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About Open Source Business Models

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About Open Source Business Models

  1. 1. About Open Source Business Models Gaël Blondelle Director of European Ecosystem Development Eclipse Founda>on Europe @gblondelle October 12th 2016 – Vienna – IoT-EPI TF Business Models
  2. 2. 12 years in Open Source and Business Development •  2004-2010: Co-founder @ PetalsLink •  2007-2010: Chairman of the Technology Council @OW2 •  2010-2013: Open Source Bizdev @ Obeo •  2010-2012: OPEES project manager •  2011-2013: Board member @Kagilum •  Since 2013: Director @ the Eclipse Founda>on Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 2
  3. 3. Your ques>ons •  Why open sourcing when you can sell? •  What are the successful and sustainable models? •  What are the success drivers and real life examples? •  Can you give an ontology (or a couple of cases)? •  What are the relevant revenue models? Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 3
  4. 4. Some trends Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 4
  5. 5. Some trends Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 5 Source: http://www.bloomberg.com/news/articles/2015-02-05/six-things-technology-has-made-insanely-cheap
  6. 6. A must read Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 6 Easily downloadable in PDF form With stories about •  Free bikes •  Free razors •  Free cars •  Free air travel Take away •  Don’t ask users to pay for what is free •  But free stuff makes customer pay for a product
  7. 7. Some trends New technologies like big data cloud are available firstly in open source Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 7
  8. 8. Open Source works well for pla`orms Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 8
  9. 9. Inspired by the OPEES project team OPEES (ITEA 2 08019) – WP1 Task 1.2: Business Models D1.2.1 deliverable OPEES Open Platform for the Engineering of Embedded Systems •••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Open-source business models for Polarsys Project number: ITEA 2 08019 Work package: WP1 Task: 1.2 Edited by: Romain Berrendonner (AdaCore) Date: 14/02/2013 Document version no: 1 Disclaimer: Contractors participating to this report shall incur no liability whatsoever for any damage or loss which may result from the use or exploitation of Information and/or Rights contained in this report. This work is licensed under a Creative Commons Attribution-ShareAlike 3.0 France License: http://creativecommons.org/licenses/by-sa/3.0/legalcode Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 9 Public deliverable of the ITEA2 OPEES project Editor and lead author: Romain Berrendonner (Adacore) With the par?cipa?on of Airbus, CNES, CS, Indra, Obeo, SQS, Univ of Skövde, Xipp, Combitech, TCPSI, Thales
  10. 10. Large Organiza>ons coopera>on (1/2) Open Source extensible pla`orm Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 10 Open source Communities •  Large labs workforce •  Technology leaders •  Extensible platform Publish a “game changing” technology in Open Source Reduce platform cost Developers Large organizations Open Source Foundation Events Revenues from service/ products built on top of the platform Design and implement a rock solid extensible software Loose •  IBM with Eclipse •  RackSpace/Nasa with OpenStack •  Bosch and al. with IoT@Eclipse
  11. 11. Large Organiza>ons coopera>on (1/2) Open Source extensible pla`orm Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 11 Open source Communities •  Large labs workforce •  Technology leaders •  Extensible platform Publish a “game changing” technology in Open Source Reduce platform cost Developers Large organizations Open Source Foundation Events Revenues from service/ products built on top of the platform Design and implement a rock solid extensible software Loose
  12. 12. Large Organiza>ons coopera>on (2/2) Open Source Founda>on Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 12 Leading / Producing organization End-users Providers A community of Software Developers Infrastructure and Processes Tight Loose Internet Events Corporations (paying) Individuals (free) Recurring membership fees Events registrations Team Bandwidth and infra Events organization Governance IP and Project management Ecosystem Infrastructure Community management •  Eclipse Founda?on •  OpenStack Founda?on
  13. 13. Large Organiza>ons coopera>on (2/2) Open Source Founda>on Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 13 Leading / Producing organization End-users Providers A community of Software Developers Infrastructure and Processes Tight Loose Internet Events Corporations (paying) Individuals (free) Recurring membership fees Events registrations Team Bandwidth and infra Events organization Governance IP and Project management Ecosystem Infrastructure Community management
  14. 14. Pure Service Business model Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 14 Open source communities Software Developers Tight Direct contact Large Organizations Mainly call for tender Outsourced integration service Expertise Time based OSS communities Integration of open source software Contribution to the communities •  Freelancers •  Most large service providers •  Competency centers in large organiza?ons
