Open Source For Start-ups, Prof. Rahul De
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This document discusses how free and open source software (FOSS) can help startups. It notes that FOSS is based on social production without central control and has low costs. FOSS serves as a large reusable repository of high-quality code and knowledge. For startups, FOSS allows for agility, flexibility, and cost savings which help them adapt quickly in hyper-competitive environments. However, startups must consider license compatibility and support when reusing FOSS components.
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Open Source For Start-ups, Prof. Rahul De
- 1. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS for Startups Rahul De’ Hewlett-Packard Chair Professor Indian Institute of Management Bangalore rahul@iimb.ernet.in 5 April, 2014
- 2. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups 1 FOSS Basics 2 FOSS Economics 3 FOSS & IT Strategy 4 FOSS for Startups
- 3. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS Basics FOSS is Free and Open Source Software FOSS is defined by How the software is made How the software is licensed FOSS is distinguished from proprietary software, which is made in the “cathedral” whereas FOSS is made in the “bazaar”
- 4. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups The GPL The GNU General Public License Freedom to run the software Freedom to inspect and change the source code Freedom to share the software Freedom to distribute a modified version of the code
- 5. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS Economics FOSS is based on social/peer production1 The final product is non-proprietary There is no price signalling in the market No central command and control of production No large inputs of capital required Relies on distributed computing facilities and networks 1 Based on Benkler’s Wealth of Networks
- 6. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS Economics The Feedback Loop of Innovation Social/ Peer Production Inputs: Information Output: Information Goods
- 7. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS as Information Good FOSS is an information good Low cost of final product enables Innovation Further growth through peer production Sustains low-cost production process For Indian economy Reduces costs of innovation and technology development Enables entrepreneurship to flourish
- 8. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS for Startups Competitive Dynamics IT in Hyper- Competitive Environments FOSS for Reuse FOSS for Dynamic IT Capabilities
- 9. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups Changing Competitive Dynamics Hyper-competitive environment Schumpeterian economics Dynamic process of a series of market disruptions IT creates market disruptions Advantages from specific competitive moves is temporary Need for agility and flexibility Identify market imperfections Assemble dynamic competencies Sense and respond Continuous entrepreneurial actions
- 10. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups Role of IT in Hyper-Competitive Environment IT Differentiation Ability to innovate from knowledge, assets, and resources Assemble IT competencies in iterative loops Co-evolve assets, capabilities and knowledge Systems thinking and not just “tool” thinking Improvisational capabilities: the ability to spontaneously reconfigure existing resources Agility Entrepreneurial alertness Responding to changing customer, partner and business needs
- 11. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS as a Reusable Repository Systematic reuse of available FOSS FOSS as a reusable repository The largest external repository of reusable components High quality software code Embedded knowledge But not “designed for reuse” Not abstracted for reuse: high cost of searching for reusable artifacts
- 12. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS: For Dynamic IT Capabilities Time-to-market advantages Adherence to open standards and open architecture Possible to deploy hybrid solutions of diverse components Technological advantages (examples) Performance optimization through usage of best-of-breed solutions FOSS database found to be highly scalable More stable systems derived from superior quality of code base Lesser points of failure Reduced security threats Cost savings Higher ROI from technology spend
- 13. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS: Agility and Entrepreneurial Action Agility Enables co-evolving of assets with customers / partners High interoperability of FOSS systems Reduced vendor dependence Flexibility and faster time-to-market Initiate preemptive moves Respond to competition Develop entrepreneurial spirit Spirit of using FOSS Assembling innovation in continuous loops
- 14. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups FOSS for Startups: Questions and Issues 1 Which licence is best suited for FOSS reuse? 2 Can components under different licences be combined? 3 What happens if the FOSS project, from which code is reused, goes under? 4 What about warranties for performance? What strategy can be deployed for that? 5 When should code be upstreamed or given back to the community?
- 15. FOSS Basics FOSS Economics FOSS & IT Strategy FOSS for Startups Thank you for listening! Any Questions???