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FOSS BUSINESS IN THE
    PHILIPPINES




     by: Holden M. Hao
The Business Side of FOSS

    FOSS is not free as in cost, rather the emphasis is in
●


    FREEDOM
    In using FOSS, as in other things in life, there is always a
●


    cost
    But with FOSS, the cost is most likely to be less
●


    Thus, there is business to be made
●
Costs of Using FOSS

    acquisition cost
●


    implementation cost
●


         installation
     –

         configuration
     –

         customisation
     –

    training cost
●


    maintenance cost
●



    upgrade cost
●
International Business Models for FOSS
International Business Models for FOSS
International Business Models for FOSS
Applied Models in the Philippines

    software development
●


         outsourced development (PHP/ Java)
     –

         Winston Demarilo sold GlueCode (Java products) to IBM for
     –
         $100M
    solutions provider
●


    technical support
●


    training
●
Organizational Structures of Philippine FOSS
                Businesses
    Traditional companies
●


    Independent Consultants
●


    Partnerships
●
Market Acceptability of FOSS in the
                  Philippines
    many companies use unlicensed software
●


    threat of raids is now regular
●


    great improvement in terms of ease of use of FOSS
●


    cost savings
●
Hindrances to FOSS Marketability
    fears of migration
●


         perceived difficulty
     –

         incompatibility issues
     –

         productivity loss
     –

    human resistance to change
●



    lack of technical support/ human resource
●


    high initial cost of migration
●
Strategies to Counter Hindrances
    Marketing Stage
●


        Highlight future cost savings
    –

        Highlight open standards and compatibility
    –

        Do not insist on FOSS as the only solution
    –

        Do not call your potential clients as pirates! Use the term
    –
        unlicensed software
Strategies to Counter Hindrances

    Pre-deployment Stage
●


        Conduct group discussions with management and employees
    –
        before migration
        address issues raised from meetings
    –

        provide test systems
    –
Strategies to Counter Hindrances

    Deployment Stage
●


        deploy in stages
    –

        minimize disruptions
    –
Strategies to Counter Hindrances
    After Deployment
●


        conduct trainings
    –

        convince management to lead by example
    –

        be there for technical support
    –
Afterfive
    A division under Kimbrez Corporation
●


    provides FOSS solutions and technical
●


    support
    composed of a team of consultants with
●


    different fields of expertise
Afterfive Experiences
    Marketing
●


        most of our clients are from referrals
    –

        the market is very sensitive to price for service
    –

        clarify scope of job/contract
    –
Afterfive Experiences

    Deployments
●


        client wants to see you physically as you work
    –

        insist on proper implementation (hardware, bandwidth,
    –
        equipment storage, etc.)
Afterfive Experiences
    Technical Support
●


        sell monthly support contracts
    –

        train company technicians or in-house techies to provide first
    –
        level support
        be there when you are most needed
    –
Afterfive Experiences
    Human Resource
●


        A FOSS developer is more valuable; his/her tools are free
    –

        you most likely need to train
    –

        find people from a FOSS group
    –
Other Opportunities
    embedded applications/ appliances
●


    software as a service model
●
Have Fun with
Your FOSS Business!

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Foss Biz Model - Holden Hao

  • 1. FOSS BUSINESS IN THE PHILIPPINES by: Holden M. Hao
  • 2. The Business Side of FOSS FOSS is not free as in cost, rather the emphasis is in ● FREEDOM In using FOSS, as in other things in life, there is always a ● cost But with FOSS, the cost is most likely to be less ● Thus, there is business to be made ●
  • 3. Costs of Using FOSS acquisition cost ● implementation cost ● installation – configuration – customisation – training cost ● maintenance cost ● upgrade cost ●
  • 7. Applied Models in the Philippines software development ● outsourced development (PHP/ Java) – Winston Demarilo sold GlueCode (Java products) to IBM for – $100M solutions provider ● technical support ● training ●
  • 8. Organizational Structures of Philippine FOSS Businesses Traditional companies ● Independent Consultants ● Partnerships ●
  • 9. Market Acceptability of FOSS in the Philippines many companies use unlicensed software ● threat of raids is now regular ● great improvement in terms of ease of use of FOSS ● cost savings ●
  • 10. Hindrances to FOSS Marketability fears of migration ● perceived difficulty – incompatibility issues – productivity loss – human resistance to change ● lack of technical support/ human resource ● high initial cost of migration ●
  • 11. Strategies to Counter Hindrances Marketing Stage ● Highlight future cost savings – Highlight open standards and compatibility – Do not insist on FOSS as the only solution – Do not call your potential clients as pirates! Use the term – unlicensed software
  • 12. Strategies to Counter Hindrances Pre-deployment Stage ● Conduct group discussions with management and employees – before migration address issues raised from meetings – provide test systems –
  • 13. Strategies to Counter Hindrances Deployment Stage ● deploy in stages – minimize disruptions –
  • 14. Strategies to Counter Hindrances After Deployment ● conduct trainings – convince management to lead by example – be there for technical support –
  • 15. Afterfive A division under Kimbrez Corporation ● provides FOSS solutions and technical ● support composed of a team of consultants with ● different fields of expertise
  • 16. Afterfive Experiences Marketing ● most of our clients are from referrals – the market is very sensitive to price for service – clarify scope of job/contract –
  • 17. Afterfive Experiences Deployments ● client wants to see you physically as you work – insist on proper implementation (hardware, bandwidth, – equipment storage, etc.)
  • 18. Afterfive Experiences Technical Support ● sell monthly support contracts – train company technicians or in-house techies to provide first – level support be there when you are most needed –
  • 19. Afterfive Experiences Human Resource ● A FOSS developer is more valuable; his/her tools are free – you most likely need to train – find people from a FOSS group –
  • 20. Other Opportunities embedded applications/ appliances ● software as a service model ●
  • 21. Have Fun with Your FOSS Business!