how to get rich and save the world with open source - keynote osgeo.nl day

How to get Rich and

Save The Planet with

Open SourceJust van den Broecke - OSGeo.nl Day - Velp (NL)

[email protected] - June 28, 20121

Good morning ! Yesss, our own very first OSGeo.nl Day has started! I hope you will enjoy it. This keynote is in English as we have international guests for this plenary. (Excuse me for my American accent but I worked a long time for a US company. Just in case you were thinking I wanted to sound as a businessman)

mailto:[email protected]


Sponsor

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Again a word of thanks to our sponsor WebMapper.

Independent Open Source Geospatial Professional

www.justobjects.nl

About Me

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My name is Just van den Broecke. My daily work is being hired as a consultant/architect/developer in various open source geospatial projects (like PDOK). I try to combine this with developing Open Source software myself. You can checkout some stuff via my website.(BTW and I am not rich as some suggested. Ok, richness is a relative measure plus there are various forms of richness.)I also will often use the term Free and Open Source for Geospatial (FOSS4G).

http://www.justobjects.nl

http://www.justobjects.nl

Member of the

OpenGeoGroep (NL)

www.opengeogroep.nl

About Me4

With the OGG we have a group of companies doing support/development services for FOSS4G.

http://www.opengeogroep.nl

http://www.opengeogroep.nl

Trailblazer “kwartiermaker”

for the OSGeo Dutch Language Local

Chapter

About Me5

But my role here today is as I call it trailblazer for OSGeo.nl the Dutch Chapter of OSGeo. I will tell you more about OSGeo and OSgeo.nl later.

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I like hiking a lot.

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I combine hobby and work, actually this how I entered the geospatial domain initially: recording tracks with GPS and upload them with pictures and videos to

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my favorite pet-project GeoRambling but also to OpenStreetMap. So there is our conference neighborhood. If you have a chance: explore it! (Also I wanted to show at least one map; this is a GIS conference after all).

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Often I hike with friends I know from kindergarden.

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Each year we do a one week hiking trip somewhere in Europe.

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So we were for example in Scotland.

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and last month May walking the Hermannsweg in Germany.

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During that hike I was pondering about a subject for this keynote. I should say that my friends are not in IT. But now and then I try to explain them my work in FOSS. Usually I talk about the technical stuff I know: maps, GPS, coordinates etc. I always remain vague and fuzzy about the business side of FOSS in general. So what sticks with them is that we in FOSS...

Create Software&

Give Away for Free

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This is what they don’t get. They see that billions can be earned and they tease me with this.

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Like pointing at this guy

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Or even this guy (some of my friends got rich from stocks).

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and since I’m an Apple user off course this guy. May he rest in peace.

From: Paul Ramsey - FOSS4G Keynote 2009 http://blog.cleverelephant.ca/2009/10/foss4g-2009-keynote.html

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I guess those of you in Open Source had to explain this to family, friends and colleagues. Paul Ramsey raises and answers that question in a very entertaining and deep way during his Keynote. I will not repeat what Paul has said, since he does this far far better than me. Paul is from OSGeo btw. I recommend watching his keynote..

So since I am mostly giving technical talks I wanted to force myself this time to talk about open source and money/business. If only to understand & expand my own activities. I wanted to explore if there is some kind of overall framework/structure that could possibly inspire also you to enter new niches in the FOSS4G market.

http://blog.cleverelephant.ca/2009/10/foss4g-2009-keynote.html

http://blog.cleverelephant.ca/2009/10/foss4g-2009-keynote.html

How to get Rich and


Open Source

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So I challenged myself by raising the bar a bit and also do some good for the planet at the same time.So today I would like to share with you what I found out. So sit back and relax.(If the talk would have been called “Business Models in Open Source” it would not raise this crowd I guess).

How to Earn Money with

Open Source

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Before we get rich we at least need to start with earning money...

Open Sourceis not a

Business Model

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I used to say : “I do Open Source”. But without even putting a reference here, we all know that Open Source is a development model and not a business model. Hmm.

“Ideals and Concepts by itself will not sell a

Product”

http://worldisgreen.com/2008/10/17/open-source-and-sustainability-what-do-they-have-in-common/

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This is painfully true...from the ref: ”Customers do not buy products/services for their ideals but for the value they provide to their business.”



