2012 north bridge future of open source study

OPENThe Open Source Leadership

Panel at OSBC May 21, 2012

SOURCE

THE FUTURE OF

2012

FUTURE OF OPEN SOURCE 2012

THE LEADERSHIP PANEL

Gil YehudaDir. of Open Source

and Open Standards

@gyehuda

Michael SkokGeneral Partner

@mjskok

Tim YeatonCEO

@black_duck_sw

Tom EricksonCEO

@tom_eric

Ryan GarnerVP, Dir.-to-Consumer

Services

@ryanTgarner

2


AGENDA

Markets

Community

Investment & Innovation

3

LOOK FOR LIVE VOTING!


OPEN SOURCE COLLABORATORS

4


SURVEY RESPONSES

5


SURVEY RESPONDENTS

Vendors Non-Vendors

6


SURVEY RESPONDENTS’ TITLES

7

Marketing/

Advertising, PR

VP/Director

IT

IT

Management/IT

StaffS

yste

ms

Arc

hitect/E

ngin

eer

Professional

Services

(Lawyer/Investor)

CIO/CTO/

CSO/COO/

CFO/CMO Analyst

Educator

CEO/Founder/

Co-

Founder/Principal

President/GM

Software

Engineer/Developer

Sales/Business

DevelopmentV

P/

Directo

r

Non-I

T

Line of Business

Manager


AGENDA

Markets

Community

Innovation & Investment

8


OSS DEPLOYED IN YOUR ORGANIZATION

9

Open Source deployment is reaching a

tipping point

Open source deployment

has reached >75%

Open source will make up

51%–75% of deployment


VENDORS VS. NON-VENDOR COMPANIES

OSS DEPLOYMENT IN 5 YEARS

OSS as a % of Deployed Code

0%

10%

20%

30%

40%

50%

Over 75% 51%-75% 26%-50% Up to 25%

% o

f R

esp

on

ses

Vendor

Non Vendor23%

45%

31%29%

14%

30%

18%

10%

10


3%

increase

WHAT % OF SOFTWARE PURCHASES WILL BE OSS

50% or more on OSS

IN 5 YEARS?

11


OPEN SOURCE TRENDS DRIVING INNOVATION

Enterprise adoption of OSS is rated most important

by companies with >1,000 employees

Adoption of open source into

non-technical segments

42%

Enterprise adoption of

open source

40%

12


WHAT MAKES OSS ATTRACTIVE?

2009

Lower costs

Superior security

Freedom from VENDOR lock-in

2010

Lower costs

Rapid pace of

innovation


2011

Lower costs

Flexibility


2012

Lower costs

Quality


13


TOP BARRIERS TO OPEN SOURCE SELECTION

48%

47%

35%

14


12%Financial Services

23%Health/Medical/Life

Sciences

INDUSTRIES MOST IMPACTED BY OSS IN 2012

15

44%Data

Management


CHARACTERISTICS THAT MAKE INDUSTRIES

LIKEY TO BE IMPACTED BY OSS

16

Profit margins/ability

to invest in IT

51% 50%Technology

centric

46%Software development is an essential strategic

process


THE VIRTUOUS CYCLE – INNOVATION & OSS

OSS

Innovation

600,000+ OSS projects

100+ billion lines of code

10 million person-years of work…we are living in a golden age of open source innovation, with many of the

most exciting computing ideas…being explored through [FOSS].

Glyn Moody, H-Online.com(March 2012)

“Source:

17


REVENUE STRATEGIES THAT CREATE THE

MOST VALUE FOR OPEN SOURCE VENDORS

18

SaaS

52%

41% 40%

SupportSubcription

Service Supprt Value-AddedSubscription

Service

Support


AGENDA

Markets

Community


19


OSS PROJECTS

20

Project maturity 43%

Availability of

commercial support 23%

Size of

community 19%

FACTORS INFLUENCING CHOICE OF OSS PROJECTS


Non-Vendor

OSS PROJECTS

21

Project maturity 43%

Availability of

commercial support 23%

Size of

community 19%

FACTORS INFLUENCING CHOICE OF OSS PROJECTS

46%

21%

20%


INDUSTRY CASE STUDY: AUTOMOTIVEWhat is Your Company’s Relationship to Using Open Source Software in Products?

22

Source:

Prof, Dr. Dirk RiehleHead of the Open Source InstituteUniversity of Erlangen-Nuremberg

CONDUCTED BY:

6%

9%

15%

21%

35%

59%

0% 20% 40% 60%

We are head of one ormore projects

We have started one ormore projects

We do not use it

We contribute to it

We are evaluating use

We use it

The Results:

OSS has arrived

in automotive

software

development

Management

and control of

OSS lags

adoption

The Study


HIRING: WHAT ASPECT OF OSS EXPERIENCE IS

MOST IMPORTANT?

23

Experience

with a variety

of projects

35%

Code

contributions

28%


AGENDA

Markets

Community


24


SIGNIFICANT TECHNOLOGY INNOVATION FROM

NEW PROJECTS IN THE OSS COMMUNITY

25

Cloud 40%

Mobile Apps 19%

Mobile Enterprise 15%


Android gaining momentum,

share > 70%

iOS share declined, but number

of projects increased

OPEN SOURCE DRIVES MOBILE INNOVATION

26

Source:

New Mobile OSS Projects

>18,000 cumulative

projects

10,000 new in 2011

alone!

Share of Projects*

* Based on OSS projects that specify a mobile platform


48.5% 63.3%

1.4%

49%

OSS INVESTMENTS BY THE NUMBERS

Dollars

Invested

Deals

Completed

Avg. Deal

Size

Seed,

Series A

$452.8M 73 $6.8M $118.7M

$674.9m

72

$10.1M $192.7M

2010

2011

27


201220112010

HOT OSS COMPANIES

28


= Growth

Quality Innovation

29


WITH GROWTH COMES…

30

Revenue

Super-

Communities

Enterprise

Adoption


THANK YOU! OPEN SOURCE COLLABORATORS

31


FIND OUT MORE

32

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