www.FITT-for-Innovation.eu

Open Source Business Case

FITT

(Fostering Interregional Exchange in ICT Technology Transfer)

Practice in General

Siruna NV has developed Software for development of mobile websites through a dual Open source business model

Nature of reusability: this model can be easily copied as far as it helps to cover development costs by the help of a large and free developer community, helps to market the product, quickly sets a reference in a rapidly evolving market and succeeds in creating value within an open source setting.

Case is mostly generic

Quality/Nature of stakeholders: High tech start-up company, starting form research results

Processes related to case: business model, IP management

How we can help you open the mobile experience.

Who are we?

About Us

The experts in web-to-mobile: Make Anything Mobile

Professional Open Source company

Venture Capital backed startup

Located in Belgium | UK | US | India | UAE | China

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: the leading OPEN SOURCE platform and

managed SOLUTION provider for mobile web applications

Internet is everywhere

CONTENT

USER experience

WEB App’s

Nice USABLE stuff …

Mobile News

(POWERED BY SIRUNA)

m.deredactie.be(STANDARD WEBSITE)

www.deredactie.be

Mobile Search

(POWERED BY SIRUNA)

m.goldenpages.ie(STANDARD WEBSITE)

www.goldenpages.ie

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Mobile Portal

(POWERED BY SIRUNA)

m.zita.be(STANDARD WEBSITE)

www.zita.be

Open vs. Closed Source

Revenue from services

Source code is publically available « Copyleft »

Source can be adapted / improved

Development by a community

Selling software licenses

Source code protected as intellectual property

Customer can’t get the source code

Development inside the company

The business models are linked with the license model:•GPL/LGPL business models•BSD/Apache models•Multi license business models: Dual license

OPEN SOURCE CLOSED SOURCE

Customer value

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First Generation Business Models

Services basedRevenues are generated through support, consulting, training, documentation

Loss leaderA free OS product is used to create a market position for the traditional commercial software.

Fight competition

Vendors as IBM, Apple, Novell, Oracle.. realize that OS provides a way to compete against Microsoft because:• They can reduce R&D costs

• Eliminate dependencies on competitor’s technology • Of the access to a large, external development community

Example: instead of competing with Symbian, Motorola committed to OS

Siruna OSS strategy

Is NOT to create a large developer community Can be a side effect We control it through the Contributor License Agreement. (CLA)

Disruptive business model People can try the code, see the internals They buy what they like (quality) They can modify the code for their customer Create a developer/user pull

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Dual Licensing

Product available under a regular commercial license for commercial customers and under a free software licence (AGPL) for those who live by the principles of free software

The product is technically identical under both licences, but the financials and the legal ramifications are different

It is up to the customer to decide what path he wants to follow and what licence to use but restricted by our policy & commercial strategy.

MySQL AB, Sleepycat Software & Trolltech AS use dual licensing

Siruna is the copyright holder

Copyright of Siruna

Necessary condition for dual licensing.

Gives us rights and protectionWe decide what license is used by who:

• Commercial • AGPL

We can introduce “golden lines” or credentials.

Our “golden lines” Adapted for Mobile by SirunaGoogle Analytics transformer insert

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Affero GPL license

GPL license:Everything that touches it becomes GPL (viral)

If you redistribute a GPL software package, you need to publish your code

Service provider loophole

AGPL license:Closes the MSP loopholeSoftware distribution & network access

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OSS Sales Funnel

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OSS Marketing

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Open Source Trends

By 2010, Global IT organizations will use OS in 80% of infrastructure investments and in 25% of business software investments (Source: Gartner).

OS impact on infrastructure SW is 20 B $ growing to 46 B $ in 2011

OS infrastructure SW

0,0

2.000,0

4.000,0

6.000,0

8.000,0

10.000,0

12.000,0

14.000,0

16.000,0

2004 2005 2006 2007 2008 2009 2010 2011

OS

DBMS

AD

Security

AIM

ITOM

Others

(Source GIMV )

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VC activity

Increased VC investment in OS: 2005: 294 M $ was invested 2006: 475 M $ was invested, up 61% from 2005 (Source: Computer

Business Review, Feb. 2007)

Why do VCs invest in Open-Source? The increased adoption of OS by corporate users. Attracted by the success of Red Hat,:

Marketcap of 3.8 B $ and .. profitable! Revenues increasing very fast: 200 M $ in 2005, 280 M $ in

2006 and 400 M $ in 2007 Belief that there could me more money made from OS than from

proprietary software Lower cost of development Also lower cost of sales & marketing due to the viral effect of the

dvlpt community OS leads to better quality assurance, more frequent releases,

community dvlpt

(Source GIMV )

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M&A activity

Recent deals: There were 35 transactions There were 3 significant transactions;

• Sun acquiring MySQL for 1 B $, EV/S of 14.3 x• Yahoo acquiring Zimbra for 350 M $ (email

collaboration), • Nokia acquiring Trolltech for 153 M $,• Citrix acquiring Xensource for 500 M $• RedHat acquiring JBoss for 350 M $

(Source GIMV )

OSS Facts & Figures

MySQL – Database vendor Founded in 1995.  Challenger for Oracle, Sybase, .. External VC in 2001: Revenues

• 2002:  6,5 Mio Revenue • 2005: 34 Mio Euro  • 2006: 50 Mio Euro

Exit 2007: Sun acquiring MySQL for 1 B $,

2009: Oracle acquiring Sun

OpenBravo – ERP vendor (GIMV investment) Founded in 2003. (Univ. of Navarra – 2001)  External VC in 2006: 4 Mio Euro from SODENA Revenue 2007:  1,1 Mio Euro External VC in 2008: 9 Mio Euro Target 2008: 3,3 Mio Euro Target 2010: 24 Mio Euro (requiring 15 Mio Euro investment)

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Contact Us

FRANK GIELEN, CEO

Zuiderpoort Office ParkGaston Crommenlaan 10/1019050 Gent, Belgium

Tel +32 (0)9 331 48 36contact@siruna.com

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