Open SourceBusiness Tactics

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But there are off course multiple what one could call “Business Tactics” around Open Source.

http://www.cascadoss.eu

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I remembered having this report still on my computer. Read through it once quickly but what stuck was that it presented a visual framework that was easy to understand for tech-nerds like me. Here’s the reference, you can download it as a PDF from the net.



The Architecture of

Value Creation

From: CASCADOSS Del. 1.5 KULeuven

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Aha architecture, this is something I can relate to as a developer.

The steps that turn inputs into value-added output

Value-Chain


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Yes! Transforming input into output, that is what programming is also about.

CASCADOSS: Model of Berlecon Research (2002)

Software Value-Chain

From: CASCADOSS Del. 1.5 KULeuvenwww.berlecon.de/studien/downloads/200207FLOSS_Basics.pdf

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The SVC was taken from an earlier study from Berlecon als available on the net. But I will lead you through the essentials.

http://www.berlecon.de/studien/downloads/200207FLOSS_Basics.pdf

http://www.berlecon.de/studien/downloads/200207FLOSS_Basics.pdf

Software Value Chain


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Each step adds value. Note: I am not talking about value in terms of money, just value, for example for a customer.“The steps in this value-chain are:-Software development: analysis, design, programming and testing of the software.-Documentation: writing documentation (API documentation, Reference Manual, User Guides, Tutorials, Howto's, FAQs, ...)-Software packaging: creating a user-friendly package of the software; bundling the software with other packages.-Marketing/sales: marketing the software, closing sales, promoting wide-spread adoption, distribution.-Consulting: providing consultancy with respect to the software. -Integration/custom development: Integrating the software in the client's systems,customizing it for user-specific needs-Training: training in the use or customization of the software-Support: end-user support (telephone, e-mail), installation and update support, bug fixing-Application management: operational management of the client's applications based on the software.”This chain is really no different than a value-chain for proprietary software. “Revenue-generating activities in the value chain such as training, support and consultancy remain unaffected.” No business model yet here. Business models/tactics are basically one or more slices where you want to intercept in this chain. Let’s look at a few of them.


Development


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Development Documentation


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Development PackagingDocumentation


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Development PackagingDocumentation Marketing/Sales


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Consulting


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Consulting Integration


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Consulting TrainingIntegration


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Consulting TrainingIntegration Support


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Consulting TrainingIntegration SupportApplicationManagement


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Model 1: Dual-Licensing




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We start easy: The Dual Licensing Model. “In the dual-licensing model, the software product is available under two different licenses:- a reciprocal open source license that obligates customers to release their own products also under the reciprocal license if they include the product as part of their own software products.- a commercial license that releases the user from his obligation to release under a reciprocal license.In short: either the customer reciprocates by contributing to the software commons or he pays the developers.”



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So where’s the money earned here?



Licensing Feesfor

Commercial Licenses

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Simple: in license fees. (It is up to you for any judgement.)



ExtJS - JavaScript Lib

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Here’s some products that do Dual Licensing. MySQL is probably the best known. ExtJS/Sencha is a (powerful) GUI component used in various webclients like the GeoExt JavaScript client. ExtJS is also used in the new Flamingo webclient presented next.

Model 2: Support Seller




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“In this model the company that creates a F/OSS product offers support services to users of the product. The model is based on the premiss that the creators of a software are the best suited to provide support because they are the creators.”



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Support Packages:

SLAs

Fixed Price Support Subscription

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“Standardized support packages are offered as an SLA or support subscription for a fixed price on a (typically) yearly basis. This last model is the most important”



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Could be also a third-party, i.e. not the company that is the creator of the FOSS product.

Model 3: Platform Provider

Development PackagingDocumentationMarketing/

Sales



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“The company bundles several F/OSS products into a complete solution or platform. The company provides quality-assurances that the selected products work together. ...This model is usually combined with the (Third-Party) Support Seller Model. First, because it is far easier to support and bug-fix a complete solution (platform) as it implies greater control over the operating environment. Secondly, the value proposition is enhanced for the customer if he can source the platform and related support services for the same supplier.”



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License Fee

usually combined with

Support Seller


39“Usually a license fee. However, the business model is mostly combined with a support seller model. In that case, the license fee will cover access to support services together with the bundled product.”



