A Tale of Three Communities
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1 A Tale of Three Communities Marketing and Making Money In Open Source Nithya Ruff, Senior Director for Worldwide Linux Marketing
2 A little about Wind River Over 1 Billion Devices Deployed Embedded Software Market Leader #1 RTOS - VxWorks #1 Embedded Linux #1 Embedded Type 1 Hypervisor Key Solutions Provider in Android, Meego and IVI Wind River Salutes Linux on it s 20th Anniversary Wind River. All Rights Reserved.
3 Something About Me Responsible for Worldwide Product Marketing for Linux and Open Source Solutions at Wind River. Over 25 years in the IT and Embedded Industry Security, System Software and Open Source Leadership at Tripwire, Cranite Systems and Silicon Graphics MS in Computer Science and MBA in Entrepreneurship Passionate about Communicating Technology Solutions in a Simple Way Wind River. All Rights Reserved.
4 Common Questions Linux is free isn t it? So why should I pay for Linux Why is having a business model for Linux good? How do you market Linux? So what is next? 4
5 Three Communities Producers a.k.a Open Source Projects Distributors a.k.a Commercial Linux Vendors Consumers a.k.a Users and Developers 5
6 Producers A distributed collaborative community A whole new way of developing and producing software Interested in solving a problem, in adoption and use Choice of the way they make their work available is an important decision Do not set the price of software Meritocracy, hearts and minds of developers important to success 6
7 Examples of Producers 7
8 So How Do Producers Get Funded? Hired by a company as an Employee Consulting Contract Grants or Sponsorships Donations in Kind or in Money Venture Funded Just for Reputation Solve a problem 8
9 Consumers No Vendor Lock-in Comparable Performance and High Quality Time to Market and Savings Choice and Flexibility Empowerment Innovation and Transparency 9
10 Examples of Consumers 10
11 Distributor or Service Provider Sources, integrates, extends, supports open source software Creates widespread adoption and makes it safe to use Hires developers who are engines of the open source innovation Extends for usability and reliability and contributes back Provides marketing for open source projects Advocates for the consumer 11
12 Where does the distributor add value? Hardware company Total Solution with Hardware and OSS Software company Distribution Integration and Usability Roadmap and Upgrades (reduces fragmentation) Support Accountability, SLA, Contractual Support and Services company Support and customization services Solutions company All of the above Top 3 Barriers to OSS Usage* 1.Technical Skills 2. Knowledge of OS 3. Lack of Commercial Support 12 * OSBC 2011 Northridge-Group Survey
13 Relationship is Symbiotic and Collaborative Open Source Projects Commercial Companies Producers Distributors Fast Innovation, Eyeballs, Transparency Empowerment, Collaboration Markets, Extends Adoption Mitigates Risk, Creates Stability Contributes, Advocates 13
14 The Embedded Story 30.4% Autos Mobile Retail POS Gaming 19.7% 11.5% Next ATMs Printers Previous Current TVs Industrial Source: VDC Research: 2009 Embedded Software Engineering Market Technologies. VDC Research: 2008 Operating Systems Used In Embedded Systems. Appliances Medical 14
15 Successful Business Models Subscription Support and Stream of Updates Services Fees Implementation, Customization and Consulting Perpetual License Access to software through a perpetual license Other Documentation, Training, Proprietary Extensions etc. Revenue Models are Built on Software As The Platform 15
16 Success Stories 16
17 Marketing Open Source is Different. Really Different. Marketing and pricing solutions perceived as free is tricky Many alternatives and easy to switch Low acquisition cost Lack of knowledge Fear of risk and the unknown 17
18 Marketing Open Source Software Value Add OSS Credibility Successful OSS Marketing Proof of Value Technical Value Time to Market Risk Mitigation Quick ROI Lower COO Knowledge Contribution Advocacy Member Make OSS Safe Expand Adoption Increase Awareness Keep OSS Vibrant 18
19 By or before. Explosive Internet Growth from Computers, Mobile Access and Devices SCALE and DIVERSITY surpass the traditional model of networking and IT Infrastructure Core ~100K endpoints Devices and Sensors ~20B endpoints Many new types of devices and sensors IT centric Non-IT centric Mobile - Static Mobile Access ~1B endpoints 19
20 How will OSS adapt and thrive? New interconnected world of intelligent devices is disruptive. It will require: Mass Customization and Vibrant Collaboration across the 3 Communities Common Formats, Standards, Infrastructure and Tools Emerging Business Models 20
21 Wind River. All Rights Reserved.
22 Bibliography Lots of interesting papers on Open Source Business ource_software Good description of how open source business works Do a Google Search for Open Source Business Models 22
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