Digital Sustainabilityin the Knowledge Society
Free/Open Source Software (FOSS) and Business
Dr. Marcus M. DappBoard OKF Germany / IT Strategist, City Government Munich
31.10.2011
Historical »Halloween Documents«
Marked "Microsoft confidential", they identify FOSS, in particular Linux, as a major threatto Microsoft's dominance of the software industry, and suggest ways in which Microsoftcould disrupt the progress of open source software. (Source: Wikipedia)
Series of confidential Microsoft memoranda leaked in 1998/1999 on potential strategies relating to free software, opensource software, and to Linux in particular and a series of responses to these memoranda written by Eric Raymond.
Software business ischanging …FTD vom 29.10.2008
Founding IT startups...
Task: Start up the »Open™ Corporation« !
• Somehow...• Base business model on FOSS• Try to earn money with it
• Key business plan questions• Which customer needs do you address?• What is your offering? (product/service)• Who are your customers?• What is the added value they get yor their
money? 351interaction
• Distribution• Operating system• Applications
• Service Provider Many different models...
• Full service• Specialized service• Events
• Hardware• Retail
Four generic FOSS business models
Adapted from Berlecon – FLOSS Survey, part 3 (2002)
A) Distribution : Operating system
<product>Distribution – Merchandising – Support – Training – Integration Consulting
<service>
Examples for GNU/Linux: RedHat, Canonical, Novell
Value proposition: Packaging + X
Critical Success Factors/Core competencies: Brand building, distribution, marketing
Types of Offerings:• Range from standard to individual solutions
A) Distribution : Applications / ToolsEx.: mySQL, Star/OpenOffice.org, FireFox, SourceForge
Value proposition: Scheduling, professional delivery, support
Critical Success Factors/Core competencies: Software expertise, Community relationship, Hire core developers, (Dual)Licensing
Types of Offerings:• Open up older versions• Consulting, support• Duallicensing (closed and open)• Proprietary additions (»open core«)
»symbiosis« !?
B) Service Providers : Full serviceExamples: Distributors, Optaros
Value proposition: product/technology expertise
Critical Success Factors/Core competencies: leverage technical / integration knowledge for service offering
Types of Offerings:• »Everything« around product/technology• Product support in broadest sense
Technology dependence
B) Service Providers : Specialized serviceExamples: Accenture, IBM, FOSS Group
Value proposition: business process expertise, ITconsulting
Critical Success Factors/Core competencies: leverage knowledge for FOSS offering
Types of Offerings:• Support contracts (e.g. guaranteed reaction)• Training (direct, elearning)• General IT consulting or focus on FOSS
Demand level?
B) Service Providers : EventsExamples: openexpo.ch, LinuxTag, OSCON
Value proposition: Present »hot topics & trends«, knowledge
Critical Success Factors/Core competencies: Pick topics, event management
Types of Offerings:• Platform for community• Information for customers• PR/Marketing channel for Service Providers
Who pays?
C) HardwareExamples: OLPC, openmoko, some Android phones, »Freedom Box«
Value proposition: »free/open hardware«
Critical Success Factors/Core competencies: community relationship, HW/SW combo
Types of Offerings:• Hardware• Software sharing platform• Support
D) RetailExamples: O’Reilly, CNET, heise, (publisher, bookshops)
Value proposition: Specialized sales channel for products
Critical Success Factors/Core competencies: (Mass) market access, retail chain brand
Types of Offerings:• Software packages• Books, Tutorials, Videos, etc.• Merchandise articles
FOSSbased business models
• Absence of royalty fees stillleaves options to earn money
• Many experiments are ongoing...
Check out our groups this year!
#1 Offenes Cloud Computing#6 Freedom Box#7 diaspora – Freie Alternative zu Facebook?#15 Geld verdienen mit FOSS
Nach der Pause
Unser Gast, Georg Greve, stellt einreales FOSS Business vor:
KoLab Systems AG