This presentation explains why from a technology and innovation management perspective the future of software is Open Source. In brief the point made by the presentation is that to compete companies need to focus on added value and this requires proper commodization management. Open Source is the most strategic way of managing commodization.

1. OpenSplice DDS
Delivering Performance, Openness, and Freedom
Angelo Corsaro, Ph.D.
Product Strategy & Marketing Manager
OMG RTESS and DDS SIG Co-Chair
angelo.corsaro@prismtech.com
The Future of Software
is Open Source

2. Speaker Bio
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Angelo CORSARO, Ph.D.
Product Strategy & Marketing Manager
PrismTech
Tel: +33 1 69 01 53 54 | Cell: +33 6 43 30 75 65
Dr. Angelo Corsaro is the OpenSplice DDS Product Strategy & Marketing Manager at PrismTech, a market leader in the field
of high performance middleware. His responsibilities include product strategy, competitive positioning, technology evolution,
and technology evangelism. He is also responsible for strategic standardization at the Object Management Group (OMG),
where is co-chair of the Data Distribution Service (DDS) Special Interest Group, and the Real-Time Embedded and Specialized
Services Task Force.
Angelo received a Ph.D. and a M.S. in Computer Science from the Washington University in St. Louis, and a Laurea Magna
cum Laude in Computer Engineering from the University of Catania, Italy.
© 2009, PrismTech. All Rights Reserved

