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The value add of
OPEN SOURCE
for innovation
Balázs Scheidler
co-founder and CTO, BalaBit
Introduction
Started programming
at age 12 on
Commodore 64
First exposure to
Linux at 16-17:
Slackware 1.0, Linux
kernel 0.99pl14
Contributor to open
source projects at 19:
Free Pascal Compiler
and others
Starting my own
open source
project at 21:
syslog-ng
Starting my own
company with an
Open Source
business model at 23:
BalaBit
Balázs Scheidler, founder & CTO of BalaBit
What is Free, Libre and Open Source Software (FLOSS)?
The four freedoms
The freedom to
redistribute copies so
you can help your
neighbor.
The freedom to
distribute copies of your
modified versions to
others.
The freedom to study how
the program works, and
change it so it does your
computing as you wish.
The freedom to run
the program as you
wish, for any
purpose
Claim: Everyone is directly or indirectly using Open Source software Every Day.
Everyone is using Open Source
• 7 out of 9 Gold sponsors on the exhibition floor are definitely using
open source
• Revealed using simple google queries (company + open source)
• The other two provides services rather than products, so more
difficult to tell
Social:
Mobile:
Cloud:
IoT:
Big Data:
Everyone is using Open Source
Why do companies spend money on engineers
and give away the results for free?
Because it yields the best product
Because it yields the best product
&
Higher adoption in the early phase
If and only if a proper community
is formed around it
The code becomes an independent entity of its original creator
Best Product, why?
MORE USERS,
MORE FEEDBACK →
BETTER PRODUCT
 More adaptable, more
environments
 Scratching an itch
HIGHER ADOPTION
 Nothing stops anyone from trying it (it's free
to use and study)
 Network effect (more users lead to even
more users)
 Making the pie larger in the long term
Best Product II.
ITERATIVE SOFTWARE ENGINEERING
W/ COLLABORATION
 “Standing on the shoulders of giants”
 Instead of huge increments:
o smaller steps,
o one at a time,
o potentially by a different contributor,
o continuously refining the whole
COMPETITION
 Successful projects are backed by
multiple vendors, competing in the
marketplace
 Competing companies work on the
same code base
Engineer Motivation
Hobby & job
Engineers take a job to pay their bills…
… but usually still have retain hobbies
Open Source can be one of those hobbies
Making one's hobby his job
has enormous benefits through motivation
IN EXCHANGE FOR CODE AND CONTROL,
COMPANIES GET THE BEST PRODUCT
AND THE BEST POSITION TO PRODUCTIZE IT
THEY ALSO GRANT THE RIGHT TO
ANY OTHER COMPANY TO DO THE SAME.
… with enough investment
It is not just Software
Wikipedia Creative
Commons
(creative works
such as photos,
music)
Open Hardware
(Arduino)
Maker community
(3D printing, DIY)
Summary
Everyone is using Open Source
Open source development yields the best
product & increases adoption
Community is the driving force
Thank You!
Questions?

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The value add of Open Source for innovation

  • 1. The value add of OPEN SOURCE for innovation Balázs Scheidler co-founder and CTO, BalaBit
  • 2. Introduction Started programming at age 12 on Commodore 64 First exposure to Linux at 16-17: Slackware 1.0, Linux kernel 0.99pl14 Contributor to open source projects at 19: Free Pascal Compiler and others Starting my own open source project at 21: syslog-ng Starting my own company with an Open Source business model at 23: BalaBit Balázs Scheidler, founder & CTO of BalaBit
  • 3. What is Free, Libre and Open Source Software (FLOSS)? The four freedoms The freedom to redistribute copies so you can help your neighbor. The freedom to distribute copies of your modified versions to others. The freedom to study how the program works, and change it so it does your computing as you wish. The freedom to run the program as you wish, for any purpose
  • 4. Claim: Everyone is directly or indirectly using Open Source software Every Day.
  • 5. Everyone is using Open Source • 7 out of 9 Gold sponsors on the exhibition floor are definitely using open source • Revealed using simple google queries (company + open source) • The other two provides services rather than products, so more difficult to tell
  • 7. Why do companies spend money on engineers and give away the results for free?
  • 8. Because it yields the best product
  • 9. Because it yields the best product & Higher adoption in the early phase
  • 10. If and only if a proper community is formed around it
  • 11. The code becomes an independent entity of its original creator
  • 12. Best Product, why? MORE USERS, MORE FEEDBACK → BETTER PRODUCT  More adaptable, more environments  Scratching an itch HIGHER ADOPTION  Nothing stops anyone from trying it (it's free to use and study)  Network effect (more users lead to even more users)  Making the pie larger in the long term
  • 13. Best Product II. ITERATIVE SOFTWARE ENGINEERING W/ COLLABORATION  “Standing on the shoulders of giants”  Instead of huge increments: o smaller steps, o one at a time, o potentially by a different contributor, o continuously refining the whole COMPETITION  Successful projects are backed by multiple vendors, competing in the marketplace  Competing companies work on the same code base
  • 15. Hobby & job Engineers take a job to pay their bills… … but usually still have retain hobbies Open Source can be one of those hobbies Making one's hobby his job has enormous benefits through motivation
  • 16. IN EXCHANGE FOR CODE AND CONTROL, COMPANIES GET THE BEST PRODUCT AND THE BEST POSITION TO PRODUCTIZE IT
  • 17. THEY ALSO GRANT THE RIGHT TO ANY OTHER COMPANY TO DO THE SAME. … with enough investment
  • 18. It is not just Software Wikipedia Creative Commons (creative works such as photos, music) Open Hardware (Arduino) Maker community (3D printing, DIY)
  • 19. Summary Everyone is using Open Source Open source development yields the best product & increases adoption Community is the driving force

