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Does Open
Source Still
Matter?
Jonathan Marsh
VP Strategy, WSO2
9 May 2024
Yes!
But … let’s look deeper at the current environment
● Challenges addressed by Open Source
● WSO2’s Open Source policies
● New challenges to Open Source itself
● The future of Open Source
3
Challenges addressed by Open Source
Better software
● Transparency improves software development practices
○ More eyes on the code
○ Contributes back to human knowledge (human and AI training)
○ Wider set of constituents
○ Wider set of contributors
○ Open marketplace of ideas
○ Rewrote how software is written with decentralized tools and governance methods
● Reduced duplicative efforts
○ Freely build on best-of-breed components
○ Allow technical consensus to coalesce around best software
● Attracts geekiest developers
5
Cost & equity
● Software is necessary for modern societies
● Traditional software vendors may impose undesirable terms:
○ Unaffordable
○ No control over evolution, maintenance
○ Controlled by private entities
○ Controlled by foreign entities
● Open Source provides legal path to obtaining low-TCO software
● Maintains market pressure on proprietary software vendors
6
Software independence
● Open Source broke open the problem of “vendor lock-in:”
○ High prices
○ Unresponsive to evolution needs
○ Opaque quality & “abusive relationships”
○ Product lifecycle pressure (early EOLs)
● Now governments are emerging as a more significant source of
uncertainty
○ Data privacy and other software regulations
○ Trade restrictions
○ International sanctions
○ Snooping by “law enforcement”
7
WSO2’s Open Source Policies
WSO2’s extraordinary Open Source commitment
9
All downloadable products
SaaS offerings may differ
All enterprise features
No dual licensing
Permissive license
Apache 2.0
Critical security updates
On latest release only
Open process
Apache Way governance model
5
1
2 3
4
● Ideological decision deeply embedded in company history and culture
● Increased employee equity
○ Establish personal reputation
○ Access to code after leaving the company
○ Exposure to a global community (contributors, users/customers)
○ Supports development of software talent beyond Silicon Valley-like hot spots
● Secures unique business advantages
○ Replaces expensive marketing with viral/word-of-mouth awareness
○ Benefits from open-source preferences (individual, institutional, regulatory)
○ Expectation of high value/low cost
Why does WSO2 prefer Open Source?
10
WSO2’s business model
Image by Freepik
No marginal cost
Broadcast
Community
Public
Free
Marginal costs
Individualized
Expert
Private
Paid
Users Customers
11
⦿ Community releases
⦿ Regular releases with new
features & bug fixes
⦿ Critical security updates
(only) on latest release
(only)
⦿ Community support
(public, best efforts)
⦿ DIY & community expertise
WSO2’s business model
⦿ Supported distributions &
SaaS products
⦿ Continuous updates on 3+
years of supported releases
⦿ Security bulletins & updates,
updates to supported
releases
⦿ Enterprise support (private,
SLA)
⦿ WSO2 expertise
Users Customers
12
Challenges to Open Source
The #XZ story:
● A compression library central to the linux stack was maintained by an
overworked volunteer
● Nation-state hackers posed as open source developers to gain commit rights
and assume effective control over the component
● After a year of productive participation the new committers inserted a very
significant back door
● An alert developer/consumer at Microsoft identified degraded performance,
located and reported the problem
● Worries remain that a loose system of decentralized volunteers is open to
manipulation
See https://www.wired.com/story/xz-backdoor-everything-you-need-to-know/
Maintaining security in a decentralized system
14
SaaS
● Strong trend towards SaaS for the last decade or more
○ Ease of trial
○ Low entry cost
○ Low maintenance effort
● On-premises still continues to grow
○ “Reshoring” SaaS to save money
○ Cloud native characteristics now more readily available on-prem (Kubernetes)
○ Competing regulatory regimes leading to a fragmented global market
15
Mega-cloud competition
● Smaller companies can face existential competition from Amazon etc.
should they decide to offer a SaaS version of a popular open source
product.