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Model 4: Consulting




41“The company provides consulting and customization services with respect to a range of F/OSS products. This model is certainly the most widely adopted model.”


Model 4: Consulting

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Consulting Services (p/hour)Fixed Price Custom Development

Model 4: Consulting

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“Services are usually sold on a time & means basis. Custom developments are often contracted on a fixed price basis.”


Model 4: Consulting

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Many of you. Also means competition. This is good for customers. But you may also want to think to get into one of the other models that may be more niche...

Model 5: Accessorizing




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“The company sells physical accessories to F/OSS products. Most important of these are technical books and manuals.”


?


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Revenue from Book Sales

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Model 6: Software-as-a-Service




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“In this model F/OSS is used to create a web-accessible application service. Such systems are labeled �“Software as a Service�” (SaaS).”These days the buzz-word is “In The Cloud!”.


?


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Access and Usage Fees


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“Usually the customer pays a monthly fee for access to the application services.”



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“The best known company that uses this model is undoubtedly Google. “. Not yet a lot Geospatial activity. Opportunities!!! I find this one interesting since GIS is a lot about web-services and we have stable Open Source.





53So all, in all we have seen these various models intercepting this value chain. As the FOSS4G market is sort of a niche within a niche (GIS) there are still opportunities here apart from the usual Consulting. The Platform Provider and SaaS are relatively unexplored in FOSS4G, so take that with you...

..... and


Open Source

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So how are we in time ? 10 minutes left to save the planet ? Can do..

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Once we have plenty of money...

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we can donate to various charities. Don’t get me wrong here: I think that these guys are doing very good things here. It is only that we ourselves need to find alternative ways since we’re not rich yet. Let’s see what we can do...

Open Source&

Sustainability

“Duurzaamheid”

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One thing that sort of stuck into my head is the relationship between: Sustainability and Open Source. In Dutch we call this “Duurzaamheid”. There’s lots of talk about Sustainable production etc. I wanted to see if this Sustainability has been explored for FOSS. By the way when we talk about “sustainable Open Source projects” we often mean: projects that can support (sustain) themselves. This is not the sustainability as meant here.

“In the current financial crisis facing the world, both open source and

sustainability will make a great combination...”


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And here I found some beginnings, not a complete answer. Some of my thoughts here next...



Lake ecosystem: Source: Georgia Department of Natural Resources

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Usually natural ecosystems are taken as a model for forms of sustainability. Like for example aquatic ecosystems. There’s a tension between chaos and an equilibrium like entropy and energy.


Users Developers

Open Source

(OSGeo)

OpenProcesses

Open Geospatial Ecosystems

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I like this idea of ecosystems in Open Source: Users, Developers, Software tied together to produce long-term ever-increasing value that is greater than the sum of individuals and software components. Within FOSS4G the notion of Open Standards, Open Data and Crowd Sourcing also tends to make these components even better integrated. OGC standards also raise competition in performance/quality/features for similar products. Think of WMS shootouts...


Users Developers

Open Source

(OSGeo)

OpenStandards

(OGC)

OpenProcesses


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Users Developers

Open Source

(OSGeo)

OpenStandards

(OGC)

OpenData (OSM)

OpenProcesses


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Users Developers

Open Source

(OSGeo)

OpenStandards

(OGC)

OpenData (OSM)

OpenProcesses

CrowdSourcing


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http://geotux.tuxfamily.org/index.php/en/geo-blogs/item/291-comparacion-clientes-web-v6

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Even in the small you find ecosystems in open source. These are all geospatial mapping clients and their interrelations.And just as in a realworld eco-system: species arise, dominate for some time and die off. Watch the now Leaflet island in the next years....



Primary Motivation

Solve ProblemDemand-Based

Open Source Development Model

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If we look at the OS development model we find that development is usually driven by demand pull: to solve a problem.It is driven by requirements either from users or a personal “developer’s itch”.What this means is is that...

Produce Just

Enough


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The consequence is that this driving force tends to produce just enough, i.e. it is harder to produce excess. Though we have still may have off course failing projects and products. And there’s competition (MapServer vs GeoServer vs deegree), this is on a performance/quality/features’ level.