3. PrismTech Corp.
© 2009, PrismTech. All Rights Reserved

4. PrismTech Corporation
2
Where we do business – in over 50 countries worldwide
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HQ Sites
USA: Burlington, MA
EMEA: Edinburgh, Scotland
Engineering Centres
Newcastle, UK | Fort Wayne, IN
Berlin, Germany | Paris, France
Hengelo, Netherlands
Field Offices / Distributors
London, UK | Saddle Brook, NJ
Houston, TX | San Francisco, CA
Helsinki, Finland | Seoul, South Korea | Beijing, China
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5. Our Profile
History
Research & Development
1992 Incorporated as a Contract R&D Company –
Application & Data Integration Focus Significant Investment Program: More Than $10m
over the Last Three Years
2001 Restructured as a COTS Products & Services
Company - Initially offering Advanced CORBA Products Growth
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2002 Open Source ORBs Added to Product Portfolio 100%+ growth since FY2005
2005 SDR Tools and Middleware Added to Product Current Year Projected Revenues >$ 20mm and
Portfolio Profitable
2006 DDS Tools and Middleware Added to Product Accelerating Growth Planned for Future
Portfolio
Personnel
2008 Clearance for US DoD “Classified” Programs
Approximately 110 People Worldwide
2009 Open Source Launch of OpenSplice DDS
PrismTech is the World Leader in the High-Performance
Open Source Middleware Market
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6. Customers
Nokia
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7. Our Markets
5
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Copyright PrismTech 2008
Proprietary information subject to non-disclosure
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8. Our Product Lines
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9. Our Technologies
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10. Technology Evolution/Innovation
Landscape
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11. (1980)
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Growing Complexity
iPhone (2007)
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12. Growing Complexity
Price
■ US$ 3815 (in 1980)
(1980) CPU
■ Synertek 6502A, 2.0 MHz
RAM
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■ 128KB (512K Max)
Display
■ Color composite video
■ 16 colors at 280 X 192.
■ 16 shades at 560 X 192
Ports
■ Two serial ports
■ External floppy port
Ports
■ Apple SOS (Sophisticated OS)
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13. Growing Complexity
Price
■ US$ 399
Capacity
■ 8GB or 16GB flash drive
Sensors
Cellular and wireless ■ Accelerometer
■ UMTS/HSDPA (850, 1900, 2100 MHz) ■ Proximity sensor
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■ GSM/EDGE (850, 900, 1800, 1900 MHz) ■ Ambient light sensor
■ Wi-Fi (802.11b/g)
Audio
■ Bluetooth 2.0 + EDR
■ Frequency response: 20Hz to
GPS 20,000Hz
■ Assisted GPS ■ Audio formats supported: AAC,
Display Protected AAC, MP3, MP3 VBR,
Audible (formats 2, 3, and 4), Apple iPhone (2007)
■ 3.5-inch (diagonal) widescreen Multi-Touch
Lossless, AIFF, and WAV
display
Video
■ 480-by-320-pixel resolution at 163 ppi
■ H.264
■ Support for display of multiple languages and
■ MPEG-4
characters simultaneously
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14. © 2009, PrismTech. All Rights Reserved
Hyper Competition
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15. Innovation Pays...
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16. ...but it’s lack hurts badly
Nokia's Earnings Fall 90%, Keeps
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Bleeding Against iPhone, BlackBerry
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17. What’s the Biz Challenge?
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18. The Inevitable Path to Commodization
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New Technology Inception Technology Maturation Technology Commondization
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19. The Inevitable Path to Commodization
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Value Add
Commodity
New Technology Inception Technology Maturation Technology Commondization
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20. The Inevitable Path to Commodization
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Value Add
Value Add
Commodity
Commodity
New Technology Inception Technology Maturation Technology Commondization
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21. The Inevitable Path to Commodization
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Value Add
Value Add
Value Add
Commodity
Commodity
Commodity
New Technology Inception Technology Maturation Technology Commondization
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22. The Inevitable Path to Commodization
Value Add
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Value Add
Value Add Commodity
Value Add
Commodity
Commodity
Commodity
New Technology Inception Technology Maturation Technology Commondization
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23. The Inevitable Path to Commodization
Value Add
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Value Add
Value Add Commodity
Value Add
Commodity
Commodity
Commodity
New Technology Inception Technology Maturation Technology Commondization
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24. The Inevitable Path to Commodization
‣ In most of the mainstream markets along with the steep increase in
complexity comes a swift raise of commodization
‣ Companies should focus their strategy on adding value to the customer,
without trapping themselves into commodity, especially if this is not their Value Add
core-business
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Value Add
Value Add Commodity
Value Add
Commodity
Commodity
Commodity
New Technology Inception Technology Maturation Technology Commondization
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25. What is Commodization?
A technology is commodized when:
‣ Standardized by international bodies
‣ OMG DDS
‣ POSIX
‣ MPI
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‣ UML
‣ There is a standard de facto exist
‣ Linux
‣ Java
‣ When available as a COTS
‣ VxWorks, INTEGRITY
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26. Toward Strategic Commodization
No, it’s not an oxymoron!
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27. Are Commodities Strategic?
‣ Many companies underestimate the strategic importance
of properly managing commodization
‣ Commoditization should be planned as a way to outsource
IP that are no more strategic toward providing value-add to
the user, but which yet constitute a very important part of
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the overall system
‣ Technology commodization can be usually achieved by
means of:
‣ International Standardization
‣ Technology Spin-off
‣ IP Transfer to 3rd Parties
‣ When driving the commodization keep in minds the Porters
5 Forces Framework!
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28. © 2009, PrismTech. All Rights Reserved
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29. Making a Successful Commodizations
‣ Successful technology commodization requires widespread adoption
‣ Suppliers need to be aggressive in promoting the adoption of the commodization
‣ Successful technology commodization need to bring Total Cost of Ownership
(TCO) reductions to the “buyer” while ensuring “supplier” profitability
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‣ The “buyer” needs the “supplier” to succeed and vice-versa
‣ Successful commodization creates economy of scale
‣ Successful commodization ensure continuous innovation
‣ Successful commodization ensures that somebody else spends R&D $$$ on
your “commodity”
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30. Open Source:
Strategic Commodization
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31. Key Aspects of the Open Source Model
‣ The Open Source Model establishes a virtuous cycle based on generosity
with a non-linear return for community members who donate their time,
skills, ideas, money, etc.
‣ The Open Source Model empowers users