Editor's Notes

  • #4: Before talking what the value-add of open source, let's see what that is. Source refers to the programming language engineers use to write functionalities of the software. Without source code, it is possible but unpractical to modify software. What the four freedoms boil down is simply: You can run an open source program in its original form or with changes. You can also give it to anyone you want it to either with or without your changes. In order to make and redistribution possible, source code must be available alongside the program. Money is not even mentioned, it IS possible to charge for open source software. But once I have the code I do what I want, I can give it to my neighbor for free.
  • #5: With all this said, I want to make a bold statement: Everyone is using open source software.
  • #7: Internet infrastructure: standards, TCP/IP, DNS, ... Social: Facebook, Google, Twitter Mobile: Android Cloud: Amazon, Linux IoT: Arduino, Raspberry Pi Big Data: Hadoop, HBase, Storm Others: Amazon Kindle, TVs, embedded computing, PoS terminals, ...
  • #8: If source code makes it possible for anyone anywhere to use one's creation without paying a dime, why do companies choose to publish source code?
  • #9: Another bold statement :) I work in the software industry, we are creating products. Are all our products open source? No. Do we integrate open source into our products? Yes. Do we publish components of our products as open source? Yes. We open source the platform, the core technology, and build the rest of the offering in a closed form. Open Source is not the free, crippled, entry version which only drives customers to the “paid for” version, Open Source project has to stand on its own feet with its own vision and own business value. There must be no glass ceiling above the open project which it cannot pass but it would be logical to pass. It can never abandon a direction or feature because the original creator has a paid for feature that it would compete with.
  • #10: Another bold statement :) I work in the software industry, we are creating products. Are all our products open source? No. Do we integrate open source into our products? Yes. Do we publish components of our products as open source? Yes. We open source the platform, the core technology, and build the rest of the offering in a closed form. Open Source is not the free, crippled, entry version which only drives customers to the “paid for” version, Open Source project has to stand on its own feet with its own vision and own business value. There must be no glass ceiling above the open project which it cannot pass but it would be logical to pass. It can never abandon a direction or feature because the original creator has a paid for feature that it would compete with.
  • #11: Another bold statement :) I work in the software industry, we are creating products. Are all our products open source? No. Do we integrate open source into our products? Yes. Do we publish components of our products as open source? Yes. We open source the platform, the core technology, and build the rest of the offering in a closed form. Open Source is not the free, crippled, entry version which only drives customers to the “paid for” version, Open Source project has to stand on its own feet with its own vision and own business value. There must be no glass ceiling above the open project which it cannot pass but it would be logical to pass. It can never abandon a direction or feature because the original creator has a paid for feature that it would compete with.
  • #12: Some examples: Linux kernel is supported by RedHat, SUSE, Oracle, Ubuntu All of them work on the kernel and try to hire as many upstream developers as possible MySQL Oracle (through acquisition), SkySQL, Percona
  • #13: My bold statement was that open source delivers the best product, why? Linux for instance: Started as a hobby project for i386, not intended to be running anywhere else. Today: from small devices the size of a matchbox, running to IBM mainframes From web servers, through Xray machines to cars and airplanes Technology and “general purpose computing” is very adaptable, the question is whether we can connect the dots and have the required skillset to implement what we want. Commercial sw development inherently limits the scope, whereas transparency in an open source project opens up a lot of opportunities that would have not been used.
  • #14: Open Source is by necessity iterative, quite akin to agile software engineering practices that emerged the last couple of years. A series of smaller steps deliver much more value if the intermediate steps are used for pivots, validations and new ideas. Competition is always good, if a project sponsor falls behind, someone can take his/her place.
  • #16: Engineers take a job to pay their bills… … but usually still have retain hobbies Open Source can be one of those hobbies Making one's hobby his job has enormous benefits through motivation Inherent understanding of the problem space (less need for product management) Attention to detail, solving problems the best way possible Making decisions at an individual level, without management overhead Collaboration with like-minded peers becomes very easy
  • #17: An advantage that can diminish over time, but as a company employs the engineers that created the product the first place, they are the first to go to if someone wants help. They have the ability to support customers in business critical environments, they are the best to fix bugs or enhance the product in new directions. Basically they are in the best position to deliver a product using the open source project's output...
  • #18: … at least until someone else invests enough to learn the ins and outs of the system and start their product as well.
  • #19: Wikipedia, Creative Commons (creative works such as photos, music) Open Hardware (Arduino), Maker community (3D printing, DIY)
  • #20: Open Source Transparency creates a opportunity to join and trust Motivations become intrinsic Innovation happens :)