Download - Free Software and Business Innovation
![Page 1: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/1.jpg)
Free Software and business innovation
Karsten Gerloff<[email protected]>
PresidentFree Software Foundation Europe
November 12, 2010
![Page 2: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/2.jpg)
Gartner: 100% adoption rate until November2009
“Adoption of open-source software (OSS) isbecoming pervasive, with 85 percent ofcompanies surveyed currently using OSS intheir enterprises and the remaining 15percent expecting to in the next 12 months,according to Gartner, Inc.”
Gartner Newsroom, 17 November, 2008
![Page 3: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/3.jpg)
GNU/Linux is poised to become a 50 billiondollar ecosystem by 2011.
Linux Foundation
![Page 4: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/4.jpg)
What is Free Software?
Free as in Freedom!
1. use
2. study
3. share
4. improve
![Page 5: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/5.jpg)
What is Free Software?
Free as in Freedom!
1. use
2. study
3. share
4. improve
![Page 6: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/6.jpg)
What is Free Software?
Free as in Freedom!
1. use
2. study
3. share
4. improve
![Page 7: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/7.jpg)
What is Free Software?
Free as in Freedom!
1. use
2. study
3. share
4. improve
![Page 8: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/8.jpg)
What is Free Software?
Free as in Freedom!
1. use
2. study
3. share
4. improve
![Page 9: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/9.jpg)
How does this work?
I Software is covered by copyright
I Developer grants license
I (the right) license grants you Freedom
![Page 10: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/10.jpg)
Commercial?
I Those who claim that Free Software is non-commercialI a) don’t know what they’re talking aboutI b) want to sell you non-Free softwareI c) both.
![Page 11: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/11.jpg)
Commercial?
I Those who claim that Free Software is non-commercialI a) don’t know what they’re talking aboutI b) want to sell you non-Free softwareI c) both.
![Page 12: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/12.jpg)
Commercial?
I Those who claim that Free Software is non-commercialI a) don’t know what they’re talking aboutI b) want to sell you non-Free softwareI c) both.
![Page 13: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/13.jpg)
Commercial?
I Those who claim that Free Software is non-commercialI a) don’t know what they’re talking aboutI b) want to sell you non-Free softwareI c) both.
![Page 14: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/14.jpg)
If it’s free, how can you earn money?
I Free as in freedom, not price
I Earn money in almost any way you can think of
I Software is not a business. It’s the foundation for a business.
![Page 15: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/15.jpg)
Abbildung: Red Hat at JMP Securities Annual Research Conference, May11, 2010
![Page 16: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/16.jpg)
Abbildung: Press release of German LinuxVerband, Dec. 17, 2009
![Page 17: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/17.jpg)
Free Software and innovation
I Monopolies (copyright, patents) act as a tax on innovation
I Free Software = tax-free innovation
I Study: Free Software saves European industry 36% on R&D1
1Ghosh et al.: FLOSSImpact (2006), 11
![Page 18: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/18.jpg)
Competition and cooperation
I Businesses can cooperate and compete at the same time
I Copyleft secures investment
I Working together to improve common platform
![Page 19: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/19.jpg)
Competition and cooperation: Linux kernel
Abbildung: Top 10 contributors to 2.6.35 Linux kernel. GregKroah-Hartmann, LWN, July 14, 2010.http://lwn.net/Articles/395961/
![Page 20: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/20.jpg)
Software model: Free vs proprietary
![Page 21: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/21.jpg)
Development model: closed vs open
![Page 22: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/22.jpg)
Revenue model
![Page 23: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/23.jpg)
What about the license sales?
I Less than 20% of software revenue from proprietary packagedsoftware
I More than 80% of software revenue has nothing to do withlicense sales
I Most programmers are paid for their time, not for licenses
![Page 24: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/24.jpg)
Innovation unshackled
I Free Software removes constraints on business innovation
I Free Software enables “deep” service and support
I Free Software builds skills and keeps spending local
![Page 25: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/25.jpg)
Some business models
I Product specialist: “best knowledge here”
I Platform providers: quality, stability support
I Integrators: Customised solutions for clients
![Page 26: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/26.jpg)
Some more business models
I Training and documentation
I Compliance engineering
I Dual licensing2
2Daffara, Carlo: Our definition of OSS-based business models.http://carlodaffara.conecta.it/?p=104
![Page 27: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/27.jpg)
Those are just a few options.
![Page 28: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/28.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 29: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/29.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 30: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/30.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 31: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/31.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 32: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/32.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 33: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/33.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 34: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/34.jpg)
Choose your own way
I Do you have to give the software away? No.
I Do you have to stick to a particular license?No. (Not if it’s your own software, anyway.)But choose your license wisely.
I Do you have to contribute back?No. But there are advantages:
I Better integration with the rest of the codebaseI Influence over the project’s direction
![Page 35: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/35.jpg)
But how about selling licenses anyway?
I “Open core” is a bait-and-switch:I Distribute basic version gratisI Sell non-free license for features
I Vendor keeps benefits of Free Software for himself...
I ...while the customer doesn’t enjoy any freedom
I Watchwords: “Community / Enterprise version”
![Page 36: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/36.jpg)
Takeaways for businesspeople
I Think clearly.
I Where do you add value?
I What basis do you build upon?
I What are your constraints?
I What are your opportunities?
![Page 37: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/37.jpg)
Takeaways for businesspeople
I Think clearly.
I Where do you add value?
I What basis do you build upon?
I What are your constraints?
I What are your opportunities?
![Page 38: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/38.jpg)
Takeaways for businesspeople
I Think clearly.
I Where do you add value?
I What basis do you build upon?
I What are your constraints?
I What are your opportunities?
![Page 39: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/39.jpg)
Takeaways for businesspeople
I Think clearly.
I Where do you add value?
I What basis do you build upon?
I What are your constraints?
I What are your opportunities?
![Page 40: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/40.jpg)
Takeaways for businesspeople
I Think clearly.
I Where do you add value?
I What basis do you build upon?
I What are your constraints?
I What are your opportunities?
![Page 41: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/41.jpg)
Takeaways for businesspeople
I Think togetherI Can you cooperate with others to take on a bigger task?
I Think aheadI Governance: making your project lastI Invest in suppliers?
![Page 42: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/42.jpg)
Takeaways for policymakers
I Please don’t block the road.I Fix public procurement!
I Stick to the rulesI Ask for control: Free Software, Open StandardsI invest for the long term
I Use Free Software strategically to help new businesses togrow.
I Free up public sector software.
![Page 43: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/43.jpg)
More ideas for policymakers
I Oppose software patents.
I Be creative about regional development
I Tax credits for Free Software R&D?
![Page 44: Free Software and Business Innovation](https://reader036.vdocuments.us/reader036/viewer/2022081400/5538c85a550346592f8b4840/html5/thumbnails/44.jpg)
If you don’t do it, others will.