Open Source and Open Source Business Models

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Open Source and Open Source

Business Models

Session 9

Course Product Software

Prof.dr. Sjaak Brinkkemper

Dr. Slinger Jansen

Aim: To provide insight into the multitude of methods that exist for

product software developers.

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Apple

Microsoft (PCs)

Google

Closed, but not Closed? Open, but not Open? Free, but not Free?

Proprietary mainly closed or tightly

controlled platform Proprietary but more open platform Most open, open source, & free, but…? Design elegance = whole is greater than the

sum of the parts (smartphone experience) Price-performance + Windows/Office + Xbox game functions for smartphone Copy-cat designs, harder to use, but hard to _{beat free, lots of firms to innovate}

Extreme ease of use Price-performance _{Price-performance, openness?}

Design from scratch but gradually iOS centric Windows-centric _{Search-centric?}

Total experience control – hardware,

software, peripherals, content Many different companies influence the Windows-Nokia experience In between Apple and Microsoft-Nokia?

Premium pricing (Mac , iPod, iPhone , iPad) Lower pricing (Windows PCs) _{Lowest pricing and free OS, or “less than}

free”?

Marketing genius (Jobs) Software & platform strategy genius (Gates) _{Technology and value: Hard to beat free &}

the Google brand?

Target early adopters, mostly consumer, but

gradually more business users? Mainstream business & consumer users, with deep OEM relationships Consumer to business?

Strong brand, especially for creative users,

incredible loyalty (the “Apple faithful”) Strong brand, especially for business users, users tolerate the product Strong brand for anything internet?

Superior OS software and hardware OS software (& OEM hardware) trail Apple _{In between Apple and Microsoft?}

Current ecosystem of multiple

product-platforms and superior apps Many Windows apps, largest ecosystem. But how translate to Windows phone? Huge apps ecosystem, though still some _{fragmentation}

Hardware manufacturing reduces profit

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Licensing

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Ownership

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Reuse

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Derivates

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Infectiveness of license

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Nederland Open in Verbinding

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https://noiv.nl/

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Some of Slinger’s favorites

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http://www.sugarcrm.com/crm/

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http://www.compiere.com/

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http://www.mysql.com/

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http://www.redhat.com/

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Some exam questions

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What does the NOiV strive for?

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What motivates an open source

contributor to contribute?

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Why aren’t software companies

making the switch to open source?

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Name four open source business

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Openness of Product Software Companies

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Problem: Software companies are judged to be open or

closed too easily

– “Google is more open than Microsoft”

– “Centric is so closed, we should no longer buy from them.”

– “Open source is much cheaper than closed source software

products.”

– “Android is more open than the iPhone.”

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Solution: Openness evaluation methods

– One for mobile platforms

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Open Software Enterprise Model

 Software producing organizations goal: get the software that is being

produced to be adopted as frequently as possible

 Different business models exist to obtain that goal

– from open source models where source code is given away for free

– to service models where the source code is running on a protected server. – Create an ecosystem around the product

 However, companies that want an ecosystem need to open up

 National bodies worried about openness:

– the draft `policy on Open Standards for eGovernance’ in India – `UK Government IT strategy’

 Software vendors are unaware of the different methods that exist to

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The OSE Model

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Create a model that:

– Shows a software company how to open up its

business

– Show a customer of a software company how to

establish the suppliers openness

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Based on Sjaak’s research framework for

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Levels and Perspectives

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Levels

– Strategic (two years to five years) – Tactical (six months to two years) – Operational (day to day)

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Perspectives

– Governance – Ownership, control, major decisions, partnership models, etc.

– Research and Development – Technical excellence, code production, development and project management

– Software Product Management – product management, requirements engineering, etc.

– Marketing and Sales – Get the customer to procure the products – Consulting and support services – get the customer to use the

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Openness Option Fidelity

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Available – has the option.

– If closed, 0%, if open, go to accessible.

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Accessible – is accessible by anyone, not just a restricted

group.

– If closed to a group, 33%, otherwise, go to transparent.

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Transparent – The openness option is explained to the

outside world.

– If documentation of governance is available, it’s transparent, go to reciprocal. If not, 33%.