the value of open source software open analytics summit - open geo - eddie pickle march 26 2013
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OpenGeoTRANSCRIPT
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The Value of Open Source Software
Open Analytics Summit
Eddie Pickle
March 25, 2013
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who is this guy?
I’m a geo guy working for a geo software company
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As we know,
There are known knowns.
There are things we know we know.
We also know
There are known unknowns.
That is to say
We know there are some things
We do not know.
But there are also unknown unknowns,
The ones we don’t know
We don’t know.
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S#!* I don’t knowI don’t know!
S#!* I don’t knowS#!* I know
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S#!* I don’t knowI don’t know!
S#!* I don’t knowS#!* I know
S#!* I should know
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S#!* I don’t knowS#!* I know
S#!* I don’t knowI don’t knowS#!* I should know
about open source
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development search
big data nosql
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not a fad
not trendy
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trendtrend
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etc!...
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“how do you make a livingwriting free software?”
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etc!...
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flexibility
staff development
market power
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#0: technical superiority#0: technical superiority
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• fewer bugs
• more modularity
• better security
• faster release cycles
• better performance
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more developers and testersthan any one companycould possibly field
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#1: cloud readiness#1: cloud readinessscalingscalingrapid deploymentrapid deployment
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$0 capital cost
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your server
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$N per core X cores
Ouch!
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$N / instance X instances∗
Ouch!
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#2: license liability#2: license liability(lack of)(lack of)
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30 30
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10 5
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proprietary software licensesare a legal liabilitythat must be managed
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#3: flexibility#3: flexibilityheterogeneityheterogeneity
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• “flexibility” is an attribute of components–flexible components are easy
to connect and adapt
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• “heterogeneity” is an attribute of the system–heterogeneous systems use
parts from many sources
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or ?
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internal services external wms
corp
ora
te d
ata
ware
house
ArcSDE
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internal services external wms
corp
ora
te d
ata
ware
house
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internal services external wms
corp
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ata
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corporate warehouseoffline for 28 days
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DatabaseDatabase
GIS ServerGIS Server
Web FrameworkWeb Framework
Data ManagementData ManagementToolTool
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ArcSDE
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open source is a toolthat needs to be made usefulwithin the contextof existing systems
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homogeneous systems and single-vendor strategiescan be convenient
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but,lack flexibilityfor fast adaptation
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and,homogeneous systems can be susceptible to“population catastrophes”
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#4: staff development#4: staff developmentand recruitingand recruiting
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“unobvious motivationsfor adoption”
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“Contrast an open-source implementation position with a ‘defined skill set’ job…”
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“...where the first diagnostic action is to reboot the server...”
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“...and the second is to call the vendor and wait in a telephone hold queue...”
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“It is easy to understand why open-source jobs are prized.”City of Northglenn, CO
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#5: market power#5: market power
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• More and better web services are required
• Need to serve more users
• Need to store and process more data
• Have shrinking budgets
Many organizations are in a hole
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When you find yourself in one…
Stop digging!
The first law of holes
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Functionality and power
Costs
Control
Relative Value in Software Systems
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The value of software can be expressed with a simple equation, where
V = Value
F = Functionality and Power
O = Operational Costs
C = Control
Relative Value in Software Systems
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Relative Value in Software Systems
V = (F/O) * C
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How much a desired object or condition is worth relative to other objects or conditions
Value increases…As software functionality increases relative to costs
As enterprises achieve more control (market power!)
Value
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Overall software utility
Includes…– Reliability (system up-time and “buggy-ness”)– Scale (numbers of users or amounts of data) – Power (operations enabled, data or collaborators
incorporated into applications– Etc.
Functionality and Power
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Software costs include…– License– Maintenance– Hardware and infrastructure– Personnel costs to evaluate, test, deploy, operate and
maintain systems– Etc.
Organizational Costs
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The control an enterprise has in its options to access, use and maintain a given software system.
– Legal rights of access to the source code– Number of available suppliers and ability to influence– Access to the software over the desired length of use
• And the probability that access might be limited or revoked
Control
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Relation of C (Control) to V (Value)*
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Binary log function is postulated as model
*No Control = ? Value
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• (Un)reliability
• Un-hackability
• Agency
• Lock-in
• Network Externalities
Harms of Closed Source
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Evolution of Open Source
Give users control
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1. Build out functionality
V = (F/O) * C
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2. Lower costs
V = (F/O) * C
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3. Increase Control
V = (F/O) * C
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• Ability to choose – Alternative suppliers
– Bring in-house
• IP rights– Right to modify
– Right to determine end of life
• Right to work on your schedule• If you don’t have these, you have no Control
– And that will cost you
Elements of Control
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How does changing Control affect Value?
It’s just math…
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Control can affect Functional Power
V = (F * C) * 1/O
V = (F * 1) * 1/O
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Assume C = 1 for two alternatives
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Control can affect Functional Power
V = (F * C) * 1/O
V = (F * 1/2) * 1/O
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Assume C = 1/2 for one alternative
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Control can affect Costs
V = (1/O * C) * F
V = (1/O * 1) * F
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Assume C = 1 for two alternatives
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Control can affect Costs
V = ((1/O)*C) * F
V = ((1/O)*(1/2)) * F
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Assume C = 1/2 for one alternative
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Closed SourceUnsupported Open
SourceCommercial Open Source
(OpenGeo Suite, etc.)
Functional Power, F
Medium highStrong Functionality offset by lower reliability and scalability
MediumReliable and scalable.
Medium highHigh reliability and scalability. Expanding functionality
Operational Costs, O
HighSoftware license costs + Maintenance costs + high Infrastructure costs due to poor scalability.
MediumNo software license costs, but all maintenance costs are left to users. Good Scalability resulting in lower scalability costs.
LowNo software license costs. Expert support lowers Maintenance costs, and strong scalability lowers infrastructure costs.
Control, C LowClosed source leads to asymmetrical relations with customers and lowers customer control and choice
MediumOffers a solid alternative to closed source. Do it yourself, or hire as needed.
HighAdds to control and choice by creating an excellent third option for enterprises, the ability to modify on your own and/or have access to OpenGeo resources.
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Value Comparisons
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Closed Source
Unsupported Open Source
Commercial Open Source (OpenGeo
Suite)
Functional Power, F Medium high Medium Medium high
Operational Costs, O
High Medium Low
Control, C Low Medium High
Relative Position on V = F/O * C
Medium Low Medium High
Comparing Value for Software Alternatives
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• Over time measures of relative value will shift
• The primary fields of contention would seem to be Functional Power and Organizational Costs
• The role of Control is central
Questions and Observations
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• Both open and closed source software may continue to increase in Functional Power, but the lead held by closed source is likely to shrink
• It is likely that closed source providers will simply lower price– They will be “borrowing” against future functionality (i.e.
today’s discount = tomorrow’s reduced capability)– They will look to maintain Control as that is the long term
lever towards shifting Value their way
Questions and Observations
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clou
d re
adin
ess
licen
se li
abili
ties
flexibility
staff development
market power
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http://opengeo.org
Email me at:
Eddie Pickle
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