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FLOSS Economics
Making money partecipating to the Open Source movement
Fabio Alessandro Locati
27 October 2016
Outline
Intro
Definitions
Open Source or not Open Source, this is the question
Software types
Advantages
Disadvantages
Conclusions
1
Intro
About me
2
About me
• FLOSS user since 2001
2
About me
• FLOSS user since 2001
• FLOSS contributor since 2002
2
About me
• FLOSS user since 2001
• FLOSS contributor since 2002
• IT consultant since 2004
2
FLOSS
3
FLOSS
• FLOSS: Free Libre Open Source Software
3
FLOSS
• FLOSS: Free Libre Open Source Software
• Software that respects the 4 core liberties as defined by Richard M Stallman:
3
FLOSS
• FLOSS: Free Libre Open Source Software
• Software that respects the 4 core liberties as defined by Richard M Stallman:
• To run the program as you wish, for any purpose
3
FLOSS
• FLOSS: Free Libre Open Source Software
• Software that respects the 4 core liberties as defined by Richard M Stallman:
• To run the program as you wish, for any purpose
• To study how the program works, and change it
3
FLOSS
• FLOSS: Free Libre Open Source Software
• Software that respects the 4 core liberties as defined by Richard M Stallman:
• To run the program as you wish, for any purpose
• To study how the program works, and change it
• To redistribute copies
3
FLOSS
• FLOSS: Free Libre Open Source Software
• Software that respects the 4 core liberties as defined by Richard M Stallman:
• To run the program as you wish, for any purpose
• To study how the program works, and change it
• To redistribute copies
• To distribute copies of your modified versions to others
3
Open Source or not Open Source,
this is the question
Software types
4
Software types
• Your software is your product
4
Software types
• Your software is your product
• Your software is the base of your product
4
Software types
• Your software is your product
• Your software is the base of your product
• You use the software internally
4
Today every company is open sourcing their code
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
• