This is a presentation held at eLiberatica 2009. http://www.eliberatica.ro/2009/ One of the biggest events of its kind in Eastern Europe, eLiberatica brings community leaders from around the world to discuss about the hottest topics in FLOSS movement, demonstrating the advantages of adopting, using and developing Open Source and Free Software solutions. The eLiberatica organizational committee together with our speakers and guests, have graciously allowed media representatives and all attendees to photograph, videotape and otherwise record their sessions, on the condition that the photos, videos and recordings are licensed under the Creative Commons Share-Alike 3.0 License.

1. Players and driving forces
of the evolving Open Source landscape
and how to make use of them
V.Mischenko
NLnet Foundation
Amsterdam, The Netherlands
eLiberatica 2009, Bucharest, May 23
This presentation does not necessarily reflect the official positions of NLnet Foundation

2. Players and driving forces
of the evolving Open Source landscape
and how to make use of them
1) Overview types of players, their motivations, financial and other
interests in Open Source
2) How they reach their goals by utilizing the interest of the others
3) Reveal the 'Microsoft trick' – earn money by doing nothing
4) Propose the scheme which helps corporates earn / save money
and at the same time make our world better

3. "It is not from the benevolence of the butcher,
the brewer or the baker, that we expect our dinner,
but from their regard to their own self interest.
We address ourselves, not to their humanity
but to their self-love, and never talk to them
of our own necessities but of their advantages".
Adam Smith, The Wealth of Nations

4. Economy is a Value-Adding human activity allowing sustainable growth of wealth
(for those having access to restricted resources)
Natural & other
restricted
resources
So
urc
e
Maker $ User
Wo
e
lu ed
rk
Va dd
A
Product

5. Changing business model
Proprietary: Open Source:
characteristics the of “War model” characteristics of the “Open model”
- World as battlefield - World as construction site
- Assault the market - Defend principles
- Kill competitor - Encourage to join in
- Occupy and defend territory - Discover new free territories
- Seal all ways out - Open all ways
- Spy (on customer) - Be transparent
- Keep all information secret - Keep all information open
- Propaganda as important weapon - Advantages are evident, to one thinking
- Punish any freedom claims on the - Stimulate to take as much freedom as
occupied territory one can endure

6. Economy will remain the Value-Adding human activity where:
1) growth of wealth becomes more and more dependent on intellectual resources;
2) access to these 'new natural resources' cannot be restricted by any concessions.
Creator
(Hacker)
in
Bra k
wor
(Semi-finished)
Intellectual
product So
urc
e
Maker € User
Wo
e
lu ed
rk
Va dd
A
Product

7. Every Economy regardless of business models must be self-sustainable:
- value is being added by participants,
- all participants benefit from their participation,
- new comers are encouraged to join.
Self-sustainability prerequisite:
participants acting out of their self-interest can reach their goals by utilizing the interest
of the others.

8. Who are the main participants nowadays?
- End-user
- Hacker
- Corporate
- Academia
- Public administration
- Product focused foundations
- Mission focused foundations

9. Private user (early acceptor)
Motivation / Interests:
- cost savings;
- support an idea, a product or a group doing right things;
- interoperability;
- addition to own experiments;
- lack of proprietor solution.
Commitment:
- short-term to zero.
Contribution (-):
- testing / feed-back;
- donations (“Here are some bucks I can, but you guys cannot miss”)
Earning (+):
- cost saving.

10. Hacker / developer (one of the first inhabitants of the eco-system)
Motivation / Interests:
- sharing and learning;
- excitement by getting things working and working better;
- reputation, positive feedback from users;
- being part of community.
Commitment:
- mostly short-term to mid-term
Contribution (-):
- valuable ideas;
- development / testing time;
- produce documentation;
- train / help others;
- own hardware.
Earning (+):
- working for companies developing open source technology;
- making living out of consultancy, implementation, support,
writing documentation;
- getting grants and donations.

11. Corporate
Motivation / Interests:
- free basis for their commercial products;
- free improvements from community;
- development is regarded as internal investment;
- influence on the market via standards;
- saving on cost of use within the company;
- social responsibility / public image.
Commitment:
- mostly long-term, to earn back investments made.
Contribution (-):
- concepts;
- development:
- intra-enterprise development,
- extra-enterprise (“award” model);
- infrastructure;
- documentation;
- offer free support.
Earning (+):
- selling 'packaged' open source product;
- selling proprietory parts atop of open source;
- selling related services and products;
- selling knowledge.

12. Academia
Motivation / Interests:
- of scientific research.
Commitment:
- to long-term.
Contribution (-):
- research;
- prototyping.
Earning (+):
- government funds for research;
- cost saving.

