open source slas

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Open Source and SLAs

Noah Zoschke noah@convox.com

@nzoschke

Open Source Show & Tell 2016

Bio• Worked for 6 years at Heroku, deployment PaaS. Subsidiary of

SalesForce, one of the largest SaaS companies in the world.

• Working for past year at Convox, open source deployment toolkit. Goals:

• Help teams save time and money making cloud infrastructure effortless

• Build successful open source project

• Build viable open source business

• Grateful for the opportunity to experiment with new software and business models

Follow Along on GitHubhttps://github.com/convox/rack

Go, Docker, AWS toolkit Used by 100s of companies

Software Agreement Dialogs…

Employment AgreementHiring Manager: Here is a role, responsibilities, and a salary.

Engineer: I accept!

Manager: Here are the things we need to do this week to keep our business running.

Engineer: Consider it done!

Manager: Great job. Here is your paycheck.

SaaS Agreement

Decision Maker: Here is some functionality I need to run my business and a budget to buy it.

Vendor: We do that and its $X / month which fits in your budget!

Decision Maker: Great. Here is my business credit card.

SaaS Agreement Upgrade Cycle

Decision Maker: I wish this service also did X.

Vendor: We do that on the pro plan that is $Y / month.

Tech: Great. You can charge me more.

SaaS Agreement Support Cycle

Decision Maker: I wish this service also did Y.

Vendor: We don’t support that yet. Talk to this Product Manager to get it on the roadmap.

Decision Maker: Ok I’ll talk and wait. I’m glad my team doesn’t have to build it.

SaaS Agreement Rejection Cycle

Decision Maker: I wish this service also did Y.

Vendor: We don’t support that.

Decision Maker: Bummer. I need this so find another vendor I can pay for this functionality, and terminate my subscription.

or

Decision Maker: Bummer. I’ll pay staff to build it in house.

OSS Agreement

Tech: Here is some functionality I need to run my business.

OSS Project: We already solved that. Agree to the software license and you can use it free of charge.

Tech: Sweet. Free and open software is amazingly helpful for getting my job done.

OSS Agreement Support Cycle

Tech: I wish this software also did Y

Abandoned OSS Project: <crickets>

Incompatible OSS Project: Sorry we don’t want to do that

Facilitating OSS Project: Interesting idea. Follow these guidelines to contribute a patch. We will help you and support the feature.

Magic OSS Project: Killer idea. Here is your solution.

Tech: Ok. Open source is [challenging | nice | amazing]. I’m glad I don’t have to solve everything myself.

Service Level Agreements• Software License

• Used as-is…

• Subscriptions

• Pay $25/month for 3 users access

• Support expectations

• Community; same-day

• Service guarantees like uptime and performance or resource

• 99.9% uptime; 10k emails / month

Service Level Agreements

• Explicit

• Measurable

• Monetizable

OSS SLAs• Generally free software “as-is” and support is best effort

• Why not?

• Sell a version as SaaS (with uptime assurances)

• Sell some closed features (open core)

• Sell same-day or same-hour support (tiered support)

• Sell a way for priority feature work (professional services)

• Sell contracts for migrations and training (professional services)

OSS SLAs Challenges

• Bootstrapping. Full time support and engineering costs real money.

• Packaging and pricing. Building a software sales system costs real time and energy.

• Psychology. Consumers have a free version. Why pay anything?

OSS SLAs My Challenges

• People balk at $25 / user / month

• GitHub is $9 / mo

• AWS bills are $5k / month

• Engineers cost $10k / month

• Don’t know how to price guarantees around uptime

• How much is it worth to you?

• How much will it cost to meet? Need engineers on call 24/7

• What happens when we don’t hit it?

• Trust

• Takes a lot of time and energy to gain trust

OSS SLAs My Wishes

• More OSS projects sell services. Run the project like a business. Find ways to guarantee software quality without working for free.

• CTOs buy something. Tech company budgets are huge. They could be better understanding OSS value sponsoring more work which benefits us all.

• We all keep working on OSS. Critical infrastructure for our industry.

• OSS becomes a clear value add, not an obstacle to selling software.

Thanks!Discussion / Questions / Comments ?

noah@convox.com @nzoschke

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