● Vendors moving towards “source-available” licenses to provide most of
the full benefits of open source to MOST users, while precluding
“predatory” use.
○ MongoDB, MariaDB, Cockroach Labs, Couchbase, Redis, Hashicorp, Elastisearch
16
● Open source companies have not proliferated
● Low uptake from traditional VC investors
○ No playbook for success
○ Difficult to make quick returns
○ Hard to defend/monetize proprietary IP
○ SaaS is more attractive
○ Dual-licensing (i.e. not truly open) at best
● Value of open sourcing is often indirect
○ Preempt competition
○ Boost reputation
○ Leverage community to lower long-term costs
Investment expectations
17
Increasing regulation
● US Cyber Trust Mark Act
○ Safety certification allowing consumers to choose safer products
○ Certification performed by independent labs
○ Voluntary - open source projects can choose whether to apply
● European Cyber Resiliency Act
○ Product safety regulation - software vendors may be penalized for for insecure
software and sub-standard security processes
○ Requires self- documentation of security practices, ongoing responsive measures (i.e.
security patches)
○ Applies to all software vendors with business in Europe, with global spillover
○ Also applies to open source software sponsored by vendors with business in Europe
18
Gift horse or trojan horse?
● Increased costs of releasing software
○ Formalized risk assessments
○ Documenting releases
○ Achieving zero known vulnerability goals
● Increased costs of maintaining
software
○ Making security updates available freely
○ Promptly report security vulnerabilities to
authorities
○ Committing to a product lifetime
● Increased financial risk
○ Penalties reaching millions of euros
19
Who pays for conformance costs?
● Software vendors
○ Higher prices for commercial products to subsidize open source
○ Where the open source is ancillary to a commercial product sale (e.g., tools)
○ Where the open source is a precursor to a commercial product sale (e.g., dual license)
● Open source foundations
○ Established open source foundations can provide systems and support for
conformance.
○ Foundations are usually funded with pooled corporate dues and donations
● Governments?
20
The Future of Open Source
(my predictions)
● Regulatory damage to “as-is” open sourcing
● Harder for companies to justify open sourcing in the face of
increased obligations and liability
● Public funding is insufficient to fully support open source as a
public good
Entering a time of push and pull
● Waning globalization and waxing geopolitical instability
will drive demand for software independence
● SaaS may peak in some areas - “reshoring” underway
● Open source can avoid traditional marketing saturation
failures, with word-of-mouth awareness
22
● OpenSSF (Open Source Security Foundation): defining and promoting
repeatable security practices
⦿ https://openssf.org/
● Open Source Quality Institutes (OSQI): Tim Bray’s idea for public funding
for open source “commons” maintenance efforts
⦿ https://www.tbray.org/ongoing/When/202×/2024/04/01/OSQI
Awareness of the need to treat open source as a public good
23
Developer quandary
Release as
open source?
Fully conform, accept liability &
maintenance obligations
Don’t release at all
Release as closed source/dual license
Regional “open source” license variants
Explore new revenue sources
Minimize conformance costs
24
Less license purity
● Increased use of dual-licensing and source-available licenses (addresses
the investment problem)
● Increased use of SaaS-prevention licenses (addresses the SaaS problem)
● Emergence of “as-is” licenses (addresses the un-funded mandate
regulatory problem)
25
Return to Open Source Foundations (OSFs)
● OSFs will gain some special regulatory status
● Pools costs and mechanisms for satisfying regulatory requirements
26
Personal thoughts
● Open source will need your help!
● Be open to a diversity of open-source-adjacent licenses
○ Licenses that prevent direct competition by SaaS providers
○ “As–is” licenses
● Support open source as a public good
○ Support initiatives to provide public support
○ Expect more certification options
○ Recognize secure use of open source is a joint responsibility of developer and user
● Know your Open Source - examine the SBOM
● Expect somewhat less diversity and vigor in open source community
● Expect somewhat higher costs for commercial equivalents
27
Thank You!

