This isn't Richard Stallman's Open Source anymore

Copyright (c) 2009-2016 by Data Geekery GmbH. Slides licensed under CC BY SA 3.0
The Business of Open Source
This isn’t Richard
Stallman’s Open
Source anymore

Stallman doesn’t strictly like “Open Source”
(who noticed the flaw in the title?)

Me – @lukaseder
Open Source is free. Beer.
- Founder and CEO at Data Geekery
- Oracle Java Champion
- JUG.ch Board Member

Why do I talk about Open Source?
Data Geekery is a (dual-licensed) Open
Source Software vendor.
Check out our products:
http://www.jooq.org/products

Let’s say, I have
an opinion about
Open Source

(yeah, who doesn’t)

I also like gifs

Please relax 😃
(don’t get too 😡 about this topic)

If OSS were translated to car manufacturing

What is Open Source?
Who in here is
using OSS?

Everyone! 😍

Who in here
contributes to OSS?

Some of you 😐

Who in here
contributes
significantly to OSS?

What is Open Source? – This:
Open-source software (OSS)
is computer software with its source
code made available with a license in
which the copyright holder provides the
rights to study, change, and distribute
the software to anyone and for any
purpose
https://en.wikipedia.org/wiki/Open-source_software

What is Open Source? – This:
Free as in freedom
(or «libre»)

What is Open Source? – But also this:
A report by the Standish Group (from
2008) states that adoption of open-
source software models has resulted in
savings of about $60 billion per year to
consumers.
https://en.wikipedia.org/wiki/Open-source_software

Free as in beer
(or «gratis»)

In other words, Oracle, Microsoft,
IBM, etc. lose $60 bn / year

In fact, it’s not that bad
Article by Peter Levine: https://techcrunch.com/2014/02/13/please-dont-tell-me-you-want-to-be-the-next-red-hat/

Short History of Open Source – FSM / GNU
1983: Free Software
Movement and GNU

Goal:
Software should be
free as in «freedom»

Freedom to...
1. Run the program for any purpose
2. Study the program, change it in any way
3. Redistribute copies
4. Distribute copies of modified versions

Context
1. Software was extremely expensive
2. Software was «unavailable»
3. So was hardware
4. Small vendors had a hard time in
business

Freedom is obviously a
highly ideological concept,
not necessarily something
that adds immediate
«business value»

Short History of Open Source – OSI / Netscape
1998: Open Source
Initiative and Netscape

Idea:
Remove anti-commercial
touch from «free» software

Make source code available
with relaxed (or no)
restrictions on the use and
modification of the code.
«Freedom» is opt-in, kinda

Modern example
(because defaults to «all rights reserved»)

Goal:
Rapid evolution of
software.

What about consumers?
But:
Do consumers
even care?

Which product do you use?
Good enough (for devs)

I did these with Gimp for /r/photoshopbattles

Much much better

No clear winner

Much better for end users

Much better for operations

???
No real competitor

It’s not about the license
Fact is:
Sometimes you prefer OSS,
sometimes you prefer
proprietary software

Fact is:
End users don’t care at all
about software licensing (this
includes most devs)

Have you ever observed a geeky friend
try to explain the miracles of free
software to a non-geeky friend?

In the end, Open Source boils down to…
Consumers want:
- High value
- Low price
Duh, right?

In the end, Open Source boils down to…
Open source is
- High value (it depends)
- Low price (at least initially)

Why does any vendor participate in Open Source
Vendors want:
- Just enough value
- High price
Duh, right?

So, why do vendors
engage in Open Source?

Free as in freedom?

Free as in beer?

Wikipedia OSS Business Models
https://en.wikipedia.org/wiki/Business_models_for_open-source_software
1 Dual-licensing
2 Selling professional services
3 Selling of branded merchandise
4 Selling of certificates and trademark
use
5 Selling software as a service
6 Partnership with funding
organizations
7 Voluntary donations
8 Bounty driven development
9 Pre-order/crowdfunding/reverse-
bounty model
10 Advertising-supported software
11 Selling of optional proprietary
extensions
12 Selling of required proprietary parts
of a software product
13 Re-licensing under a proprietary
license
14 Obfuscation of source code
15 Delayed open-sourcing

All of these «models» set Open
Source as the prerequesite.
And now, how to make money??
🤔

However, companies want to
make money first.
And perhaps, they choose Open
Source. For a reason.
🤑

Here’s an OSS “Vendor”

Here’s an OSS “Vendor”
Netflix doesn’t make money with
software.
But thanks to their «coolness»,
they got free labour from the
market

Here’s another OSS “Vendor”

Microsoft, Open Source?

By 2020 "Cloud Shift" Will
Affect More Than $1
Trillion in IT Spending
- Gartner

Open Source may just be
the only chance Microsoft
has left to catch up.
- me

Magic Quadrant for Cloud IaaS - Gartner
Source: Gartner (August 2016)

Some economic theory
Complementary
good
• http://www.joelonsoftware.com/articles/StrategyLetterV.html
• https://en.wikipedia.org/wiki/Complementary_good

Reasons for vendors to
choose OSS:
1. Commoditisation
2. Fast market adoption

Us, for instance...
Trying to enter the
ORM market that is
saturated in 2009...
Very hard without
OSS licensing

Here’s a third OSS Vendor
VMWare puts free infrastructure
software into every enterprise Java
shop in the hopes of following up with
sales for “the real business”.

Here’s a fourth OSS “Vendor”
We don't have to fight
open source, we have to
exploit open source.
- Larry Ellison

Other examples
Well, where did you
think OSS comes
from?

¯_(シ)_/¯
Image credit: https://www.flickr.com/photos/tomaisashdene/8686481567 By Tomais Ashdene. License CC-BY 2.0

Where do you think
OSS comes from?

Conclusions from the node.js / leftpad disaster
We’re the only industry who
doesn’t seem to care about
supply chain management!

Conclusion
There is no such
thing as free software
(vendors provide stuff for free for a reason)

Conclusion
Yet, Open Source is
inevitable
(vendors commoditise software for many reasons)

Conclusion
Conclusion
1. Continue consuming OSS.
2. Contribute if you want but no hard feelings if
you don’t.
3. Just beware: You’re the product. Know why
vendors give you free stuff. Stay in control of
your supply chain.

Thank you
And come see my 2nd talk at 13:00
10 SQL Tricks that You Didn't Think Were
Possible
Coordinates
• Blog: http://blog.jooq.org (excellent Java SQL content)
• Twitter: @JavaOOQ / @lukaseder (lame jokes)
• E-Mail: lukas.eder@datageekery.com
• Bank account: CH57 8148 7000 0SQL AWSM 7

This isn't Richard Stallman's Open Source anymore

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