wso2con asia 2016: new it business models and open source middleware economic value
TRANSCRIPT
WhyuseOpenSource?
• Buildanecho-systemaroundproductsandservices• GrowyourusercommuniDes• Costadvantage…• Qualityadvantage!
CostvsOtherBenefits
• MostassumeOSStobecheap• Itisnotjustaboutfinancialvalue• Culture
– IswhatOSSisallabout– Communitydrivenwithrespectandethicsbeingthecorner
stones• Resultsinqualityandsecurityaspects• FosterinnovaDon
OpenSourceasengineeringprocess
• ModelforeffecDvemassively-distributedcollaboraDon
• LeveragesextensivebaseplaWormoftechnologies• WriJenwithsharingandreusabilityasfundamentals• Slashesfeedbackcycle(beJerfit)• Acceleratesreleasecycle(fasterevoluDon)• Crowd-sourcedqualitycontrol(manyeyeballs
improvessecurity)
OpenSourceasanOrganizaDonalModel
• Convergenceofthetechnicalproblem–fit,quality,support
• Breaksdownsiloeddepartmentthinking• InsDllssharedresponsibilityforsaDsfacDon–enabled
flaJerorgstructures• DistributedgovernanceandmeritocracypracDces
propagatethroughoutthebusiness
EconomicValueofOSS
LaborEconomics
• ResulDngfrompersonalgraDficaDonandreputaDon
Directcostsavings
• Improvedpricingflexibility
Efficiency
• Technically• Strategically• Socially
Controlovercost
• Gettherightandquickresponses
OpenSourceasaCustomerValue
• EaseofAdopDon- Permission-less,foranypurpose- Amenabletoprototyping,failing-fast,iteraDng,evolving- Fullytransparent- Standardlegalterms(minimizereviewburden)- Transcendscorporatehistoryandstability(escrow)
• CosteffecDve- DramaDcdownwardpressureonprices- AllowsDme/moneytradeoffs
ITSoluDons
Services
SoKware
Hardware
• Whathaveyougottopayfor?
• OSSdrivesdownsoKwarecosts– Loweroverallprojectcost
ValueProposiDon
• SincesoKwarecostsgodownwithOSS– Moreroomforservices– CanprovidebeJerqualityservices– Morevaluetothewholeproject
• FasterROI• BroadervalueproposiDon
IntegratedStacks
• SavesintegraDonDmeandcomponentcostswhenOSSused
• ReplacesomepartswithOSSifnotalltolowerthetotalcost
• WhenyousellthesoluDontootherBUsthedemandcanriseifyourpriceislow– PutsmorepricesensiDvecustomerswithinreach
• QualityofOSS– SaDsfiedcustomers
LowerLearning/TrainingCosts
OSSAvailabilityAdvantage
Downloadandplay
Exploreandinnovate
aroundusage
Communitytohelp
Contributeback
OpportuniDes
• Breakthebarriertoentry– Tryoutthenewprojects/pilotprojectswithOSSforfree
• Moveonorthrowawaydecisionbasedonsuccess• Riskislessevenifyoufail
– Provision,maintenanceandsupportwillcost• butlater• whentheprojectisupandrunning
OpenSourceasaRelaDonshipEqualizer
• Technologybecomesasharedresource–contribuDon,parDcipaDon,evoluDon
• ReducesinformaDonasymmetry,cutsoutthemiddleman
• EncouragescollaboraDon,educaDon• MaintainconstantdemonstraDonofclearand
presentvalue(thelock-inproblem)
OpenSourceasaRecruiDngVehicle
• AJractsandretainstoptalent• WidelyusedineducaDonalinsDtuDonsandresearch
projects• Extendscommunitybeyondcorporateboundaries
ContributeandInfluence
CommiJers
Contributors
Users Benefits• Fasterfixes• Strategyalignment• EmployeeaJracDveness
• Visibilityinthecommunity
OpenSourceasaBrand
• “OpenSource”brandisonparwithestablishedbrands(IBM,Oracle)
• IntroducesawaveofdisrupDonforinnovaDvevendors
• BrandstrengthreflectedbyapreferenceforOSSinmanykindsoforganizaDons(private,governmental,non-profit)
OpenSourceisbecoming“thedefault”
FutureofOpenSourceSurvey2015:• 78%ofrespondentssaidtheircompaniesrunpartorallof
itsoperaDonsonOSS• 66%saidtheytakeanopensource-firstapproachto
soKware• 64%ofcompaniescurrentlyparDcipateinopensource
projects• 55%believeopensourcedeliverssuperiorsecurity
comparedtoproprietarysoluDonshJps://www.blackducksoKware.com/resources/webinar/2015-future-open-source-survey-results
Whatarecustomersdoing?
• DevelopingOSSPolicies– Don’tprecludeOSS–itmaybethebestoronlysoluDon– IncludeOSSinevaluaDonmatrix– EstablishapreferenceforOS– MandateOSS– ContributetoOSS
• DevelopatransiDonstrategy– AllnewprojectsonOSS
• WorkwithvendorsinacollaboraDvewaythroughoutaproject–architecture,development,deployment