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Sustainable Financing of Open
Source - an insider's view
2/17
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Agenda
About me and XWiki
The objective
Usual Open Source business models
Some problems
Novel business models
XWiki's approach
What could the community do ?
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3/17
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me
10 years running XWiki
Passionate about Open Source
Technical innovation
Openness needed for more
equality
XWiki
Collaborative platform
Competitive market
Innovative (not a me too)
LGPL Licence
100% Open Source
1,3M revenue / year (2014)
About me and XWiki
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4/17
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The objective
Creating Open Source
Building a competitive solution
Being an healthy Business
Sustainable in the long term
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5/17
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Usual business models
Foundations: Multiple Companies collaborating on core, differentiate on
binaries and distributions (linux, android, eclipse, drupal)
Singular: One Company mainly drives the software, differentiate with add-ons
Double licensing
Open Core
Service: Companies collaborate doing services on Open Source software.
"Take the Money and run" (sell to investors).
Sometimes the models are mixed
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6/17
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Is it sustainable ?
Foundations: yes but works only for very large projects, smaller projects lackdriving
Singular: many companies use investors, close significant part of productsWe get code but no community
Service: contributions can be very low, product lacks driving
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7/17
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The investors issue
Investors want more control (monetization)
Projects are open core, or double licensed
Contributors don't have control
Uncertainty hinders contribution
Example: MySQL -> forked as a smaller company
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8/17
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The "Fully Open Source" issue
Users like "free", would like everything free
Services scale less
Partners do not contribute enough
Prisoner's dilemma
Tougher to be a healthy business
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9/17
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Novel business models: Moodle HQ
Controls the brand and the distribution
Certifies partners and licenses the brand
Partners give 10% of their revenue
60 partners
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10/17
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Novel business models: Piwik
Separate R&D from Service company using the brand
R&D done in New Zealand
Cloud and Support services run from Poland
Piwik.com pays fees to Piwik.org
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11/17
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XWiki's Approach
Commitment to Open Source
We want to produce a lot of Open Source code
Sells Services and Support
50% more cost for services for clients without "support contracts"
Cloud offer (tough)
Promises reversibility (you can have the best tool without us)
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12/17
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XWiki's Approach: how did we finance ?
Margin of services
Research projects
Clients paying new features
Contributions
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13/17
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Models we look at
XWiki Collaboration Suite package distribution
App Store monetization
Interested in the Moodle model
Tougher license
Crowdfunding
Challenge: competition from companies not contributingChallenge: maximum distribution vs monetization
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14/17
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What could the community do ?
Users look at who does R&D when buying services
More collaboration between companies to fund R&D
More contributors from service companies
Commitment to Open Source from Singular projects (Manifestos)
How to punish commercial "free-riders" ?
Way to differentiate "good players" (Labels ?)
More projects using Moodle's model ?
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15/17
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Q&A
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