Open Source and Open Source Business Models

Transcription

1 Open Source and Open Source Business Models Session 9 Course Product Software Prof.dr. Sjaak Brinkkemper Dr. Slinger Jansen Aim: To provide insight into the multitude of methods that exist for product software developers.

2 Apple Microsoft (PCs) Google Closed, but not Closed? Open, but not Open? Free, but not Free? Proprietary mainly closed or tightly controlled platform Design elegance = whole is greater than the sum of the parts (smartphone experience) Proprietary but more open platform Price-performance + Windows/Office + Xbox game functions for smartphone Most open, open source, & free, but? Copy-cat designs, harder to use, but hard to beat free, lots of firms to innovate Extreme ease of use Price-performance Price-performance, openness? Design from scratch but gradually ios centric Windows-centric Search-centric? Total experience control hardware, software, peripherals, content Many different companies influence the Windows-Nokia experience In between Apple and Microsoft-Nokia? Premium pricing (Mac, ipod, iphone, ipad) Lower pricing (Windows PCs) Lowest pricing and free OS, or less than free? Marketing genius (Jobs) Software & platform strategy genius (Gates) Technology and value: Hard to beat free & the Google brand? Target early adopters, mostly consumer, but gradually more business users? Strong brand, especially for creative users, incredible loyalty (the Apple faithful ) Mainstream business & consumer users, with deep OEM relationships Strong brand, especially for business users, users tolerate the product Consumer to business? Strong brand for anything internet? Superior OS software and hardware OS software (& OEM hardware) trail Apple In between Apple and Microsoft? Current ecosystem of multiple productplatforms and superior apps Hardware manufacturing reduces profit margins compared to software products Many Windows apps, largest ecosystem. But how translate to Windows phone? No h/w manufacturing so higher margins, but PC software sales growth slow Huge apps ecosystem, though still some fragmentation Free software but automated digital service = high margins, but high channel costs

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21 Open Source Business Models

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27 RedHat

28 Eclipse

29 Example: SGi and Samba

30 O Reilly and their standards

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36 Licensing Ownership Reuse Derivates Infectiveness of license Commercial vs Non-commercial reuse

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43 Some thoughts for the future

44 Nederland Open in Verbinding Comply or explain

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46 Some of Slinger s favorites

47 Some exam questions What does the NOiV strive for? What motivates an open source contributor to contribute? Why aren t software companies making the switch to open source? Name four open source business models?

48 Openness of Product Software Companies Problem: Software companies are judged to be open or closed too easily Google is more open than Microsoft Centric is so closed, we should no longer buy from them. Open source is much cheaper than closed source software products. Android is more open than the iphone. Solution: Openness evaluation methods One for mobile platforms One for product software companies

49 Open Software Enterprise Model Software producing organizations goal: get the software that is being produced to be adopted as frequently as possible Different business models exist to obtain that goal from open source models where source code is given away for free to service models where the source code is running on a protected server. Create an ecosystem around the product However, companies that want an ecosystem need to open up National bodies worried about openness: the draft `policy on Open Standards for egovernance in India `UK Government IT strategy Software vendors are unaware of the different methods that exist to open up their business

50 The OSE Model Create a model that: Shows a software company how to open up its business Show a customer of a software company how to establish the suppliers openness Based on Sjaak s research framework for product software companies

51 Levels and Perspectives Levels Strategic (two years to five years) Tactical (six months to two years) Operational (day to day) Perspectives Governance Ownership, control, major decisions, partnership models, etc. Research and Development Technical excellence, code production, development and project management Software Product Management product management, requirements engineering, etc. Marketing and Sales Get the customer to procure the products Consulting and support services get the customer to use the product and buy extra s

52 Openness Option Fidelity Available has the option. If closed, 0%, if open, go to accessible. Accessible is accessible by anyone, not just a restricted group. If closed to a group, 33%, otherwise, go to transparent. Transparent The openness option is explained to the outside world. If documentation of governance is available, it s transparent, go to reciprocal. If not, 33%. Reciprocal The environment helps determine how open this option is. If true, 100%, else 66%.

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54 Three Cases GX Eclipse ODA

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57 Open Design Alliance Community Open Source

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60 Conclusions An openness measurement model helps both software companies and customers Shows a software company the different methods for opening up the company Shows a software customer how to establish the openness of a software company When making the choice for a product, openness should not be the main determinant. TCO should be.

61 Questions 61