Open Source Geospatial: An Alternative Business Model for Municipal Governments

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1 Open Source Geospatial: An Alternative Business Model for Municipal Governments Dave McIlhagga DM Solutions Group 30 Rosemount Ave. Suite 200 Ottawa, Ontario, Canada K1Y 1P4 Geoff Zeiss Autodesk, Inc. Suite 500, 427 Laurier Ave W Ottawa, Ontario K1R 7Y2 geoff.zeiss@autodesk.com ABSTRACT The geospatial industry is undergoing an unprecedented transformation because of the widespread recognition that geospatial is no longer special and has joined the IT mainstream. One of the dimensions of this phenomenon is the maturing of the open source geospatial community to a point that is reminiscent of the early days of the internet, when major IT vendors like IBM decided that it made more business sense to support the Apache Foundation s web server instead of developing their own. Last year people active in the open source geospatial community formed the Open Source Geospatial Foundation ( This was driven not only by the realization that open source geospatial technology was widely used around the world (for example it is estimated that 50% of the world s web mapping servers are implemented using MapServer), but more importantly that companies around the world have created viable businesses based on open source geospatial technology. In this discussion we will discuss how the open source business model differs from the traditional proprietary model and what the implications of this alternative approach to acquiring, maintaining, and supporting software are for municipal governments.

2 INTRODUCTION Feb 4, 2006 was a major milestone for the geospatial IT community, because on that day the geospatial open source community met in Chicago and formed the Open Source Geospatial Foundation ( There are several reasons why this as an important milestone for the geospatial IT community. First the formation of the Open Source Geospatial Foundation (OSGEO) realizes an important milestone in the maturity of the open source geospatial community. Secondly, shortly after the formation of the open source geospatial foundation, Autodesk released the source of MapGuide Open Source (MGOS) to the OSGEO community. This represents a serious commitment by a major geospatial vendor to the OSGEO and to the wider open source community. WHAT IS THE OSGEO? The Open Source Geospatial Foundation, or OSGeo for short, is an independent nonprofit legal entity established to support the needs of the open source geospatial community. The foundation has no shareholders, but does have a president and other officers and a board of directors elected by the membership. The membership is composed of users, supporters, promoters, and developers of open source geospatial software. Becoming a member involves joining the OSGEO site and contributing to the foundation goals. The OSGEO s goal is to provide a legal and administrative framework to better support the ongoing development and promotion of open source geospatial technologies. The OSGEO will be an organizing body, a public technology commons, a development community manager, and event sponsor. It is expected that the foundation will emulate certain features of the governance models employed by other successful open source projects such as the Apache Foundation. Foundation projects such as MapServer, GDAL, GRASS, and MapGuide are expected to be governed by their own Project Steering Committees (PSCs), which will be appointed by the foundation's Board of Directors. INTERNATIONAL CHAPTERS OF OSGEO At the time of writing, local OSGEO chapters have been formed in Japan, China, India, and Ottawa. Chapters are in the process of being formed in Brazil and for the German and French languages. OPEN STANDARDS, COMMODITIZATION, AND OPEN SOURCE OPEN STANDARDS AND OPEN SOURCE It is important to recognize is the difference between open standards and open source. Open standards such as HTTP, XML, SOAP, WSDL, WMS, WFS, and GML are supported by both closed source or proprietary software and open source software. Open standards ensure that the pieces fit together but say nothing about how each component is implemented. For example, the