  15. 15. Pure Service Business model Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 15 Open source communities Software Developers Tight Direct contact Large Organizations Mainly call for tender Outsourced integration service Expertise Time based OSS communities Integration of open source software Contribution to the communities
  16. 16. Leveraged Service Business model Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 16 Open source communities Software Developers Tight Internet support Large Organizations Recurring subscription contracts Supported products In proportion of the number/ complexity of the products Integration of free software Product management & QA
  17. 17. Focus on RedHat cf hdp://www.slideshare.net/djwallis/red-hat-essen>als Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 17 50,000+ packages Collaboration with partners and open source contributors to develop technology
  18. 18. Focus on RedHat cf hdp://www.slideshare.net/djwallis/red-hat-essen>als Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 18 App. 5,000 packages 1st Stage Fedora (the R&D vehicle) - two releases per year - unsupported - fast moving - latest technology
  19. 19. Focus on RedHat cf hdp://www.slideshare.net/djwallis/red-hat-essen>als Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 19 1,500 packages Red Hat Enterprise Linux * Real Time Support * 24x 7 * 9 x5 * Web Only Approximately every 18 months Stable, Mature, Certified and Tested Technology VIDEO
  20. 20. Focus on RedHat cf hdp://www.slideshare.net/djwallis/red-hat-essen>als Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 20
  21. 21. Infrastructure provider Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 21 Open source communities Software Developers Evangelists Very loose (free users) Tight (customers) Internet Hobbyists, academics (free users) Large organizations Recurring professional contracts Integrated infrastructure Hardware can be an important cost factor Integration of open source software Develop an infra on top of open source software •  GitHub •  Amazon AWS •  Azure
  22. 22. Infrastructure provider Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 22 Open source communities Software Developers Evangelists Very loose (free users) Tight (customers) Internet Hobbyists, academics (free users) Large organizations Recurring professional contracts Integrated infrastructure Hardware can be an important cost factor Integration of open source software Develop an infra on top of open source software
  23. 23. Free Sofware / Leverage Hardware Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 23 Open source communities Open Hardware / Makers communities Software Developers HW designers Very loose (free users) Tight (customers) Internet for hobbyists Conventional channels Hobbyists (free users) Cities Large organizations Sell hardware OSS software + Open Hardware for hobbyist OSS software + Industry ready hardware Integration of open source software Develop a product on top of open source software •  Fits well with IoT •  Eurotech •  Libellium •  OEM crea?ng media center
  24. 24. Free Sofware / Leverage Hardware Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 24 Open source communities Open Hardware / Makers communities Software Developers HW designers Very loose (free users) Tight (customers) Internet for hobbyists Conventional channels Hobbyists (free users) Cities Large organizations Sell hardware OSS software + Open Hardware for hobbyist OSS software + Industry ready hardware Integration of open source software Develop a product on top of open source software
  25. 25. Open Source is not a Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 25
  26. 26. Revenue models •  Sell a product that extends open source sofware •  Sell an appliance built with open source sofware •  Sell exper>se •  Sell access to an infrastructure •  May sell support subscrip>on Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 26
  27. 27. Open Source is an enabler •  A way to promote or establish standards •  A powerful marke>ng channel •  An >cket to collabora>on Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 27
  28. 28. Few advices to make your life easier with open source •  Manage your Intellectual Property •  Don’t do it alone •  Don’t reinvent the wheel •  Choose a business friendly license Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 28
  29. 29. Open Source is a journey, not a des>na>on Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 29
  30. 30. Your ques>ons •  Why open sourcing when you can sell? •  What are the successful and sustainable models •  What are the success drivers and real life examples? •  Can you give an ontology (or a couple of cases)? •  What are the relevant revenue models? Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 30
  31. 31. More ques>ons? Gaël Blondelle Director of European Ecosystem Development gael.blondelle@eclipse.org @gblondelle +33 673 392 185 Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 31
  32. 32. Credits •  Startup Dream by .waldec •  Silver bullet by Sprod Money •  Success/Failure by ccPixs.com •  Please donate - (CC BY-SA 2.0) by hdps://www.flickr.com/photos/howardlake/ •  Cow-boy - (CC BY-ND 2.0) by hdps://www.flickr.com/photos/16210667@N02/ Oct 2016 Copyright (c) 2016, Eclipse Founda?on, Inc. Made available under the Eclipse Public License 1.0 32

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