Open Source and its role in a new IT ecosystem

Open Source and its role in a new IT Ecosystem Heise Congress „Open Source meets Business“ Bob Gett Nürnberg, January 27, 2007

Abstract – not to be presented ,[object Object],[object Object]

What is Open Source - really? ,[object Object],[object Object],[object Object],[object Object]

An Open Source time table 1980 1990 2000 2010 Pioneer Age “ Free” and Community Age Adoption by (Enterprise) Developers Open Source Based Business Models Adoption by the Enterprise Open Source Enabled Business

The (r)evolutionary elements of Open Source and their impact on the IT industry The nature of Open Source Low cost scalable software distribution Collaborative software engineering Non monopolistic transparent technology access Impact on software industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The cost advantage of open source based software companies is huge … License Revenues Service Revenues Cost of Revenues Income from operation Research& Development Sales & Marketing G&A, Facilities, …. 50% 50% 22% 14% 38% 8% 18% Sample profit and loss statement of large scale software vendor << 25% OSS “cost”

… and Open Source software is progressing very quickly in terms of richness and quality Functionality/ Quality/Stability Time 2001 2003 2005 2007 Traditional commercial software Open Source software Gap Baseline user needs

Open Source is growing fast and outpacing traditional software vendor growth … Source: Gartner Open Source Summit 2006: “The Economics of Open Source - Measuring Market Influences” (Laurie Wurster) 8% 7% 93% 2005 2010 10% CAGR 30% 30% 7.8% $172B $277B Traditional Software Vendors Internal OSS Developm. External OSS Providers Entire Software Market ,[object Object],[object Object],[object Object],[object Object]

... and creating its own Open Source Ecosystem Open Source Users Support Maintenance/ Packaging Consulting System Integration Experts, press, influencers Foundations/ platforms Traditional software companies Open Source projects/ „products“ Hardware provider ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Open Source Communities

Open Source business models are based on mainly four revenue models System Integration Pure commercial license Dual Licenses Packaging/Maintenance Product based services Value add services Product (IP transfer) Services (IP leverage) Support Training Hosting/operation „ Subscriptions“/“Per Use“ Proprietary Offerings Pure commercial license Packaging/Maintenance Product based services Value add services IP “ bound ” IP “ usage ” Product (IP transfer) Support Training Professional services Hosting/operation Consulting 1 2 3 “ Subscriptions ” / “ Per Use ” IP = Intellectual Property Advanced features 4 Technology licensing

Characteristics of Open Source software drive the need for IT services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Open Source is a the driver and enabler of many other innovative businesses Open Source enabled business Commercial Software Appliances Software as a Service Web 2.0 Examples

Open source enables a new alternative for enterprises deploying new business applications Custom fit Cost Effectiveness ,[object Object],[object Object],[object Object]

Open source software and standards play a key role in the Next Generation Internet Platform Users & Partners Presentation Application Monolithic, Layered HTML, Links, Forms, Page-centric Assembled, Composite Rich UI Elements Application- Centric SOA, Orchestrated Partner Platform Tightly Integrated, Server-centric Highly Integratable, Loosely Integrated, Service-centric, Standards Driven First Generation Constrained by Limitations Next Generation Internet Embraces the Capabilities Synchronous, Page-centric Asynchronous, Desktop-quality, Application-centric “ Surfing”, Transacting, Personalized Collaborative, Community enabling, Sharing, Participating

Enterprises will achieve new capabilities with the next generation of internet applications Business Benefits of NGI More meaningful interactions True usability Agility and flexibility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Innovation at Internet speed ,[object Object],[object Object]

Optaros‘s response to services requirements: globally delivered solutions for local needs Collaborative Global Delivery Content Management Rich User Interface SOA/Enterprise Architecture Consulting/ Advisory Solution implemen- tation Solution management Operation & Support Practices/ Competencies Local presence Execution Services * Foreseen geographical expansion eCommerce KM & Collaboration Direct Consumer Engagem. Self Service Media & Publishing Business Solutions US Switzer- land Germany Romania UK* Open Source enabled Assembly Methodology (OptAM) Research and Knowledge Capturing/Packaging Methodology IP

The Optaros Open Source Catalogue 2007 as a navigational guide ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Thank you for your attention ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],www.optaros.com

Your Optaros Contacts in Europe ,[object Object],[object Object],[object Object],Theresienstrasse 6-8 D-80333 München P: +49 (0) 89 288 90 379 F: +49 (0) 89 288 90 45 Weinbergstrasse 147 CH-8006 Zürich P: +41 (0) 44 362 11 11 F: +41 (0) 44 362 11 17 Geneva Business Center GBC-1 12, Avenue the Morgines CH-1213 Genève/Petit-Lancy P: +41 (0) 22 731 84 20 F: +41 (0) 22 731 85 64 www.optaros.com/de www.optaros-update.blogspot.com Lutz Seeger Sebastian Wohlrapp Jürg Heim Bruno von Rotz Kay Flieger Frédéric Weill

Open Source and its role in a new IT ecosystem

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