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‣ The Open Source Model removes boundaries and is able to “pick the
brain” of the smartest people around the world that are willing to
contribute
‣ The Open Source Model removes adoptions barriers
‣ The Open Source Model is able to benefit even from egoistic/free-riding
behavior
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32. Open Source Innovation Model
Collective
Private
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- Time Private/Collective
- Skill - Testing
Innovation Model
- Skill
- Technology - Money - Technology - Popularity
- Economy of Scale - Technology - ... - Credibility
- ... - Reputation - ...
- ...
Open Source Project
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33. Open Source Strategic Value
...A User Perspective
Open Source Software provides key Strategic Value to Users:
‣ No Technology Adoption Barriers
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‣ Larger Pool of Talent
‣ Better Support
‣ A Platform for User-Driven Innovation
‣ Security of Supply
‣ Better TCO when compared with Proprietary SW
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34. Commodizing with Open Source
Open Source is the most strategic
way of achieving technology
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commodization!
‣ Avoids single provider lock-in
‣ It provides a very effective manner of market seeding
‣ Reduces barriers to adoption
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35. Commodization @ Work
The Data Distribution Service
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36. © 2009, PrismTech. All Rights Reserved
The Need for Data Distribution
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37. Time Scale
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The Need for Data Distribution
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38. The Need for Data Distribution
Time Scale Geographical Scale
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39. The Need for Data Distribution
Time Scale Geographical Scale
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Parallelism
Systemic
Data
Signal
Processing Processing
Parallel Systems
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40. The Need for Data Distribution
Time Scale Geographical Scale
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Parallelism Determinism
Systemic Real-Time
Data
Signal Information
Processing Processing Processing
Parallel Systems
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41. The Need for Data Distribution
Time Scale Geographical Scale
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Parallelism Determinism Throughput, Availability
Systemic Real-Time Near Real-Time Fault-
Data
Signal Information Tolerant Information
Processing Processing Processing Processing
Parallel Systems
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42. The Need for Data Distribution
Time Scale Geographical Scale
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Parallelism Determinism Throughput, Availability Scalability, Persistence, Security
Systemic Real-Time Near Real-Time Fault-
Data Complex Information
Signal Information Tolerant Information
Processing Processing Management
Processing Processing
Parallel Systems Distributed Systems
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43. The Need for Data Distribution
Time Scale Geographical Scale
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Parallelism Determinism Throughput, Availability Scalability, Persistence, Security
Systemic Real-Time Near Real-Time Fault-
Data Complex Information
Signal Information Tolerant Information
Processing Processing Management
Processing Processing
Data Distribution
Parallel Systems Distributed Systems
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44. The OMG Data Distribution Service (DDS)
Data Distribution Service for Real-Time Systems
Application
‣ Leap forward in Topic-based Publish/Subscribe
Middleware state of the art Object/Relational Mapping
‣ Carefully specified to allow very high performance, Data Local Reconstruction Layer (DLRL)
scalable, predictable and high-availability Content
Ownership Durability
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implementations Subscription
‣ Language Independent, OS and HW architecture Minimum Profile
Data Centric Publish/Subscribe (DCPS)
independent
Fully Standardized Solution Real-Time Publish/Subscribe Protocol
‣ Data Distribution Service (DDS) for Real-Time DDS Interoperability Wire Protocol
Systems v1.2 UDP/IP
‣ RTPS, DDS Interoperability Wire Protocol
The OMG Data Distribution Service satisfies the most challenging information
dissemination requirements across a wide set of application domains, ranging
from multi-board systems to system-of-systems
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45. DDS Recommendations
! The infrastructure evolution cycle is churning…
– New -> Emerging -> Standard -> Commodity
– Middleware is emerging as OS declines
Increasingly Mandated/Recommended by Administrations
! …DDS is maturing…
‣ US Navy: Open Architecture focus
– OMG
– Wire spec
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– Tools
‣ DISR/DISA: Net-centric Systems
– Enterprise integration
– Multiple products fielded
‣ EuroControl: Air Traffic Control Center Operational
– Deployed applications!
Interoperability
! …and adoption is on the rise
– Navy for VSI
‣ QinetiQ: Recommending DDS
– DISR
– FCS/SoSCOE
– Many significant applications
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46. OpenSplice DDS v4.1
‣ Product reorganized into Editions
‣ Community Edition
Enterprise Ed.
‣ Compact Edition
‣ Professional Edition
‣ Enterprise Edition Professional Ed.
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‣ Product Editions provide a a growing set of
Enterprise Ed.
functionality to address the needs of increasingly Compact Ed.
more sophisticated users
Community Ed.
‣ The Community Edition is Open Source
‣ Compact, Enterprise and Professional Edition are
available only through Commercial Subscriptions
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47. Community Edition
Features Licensing
‣ OMG DDS v1.2 DCPS ‣ LGPLv3
‣ Minimum Profile
‣ Content Subscription Profile Application
‣ Durability Profile
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‣ Ownership Profile Content
DDS v1.2
Ownership Durability
Subscription
‣ Networking Minimum Profile
‣ DDSI v2.1 Implementation Real-Time Pub/Sub (DCPS)
‣ Real-Time Networking Implementation
DDSI v2.1
Interoperable Wire Protocol
Real-Time Networking
(DDSI)
Networking Technology
UDP/IP
Open Source LGPL Licensed Edition -- The Best Way to Get Started with DDS
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48. Enterprise Edition
Features Licensing
‣ OMG DDS v1.2 (DCPS+DLRL) ‣ Commercial
‣ Minimum Profile
‣ Content Subscription Profile
Application
‣ Durability Profile
MDE
‣ Ownership Profile Tuner
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Object/Relational Mapping
‣ Data Local Reconstruction Layer PowerTools Object-Oriented Pub/Sub (DLRL)
DDS v1.2
‣ Networking Ownership Persistence
Content
Subscription
‣ DDSI v2.1 Implementation DBMS
‣ Real-Time Networking Implementation
Minimum Profile
Connectors Real-Time Pub/Sub(DCPS)
‣ Spiked Absorber
DDSI v2.1
‣ Secure Networking SOAP
Spike Absorber
Real-Time Interoperable Wire
‣ PowerTools ‣ Connectors
Secure Networking
Networking Protocol (DDSI)
Connectors Networking Technology
‣ MDE Power Tools ‣ SOAP Connector
‣ Tuner ‣ DBMS Connector
UDP/IP
Connect Your Enterprise Seamlessly and in Real-Time!
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49. Community Process
OpenSplice DDS Community
- Commercial Support
- Customizations
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- Special xTensions
- Training/Services
- Skill
- Technology
- Skill - Money - Technology - Testing
- Technology - Technology Leadership - Know/how - Popularity
- Economy of Scale - Technology Incubators - ... - Credibility
- Technology - ... - Technology Incubator
Incubators
- ... - ...
OpenSplice DDS
Delivering Performance, Openness, and Freedom
© 2009, PrismTech. All Rights Reserved