3 WS-I is an organization dedicated to ensuring that Microsoft and J2EE web services interoperate based on the W3C standards for web services. However, there is a close relationship between open standards and open source software. Open source is most successful at commodity software. For those familiar with Geoffrey Moore's core and context model, open source is best at context, as the Linux operating system, Apache web server, and Sendmail experiences have shown. As a rule of thumb, where you find welldeveloped standards such as POSIX, HTTP, HTML, POP, and SMTP, you are usually dealing with context, and open source is a good place to look for standards-compliant software. For example, MapServer has been among the leaders in supporting Open Geospatial Consortium (OGC) Open Web Services (OWS) standards such as WMS and WFS and is one of the top two web mapping servers worldwide. Another example is the OGC s Simple Feature Specification for SQL (SFS), which is the basis for the open source spatially-enabled relational database management systems (RDBMS) PostGIS and MySQL. OPEN SOURCE GEOSPATIAL SOFTWARE IS COMMERCIAL Two key requirements for successful open source projects are a grass roots developer community and a thriving business sector which relies on the technology. Both of these realities have been realized by the open source geospatial community. Before February 4, open source geospatial was a "quiet reality". Most people were surprised by how extensive and widespread the use of open source geospatial software had become. The formation of the Open Source Geospatial Foundation with the support of a major geospatial vendor reflects the maturity of open source geospatial software and is contributing to bringing open source geospatial software into markets where it has had limited penetration in the past. Open source offers an alternative business model that is attractive to municipal governments especially for commodity software such as web mapping. As an alternative to the traditional closed source business model, open source is often less expensive and lower risk, because there are no upfront licensing costs. Software can be downloaded and evaluated for an unlimited period legally and free of charge. Since source code is available, customization for specialized business purposes is feasible and often can be achieved much more rapidly. For developer entrepreneurs interested in creating their own business, open source offers an opportunity for international recognition, rapid market development, and a lower barrier to entry. There are several open source business models, but the most common in the open source geospatial world is the provision of services in developing solutions for customers. But other models are emerging as the open source geospatial community matures. With the emergence of open source products or reusable solutions, open source companies also offer support for specific products such as MapServer, GDAL/OGR, FDO, and MapGuide Open Source. In addition commercial versions of open source projects are being offered that bundle products, based on open source code, with full support and maintenance. These include application development tools for developers writing applications based on open source web mapping platforms such as MapGuide Open Source.

4 COMMON MISCONCEPTIONS ABOUT OPEN SOURCE SOFTWARE Open source is a relatively new concept for many people in IT, so it is worthwhile discussing some common misconceptions about open source. Misconception 1. Open source is only a small part of the software industry. There are over 100,000 projects hosted by Source Forge, which is only one of many sites hosting open source projects. Over 70% of the world's web sites run the Apache Foundation's web server software. Most of the Fortune 500 companies have deployed open source software including Linux, Apache, MySQL, PHP, Perl, Python, Sendmail, and others. As another example, the latest data from IDC show that worldwide server revenue for Linux servers was $5.7 billion in 2005, a 20.8% increase year over year. This represents the 14th consecutive quarter of double digit growth for Linux servers. The reality is that open source represents a large and increasing share of the software market. Misconception 2. The opposite of open source software is commercial software. The reality is that there are two types of commercial software, open source and closed source (often called proprietary). Many commercial companies base their business entirely around open source software. Commercial open source companies include Red Hat and MySQL, which are internationally well-known examples. In the geospatial realm, DMSolutions (Canada) and Orkney (Japan) are examples of companies that have based a very successful business entirely around open source geospatial software. Some companies support both closed and open source software, for example, Novell (who acquired SUSE), Oracle (who just acquired Innodb and Sleepycat), Sun ( who sell Star Office which is based on Open Office), IBM (who distribute Apache web server and Eclipse), Autodesk (who developed MapGuide Open Source), and others. A simple way to summarize the situation is that the commercial software industry uses two models, closed and open source, and that both play an important role in delivering solutions to the IT industry. Some software companies prefer the closed source model, some the open, and some rely on both. Misconception 3. Also common is the misconception that all open source projects are comprised of volunteers working at home in the evenings or on weekends. The implication is that the quality of open source software is not up to the standards of closed source software. At the last MapServer User Meeting in Minneapolis, Dirk-Willem van Gulik, President of the Apache Foundation presented a fascinating overview of the Apache Foundation. One of the things he mentioned is that of the more than one thousand Apache committers (developers who can create and modify Apache code), only one of them is a volunteer. The rest are full-time developers employed by major corporations to work full or part-time on Apache. In the geospatial arena Autodesk's contribution to the Open Source Geospatial Foundation was developed, and will continue to be maintained, by full-time, professional Autodesk developers.

