IP Forum From Tactic To Strategy Gilad Ben-Yossef Codefidence Ltd. (C) 2008,2009 Codefidence About Me, About US     CTO of Codefidence Ltd. Open Source experts boutique Assisting our customers make use of Open Source software on a tactic and strategist level Startup to NASDAQ clients (C) 2008,2009 Codefidence What is Open Source?   Software requires effort and costs to build Software does not require effort and cost to duplicate No 1:1 relation between cost to number of users Free Software: Ideology, equality, the digital divide, democratization of technology. Open Source: Interesting business qualities.    (C) 2008,2009 Codefidence What Gartner Says on OSS Use  “By 2012, 80 per cent of all commercial software will include elements of open-source technology.” (http://tr.im/nT99) “By 2012, more than 90 percent of enterprises will use open source in direct or embedded forms.” (http://tr.im/nTdl) ”… 85 percent of companies currently using OSS and the remaining 15 percent expecting to in the next 12 months.” (http://tr.im/nTd7)   e r A r e g n n t o r r a G W (C) 2008,2009 Codefidence The Truth  There is no single organization in the world which does not make use of Open Source right now. Most are not aware of it. Many uses are skunk work initiatives, unknown to management. Many other embedded as part of commercial products and services.    (C) 2008,2009 Codefidence Spot the Open Source Users       Microsoft Bing search engine Edimax Wireless Router The Marker web site New York Stock Exchange Cisco new Blade Servers HTC G1, Apple iPhone and Palm Pre cell phones 88% of the top 500 super computer site (C) 2008,2009 Codefidence  What About Your Organization?  Does your organization use Open Source software? Do you use it wisely? Do you use Open Source at a Strategy or Tactic level?   (C) 2008,2009 Codefidence Open Source Project Life Cycle Delivery ”This is useful!” Monetization, O’reilly book, Conference Corporate users, 20/80 dev/users i18n / L10n, Windows port, GSoC Comes with RedHat / Suse ”This is cool!” Promise Plausible promise, Work 4 me Early adopters, 80/20 dev/users Working code, rough consensus Download RPM/Deb Idea ”I want this to happen!” Scratching an itch Closely knit team ,100/0 dev/users Pure promise, little code Build from source code only (C) 2008,2009 Codefidence Open Source Life Cycle Examples Delivery ”This is useful!” ”This is cool!” Promise Idea ”I want this to happen!” Linux Firefox MySQL Apache PHP Wordpress Xen SugarCRM KVM Asterisk Alfresco DimDim OpenBravo OpenVPN Wireshark Qemu ClamAV Thunderbird Wine Gimp Gaim DimDim GNUCash GNU Octave Almost everything on SourceForge.net (C) 2008,2009 Codefidence OSS Involvement Motives Delivery ”This is useful!”  Tactic  Treadmill Free Lunch  ”This is cool!” Promise  Complimenters Strategy Idea ”I want this to happen!” Coopetition Freemium  (C) 2008,2009 Codefidence The Free Lunch Model  An intermediate COCOMO model evaluation l estimates the cost to re-develop the Linux kernel at $612 million US.  David A. Wheeler, http://tr.im/nvDl  Google generates a lot of cash using its estimated 500k Linux servers Apple makes a lot of cash from sales of BSD running Macs and iPhones.  (C) 2008,2009 Codefidence The Treadmill   Client requirement: Sprocket support Your company   Evaluate cost of in-house vs. outside Create a work plan, allocate staff and execute or create SRS, engage vendor, manage development Integrate, Test, Fix & Deliver apt-get install libsprocket Integrate, Test, Fix & Deliver (C) 2008,2009 Codefidence   Cheap Chinese Competitor   Complimenters  Anything required by my customer to use my product and which I do not sell is a complimenter to my product. Software for hardware makers   Intel financing KVM.  OS for Database, firewall, backup software vendors.  Checkpoint providing hardened Linux distribution. Google building Android OSS mobile phone stack (C) 2008,2009 Codefidence  Browsers and smart phones for SAAS vendors  Coopetition   Cooperation between Competitors Same needs, competitive advantage not justifiable by cost. Advantage of single platform outweighs competitive advantage Apache was formed by first web hosting companies Both Google and Apple use WebKit as basis for their web browser (C) 2008,2009 Codefidence    Freemium     Free with a Premium Price Discrimination with entry level of zero Business class gets assurance and support. The Open Core variant: free core, proprietary add-ons. (C) 2008,2009 Codefidence Build OSS Into Your IP Strategy Delivery ”This is useful!” Tactic Promise ”This is cool!” Idea ”I want this to happen!” Strategy (C) 2008,2009 Codefidence Thank You For Listening! Questions?       Codefidece Ltd.: http://codefidence.com Community site: http://tuxology.net My personal Blog : http://firstpost.org Email: gilad@codefidence.com Phone: +972-52-8260388 Twitter: @giladby (C) 2008,2009 Codefidence