Future of Open Source

4TH Annual Leadership Keynote

Michael Skok

Tim YeatonPresident & CEO

Larry AugustinCEO

Dries BuytaertCTO & Co-FounderJim Whitehurst

President & CEO

Michael SkokGeneral Partner

April 8, 2023 2

Agenda

DirectionApril 8, 2023 3

Industry

Investment

Industry

Investment

Direction

You!Survey!

04/08/2023 4

April 8, 2023 5

Who Took the 2010 Survey?

Record response

43520092010

551April 8, 2023 6

Survey Respondents

Vendors Non-Vendors

4 58 2%%

April 8, 2023 7

Survey Respondents Titles

Vendors Non-Vendors

April 8, 2023 8

04/08/2023 9

What You Asked For…

Which sectors are susceptible to disruption?

What are the barriers for Open Source?

What business strategies create value?

242

206

181

Agenda

DirectionApril 8, 2023 10

Industry

Investment

Industry

Investment

Direction

You!Survey!

Is a Turbulent Economy Goodor Bad for Open Source?

April 8, 2023 11

Good Bad0%

20%

40%

60%

80%

100%

2009 2010

What Makes OSS Attractive?

Lower costs

Superior security

Freedom of VENDOR Lock

Community support

Access to code libraries

Rapid pace of innovation

Freedom of DIY

Lower costs

Superior security

Freedom of VENDOR lock-in

Better quality software

Access to code libraries

Rapid pace of innovation

Freedom of DIY

200820092009

Lower costs

Superior security

Freedom of VENDOR lock-in

Better quality software

Access to code libraries

Rapid pace of innovation

Freedom of DIY

20102010

April 8, 2023 12

Drivers of OSS Tipping Point

EconomicDownturn

Public SectorAdoption

Private SectorAdoption

PastExperienceWith OSS

Other

April 8, 2023 13

April 8, 2023 14

Barriers to OSS?206

Top 3 Barriers to OSS selection

Unfamiliarity with open source solutions

Lack of internal technical skills

Lack of formal commercial vendor support

April 8, 2023 15

1

2

3

April 8, 2023 16

IMPACT of Open Source

Sectors to be Disrupted by OSS Over the Next 5 Years

April 8, 2023 17

ERP/CRMOffice Productivity

WCM/CMS/Social Software

OperatingSystems

Database

Security tools

MOST Susceptible to Disruption

LEAST Susceptible to Disruption

242

Sectors to be Disrupted by OSS Over the Next 5 Years

April 8, 2023 18

ERP/CRM

Office Productivity

WCM/CMS/Social Software

OperatingSystems

Database

Security tools

MOST Susceptible to Disruption

LEAST Susceptible to Disruption

242

Office Productivity

OSS Component Impact on the Complexity of Managing Apps

MoreLess

Same

2009

2010

April 8, 2023 19

April 8, 2023 20

So, what ARE you

doing with OSS?

Your Use of OSS

Vendors

Non-Vendors

April 8, 2023 21

Build & Sell OSS Exclusively

Build & Sell OSS & Proprietary

Build Solutions on OSS

Limited OSS Use

Substantial OSS Use

Exclusive OSS Use

Other

VENDOR Revenue Generation

April 8, 2023 22

Services

Support

Custom software for

clientsTraditional license sales

SaaS

Cloud computing

Other

Appliance sales

Dual Licensing

Pro-Serv & Consulting

Subscription-based Support

12%

29%

27%

9%

31%

38%

Strategies to create value

2009

20102010

April 8, 2023 23

Which business strategies will create the most value for OSS Vendors ?

181

0% 20% 40% 60%

201020092008

Impact on OSS Vendors?

April 8, 2023 24

SaaS

VirtualizedInfrastructure

CloudComputing

Cool OSS Projects!

April 8, 2023 25

Up & Coming OSS Companies

April 8, 2023 26

2009

2010

Agenda

DirectionApril 8, 2023 27

Industry

Investment

Industry

Investment

Direction

04/08/2023 28

Magic Numbers

37%

$375M

DollarsInvested

20%

66

DealsDone

12

12

M&A $4.3B

OverallExists

1.2

Agenda

DirectionApril 8, 2023 29

Industry

Investment

Industry

Investment

Direction

04/08/2023 30

Direction?

OPEN

142

111119

155

TODAY: How much OSS is Deployed in Your Organization

% of IT Deployment which is OSSApril 8, 2023 31

75%-100%50%-75%

25%-50%

0%-25%

IN 5 YEARS: What % of Software Purchases Will be OSS?

April 8, 2023 32

2009-2014

2010-2015

2008-2013

50% or more on OSS

Agenda

DirectionApril 8, 2023 33

Industry

Investment

Industry

Investment

Direction

You!Survey!

04/08/2023 34

Summary

Tipping point

New sectors

Innovation

But…

Traditional cycle

See Try Buy Fly Die

Die Free?

See Try Buy Fly Die

Open Source barriers:

Skills?Visibility?Unfamiliarity

Value add? Solo?Vendor support

Free?

Die Free or Live Open?

See Try Buy Fly Die

Live OpenCommercial Open Source v2.0:

Open Source barriers:

Marketplace

Friction free

Self service

On demand

… as a ServiceSupported

Skills?Visibility?Unfamiliarity

Value add? Solo?Vendor support

Free?

Virtuous Cycle of open innovation

Managed

April 8, 2023 38

tinyurl.com/FOOS2010