WSO2Con ASIA 2016: New IT Business Models and Open Source Middleware Economic Value
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The document discusses the benefits of open source software (OSS), highlighting its ability to create a community-driven culture, improve quality and security, and foster innovation. It emphasizes OSS as a cost-effective and efficient organizational model that enhances collaboration, reduces barriers to entry, and attracts top talent. The conclusion underscores the importance of OSS in achieving project success, control over costs, and overall operational efficiency.
WSO2Con ASIA 2016: New IT Business Models and Open Source Middleware Economic Value
- 2. Why use Open Source? • Build an echo-system around products and services • Grow your user communiDes • Cost advantage… • Quality advantage!
- 4. Cost vs Other Benefits • Most assume OSS to be cheap • It is not just about financial value • Culture – Is what OSS is all about – Community driven with respect and ethics being the corner stones • Results in quality and security aspects • Foster innovaDon
- 5. Open Source as engineering process • Model for effecDve massively-distributed collaboraDon • Leverages extensive base plaWorm of technologies • WriJen with sharing and reusability as fundamentals • Slashes feedback cycle (beJer fit) • Accelerates release cycle (faster evoluDon) • Crowd-sourced quality control (many eyeballs improves security)
- 6. Open Source as an OrganizaDonal Model • Convergence of the technical problem – fit, quality, support • Breaks down siloed department thinking • InsDlls shared responsibility for saDsfacDon – enabled flaJer org structures • Distributed governance and meritocracy pracDces propagate throughout the business
- 8. Open Source as a Customer Value • Ease of AdopDon - Permission-less, for any purpose - Amenable to prototyping, failing-fast, iteraDng, evolving - Fully transparent - Standard legal terms (minimize review burden) - Transcends corporate history and stability (escrow) • Cost effecDve - DramaDc downward pressure on prices - Allows Dme/money tradeoffs
- 9. IT SoluDons Services SoKware Hardware • What have you got to pay for? • OSS drives down soKware costs – Lower overall project cost
- 11. Value ProposiDon • Since soKware costs go down with OSS – More room for services – Can provide beJer quality services – More value to the whole project • Faster ROI • Broader value proposiDon
- 12. Integrated Stacks • Saves integraDon Dme and component costs when OSS used • Replace some parts with OSS if not all to lower the total cost • When you sell the soluDon to other BUs the demand can rise if your price is low – Puts more price sensiDve customers within reach • Quality of OSS – SaDsfied customers
- 14. OpportuniDes • Break the barrier to entry – Try out the new projects/pilot projects with OSS for free • Move on or throw away decision based on success • Risk is less even if you fail – Provision, maintenance and support will cost • but later • when the project is up and running
- 15. Open Source as a RelaDonship Equalizer • Technology becomes a shared resource – contribuDon, parDcipaDon, evoluDon • Reduces informaDon asymmetry, cuts out the middleman • Encourages collaboraDon, educaDon • Maintain constant demonstraDon of clear and present value (the lock-in problem)
- 16. Open Source as a RecruiDng Vehicle • AJracts and retains top talent • Widely used in educaDonal insDtuDons and research projects • Extends community beyond corporate boundaries
- 17. Contribute and Influence CommiJers Contrib utors Users Benefits • Faster fixes • Strategy alignment • Employee aJracDveness • Visibility in the community
- 18. Open Source as a Brand • “Open Source” brand is on par with established brands (IBM, Oracle) • Introduces a wave of disrupDon for innovaDve vendors • Brand strength reflected by a preference for OSS in many kinds of organizaDons (private, governmental, non-profit)
- 19. Open Source is becoming “the default” Future of Open Source Survey 2015: • 78% of respondents said their companies run part or all of its operaDons on OSS • 66% said they take an open source-first approach to soKware • 64% of companies currently parDcipate in open source projects • 55% believe open source delivers superior security compared to proprietary soluDons hJps://www.blackducksoKware.com/resources/webinar/2015-future-open-source- survey-results
- 20. What are customers doing? • Developing OSS Policies – Don’t preclude OSS – it may be the best or only soluDon – Include OSS in evaluaDon matrix – Establish a preference for OS – Mandate OSS – Contribute to OSS • Develop a transiDon strategy – All new projects on OSS • Work with vendors in a collaboraDve way throughout a project – architecture, development, deployment
- 21. Conclusion • Control over cost • Overall project success • Efficiency • Quality • Influence
- 22. Thank You