this isn't richard stallman's open source anymore

Copyright (c) 2009-2016 by Data Geekery GmbH. Slides licensed under CC BY SA 3.0

The Business of Open Source

This isn’t Richard Stallman’s Open Source anymore


Stallman doesn’t strictly like “Open Source”

(who noticed the flaw in the title?)


Me – @lukaseder

Open Source is free. Beer.

- Founder and CEO at Data Geekery

- Oracle Java Champion

- JUG.ch Board Member


Why do I talk about Open Source?

Data Geekery is a (dual-licensed) Open Source Software vendor.

Check out our products: http://www.jooq.org/products

http://www.jooq.org/products



Let’s say, I have an opinion about

Open Source



(yeah, who doesn’t)



I also like gifs



Please relax 😃

(don’t get too 😡 about this topic)


If OSS were translated to car manufacturing


What is Open Source?

Who in here is using OSS?



Everyone! 😍



Who in here contributes to OSS?



Some of you 😐



Who in here contributes

significantly to OSS?


What is Open Source? – This:

Open-source software (OSS) is computer software with its source code made available with a license in which the copyright holder provides the rights to study, change, and distribute the software to anyone and for any purpose

https://en.wikipedia.org/wiki/Open-source_software

https://en.wikipedia.org/wiki/Computer_software

https://en.wikipedia.org/wiki/Source_code

https://en.wikipedia.org/wiki/Open-source_license

https://en.wikipedia.org/wiki/Copyright



What is Open Source? – This:

Free as in freedom(or «libre»)


What is Open Source? – But also this:

A report by the Standish Group (from 2008) states that adoption of open-source software models has resulted in savings of about $60 billion per year to consumers.


https://en.wikipedia.org/wiki/Standish_Group




Free as in beer(or «gratis»)



In other words, Oracle, Microsoft, IBM, etc. lose $60 bn / year


In fact, it’s not that bad

Article by Peter Levine: https://techcrunch.com/2014/02/13/please-dont-tell-me-you-want-to-be-the-next-red-hat/

https://techcrunch.com/2014/02/13/please-dont-tell-me-you-want-to-be-the-next-red-hat/


Short History of Open Source – FSM / GNU

1983: Free Software Movement and GNU



Goal:

Software should be free as in «freedom»



Freedom to...

1. Run the program for any purpose

2. Study the program, change it in any way

3. Redistribute copies

4. Distribute copies of modified versions



Context

1. Software was extremely expensive

2. Software was «unavailable»

3. So was hardware

4. Small vendors had a hard time in business



Freedom is obviously a highly ideological concept, not necessarily something that adds immediate «business value»


Short History of Open Source – OSI / Netscape

1998: Open Source Initiative and Netscape



Idea:

Remove anti-commercial touch from «free» software



Make source code available with relaxed (or no) restrictions on the use and modification of the code.

«Freedom» is opt-in, kinda



Modern example

(because defaults to «all rights reserved»)



Goal:

Rapid evolution of software.


What about consumers?

But:

Do consumers even care?


Which product do you use?

Good enough (for devs)



I did these with Gimp for /r/photoshopbattles

https://www.reddit.com/r/photoshopbattles



Much much better



No clear winner



Much better for end users



Much better for operations



???

No real competitor


It’s not about the license

Fact is:

Sometimes you prefer OSS, sometimes you prefer proprietary software



Fact is:

End users don’t care at allabout software licensing (this includes most devs)



Have you ever observed a geeky friend try to explain the miracles of free software to a non-geeky friend?


In the end, Open Source boils down to…

Consumers want:

- High value

- Low price

Duh, right?


In the end, Open Source boils down to…

Open source is

- High value (it depends)

- Low price (at least initially)


Why does any vendor participate in Open Source

Vendors want:

- Just enough value

- High price

Duh, right?



So, why do vendors engage in Open Source?



Free as in freedom?



Free as in beer?



Wikipedia OSS Business Models

https://en.wikipedia.org/wiki/Business_models_for_open-source_software

1 Dual-licensing2 Selling professional services3 Selling of branded merchandise4 Selling of certificates and trademark use5 Selling software as a service6 Partnership with funding organizations7 Voluntary donations8 Bounty driven development9 Pre-order/crowdfunding/reverse-

bounty model10 Advertising-supported software11 Selling of optional proprietary extensions12 Selling of required proprietary parts of a software product13 Re-licensing under a proprietary license14 Obfuscation of source code15 Delayed open-sourcing

https://en.wikipedia.org/wiki/Business_models_for_open-source_software

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Dual-licensing

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Selling_professional_services

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Selling_of_branded_merchandise

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Selling_of_certificates_and_trademark_use

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Selling_software_as_a_service

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Partnership_with_funding_organizations

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Voluntary_donations

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Bounty_driven_development

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Pre-order.2Fcrowdfunding.2Freverse-bounty_model

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Advertising-supported_software

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Selling_of_optional_proprietary_extensions

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Selling_of_required_proprietary_parts_of_a_software_product

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Re-licensing_under_a_proprietary_license

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Obfuscation_of_source_code

https://en.wikipedia.org/wiki/Business_models_for_open-source_software#Delayed_open-sourcing



All of these «models» set Open Source as the prerequesite.

And now, how to make money??

🤔



However, companies want to make money first.

And perhaps, they choose Open Source. For a reason.

🤑


Here’s an OSS “Vendor”


Here’s an OSS “Vendor”

Netflix doesn’t make money with software.

But thanks to their «coolness», they got free labour from the

market


Here’s another OSS “Vendor”



Microsoft, Open Source?



By 2020 "Cloud Shift" Will Affect More Than $1 Trillion in IT Spending

- Gartner



Open Source may just be the only chance Microsoft has left to catch up.

- me


Magic Quadrant for Cloud IaaS - Gartner

Source: Gartner (August 2016)


Some economic theory

Complementary good

• http://www.joelonsoftware.com/articles/StrategyLetterV.html

• https://en.wikipedia.org/wiki/Complementary_good

https://en.wikipedia.org/wiki/Complementary_good

https://en.wikipedia.org/wiki/Complementary_good



Reasons for vendors to choose OSS:

1. Commoditisation

2. Fast market adoption



Us, for instance...

Trying to enter the ORM market that is saturated in 2009...

Very hard without OSS licensing


Here’s a third OSS Vendor

VMWare puts free infrastructure software into every enterprise Java shop in the hopes of following up with sales for “the real business”.


Here’s a fourth OSS “Vendor”

We don't have to fight open source, we have to exploit open source.

- Larry Ellison


Other examples

Well, where did youthink OSS comes

from?



¯\_(シ)_/¯

Image credit: https://www.flickr.com/photos/tomaisashdene/8686481567 By Tomais Ashdene. License CC-BY 2.0

https://www.flickr.com/photos/tomaisashdene/8686481567



Where do you think OSS comes from?


Conclusions from the node.js / leftpad disaster

We’re the only industry who doesn’t seem to care about supply chain management!


Conclusion

There is no such thing as free software

(vendors provide stuff for free for a reason)


Conclusion

Yet, Open Source is inevitable

(vendors commoditise software for many reasons)


Conclusion

Conclusion

1. Continue consuming OSS.

2. Contribute if you want but no hard feelings if you don’t.

3. Just beware: You’re the product. Know why vendors give you free stuff. Stay in control of your supply chain.


Thank youAnd come see my 2nd talk at 13:00

10 SQL Tricks that You Didn't Think Were Possible

Coordinates• Blog: http://blog.jooq.org (excellent Java SQL content)

• Twitter: @JavaOOQ / @lukaseder (lame jokes)

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