Open Source Business ModelsFrank HeckerSupport Seller BackgroundSupport Seller: RedHatRedHat Stock TrendsSupport Seller: Caldera/SCO SoftwareSCO Stock TrendsSupport Seller Business ModelsAccessory Seller: O’ReillyAccessory Seller Business ModelsWidget FrostersSamba & Apple’s “Darwin”Loss LeaderNetscapeSendmail, IncFuture of OSSQUESTIONS?SourcesOpen Source Business ModelsOpen Source Business ModelsKaptaan HickeyKaptaan HickeySteve RamilSteve RamilFrank HeckerFrank HeckerExecutive director for Mozilla Foundation, which is Executive director for Mozilla Foundation, which is responsible for the Firefox web browser. responsible for the Firefox web browser. Worked for Opsware, Netscape, and AOLWorked for Opsware, Netscape, and AOLGained interest in open source software and published an Gained interest in open source software and published an extensive executive summary titled: extensive executive summary titled: “Setting Up Shop: The “Setting Up Shop: The Business of Open-Source Software”Business of Open-Source Software”..He suggested four innovative business models:He suggested four innovative business models:1.1.Support SellerSupport Seller2.2.Accessory SellerAccessory Seller3.3.Widget FrosterWidget Froster4.4.Loss LeaderLoss LeaderSupport Seller BackgroundSupport Seller BackgroundFirst implemented by Michael Tiemann who First implemented by Michael Tiemann who created created Cygnus Solution.Cygnus Solution.Tiemann is currently vice president of open Tiemann is currently vice president of open source affairs at source affairs at Red Hat Software. Red Hat Software. Created products that offered commercial Created products that offered commercial support for open source software which support for open source software which included: GNU Debugger & GNU Binutils.included: GNU Debugger & GNU Binutils.Support Seller: RedHatSupport Seller: RedHatBusiness model is assembled around the support of certified Linux software and other open Business model is assembled around the support of certified Linux software and other open source applications. source applications. Revenue is generated through 1 or 3 year subscriptions.Revenue is generated through 1 or 3 year subscriptions.Post Subscription Use: you can continue to use and modify the software, although you can no Post Subscription Use: you can continue to use and modify the software, although you can no longer utilize RedHat support. longer utilize RedHat support. Your paying for certified open source software, newest security patches, debugging, and the Your paying for certified open source software, newest security patches, debugging, and the newest tools and applications.newest tools and applications. RedHat Network: software upgrades are sent out to a system administrator, when can then RedHat Network: software upgrades are sent out to a system administrator, when can then implement the changes. implement the changes. Also Offer: IT Consulting Services & Training ProgramsAlso Offer: IT Consulting Services & Training ProgramsCreates value by allowing organizations focusCreates value by allowing organizations focus on core competencies. on core competencies.RedHat Stock TrendsRedHat Stock TrendsSupport Seller: Caldera/SCO Support Seller: Caldera/SCO SoftwareSoftwareOrganization that generates revenue by Organization that generates revenue by distributing modified versions of Unix distributing modified versions of Unix software.software.Caldera acquisition of SCO was completed in Caldera acquisition of SCO was completed in 2001, which formed the worlds largest 2001, which formed the worlds largest distribution channel for UNIX redistributions. distribution channel for UNIX redistributions. Acquired ownership of UNIX code and was Acquired ownership of UNIX code and was responsible for releasing it as open source.responsible for releasing it as open source.SCO Stock TrendsSCO Stock TrendsSupport Seller Business ModelsSupport Seller Business ModelsRedHat & SCO Open-Source Software/ Support PackageRedHat & SCO Open-Source Software/ Support PackageCustomer Value: Extremely stable and efficient software, and Customer Value: Extremely stable and efficient software, and that doesn’t end with the sale (like most proprietary software).that doesn’t end with the sale (like most proprietary software).Revenue Generation: Fee for open-source software, annual Revenue Generation: Fee for open-source software, annual support memberships, training courses, and consulting support memberships, training courses, and consulting services. services. Value Chain: Software writers, consultants, administrators, and Value Chain: Software writers, consultants, administrators, and customer service specialists.customer service specialists.Accessory Seller: Accessory Seller: O’ReillyO’ReillyO’Reilly originally went into business as a technical writing consulting firm. O’Reilly originally went into business as a technical writing consulting firm. Started retaining rights to manuals they created for UNIX vendors in 1984. Started retaining rights to manuals they created for UNIX vendors in 1984. Developed first commercial website which pioneered banner advertising (Global Network Developed first commercial website which pioneered banner advertising (Global Network Navigator) which was sold to AOL in 1995. Navigator) which was sold to AOL in 1995. O’Reilly manual writers were not pressured to promote product because they where not O’Reilly manual writers were not pressured to promote product because they where not creating the software. If a program did not work properly, they were not afraid to say it. creating the software. If a program did not work properly, they were not afraid to say it. (Much different then traditional practices)(Much different then traditional practices)Generate profit by selling books, magazines, and providing online services that follow open Generate profit by selling books, magazines, and providing online services that follow open and emerging technologies. and emerging technologies. Actively participates in industry: Builds its technical capabilities by organizing conferences Actively participates in industry: Builds its technical capabilities by organizing conferences and collaborating with innovative intellectuals.and collaborating with innovative intellectuals.Charge fees for access to online conferences. Charge fees for access to online conferences. Organized “the summit meeting that gave the open source
View Full Document
Unlocking...