Open Source Business ModelsAgendaWhat is Open Source?Slide 4Advocates Reasons to use Open Source SoftwareCritics Reasons to not use Open Source SoftwareExample of Dangers with Licensed SoftwareWhat is conventional business model?The Five ModelsOpen Source + ServiceMixedOpen Source + Buy OffOpen Source + AggregationOpen Source + HardwareWhy students should careThings to rememberBibliographyOpen Source Business ModelsBy Mike Telmar, Jacob Jennings, and Jerome ThomasAgendaWhat is open source?Reasons for open sourceReasons against open sourceDangers with licensed softwareWhat is the conventional business model?The five modelsWhy students should careWhat is Open Source?Generally speaking it is computer software that is designed with the source code open to the public and with no license or distribution requirements.What is Open Source?Free Redistribution: the software can be freely given away or sold. Source Code: the source code must either be included or freely obtainable. Derived Works: redistribution of modifications must be allowed. Integrity of The Author's Source Code: licenses may require that modifications are redistributed only as patches. No Discrimination Against Persons or Groups: no-one can be locked out. No Discrimination Against Fields of Endeavor: commercial users cannot be excluded. Distribution of License: The rights attached to the program must apply to all to whom the program is redistributed without the need for execution of an additional license by those parties. License Must Not Be Specific to a Product: the program cannot be licensed only as part of a larger distribution. License Must Not Restrict Other Software: the license cannot insist that any other software it is distributed with must also be open source. License Must Be Technology-Neutral: no click-wrap licenses or other medium-specific ways of accepting the license must be required. http://en.wikipedia.org/wiki/Open_Source_DefinitionAdvocates Reasons to use Open Source SoftwareHigher quality, more reliable Quicker technical support No licensing More secure CheaperFreedomFasterCritics Reasons to not use Open Source SoftwareNot for mission-critical applicationsPotential backlash from open-source communityOften buggy and untested codeExample of Dangers with Licensed SoftwareErnie BallMusic companyTransferred out-dated computers to secretarial workSued by Microsoft for unknown breaching of licensed agreementsCost $100,000CEO, Sterling Ball, within 6 months used no Microsoft productsUses all open source (saved $80,000+)news.com.com/2008-1082_3-5065859.html?tag=lhWhat is conventional business model?Paying programmers to create softwareClosed source codeRequiring customer to pay for each copy of software (Licensing)Making money off software design, not maintenance and supportExamples:Microsoft XPApple Mac OSThe Five ModelsOpen Source + Service MixedOpen Source + Buy OffOpen Source + AggregationOpen Source + Hardwarehttp://www.cio.com/archive/021506/opensource_sidebar2.htmlOpen Source + ServiceCompanies sell support and services around open-source softwareAdvantagesPay only for support, not softwareLow switching costExamplesRed Hat (Linux)JBoss (middleware)MixedOpen-source code base with proprietary add-onsAdvantagesProprietary add-ons may not be necessaryAcquire experience before buying add-onsExampleSourcefire (security)Open Source + Buy OfCompanies offer a proprietary license for their open-source softwareUsers can modify the software and redistribute it without making the code openExamplesMySQL (database)Gluecode (web servers)Open Source + AggregationCompanies assemble various open-source software packages into integrated unitsAdvantagesSimplifies open-source integration and supportExampleNavica (open source selection)Open Source + HardwareHardware makers use open source as the foundation for the software that runs the machinesAdvantageLower prices on hardwareExampleCiscoWhy students should careKnow options in purchasing software and applicationsThe most popular new business model in the software industry, according to venture capitalistsBig corporations are investing in open-sourceIBM and Oracle have both invested over $1 billion eachThings to rememberExamples of software created with open-source business modelsRed Hat Linux, MySQL, Mozilla FoxfireCompanies are investing big moneyIBM, OracleAdvocates believe it’s better because it’s faster, cheaper, and more reliableBibliographywww.wikipedia.comwww.businessweek.com/technology/content/feb2006/tc20060209_810527.htmwww.cio.com/archive/030104/open.htmlnews.com.com/2008-1082_3-5065859.html?tag=lhwww.forbes.com/intelligentinfrastructure/2005/06/15/jboss-ibm-linux_cz_dl_0615jboss.htmlhttp://www.cio.com/archive/021506/opensource_sidebar2.html\http://www.cio.com/archive/021506/opensource.html?page=Polvi, Alex. Personal Interview. February 2006.Red Hat JBoss Sourcefire MySQL Gluecode Navica
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