how to get rich by working on open source project? · how to get rich by working on open source...
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How to Get Rich By Working on Open Source Project?
Radovan SemančíkMarch 2015
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How to get rich by working on open source project?
Management Summary: It's hard. And slow. But it may be possible.
MAKE MONEY FAST
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Who am I?
How dare you to talk about open source and money?
Ing. Radovan Semančík, PhD.Software architect
15+ years professional experiencealmost 20 years with open sourceco-founder and co-owner:engineer (not manager)
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But how dare you … ?
Open source identity management company
Yes, we really do only open source.Yes, we have our own product: midPoint Established in 2011 (but the history goes back to 1990s)Based in Slovakia (Central Europe)
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IdentityRepository
HR
Application
Application
Application
Application
AM
ProvisioningSystem
Users
CRMApplication
midPoint
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Where we are?
● State-of-the-art technology
● Great team
● Customers: Europe, Asia, America, Africa
● Paying our bills
● Not rich (yet)
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I want to start my own company, what should I do?
Big problem: money
Idea is not the problem.Ideas are everywhere and they are free.
Technology is hard, but you can do it.How to pay salaries and bills? (min 2 years)
Money, money, money ...
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Your options ...
Option 1:Venture Capital
Option 2:Self-funding
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Investment option 1: Exponentiala.k.a “startup”
Angel investors, Venture capital (VC)Use money that belongs to others
Profit by growing the company and selling it(exit - investment = profit)
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Time
Value
Angel
VC Round A
VC Round B
IPOoracquisition
1
10
100
Investor exit
Your exit
year 1
min 2-5 years
year 2-3
year 4-6
Legend
Your money
Not your money
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Option 1 Benefits
● You can get really rich
… and that's it
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Option 1 Drawbacks
● You must have potential to grow 10x
● … in less than 3 years
● if you don't have such potential
then don't even try
(1)
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Option 1 Drawbacks
● Less technology, more business & marketing
● You will retain only 2-20% of your company• Did you really think someone just gives you few millions?
● Only 1 in 10 startups succeed
(2)
Yourshare
Not yourshare
SUCCESS SURVIVE SURVIVE FAIL FAIL
FAIL FAIL FAIL FAIL FAIL
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Option 1: What is it good for?
● Bubbles (obviously)
• Lot of marketing, no technology
• sell it before it bursts
● Ingenious business ideas• … carefully planned and cleverly executed
• at the right time … with a lot of luck ...
• (but these are quite rare)
● Not entirely suitable for open source
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Investment option 2: Linear
Use your own money (self-funded)Invest only the money that you earn
Profit by earning money(income - expenses = profit)
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Time
Value
Break even
year 1
year 3-8
Legend
Your money
Not your money
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Option 2: Benefits
● You are free (as money permit)• You stay in control
● Most money will go to technology• You can create something really great
• But you must do some marketing & business anyway
• And there will be much less total money as with option 1
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Option 2: Drawbacks
● Chances of success are unknown• which may be even worse than 10%
● Return of investment may be (very) long
● You will be poor* for next 5-10 years
● Very slow• You need to work on the idea may years before its time
* not starving, but definitely not rich
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Option 2: What is it good for?
● Ingenious technological ideas• Things that can change the world but there is no clear business
case for them
● Good for open source• But you have to live with the drawbacks
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Option 1 vs Option 2
● Option 1: VC-funding• You may get (really) rich
• You may create (really) bad technology (if any at all)
● Option 2: self-funding• You can create (really) great technology
• You may barely survive
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Option 1 vs Option 2
Venture CapitalYou can get richMarketing
Self-fundedYou can surviveTechnology
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So, what do you really want?
● Make money?• Do business, forget technology
● Make a difference?• Survive (and maybe even prosper)
• … but your chances to get really rich are small
● You will have to risk a lot anyway
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Notes and disclaimers
● This is simplified
● Your mileage may vary
● Real companies are hybrids• Both approaches are combined to some degree
• E.g. “Friends, Family & Fools” (FFF) investment
● But you have to choose whether you let VC in• if you do then it is all decided
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Tips & Trick
● Focus on the world• Your local market is simply too small
● Release early, release often• Keep everything open (code, bugs, documentation)
● Eat your own dogfood• Deploy and use your own product (source of profit)
● Give company shares to employees
● Cooperate, find partners
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Go for it!
… now
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The End
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Questions and Answers
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Radovan Semančík
www.evolveum.com
Thank You
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Details! Tell me the details!
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Evolveum Team History
2000
2004
2010
LDAP, networking, integration,open source
Identity Management, provisioning,open source
Cooperation with ForgeRock(OpenIDM)
Sun goes down
2011
MidPointIndependent development
MidPointOpen source IDM leader2014
Sun IDM, Novell
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Live Demo
http://demo.evolveum.com/Documentation: search for “Live demo” in wiki.evolveum.com
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(Much) More Information
● midPoint Wiki• https://wiki.evolveum.com/display/midPoint/Home
● Architecture and Design (in Wiki)• Wiki pages under [Architecture and Design] page
• “Live” architecture documentation
• Includes UML diagrams
• We try to keep it (reasonably) up to date
● midPoint Mailing List