ESSEC Business School, IS/IT Management. Presentation about Open Source Softwares.

1. OPEN SOURCE SOFTWARE
Open source software
GROUP 2


2. Introduction

Definition: the software source code and certain other rights
normally reserved for copyright holders are provided under an
open-source license that’s permits users to study, change,
improve and at times also to distribute the software.

Origins: the free software movement (1983)
Enhance freedoms of software users:
 Run the software
 Study and change the software
 Redistribute copies with or without changes

Very common at the beginning of the computer era (1960’s), but
disappeared in the 70s (because of competition, and difficulty of
maintenance)

Worldwide OSS market: $1.6 billion in 2006, $5.8 billion in 2011
Thousands of projects today: mozilla firefox, open office, android…

3. Functioning of an OSS
 Access to the source code… but what is a source code ?

Files before Compilation
 Because after compilation (translation into
Binary code), we can’t access to that anymore.

4. Functioning of an OSS

With OSS:

If I want to change the software for my use, I can access to the files
written by the developer (which is not the case if I only have the
‘.exe’ file, already in binary language, for example)

If I want to check if the software is well secured (and doesn’t sent
my credit card numbers to the developer), I can. Or I also can trust
the community of developers that did it before me, if the software
is famous.

It is possible to create/use several declination of the same
software, depending on the needs.

5. Functioning of an OSS
The values behind OSS :

It is free (free = no cost, and free of use/modification)

Ethic : access to “generic” softwares (you don’t have to pay 300€ to open
a .docx file).

“copyleft” : respect of the work of the author

Allows creativity, collaboration, in constant improvement => innovation.

Security, transparence : you can know the recipe, you can’t be poisoned.

Respect the open standards (W3C, UTF-8…), in addition to the free
licenses.

6. Supplier of OSS
 Tough OSS is not a proprietary software, here is a
list of some OSS project with the name of the
founder company*
*Challenges of open innovation: the paradox of firm investment in open-source software J.West 1 G.Gallager

7. Access To The Technology
•
A study released in August 2010 by
Accenture revealed that 98% of
companies use open source software
and that 29% contributes back to the
software.
•
These figures are going to increase in
the coming years
•
In addition to advantages such as the
low cost of using the software,
transparency, and flexibility, to use
open source software might have a
positive effect on the image of a
company as it carries values such as
team spirit and collaboration
Companies using OSS Vrs
Companies refusing to use it
Companies using open source
softwares
Companies not using open source
softwares

8. Benefits from open source projects

Motivational problem2 :
people”?
o
Divers profiles : different know-how,
interests and user needs.
Direct utility, either to the
individual or to the employer
o
Intrinsic benefit from the work :
personal fulfillment, prestige
and visibility
o
Signaling of quality of human
capital : gain respect from one’s
peer
o
Self-production by “filling an
unfilled market”3
 Who are these “crazy
o
Individuals who have no interest in
this matter
o
People for whom computer is a
hobby but insufficient !!
o
“Hacker Culture”
2. Paradox of open-source software? J.West & S.Gallagher
3. Economics of Open Source Software. L.Green
Open Source Softwares have changed profoundly the
nature of software good which became a collective
good.

9. Benefits from open source projects
Coordination problem : The governance
Diffusion of OSS
structure
oThe diffusion process of OSS seems to permit an
o Open Source Projects posted on the Net, have
some shared characteristics :Project lifecycle, network
of the relations among its members, the linkages with the
Open Source Community and the proprietary closed source
software.
alternation of standards to the
dominance of inferior technologies.
oA successful project starts when an individual
oThere are interaction effects between network
have a particular problem. This person will group
people who are facing the same problem in her
social network.
oAs the project goes by, the “embryonic” group will
look for feedback making the results publicly
available to attract more participation.
=> Always selecting the best fitting solutions.
oThe authority of project leaders arises from the
bottom up
contribution.
investiture
resulting
from
the
long-term
oOSS become more user-friendly => diffusion in
increasingly broad-band of population.
topology, network density and interoperability
costs, which strongly influence the diffusion
dynamics of OSS.

10. Benefits from open source projects
B. Advantages and Drawbacks
Advantages
•Ideal for people trying to start their own company, (costs
savings).
Free
Evolution /
integrate external
innovations
Easy to manipulate
•Unrestricted access anyone is able to use them, modify
them and as a new technological advance is made, it is
propagated. This will inevitably improve because of the
collaboration.
•You can go many upgrades and modifications by yourself
if you know a bit of programming. You don’t need to hire
professional programmers
•Learning skills for employees as participating in a software
development + integration of external innovation
Intrinsic benefit
No
Production
No Support
Features ?
Hybrid
Strategies
Drawbacks
•Not everyone has the same motivation to work on OSS
•When buying a product with a license, after sale support
is provided.
•Some features that are developed are not adequate for all
types of businesses. Some others are needed and not
developed.
•Some firms developed hybrid strategies that combines
the benefits of the OSS with some of the control of
proprietary approaches. What about the others ??

11. Should FFTW use open source softwares?

Free use of IT resources (Open office…) => cost savings

Easy to procure – easy to integrate external innovation

Will enable FFTW to test some options before determining
more precisely its needs (test before you buy)

Reliable technology as it has been improved by many users

OSS are very popular on server application: enables to share
data among different departments
FFTW is building its IT department with limited resources and
knowledge
Using OSS is relevant

12. Should FFTW invest in OSS?
FFTW is a company that is building its IT department:

OSS is easy to change in order to fit better the business needs

Motivates IT people to work on a new, cutting edge software
But:

Regarding to flowers’ specific business, the community of developers is not large enough in
order to make open source collaboration beneficial

No technical and functional support in IT development, which can be a handicap with a
company without any IT knowledge

FFTW cannot afford to have weak or unstable IT regarding to its core business activities

FFTW is not an IT company: it won’t be able to make profit out of selling OSS-related products
Investing in OSS can be a cost rather than a benefit for FFTW
It is not a good investment, for a young and small company that is not IT oriented, to spend a lot of
money, time and people resources in OSS