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Business by open-source manners – Jose Teixeira Apr 2013
Business by open-source manners
=
1- Open-Source Software 4 Startups
2-Starting an Open-Source Software Business
+
Jose Teixeira
Schedule:
18:00 - 18:10 Opening words18:10 - 18:30 Open Source Software solutions for startups18:30 - 18:50 How to venture into an open-source business?18:50 - 19:00 Discussion about Open Source Software in business.19:00 --> Snacks, Drinks, Networking, Chatting
Presenter:Jose Teixeira“Disposable”¹ ResearcherInformation Systems ScienceUniversity of Turku
Jose Teixeira
Jose Teixeira
Open-sourceRetail
Orienteering
TescoSonae
DHL
AirbusNokia
Debian
Immit
Software
International
IT
Research
EU
Triathlon
Computer science
Finland
TSEanti-
ACTA
Boost
UTU
Startups
Finland
Portugal
Jose Teixeira
Business by open-source manners
=
1- Open-Source Software 4 Startups
2-Starting an Open-Source Software Business
+
Jose Teixeira
Open-source software for startups
1) What is Open-Source? What is not Open-Source?
2) Why it matters? 4 startups?
3) Contrasting open-source with commercial software.
4) Open-source solutions for small business problems.
5) “To checklist” of Open-Source Software 4 startups.
Jose Teixeira
Free != free
OSS? What?
Jose Teixeira
OSS? What?
Free as in freedom not as in beer
Jose Teixeira
OSS? What?Free != Free
Jose Teixeira
OSS? What?
Jose Teixeira
Free != FreeOSS? What?
Jose Teixeira
An analogy with Tangram
OSS? What?
Jose Teixeira
Open-source vs closed-source
OSS? What?
Jose Teixeira
Open-source vs closed-source
OSS? What?
Jose Teixeira
Open-source vs closed-source
OSS? What?
Jose Teixeira
FSF four freedoms
OSS? What?
Jose Teixeira
OSI open-source definition
OSS? What?
Jose Teixeira
FLOSS licensing
OSS? What?
Jose Teixeira
Source: Teixeira 2011
Availability of the blueprint (source code)
Standard compliance
Absence of lock-in mechanims
My open-source definition
OSS? What?
Jose Teixeira
What open-source is not:
➔Freeware➔Shareware➔Shared-source➔Co-creation➔Participatory design➔Crowd-sourcing
OSS? What is not?
Jose Teixeira
OSS? Why?
Jose Teixeira
OSS? Why?
Jose Teixeira
OSS? Why?
Most important enablers of high-tech entrepreneurship?
1- Open-source software
2- Affordable cloud computing services
3- Social networking graphs for viral marketing
Source: Interviews with entrepreneurs by Jose Teixeira @ http://www.startupday.se/ 2012
Jose Teixeira
OSS? Why?
Finnish high-tech startups and open-source
1- 19/20 claim to use open-source software;
2- 4/20 claim to offer open-source components;
3- 2/20 plan to offer open-source components;
4- 11/20 claim to work up-stream;
Source: Interviews with 20 Startups at Slush 2011Presented by Jose Teixeira and Joni Salminen at ICCE 2012 conference
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Contrast!
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Contrast!
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Contrast!
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Contrast!
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Contrast!
Software pricing (i.e. ERP)
source: pemeco
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Contrast!
Software pricing (i.e. ERP)
License costs
Implementations costs
Maintenance costs
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Solutions :)
Classical OSS infrastructure supporting common business problems
Desktop PC's E-mail Group-ware Customer relationship management Finance Document management Disaster recovery Security Web-servers
Source: http://www.linuxjournal.com/article/7825
Jose Teixeira
Solutions :)
A book on OSS infrastructure
Available from UTU e-library at http://site.ebrary.com/lib/uniturku/docDetail.action?docID=10061218
Jose Teixeira
Solutions :)
But OSS infrastructure can go much beyond
ERP
E-commerce
Analytics
VoIP telephony
Jose Teixeira
+ OSS offers thousands of components in public domain for business R&D initiatives
Jose Teixeira
To know more ...