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WSO2CON 2024 - Does Open Source Still Matter?

  • 1. Does Open Source Still Matter? Jonathan Marsh VP Strategy, WSO2 9 May 2024
  • 3. But … let’s look deeper at the current environment ● Challenges addressed by Open Source ● WSO2’s Open Source policies ● New challenges to Open Source itself ● The future of Open Source 3
  • 5. Better software ● Transparency improves software development practices ○ More eyes on the code ○ Contributes back to human knowledge (human and AI training) ○ Wider set of constituents ○ Wider set of contributors ○ Open marketplace of ideas ○ Rewrote how software is written with decentralized tools and governance methods ● Reduced duplicative efforts ○ Freely build on best-of-breed components ○ Allow technical consensus to coalesce around best software ● Attracts geekiest developers 5
  • 6. Cost & equity ● Software is necessary for modern societies ● Traditional software vendors may impose undesirable terms: ○ Unaffordable ○ No control over evolution, maintenance ○ Controlled by private entities ○ Controlled by foreign entities ● Open Source provides legal path to obtaining low-TCO software ● Maintains market pressure on proprietary software vendors 6
  • 7. Software independence ● Open Source broke open the problem of “vendor lock-in:” ○ High prices ○ Unresponsive to evolution needs ○ Opaque quality & “abusive relationships” ○ Product lifecycle pressure (early EOLs) ● Now governments are emerging as a more significant source of uncertainty ○ Data privacy and other software regulations ○ Trade restrictions ○ International sanctions ○ Snooping by “law enforcement” 7
  • 9. WSO2’s extraordinary Open Source commitment 9 All downloadable products SaaS offerings may differ All enterprise features No dual licensing Permissive license Apache 2.0 Critical security updates On latest release only Open process Apache Way governance model 5 1 2 3 4
  • 10. ● Ideological decision deeply embedded in company history and culture ● Increased employee equity ○ Establish personal reputation ○ Access to code after leaving the company ○ Exposure to a global community (contributors, users/customers) ○ Supports development of software talent beyond Silicon Valley-like hot spots ● Secures unique business advantages ○ Replaces expensive marketing with viral/word-of-mouth awareness ○ Benefits from open-source preferences (individual, institutional, regulatory) ○ Expectation of high value/low cost Why does WSO2 prefer Open Source? 10
  • 11. WSO2’s business model Image by Freepik No marginal cost Broadcast Community Public Free Marginal costs Individualized Expert Private Paid Users Customers 11
  • 12. ⦿ Community releases ⦿ Regular releases with new features & bug fixes ⦿ Critical security updates (only) on latest release (only) ⦿ Community support (public, best efforts) ⦿ DIY & community expertise WSO2’s business model ⦿ Supported distributions & SaaS products ⦿ Continuous updates on 3+ years of supported releases ⦿ Security bulletins & updates, updates to supported releases ⦿ Enterprise support (private, SLA) ⦿ WSO2 expertise Users Customers 12
  • 14. The #XZ story: ● A compression library central to the linux stack was maintained by an overworked volunteer ● Nation-state hackers posed as open source developers to gain commit rights and assume effective control over the component ● After a year of productive participation the new committers inserted a very significant back door ● An alert developer/consumer at Microsoft identified degraded performance, located and reported the problem ● Worries remain that a loose system of decentralized volunteers is open to manipulation See https://www.wired.com/story/xz-backdoor-everything-you-need-to-know/ Maintaining security in a decentralized system 14
  • 15. SaaS ● Strong trend towards SaaS for the last decade or more ○ Ease of trial ○ Low entry cost ○ Low maintenance effort ● On-premises still continues to grow ○ “Reshoring” SaaS to save money ○ Cloud native characteristics now more readily available on-prem (Kubernetes) ○ Competing regulatory regimes leading to a fragmented global market 15
  • 16. Mega-cloud competition ● Smaller companies can face existential competition from Amazon etc. should they decide to offer a SaaS version of a popular open source product. ● Vendors moving towards “source-available” licenses to provide most of the full benefits of open source to MOST users, while precluding “predatory” use. ○ MongoDB, MariaDB, Cockroach Labs, Couchbase, Redis, Hashicorp, Elastisearch 16
