Bruno Lévêque's presentation for the FIU Executive MBA on April, 12th 2014

1. Open-source
«When the magic happens»
FIU Executive MBA
Apr 11th 2014
by Bruno Leveque, PrestaShop Co-founder
Bruno42 (Twitter)

2. Open-source
• Definition
• Successful Open-source projects
• The Good, the Bad, the Ugly
• Making money – 4 typical Open-source revenues streams
• Open-source vs Saas? How to get the best of the two worlds
• How-to implement Open-source in your organization?
• About the Case Study
• Questions

3. «The power of Open-source
is the power of people. The
people rule.»
Philippe Khan
Borland’s founder in the 1980’s &
Inventor of the 1st camera phone

4. Definition
The Open-source core principles:
• Access to the source code
• Ability to use the source code
• Ability to modify/improve the source code
• Ability to distribute the source code
The Open-source Ethics:
• Sharing / transparency
• Openness
• Innovation and improvements
• Freedom

5. Definition
Open-source does not necessarily mean
«Free» like in «Free beer»
«Open source isn’t about saving money, it’s about
doing more stuff, and getting incremental innovation
with the finite budget you have.»
Jim Whitehurst
Red Hat CEO & former COO of Delta

6. RANK LICENSE %
1. GNU General Public License (GPL) 2.0 33%
2. Apache License 2.0 13%
3. GNU General Public License (GPL) 3.0 12%
4. MIT License 11%
5. BSD License 2.0 (3-clause, New or Revised) License 7%
6. Artistic License (Perl) 6%
7. GNU Lesser General Public License (LGPL) 2.1 6%
8. GNU Lesser General Public License (LGPL) 3.0 3%
9. Eclipse Public License (EPL) 2%
10. Code Project Open 1.02 License 1%
11. Microsoft Public License 1%
12. Mozilla Public License (MPL) 1.1 1%
13.
Common Development and Distribution License
(CDDL)
< 1%
14. BSD 2-clause "Simplified" or "FreeBSD" License < 1%
15. Common Public License (CPL) < 1%
16. zlib/libpng License < 1%
17. Academic Free License < 1%
18. GNU Affero GPL v3 < 1%
19. Microsoft Reciprocal License (Ms-RL) < 1%
20. Open Software License (OSL) < 1%
Check out http://choosealicense.com
Definition
Top 20 Most Commonly
Used Licenses in
Open-source Projects
GNU General Public License (GPL)
Apache License 2.0
GNU General Public License (GPL) 3.0
MIT License
BSD License 2.0 (3-clause, New or Revised) License
Artistic License (Perl)
GNU Lesser General Public License (LGPL) 2.1
GNU Lesser General Public License (LGPL) 3.0
Eclipse Public License (EPL)

7. • From 0 to 70M blogs in 13 years
• 39M downloads of WP v3.8
• 120 languages
• $50M+ in yearly revenues
• 14bn views/mo on WP.com blogs
• Used by more than 21.9% of the top
10M websites – 60.3% market share
Successful Open-source Projects
Wordpress

8. Successful Open-source Projects
• Competitor of IBM, Oracle, etc.
• $115M+ in yearly revenues
• 400 employees
• Raised $100M
• 600K users worldwide
• Numerous F-100 customers
Talend

9. Successful Open-source Projects
• From 0 to 4.5M articles in 10 years
• 285 languages available
• 21M users worldwide
• Contribute, redistribute/share
• Ability to run your own Wiki
Wikipedia & Wikimedia

10. Successful Open-source Projects
• From 0 to 4bn GPS points
in 10 years
• 1.6M users worldwide
Open Street Maps

11. • Personal satisfaction: «I contributed to this project!»
• Belonging to a community/group
• Sense of accomplishing something BIG
• Simplicity, freedom and fast-paced environment
• Ability to get great results while having a low TCO
More OSS projects? Github.com, Sourceforge.net
Successful Open-source Projects
Why is it working so well?

12. THE GOOD THE BAD THE UGLY
Freedom from vendor lock-in Lack of familiarity with OSS Nested licensing
Lower TCO Learning curve Security
Flexibility Deployment complexity --
Security Security --
Quality Legal concerns (licensing) --
Openness -- --
Top 3 reasons to choose Open-source in 2014
• Better quality software (was reason #5 in 2011 and #3 in 2012)
• Freedom from vendor lock in
• Flexibility
The good, the bad, the ugly

13. Making money with Open-source

14. Open-source VS SaaS
• Why opposing these two worlds?
• Most Open-source companies are starting offering SaaS
• Turnkey solutions, example with «Pantheon»:
 Offers professional-grade hosting for Wordpress and Drupal
 Based in SF, raised $6.3M
 30 employees
 Cost: from $25 to $400 per month
 Includes professional Services (Backup, support, SSL, etc.)
 Already 60,000 customers including Intel, Cisco, AZ State
University, UNICEF
How to get the best of these two worlds?

15. 1 Evaluate which proprietary software you are currently using
2 Identify Open-source alternatives and thoroughly test them
(Larger is the company and wider supported platforms you should choose)
3 Decide on the best usage mode: SaaS or DIY
4 Make sure professional services (like Tech support) are available
5 Update regularly, especially if a «Security release» is announced
6 Contribute, be part of the community - Share your success story!
6 key steps:
Implementing OSS in your organization

16. • Did you change your mind before/after this presentation?
• A few misconceptions or evolutions since 2008:
«You can’t make money on OSS» (Page 2)
«a hybrid strategy» - Smart but difficult to set up (Page 8)
• But some true statements as well:
«Uncontrollable OSS movement» (Page 1) / «Control the product space» (Page 3)
«Passionate […] companies» (Page 2)
«Incorporating random developers’ code into my product» (Page 3)
«Save us time and money in programming» (Page 5)
About the Case study

17. Thank you
Any questions?
Bruno Leveque, PrestaShop Co-founder
bruno@prestashop.com / Bruno42 (Twitter)