5 With respect to quality, as we alluded to earlier, many of the world's major corporations have deployed open source software. Open source proponents like Eric Raymond argue plausibly that open source is capable of achieving higher standards of quality because more developers look at the code more eyes means better code. The reality is that, like closed source software, each open source project or product has to be assessed based on its own merits. Misconception 4. Another common misconception is that you re left to your own devices when it comes to support. The reality is that there are many companies that provide support for open source software. Perhaps the best known is Red Hat whose primary business is providing support for Linux. The last time we checked Red Hat s market capitalization was $4.3B. Similarly in the geospatial arena firms are providing support for open source geospatial products. Misconception 4. A common misconception relates to licensing. There is a concern that if you mix your own proprietary code with code covered by an open source license, and plan to make the resulting product available to third parties, you have to make your own code publicly available under an open source license. The reality is that there are over 40 open source copyright licenses recognized by the Open Source Initiative ( They range from the Gnu Public License (GPL) which is restrictive in the sense described above, through the Lesser Gnu Public License (LGPL), which permits mixing of closed and open source libraries, to MIT and BSD licenses which are non-restricitve and only require that you include the copyright notification with the open source code you use. WHY OPEN SOURCE WEB MAPPING? We see an analogy between the current situation in web mapping and the early days of the web when the initial web servers were being developed. In the mid 90 s eight core contributors supporting the NCSA HTTP Server got together for the purpose of coordinating their changes (called "patches") and formed the original Apache Group, which was little more than a shared mailing list. The industry including major IT players like IBM and others had to decide whether to develop and support their own proprietary web servers and compete in this arena. In 1999, with IBM encouragement, the members of the Apache Group formed the Apache Software Foundation, a legal entity, to provide organizational, legal, and financial support for the Apache web server. Since then the Apache HTTP Server has been adopted by IBM and others and is running on over 70% of the world s web servers. Many people in the geospatial sector believe that web mapping should also be open source. On the first hand there are clear signs that web mapping is becoming commoditized. There are widely recognized open standards from the W3C and OGC, there is already a large and successful open source web mapping community around MapServer, and web map servers are

6 less complex than desktop geospatial applications, which do not show the same advanced signs of being commoditized. The benefits to the geospatial community of open source web mapping is better support for standards, an open development platform that supports more frequent releases, opportunities for entrepreneurs in the geospatial web mapping sector to get started with no financial barrier to entry, and lower cost of ownership. WEB 2.0 AND OPEN SOURCE WEB MAPPING Tim O Reilly in his seminal paper What is Web 2.0? attempted to identify the characteristics that distinguish Web 2.0. Web 2.0 is a key enabling technology, because it enables remote field staff to participate directly in the maintenance of spatial facilities data. Where Web 1.0 was about publishing, which is what first generation of web mapping applications focused on, Web 2.0 is about participation. A table in Tim O'Reilly's seminal article (What is Web 2.0? ) really brings this home and is shown below. Web 1.0 Web 2.0 DoubleClick Google AdSense Ofoto Flickr Akamai BitTorrent mp3.com Napster Britannica Online Wikipedia personal websites blogging Evite upcoming.org and EVDB domain name speculation search engine optimization page views cost per click screen scraping web services Publishing Participation content management systems wikis directories (taxonomy) tagging ("folksonomy") Stickiness syndication Source: Tim O Reilly What is Web 2.0? In Tim O Reilly s words Web 2.0 is about harnessing the collective intelligence. IMPLICATIONS FOR MUNCIPAL GOVERNMENTS Open source web mapping and Web 2.0 have important implications for infrastructure management in municipal government. A survey in the US showed that in % of the labour force in the electrical utility industry is over 45. This means that a lot of knowledge about their network infrastructure is going to