Jose Teixeira
END part 1
Jose Teixeira
Business by open-source manners – Jose Teixeira Apr 2013
Jose Teixeira
Business by open-source manners
=
1- Open-Source Software 4 Startups
2-Starting an Open-Source Software Business
+
Jose Teixeira
Outline
Intro
OSS licenses
OSS business models
OSS entrepreneurial business modeling
Jose Teixeira
You don't need to to create or work on a OSS organization to work with OSS;
Source: http://go.linuxfoundation.org/who-writes-linux-2012
TOP 10 Linux Kernel Contributors
Intro
Jose Teixeira
You don't need to be an OSS company to contribute and be respected in the OSS community
Intro
Jose Teixeira
A) Based in part on the work of the Independent JPEG groupB) Use zlib by Jean-loup Gailly and Mark AdlerC) Based on the work of the FFmpeg project under the LGPL 2.1 license
Intro
Jose Teixeira
Protect your IP
• Very often does not work for startups • But with OSS you are creating prior art
The Håkan Lans case:
* Swedish inventor of a satellite navigation system, the computer mouse, colour graphics systems in computer displays and many other inventions
US patents:* Arrangement for producing a pattern on a light-sensitive surface* Color graphics processor* Position indicating system
IP
Jose Teixeira
IP
Legal terminology
Copyright
Trademarks
Patents
Intellectual Property (IP)
Trade secrets
Jose Teixeira
IP
Legal terminology
Copyright
Trademarks
Patents
Intellectual Property (IP)
Trade secrets
Jose Teixeira
IP
FLOSS licensing
Jose Teixeira
IP
Permissive
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IP
Copyleft
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IP
ISC license
Copyright (c) Year(s), Company or Person's Name <E-mail address>
Permission to use, copy, modify, and/or distribute this software for any purpose with or without fee is hereby granted,
provided that the above copyright notice and this permission notice appear in all copies.
THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES WITH REGARD TO
THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS. IN NO EVENT
SHALL THE AUTHOR BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR
ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION
WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
Jose Teixeira
IP
FLOSS licensing once again
Credit the community Contribute to the community
Jose Teixeira
IP
Jose Teixeira
IP
Complicated Open-Source licenses?
Check then:http://www.microsoft.com/licensing/
http://www.oracle.com/us/corporate/contracts/license-service-agreement/index.html
http://www.sap.com/corporate-en/our-company/agreements/western-europe/index.epx
After hours and thousands or pages you are done. But no worries there
are books, vendors, lawyers and consultants that will understand it for
you.
Jose Teixeira
11 open-source business models
Subscription Model
Offering Commercial and Open Source Products
Support and Training Model
Dual License Model
Hosted Service
Advertising Model
Commercial Enhancement
Embedding Model
Consulting and Integration Strategy
Patronage Modelsource: Wasserman 2009
Business Models
Jose Teixeira
1- Commercial and open-source products
Source: Wasserman 2012
Business Models
Jose Teixeira
Source: Wasserman 2012
2 - Subscription model
Business Models
Jose Teixeira
3 - Consulting
Source: Wasserman 2012
Business Models
Jose Teixeira
4 - Support and training model
Source: Wasserman 2012
Business Models
Jose Teixeira
5 - Hosted service
Source: Wasserman 2012
Business Models
Jose Teixeira
6 – Dual license
Source: Wasserman 2012
Business Models
Jose Teixeira
7 - Commercial enhancement
Source: Wasserman 2012
Business Models
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8 - Advertising
Source: Wasserman 2012
Business Models
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8 - Patronage
Source: Wasserman 2012
Business Models
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10 - Hardware
Source: Wasserman 2012
Business Models
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11 – Platform / Eco-system
Business Models
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To know more
Tony Wasserman works
COSS.fi - Avoimien tietojärjestelmien keskus COSS ry
Economic aspects and business models of Free Software by Free Technology Academy
Business Models
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
1st we took Osterwalder, A., and Y. Pigneur. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, 2010. The popular business “canvas”
Jose Teixeira
OSS Business Modeling
We took also Sawy, O. A. E., and F Pereira. Business Modelling in the Dynamic Digital Space: An Ecosystem Approach. Springer, 2013. A business modelling framework for IT industry.
Jose Teixeira
OSS Business Modeling
3rd – We combined them … test it with business cases
Jose Teixeira
4th – We add OSS academic literature driven components on it … and test it again
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
Jose Teixeira
OSS Business Modeling
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OSS Business Modeling
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OSS Business Modeling
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Exercise: The PickRide case
http://www.youtube.com/watch?v=omcA5DN97jE
How could it be made by FLOSS manners?
Jose Teixeira
END