open source + big data = big money

10.20.2005

Open Source + Big Data=Big Money

May 2011

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http://redmonk.com/public/osbc.pdf

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What do these vendors have in common?

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These are PwC's Global Software Top 20

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Source: PwC

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What else do these vendors have in common?

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All were founded before 1989

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1989 was twenty-two years ago

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Things that happened in 1989• The Soviet Union left Afghanistan• Time and Warner Merge • The Exxon Valdez oil spill• Tiananmen Square• Rain Man won best picture• Sega Genesis is released

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Oh, and some show calledSeinfeld premiered

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The average age of the Top 20 Software Companies, in fact, is

47 years

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That's partially skewed by the likes of IBM (1911) NEC (1899!), though

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Less outliers? 31 years

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So?

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Big, older companies outsource riskBy acquiring smaller, younger ones

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But if older = bigger

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Why is Microsoft the biggest?

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And there's a bigger problem

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Question: Is Google a software company?

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Exactly

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Growth through software salesis slowing

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Growth through data is not

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The Four Stages of Software Producers

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STAGE 1

“The money is in the hardware,not the software”

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STAGE 2

“Actually, the money is in the software”

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STAGE 3

“The money is not in the software, but it is differentiating”

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STAGE 4

“Software is not even differentiating, the value is the data”

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What happens whencompanies of one stage

compete with another stage

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Microsoft's Share Price

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Share Price in Context

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The Age of Data is upon us

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The Age of Software The Age of Data

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What does this mean?

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Software is a means

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What are you bad at?

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Customer conversion

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If you're in open source,you're good at distribution

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If you're good at distribution, you're good at

generating data

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USE IT

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Open Source is not Growth

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Open Source enables dataWhich enables growth

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So if you're in open sourceand you're ignoring data

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You're doing it wrong

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QUESTIONS