13. Public Administration (late comer)
Motivation / Interests:
- political: independence of foreign supplier, security;
- continuity;
- save money on commercial licenses;
- get rid of vendor-lock;
- stimulating scientific research;
- establishing standards;
- creating local skills and jobs.
Commitment:
- long-term.
Contribution (-):
- provide funding to developers;
- create broader base of users.
Earning (+):
- local public budgets;
- government funds.

14. Product focused foundations (e.g. Apache, Blender, Mozilla, NLnet Labs)
Motivation / Interests:
- test a vision;
- idealistic - help others;
- implement exciting idea;
- provide free / better alternative to proprietory product.
Commitment:
- long-term.
Contribution (-):
- vision and roadmap;
- ready to use product;
- support.
Earning (+):
- donations;
- get paid for features on-demand;
- selling consultancy.

15. Foundations with mission
Motivation / Interests:
- fulfil own mission.
Commitment:
- mid-term.
Contribution (-):
- cash for research and development;
- own network of contacts.
Earning (+):
- varying sources.

16. t ! Av
en e
g ! rtis
em Re rtism
in cla e
a rn dve mă nt !
W ke a !
i
sl
ook
hisl
T Dutch charity fund, which stimulates research and
development in the domain of network technology
We are interested in your inspiring ideas!
+ Non-bureaucratic, straightforward and quick application procedures
+ Strict and clear criteria for assessing incoming project proposals
+ No requirements to organisational or legal status of the applicant
+ No requirements to the own capital of the applicant, neither to sponsoring from other sources
+ Great deal of our own technological expertise, as well as reliance on the broad network of experts
+ Dedication to Open Source principles and methods

17. Netto Payers
Public administration
Academia
Mission
focused
foundation (end) User
Product focused foundation
Hacker
Corporate
Netto Contributors

18. Playground of FLOSS contributors
Corporate
Hacker
Product foundation
Academia
Average profitability
Research Oper. Systems Standard Solutions Services
& extensions, Applications
embedded
User

19. If you as user need working tools to operate ...
Corporate
Product Foundation - get semi-finished product (code)
for free
Academia - customize for fit
Public Administration
If you want something from an OSS
project, put your money where your
demands are
- contribute ideas
End-user - test
- donate

20. If you need to earn money ...
As long, as our worldwide economy
requires me to pay my bills, I need
someone to pay me for my work.
- customization,
- implementation,
Hacker - training for customized solution,
- support,
Corporate
- apply for donations, but never
base your business model upon
keep awake, another noteworthy advise for corporates will follow shortly

21. If you need to save money ...
- buy products with OSS
End-user - search for applications and
features
Corporate
- actively shop for customization
Academia - shop for support
- these all might be cheaper than
you think
Public Administration
The time of crisis is the time of change –
not vendor change, but attitude change!

22. The message is simple:
Acting out of your own self-interest
you can reach your goals
by utilizing the interest of the others
In the language of the hacker:
- If Bob needs something what Alice can make, Bob is ready to pay Alice for that.
- If Alice makes something what Bob needs, she can earn money on that.
This is universal, i.e. valid for both the old type and the new type of business model

23. Not everything is Economy and Commerce
So, if you have idealistic intentions:
- Learn
- Teach
- Use
Academia - Stimulate
- Promote
- Donate
Public Administration
Corporate
ess
ve € € in exc
Hacker
If you finally ha
End-user
- Establish your own
Mission- or Product-
focused Foundation

24. Advise to corporates: Learn the “Microsoft trick”
In most countries donations to a charity organisation are deductible from taxation
Microsoft and others do that:
>> Give you software packages to non-profits for free (preferably the most expensive ones)
- No costs involved – reproduction costs for the software nears zero.
- Enslave even bigger part of the market and keep competitors away.
- Keep non-profits away from Open Source.
- Get great public relation without any marketing expenses.
>> Generate cash by doing virtually nothing!
(not paying taxes is earning money).
“Microsoft trick” applied within the War model

25. Apply the “Microsoft trick” to make money and improve the world
>> Set up non-profit organisation or use an existing one
>> Donate development hours to this organisation
(e.g. your development overcapacity)
>> Develop within these hours great Open Source products
(software, hardware, creative work, everything)
>> Release these products to the whole world
>> Make world better and earn money on that!
This works very good in economic downturn, but will remain working for high-days too.
Or even better.
Utilize “Microsoft trick” within the Open model !

26. Proprietary: Open Source:
characteristics of the “War model” characteristics of the “Open model”
- World as battlefield - World as construction site
- Assault the market - Defend the concept
- Kill competitor - Encourage to join in
- Occupy and defend territory - Offer new free territories
- Seal all ways out - Open all ways
- Spy (on customer) - Transparent
- Keep all information secret - Keep all information open
- Propaganda as important weapon - Advantages are evident to one thinking
- Punish any freedom claims on occupied - Stimulate to take as much freedom as
territory one can endure
Make the History – step out of the War model

27. Make [code you] Love - Not War !
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