7 leave utility companies in the next 5-10 years as older experienced workers retire. New workers will have to rely on the information in the corporate facilities database, unlike the older, experienced workers who tend to rely on what's in their heads. Infrastructure Management Workflow The process by which a utility or telecommunications firm designs and documents infrastructure is basically the around the world. Engineering uses a desktop to create a paper construction drawing which a construction crew uses build the facility. The construction drawing is marked up by the construction and returned to the Records Department same CAD Field Force Markups crew (Linesmen, Records as a Troublemen, (GIS) paper as-built. Records staff digitize the Install and Records asbuilt into a GIS, which represents the Repair) permanent record of the company s facilities. The GIS provides the facilities maps, often paper, used by Operations, who are the people who come to your house or business when your water pressure is low, your power is out, or you don t have dial tone. IT Challenges Engineering Design (CAD) Construction Drawings The most striking aspect of the information flow is that more often then not it is based on paper. Design information flows from Engineering to Records in the form of paper as-builts. Facilities maps flow from Records to the field staff as paper. A major problem is that typically little information flows back from field staff to Records. The result is that facilities databases become unreliable and out of date and this directly impacts the productivity of field staff. For example, returns or repeats, which is statistic that monitors the proportion of jobs that require more than one site visit (often because of inaccurate or out of date facilities maps), is on the order of 30% for many organizations. The problem can be traced to the fact that although the field staff are the best source of information about facilities - after all they work with it everyday - and they need up to date, reliable data to be productive, they are rarely empowered to participate in maintaining facilities data. In the context of the aging workforce this problem exacerbates what is already a critical problem because there is no effective mechanism for transferring the knowledge in the heads of experienced workers to the newly hired younger workers. Within the next few years 60% of the field force, with their deep knowledge of network facilities, will retire to be replaced by young, inexperienced workers. In some sectors the situation is dire. One of us recently chatted with an employee of an Arizona utility, who said that 50% of the work force at his firm is eligible to retire this year. This will represent a huge loss of collective intelligence. The challenge for organizations responsible for network infrastructure over the next few years is to transfer the knowledge about the network infrastratucture currently resident in the heads of experienced (and soon to retire) field workers into the organization s Experienced Workers Inexperienced Workers Paper Paper Construction As-builts Paper to Web Browser Infrastructure Database Web Browser

8 collective knowledge base, so that the collective intelligence can be harnessed by all workers, but most critically, younger workers, to improve productivity in the future. Open source web mapping using Web 2.0 technologies is a key technology to enable this to happen. OPEN SOURCE GEOSPATIAL CREATES BUSINESS OPPORTUNITIES Open source geospatial creates business opportunities for geospatial and IT professionals, especially those without access to capital because it lowers the barrier to entry. It provides a low cost way to create a market for new solutions. It attracts potential customers, because it is lower risk (no upfront licensing costs) and provides legal access to software for evaluation for an unlimited period. Some examples of entrepreneurs who have created successful businesses based on open source include Dave McIlhagga of DM Solutions Group, Frank Warmerdam, and Haris Kurtagic of SL-King. Dave McIlhagga Dave McIlhagga formed DM Solutions in 1998 as a sole contractor. Early in the evolution of the company, Dave recognized the services opportunity that open source presented, and started building a services business around MapServer. His model was to develop solutions for customers and over time this meant that DM Solutions became the primary developer supporting and enhancing MapServer. In 2007 DM Solutions has expanded to 18 employees and now provised support and maintenance for MapServer and MapGuide Open Source in addition to services. Frank Warmerdam Frank Warmerdam also began as a sole contractor in 1998, but focused on developing raster and vector data access libraries, which are used by a variety of proprietary products and open source projects including Google Earth, ESRI ArcGIS 9.2, MapServer, and Feature Data Object (FDO) API. He began with a bare minimum of capital, basically enough to live on for a few months. At first Frank offered his own expertise in writing spatial file translators for various clients, but his vision was always to define an architecture, which he called GDAL, and to develop build a large pool of geospatial data translation code based on GDAL. GDAL became widely recognized worldwide and Frank now has an international clientele. Haris Kurtagic Haris Kurtagic was already a successful developer of utility and telecommunications applications primarily around AutoCAD Map and Oracle when he became interested in the potential of open source geospatial. His first project was to develop an open source data provider for Oracle Locator/Spatial. On the day he announced the first version of the KIng Oracle Data Provider to the OSGeo community, he received over a hundred s expressing interest. Since then he has continued to enhance his Oracle data provider, and has become widely known around the worldwide as a developer of data providers for relational databases. He is now being approached commercially to provide services based on his recognized expertise in this area.

9 CONCLUSION Open standards lead to commoditization, which creates fertile ground for open source software. There are unmistakable signs that web mapping is being commoditized. The formation of the Open Source Geospatial Foundation with the support of a major geospatial vendor reflects the maturity of open source geospatial software. Open source offers alternative business models that are attractive to municipal governments. As an alternative to the traditional closed source business model, open source is often less expensive and lower risk, because there are no upfront licensing costs. Open source software can be downloaded and evaluated for an unlimited period legally and free of charge. Since source code is available, customization for specialized business purposes is feasible and can be achieved rapidly. For entrepreneurs looking to develop a business, open source offers a lower barrier to entry, international recognition, and rapid market development for new solutions.

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