how to make money out of open source software?
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You can watch real presentation of this material at this URL : http://www.youtube.com/watch?v=Ls7TaVQXK0QTRANSCRIPT
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28th, Oct 2011 FOSS4G Korea 2011 Keynote Talk
OSGeo Korean Language Chapter
Shin, Sanghee([email protected])
한국어 지부
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1. Lower cost of innovation 2. Faster time to market 3. Share risk with others
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Quantity
Price
Demand Curve Supply Curve
Quantity
Price
Demand Curve Supply Curve 1
Supply Curve 2
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“If it’s digital, sooner or later
it’s going to be free.
”
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Free
KRW 800
KRW 5,000
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KRW 120,000
KRW 1,995,000
KRW 3,500
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USD 4.95
Free
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Culture
Brand
Reliability
Experience
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Community Open Source Software Developing Model
Core Developers
Administrators
Engineers Community
Contributions
Contributions
Peer Review
Use Cases
Testing
Documentation
Translations
Features
Forum Help
Bug Fixes
Roadmap
Design
Software
‘The Project’
* Source : James Dixon, The Beekeeper
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80%
57%
41%
20%
18%
15%
15%
15%
10%
6%
5%
0% 20% 40% 60% 80% 100%
Price
Source Code Access
Community Code Review
Don’t Know
Bug Fix Turnaround
Security
Code Quality
Best Product Functionality
Easier to Adopt in Organization
Other
IP Protection
Open Source Software Advantages over Proprietary * Source : Barracuda Networks
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Proprietary Software Advantages over Open Source * Source : Barracuda Networks
65%
47%
44%
35%
28%
23%
17%
9%
7%
4%
3%
0% 10% 20% 30% 40% 50% 60% 70%
Vendor Professional Services
Easier to Adopt in Organization
Automated Updates
Reduced IT Support
Best Product Functionality
Security
Code Quality
Don't Know
IP Protection
Other
Price
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1. Lack of formal support and services
2. Velocity of change
3. Lack of roadmap
4. Functional Gaps
5. License Types
6. Lack of endorsements by independent ISVs
* Source : Ray Lane, 6 barriers to open source adoption
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Advantages of
Proprietary
1. Professional service 2. Continuous support 3. Easy to use 4. Reliability 5. Functionalities
Advantages of
Open Source
1. Cheaper price 2. Source code access 3. Community review 4. Quicker bug fix 5. More standard based
Commercial Open Source Software
‘Whole Product’
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Software
Integration
Software
Services
Installation
Training
VARs Other
SW/HW
Certification
Support
<Whole Product>
<Open Source SW>
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Core Product (Basic functions, symbols, experiences)
Actual Product (Quality, design, brand, packages)
Whole Product (Additional services)
Market Offering (Additional benefits offered by partners)
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Commercial Open Source Software Business Model
Customers
Partners
OEMs
Open Source
Software Community
Commercial Open Source Company
‘Go To Market’
Sales, Marketing, Support, Services, Engineering, Pro
duct Mgmt.
+
+
+
Community can hear more functionalities & requests
Customers can gain higher quality software at a better price
The bigger community
the more resources
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ACCESS
MONEY
TIME
SKILL
Customer
Next Demand
Next Market
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Thank You!!!