  • 17. ● Open source companies have not proliferated ● Low uptake from traditional VC investors ○ No playbook for success ○ Difficult to make quick returns ○ Hard to defend/monetize proprietary IP ○ SaaS is more attractive ○ Dual-licensing (i.e. not truly open) at best ● Value of open sourcing is often indirect ○ Preempt competition ○ Boost reputation ○ Leverage community to lower long-term costs Investment expectations 17
  • 18. Increasing regulation ● US Cyber Trust Mark Act ○ Safety certification allowing consumers to choose safer products ○ Certification performed by independent labs ○ Voluntary - open source projects can choose whether to apply ● European Cyber Resiliency Act ○ Product safety regulation - software vendors may be penalized for for insecure software and sub-standard security processes ○ Requires self- documentation of security practices, ongoing responsive measures (i.e. security patches) ○ Applies to all software vendors with business in Europe, with global spillover ○ Also applies to open source software sponsored by vendors with business in Europe 18
  • 19. Gift horse or trojan horse? ● Increased costs of releasing software ○ Formalized risk assessments ○ Documenting releases ○ Achieving zero known vulnerability goals ● Increased costs of maintaining software ○ Making security updates available freely ○ Promptly report security vulnerabilities to authorities ○ Committing to a product lifetime ● Increased financial risk ○ Penalties reaching millions of euros 19
  • 20. Who pays for conformance costs? ● Software vendors ○ Higher prices for commercial products to subsidize open source ○ Where the open source is ancillary to a commercial product sale (e.g., tools) ○ Where the open source is a precursor to a commercial product sale (e.g., dual license) ● Open source foundations ○ Established open source foundations can provide systems and support for conformance. ○ Foundations are usually funded with pooled corporate dues and donations ● Governments? 20
  • 21. The Future of Open Source (my predictions)
  • 22. ● Regulatory damage to “as-is” open sourcing ● Harder for companies to justify open sourcing in the face of increased obligations and liability ● Public funding is insufficient to fully support open source as a public good Entering a time of push and pull ● Waning globalization and waxing geopolitical instability will drive demand for software independence ● SaaS may peak in some areas - “reshoring” underway ● Open source can avoid traditional marketing saturation failures, with word-of-mouth awareness 22
  • 23. ● OpenSSF (Open Source Security Foundation): defining and promoting repeatable security practices ⦿ https://openssf.org/ ● Open Source Quality Institutes (OSQI): Tim Bray’s idea for public funding for open source “commons” maintenance efforts ⦿ https://www.tbray.org/ongoing/When/202×/2024/04/01/OSQI Awareness of the need to treat open source as a public good 23
  • 24. Developer quandary Release as open source? Fully conform, accept liability & maintenance obligations Don’t release at all Release as closed source/dual license Regional “open source” license variants Explore new revenue sources Minimize conformance costs 24
  • 25. Less license purity ● Increased use of dual-licensing and source-available licenses (addresses the investment problem) ● Increased use of SaaS-prevention licenses (addresses the SaaS problem) ● Emergence of “as-is” licenses (addresses the un-funded mandate regulatory problem) 25
  • 26. Return to Open Source Foundations (OSFs) ● OSFs will gain some special regulatory status ● Pools costs and mechanisms for satisfying regulatory requirements 26
  • 27. Personal thoughts ● Open source will need your help! ● Be open to a diversity of open-source-adjacent licenses ○ Licenses that prevent direct competition by SaaS providers ○ “As–is” licenses ● Support open source as a public good ○ Support initiatives to provide public support ○ Expect more certification options ○ Recognize secure use of open source is a joint responsibility of developer and user ● Know your Open Source - examine the SBOM ● Expect somewhat less diversity and vigor in open source community ● Expect somewhat higher costs for commercial equivalents 27