EOLE 2013 Considering Free & Open Source in Cloud Strategies
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1 EOLE 2013 Considering Free & Open Source in Cloud Strategies Impact of cloud computing on FOSS editors FOSS and Cloud: a new deal? Bruxelles (Belgium) December 06, 2013 robert.viseur@cetic.be
2 Definitions : Free software definition. See 4 freedoms. Open Source Definition. See 10 criteria. Famous FOSS licenses. Free and open source softwares (1/2) (e.g. Apache, BSD, MIT, GPL, LGPL, MPL,...) Standard legal framework.
3 Free and open source softwares (2/2) Business models are mainly based on: Collaborative developments for value creation, and... Services («best knowledge here» principle) for value capture. Other business models for value capture : Platform manufacturing. Double licensing schemes. Open core. Hosting (e.g. Web hosting, ASP or SaaS).
4 Cloud computing (1/2) Definition: «It is an information technology service model where computing services (both hardware and software) are delivered on-demand to customers over a network in a self-service fashion, independent of device and location» (Marston et al., 2011).
5 Cloud computing (2/2) Three modes : SaaS. See Google Apps or Salesforce.com. PaaS. See Google App Engine or Microsoft Azure. IaaS. See Amazon S3 (storage) or Amazon EC2 (compute capacity).
6 Free and open source softwares use : In France : 2.5 billions in revenues (euros). 30,000 jobs. Worldwide : Facts and figures 5 out of 6 developpers use free software components («commodities»). Cloud computing use. In France: 2 billions in revenues (euros). SaaS = 62% of cloud computing uses. Worldwide : See «Gartner Hyper Cycle».
7 Two disruptive technologies : FOSS vs Cloud computing (1/2) Impact on the creation, the provision and the value capture. Complementarity or substitution? Complementarity (1/2)? Free and open source softwares... are supported by cloud computing providers. See Microsoft Azure or Amazon Web Services. are useful to create new cloud computing services. See Ikoula (France) with CloudStack. «As a Service» aspects taken into account by new licenses. See AGPL and OSL licences (copyleft with network effect). New business opportunities. See free and open source softwares in SaaS mode (subscriptions).
8 Complementarity or substitution? Substitution? FOSS vs Cloud computing (2/2) SaaS and FOSS applications are cheaper alternatives to proprietary products but... Diffusion is easier for SaaS products! Test, without installation : Create account, login, test and (maybe) pay (SaaS mode) versus Download, install locally, test and (maybe) pay (FOSS mode). New focus on an open cloud definition. See e.g. TIO Libre Definitions (tio.ffii.org). TIO = Total Information Outsourcing. Three levels : TIO Libre / Openness / Loyalty. «TIO Libre» : data freedom, software freedom and competition freedom.
9 Research question What is the evolution of strategies and business models of FOSS companies facing to cloud computing and, particularly, SaaS offers? Study to be published in Revue Terminal (
10 Methodology (1/2) Study cases of five FOSS companies : Compiere. Nexedi (ERP5). Magento. OpenERP. SugarCRM. In the ebusiness field, but... With slight differences between cases: Age of creation of the project / company. Domain (ERP, CRM or ecommerce). More or less strong competition with cloud computing alternatives. Technological background. Level of openess to the community. Different types of investors.
11 Based on public sources of information : Company websites. Articles in specialized newspapers. Methodology (2/2) Websites edited by famous «experts» (company founders, consultants and researchers,...). Wikipedia used for finding historic events and documents.
12 Complementarity between cloud and FOSS offers. Findings (1/2) For all studied companies : new sources of revenues based on SaaS offers build on FOSS. Position of first mover or follower. Ability to satisfy new customers with weak IT competences (e.g. tiny SME). Growth potential able to satisfy external investors? FOSS advantage : easier personnalization with FOSS. Versus functionnal standardization and parameterization for SaaS. Evolution of the business of the FOSS editors. Evolution of business : Edition and local services worldwide development and services to network of partners (integrators) SaaS offers. Process of structuring the community ( ecosystem). New competences required for infrastructure management.
13 Evolution of the license choice. Findings (2/2) «Problem» of the network use. Often : evolution of the studied FOSS to AGPL or OSL licenses. From MPL-like or GPL licenses for older softwares... And first choice for newer softwares. Lack of success of TIO initiative. Success of open standards and FOSS linked to the reduction of lock-in risk. In consequence : interest in open cloud definitions? Highlighted by only one company...
14 Discussion About freedom : Lack of success of TIO definition. Why? Importance of the lock-in for users? Conditions for deploying a TIO-compatible cloud? About license : Need for anticipating licenses changes. Interest for contributor agreement (not always used). How to choose between AGPL and OSL? AGLP allows to stay compatible with GNU licenses. OSL simplify the creation of separate ecosystem. Competitive advantage if abundant available IT resources?
15 Thanks Contact : robert.viseur@cetic.be More information : twitter.com/robertviseur Aéropôle de Charleroi-Gosselies Rue des Frères Wright, 29/3 B-6041 Gosselies info@cetic.be
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