Sharing

Code SharingKnowledge Sharing


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FOSS comes down to knowledge sharing. Software is merely codified knowledge. Software builds on other software and evolves from previous software. The phrase “Standing on the shoulders of Giants” applies. So how does this relate to sustainability ?

Minimize Resources by

Sharing


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We minimize resources by sharing code and other knowledge around the code. This is a good thing! I think there is less waist. Online open communities and development environments also tend to produce e.g. less paper and do less travel.

SteppingUp

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So when doing Open Source in my opinion we are already saving the planet just a little bit. But you can get a step further.

HumanitarianMapping

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When exploring several geospatial projects related to disaster support I learned about humanitarian mapping. It appeared that this was already existing longer than I thought.

The Booth Maps of London Poverty - 1889

http://www.locallocalhistory.co.uk/municipal-housing/wedmore/part1v1/

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Already in 1889 Charles Booth mapped poverty levels of citizens within Londen by using a classification with colours. Very soon a relationship between sanity and disease was derived from this.



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In the present day we have for example the Humanitarian OpenStreetMap Team. They help in cases where humanitarian response is needed. The most striking example is Haiti. In 2010 just a few hours after the disaster mapping efforts began. Here the power of both Open Source and Open Data plus an interconnected online community helped enormously in getting started and productive.

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Another example is the Uhahidi project, also geared at mapping and crowd sourcing information in crisis situations.http://en.wikipedia.org/wiki/Ushahidi “Ushahidi, Inc. is a non-profit software company that develops free and open source software (LGPL) for information collection, visualization and interactive mapping. Ushahidi (Swahili for "testimony" or "witness") created a website (http://legacy.ushahidi.com) in the aftermath of Kenya's disputed 2007 presidential election (see 2007–2008 Kenyan crisis) that collected eyewitness reports of violence sent in by email and text-message and placed them on a Google map.[2] The organization uses the concept of crowdsourcing for social activism and public accountability, serving as an initial model for what has been coined as 'activist mapping' - the combination of social activism, citizen journalism and geospatial information. Ushahidi offers products that enable local observers to submit reports using their mobile phones or the internet, while simultaneously creating a temporal and geospatial archive of events.”

How to get Rich and


Open Source

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So I hope to have given you some pointers and that when doing Open Source you are already helping the world today...

WhereTo

Start ?

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But where to start: where do I find the right people, right geospatial software ? A place to exchange ideas ?

Join

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The answer is simple: Join OSGeo.nl if you did not already.

Open Source Geospatial Foundation

www.osgeo.org

Your Open Source Compass ...organizes geospatial IT

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But first I have to explain what OSGeo, the worldwide organization, is.

From: http://arnulf.us/Publications#2011 GIN Pres

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From: http://www.slideshare.net/justb4/osgeonl-introductie-geo-freedom-day79

http://www.slideshare.net/justb4/osgeonl-introductie-geo-freedom-day


So WhatAbout ThisOSGeo.nl ?

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MissionPromote the use and development of Open

Source geospatial software within the

Dutch language areas

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MissieStimuleren van het

gebruik en de ontwikkeling van open source software voor geo-informatie in het

Nederlandse taalgebied

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Slogan

“Wegwijs in open geo”

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ActivitiesEvents/seminars: OSGeo.nl Dag

Local initiatives “Stammtish”Space for SIGs

Coop: OSM NL OpenData NL

Do-ocracy !87

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Coach

The DreamTeam

Keynote

Technical Business & ApplicationOSGeo Open Source Seminar - Geospatial World Forum - 25 April 2012 - Amsterdam

MarketingCoach

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For WhomDevelopers

UsersStudents

Governments Industry

Aim: Rich Mixture89

ContactWeb: www.osgeo.nlEmail: [email protected]

Mailing List: [email protected]: @osgeonl #osgeonl

IRC: Freenode #osgeonl

90

http://www.osgeo.nl

http://www.osgeo.nl





Andmy

Friends ?

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So what about my friends ? At least I think I found a more structured answer. And did I get rich ? Well maybe I did not want to get rich that badly.

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At least my friends are happy since they know I am earning enough money to buy them a beer!

Thank You

Have a goodOSGeo.nl Day !

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how to get rich and save the world with open source - keynote osgeo.nl day

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