorporateboundaries

ContributeandInfluence

CommiIers

Contributors

Users Benefits•  Fasterfixes•  Strategyalignment•  EmployeeaIracAveness

•  Visibilityinthecommunity

OpenSourceasaBrand

•  “OpenSource”brandisonparwithestablishedbrands(IBM,Oracle)

•  IntroducesawaveofdisrupAonforinnovaAvevendors•  BrandstrengthreflectedbyapreferenceforOSSinmany

kindsoforganizaAons(private,governmental,non-profit)

OpenSourceisbecoming“thedefault”

FutureofOpenSourceSurvey2015:•  78%ofrespondentssaidtheircompaniesrunpartorallofits

operaAonsonOSS•  66%saidtheytakeanopensource-firstapproachtosoJware•  64%ofcompaniescurrentlyparAcipateinopensourceprojects•  55%believeopensourcedeliverssuperiorsecuritycomparedto

proprietarysoluAonshIps://www.blackducksoJware.com/resources/webinar/2015-future-open-source-survey-results

Whatarecustomersdoing?

•  DevelopingOSSPolicies–  Don’tprecludeOSS–itmaybethebestoronlysoluAon–  IncludeOSSinevaluaAonmatrix–  EstablishapreferenceforOS–  MandateOSS–  ContributetoOSS

•  DevelopatransiAonstrategy–  AllnewprojectsonOSS

•  WorkwithvendorsinacollaboraAvewaythroughoutaproject–architecture,development,deployment

Conclusion

•  Controlovercost•  Overallprojectsuccess•  Efficiency•  Quality•  Influence

ThankYou!

#WSO2ConEU

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