50. Roadmap Planning
Roadmap
Items List OpenSplice DDS
- Roadmap
- Priorities - Roadmap
- Priorities
Community
- Skills
- Time - Skills
- Funding
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- Technology
- Time
Roadmap - ...
Technology Ecosystem
OpenSplice DDS
Delivering Performance, Openness, and Freedom
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51. Technology Incubators
Technology
Incubators List OpenSplice DDS
- Incubators
- Priorities - Incubators
- Priorities
Community
- Skills
- Time - Skills
- Funding
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Technology - Technology
- Time
Incubators - ...
Technology Ecosystem
OpenSplice DDS
Delivering Performance, Openness, and Freedom
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52. Commodization @ Work
The Open Market Data Platform
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53. CSI Open Market Data (OMD) Platform
‣ OMD, with support from key
Financial Firms is defining what
aims to become the standard
de-facto Market Data Plarform
‣
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The key driver for commodizing
the Market Data Platform is to
allow Financial Firms to focus on
innovating on the trading
applications as opposed than on
infrastructure
Courtesy of Richard Reichgut
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54. Open Source and Lead Users
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55. Users as Innovators: Traditional Model
User-Dominated Steps
Commercial
Inventive User Inventive User Lead Users
Company
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Technology Invention User diffuses the A few Users build A Commercial version
or Improvement built results and how-to-do- their own version of of the innovation is
and used by a User it information through the Invention or introduce by a
publication, symposia, Improvement Company
visits, etc.
Invention, Prototyping Information Diffusion Pre-commercial Commercial Availability
replication and use
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56. Traditional Model Limitations
‣ The Inventive User has to build the improvement or innovation, although this might
not be part of its core business/competences
‣ Replication of solution by Inventive/Lead Users might leads to duplicating the
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effort, and does not exploit the potential economy of scale
‣ The cost of innovation is not minimized
‣ The commodization of innovation is not completely under control
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57. Open Source for Catalyzing Innovation
User-Dominated Steps
Commercial
Inventive User Inventive User Lead Users
Company
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Commercial Commercial Commercial Commercial
Company Company Company Company
Technology Invention or User and Commercial Technology is made The innovation is widely
Improvement devised and Company diffuses the results available to other users. The accessible to the Market,
built by a User and and how-to-do-it information Inventive Users still has ideally under Open Source
Commercial Company through publication, competitive advantage.
symposia, visits, etc.
Commercial
Invention, Prototyping Market Awareness Replication and Use Toward Commodization
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58. Putting it all together
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59. From Commodization to Innovation
Collective
Private
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Lead User Technology Owner
Private/Collective
- Innovation -Technology - Testing
Platform Commodization - Technology
- ...
- Popularity Innovation Model
- Credibility
- ...
Open Source Project
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60. From Innovation to Commodization
Collective
Private
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Technology Lead User
Owner
Private/Collective
- Innovation - Lead User - Testing
Platform Innovation - Technology
- ...
- Popularity Innovation Model
- Credibility
- ...
Open Source Project
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61. The Future...
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62. The Future is Open Source
Market Evidences
‣ Commercial companies are increasingly using Open Source as a “smart
way” of seeding commodization, or unselling proprietary value add solutions
‣ Open Source software is being increasingly adopted and chosen in place of
proprietary software by corporate and administrations
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‣ Government EU/US/China
‣ DoD ACT HR 5658
‣ The Open Source Software consistently delivers higher quality and more
innovative solutions when compared to closed proprietary software
‣ Ex. GNU Software, Linux OS, Firefox, etc.
‣ Open Source Software market share is consistently growing, and will be
further propelled by the Financial Crisis
© 2009, PrismTech. All Rights Reserved

63. Concluding Remarks
‣ Open Source provides the key set of benefits that are
required to make successful technology commodization
‣ Open Source provides the best protection to the user
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as well as establishing a platform for innovation
‣ Open Source is the ideal base for Lead-Users
innovations
Open Source is the Future of Software
© 2009, PrismTech. All Rights Reserved

64. Online Resources
http://www.opensplice.com/ http://twitter.com/acorsaro/
emailto:opensplicedds@prismtech.com
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http://bit.ly/1Sreg http://opensplice.blogspot.com
http://www.dds-forum.org
http://www.youtube.com/OpenSpliceTube http://portals.omg.org/dds
© 2009, PrismTech. All Rights Reserved