Proudly Found Elsewhere: The Open Source Bonanza
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The document discusses the changing software industry and rise of open source software. It notes that the top 20 software companies today were all founded before 1989 and have an average age of 47 years, showing correlation between revenue and age is weak. Younger companies like eBay and PayPal, founded in 1995 and 1998 respectively, demonstrate building software is one path to revenue but making money with rather than from software is important. It discusses how open source software is now everywhere and how services are increasingly connecting components, with the world composed more of open source and services.
Proudly Found Elsewhere: The Open Source Bonanza
- 1. Proudly Found Elsewhere The Open Source Bonanza October 2011
- 3. What do these vendors have in common ?
- 5. These are PwC's Global Software Top 20
- 6. Source: PwC
- 7. What else do these vendors have in common?
- 8. All were founded before 1989
- 9. 1989 was twenty-two years ago
- 10. Things that happened in 1989 The Soviet Union left Afghanistan Time and Warner Merge The Exxon Valdez oil spill Tiananmen Square Rain Man won best picture Sega Genesis is released
- 11. Oh, and some show called Seinfeld premiered
- 12. The average age of the Top 20 Software Companies, in fact, is 47 years
- 13. That's partially skewed by the likes of IBM (1911) NEC (1899!), though
- 14. Less outliers? 31 years
- 15. So ?
- 16. Big, older companies outsource risk By acquiring smaller, younger ones
- 17. But if older = bigger
- 18. Why is Microsoft the biggest ?
- 19. And there's a bigger problem
- 22. When was eBay founded?
- 23. 199 5
- 24. And PayPal ?
- 25. 199 8
- 26. The lesson ?
- 27. Correlation between revenue and age is weak
- 28. Building software is just one path to revenue
- 29. Make money with software rather than from it
- 30. The Four Stages of Software Producers
- 31. STAGE 1 “ The money is in the hardware , not the software ”
- 32. STAGE 2 “ Actually, the money is in the software ”
- 33. STAGE 3 “ The money is not in the software , but it is differentiating ”
- 34. STAGE 4 Web 2.0 “ Software is not even differentiating ”
- 35. The lesson?
- 36. Open Source is everywhere
- 37. Using projects like
- 38. And of course
- 39. The net ?
- 40. “ In a nutshell, the Oracle Exadata capital expenses for hardware and software total $589.4 million compared to an open source and commodity hardware cost of $104.2 million. ” Larry Dignan, ZDNet
- 41. This realization triggered waves of innovation
- 42. It ’ s not only software costs that are coming down
- 43. “ EC2 means anyone with a $10 bill can rent a 10-machine cluster with 1TB of distributed storage for 8 hours. ” Flip Kromer, Infochimps
- 44. How to connect everything?
- 45. “ So one day Jeff Bezos issued a mandate… 1) All teams will henceforth expose their data and functionality through service interfaces. 2) Teams must communicate with each other through these interfaces. ” Steve Yegge, Google
- 46. Which means ?
- 47. That the world is increasingly composed of open source and services
- 48. So think about what makes you different
- 49. QUESTIONS