OK, YOU GOT AGILE?

HOW DOES THAT BECOME A PRODUCT?

@zehicle on Open Source for Fun & Profit

Agile Manifesto

People over process > http://agilemanifesto.org/

Individuals and interactions  over processes and tools

Working software  over comprehensive documentation

Customer collaboration  over contract negotiation

Responding to change  over following a plan

Open Source

Profit? Free in Open Source is NOT about revenue

It’s about fair use, not profit Create Value!

Customers expect to pay for value Support & Validation are value Voice in the community is value

No product is instant: $ from Sustaining Open Source License Models

Copy Left vs Copy Right Legal matters: IP protection, liability limits Know your model

GPL – requires you to pay it back into the community Apache – “business friendly” because you don’t have to share MIT – “over the fence” with minimal impacts

Lean + Agile

Lean is a Manufacturing Process Goldratt: The Goal Ries: Lean Startup Kim: Phoenix Project

Ideas are Inventory <- this is POWERFULIterative Learning!

Work in Pivots Selling validates concepts Vision is not the same as a commitment (interlocking =

risk) DON’T skip strategy chasing profit You are NOT in as big a rush as you think

Process, Culture & Open Source

Culture mattersDoing is doing

Lean is about learning Low inventory = agility Inertia is your friend: get moving Inertia is your enemy: don’t coast

Leave Room for Collaboration Be flexible Get feedback fast Good ideas survive

Deliver

Learn

Measure / Commit

Alternatives / Collaborate

Accept Unknowns / Trust

When Agile/Lean Fails

Mismatch w/ larger processTrust challenges Feedback missingBeing too tactical – leave room for strategy!Technical Debt not being paidMismatched risk toleranceInability to delivery iterativelyUnwillingness to collaborate with customers

Value of Open Source

Customers Supply chain transparency Cost – generally it’s comparable BUT multi-vendor Quality – yes, actually higher Pace of innovation – much faster

Vendors Support Contracts Consulting Engagements Update / Subscription Sales Accelerate Primary Product (e.g.: Linux sells Servers)

Risks for Open Source

Risks Picking a project that dies Lacking expertise to be successful Loss of control of the project

Mitigations Adopt slowly Purchase from established companies Build expertise if capability is core

Force Multipliers More engaged technologists Better able to adapt to your business

Why Open Source works for Vendors

ControlDirect Feedback / Customer InteractionDefect detection / correctionPerception of leadershipPace of Innovation / VelocitySupply Chain with CustomersCollaboration with PartnersCost

Driving Open Source CommunitiesDriving Open Source Communities

2/17/2014

10

Leadership requires active contribution!

Leadership creates• Design Influence• Credibility with Customers• API & Feature Advantage• Ensures compatibility

Using without Leading: Stuck with others designs Get advanced features late Changes are disruptive

Selling without Contribution• Prone to defects• Waiting on releases• Angers community

$$$Build Customer Relationships

Contribution&

Leadership

Advantaged Ecosystem$$$

Influence APIs & Features

Needed Integration & Advanced Capabilities

Easy WayTo Influence

Hard WayTo Influence

Sales Funnel

This is Sales 101

If you want to closed deals, you need to build a pipeline of prospects. There’s a conversion ratio of losses at each stage in the funnel.

Generally, it costs $$$ to get prospects into the funnel and you only make $$$ when they exits the bottom.

You care about inbound volume, cost to acquire and conversion rate.

Sales Funnel + Open Source

Open source engagement is (one of) our sales funnels. People in our community are much more likely to become paying customers. A positive experience is essentialCommunity Download

Trial Engagement

PoC and Pilot (may be silent)

Customer Conversion

The other funnels are partners and Dell lead generation. Most of those still enter our community!

Not all Open is Collaborative

We are focused on collaborative open sourceWe want projects with diverse contributorsWe accept community input and changesWe lead by focusing on customer value

More sustainable project modelLess risk for users of the projectEasier to influence & participate

Cathedral vs. Bazaar

Books Raymond, Cathedral & Bazaar Bacon, Art of Community

Two approaches to design Strongly lead with a small visionary core Collaboratively lead with adaptive design

Linux, OpenStack & Crowbar: “bazaar style” Humility in design “all bugs are shallow” Everyone has something to contribute

Upstream, Gates, Trunk & Branch

Trunk is main place where work is being done. Trunk has all the latest stuff and changes Going off trunk is usually less stable

Gates are code reviews before code is added Multiple parties review code before it’s added to trunk We have controls and tests to ensure new code is good code

Branches (or Forks) are a split off of the main trunk may have special features or be more stable generally, work is not shared back

Upstream is giving code back to community. You take time to merge back into trunk We “pull” code into trunk from contributors

Thinking Deeply…

OpenStack and Hadoop are being much more disruptive than we expected. Why?

The benefit of open, collaborative projects is not cost! The benefit is control of deliverables and features.

If IT is essential to your business (an that is true for nearly everyone now), then open source projects give you control and visibility into your supply chain.

Open source is about supply chain management