How to make money out of open source software?
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How to make money out of open source software?
- 1. 한국어 지부 28th, Oct 2011 FOSS4G Korea 2011 Keynote Talk OSGeo Korean Language Chapter Shin, Sanghee(endofcap@gmail.com)
- 10. 1. Lower cost of innovation 2. Faster time to market 3. Share risk with others
- 15. Price Price Demand Curve Demand Curve Supply Curve Supply Curve 1 Supply Curve 2 Quantity Quantity
- 17. “ If it’s digital, sooner or later it’s going to be free. ”
- 19. Free KRW 800 KRW 5,000
- 20. KRW 3,500 KRW 120,000 KRW 1,995,000
- 21. USD 4.95 Free
- 28. Community Open Source Software Developing Model Roadmap Design Software ‘The Project’ Core Developers Contributions Administrators Community Engineers Contributions Peer Review Use Cases Testing Documentation Translations Features Forum Help Bug Fixes * Source : James Dixon, The Beekeeper
- 29. Open Source Software Advantages over Proprietary * Source : Barracuda Networks Price 80% Source Code Access 57% Community Code Review 41% Don’t Know 20% Bug Fix Turnaround 18% Security 15% Code Quality 15% Best Product Functionality 15% Easier to Adopt in Organization 10% Other 6% IP Protection 5% 0% 20% 40% 60% 80% 100%
- 30. Proprietary Software Advantages over Open Source * Source : Barracuda Networks Vendor Professional Services 65% Easier to Adopt in Organization 47% Automated Updates 44% Reduced IT Support 35% Best Product Functionality 28% Security 23% Code Quality 17% Don't Know 9% IP Protection 7% Other 4% Price 3% 0% 10% 20% 30% 40% 50% 60% 70%
- 31. 1. Lack of formal support and services 2. Velocity of change 3. Lack of roadmap 4. Functional Gaps 5. License Types 6. Lack of endorsements by independent ISVs * Source : Ray Lane, 6 barriers to open source adoption
- 32. Commercial Open Source Software Advantages Advantages of of Proprietary Open Source 1. Professional service 1. Cheaper price 2. Continuous support 2. Source code access 3. Easy to use 3. Community review 4. Reliability 4. Quicker bug fix 5. Functionalities 5. More standard based ‘Whole Product’
- 33. Installation Integration <Open Source SW> Support Services Software Software Other VARs SW/HW Certification Training <Whole Product>
- 34. Actual Product (Quality, design, brand, Core Product packages) (Basic functions, symbols, experiences) Whole Product Market Offering (Additional services) (Additional benefits offered by partners)
- 35. Commercial Open Source Software Business Model Community can hear more functionalities & requests + The bigger community Commercial Open Source the more resources Company Customers ‘Go To Market’ Open Partners Sales, Marketing, Support, Services, Engineering, Pro Source Software + OEMs Community duct Mgmt. + Customers can gain higher quality software at a better price
- 36. Next Demand SKILL A C C M E O S N S E Customer Y TIME Next Market
- 37. Thank You!!!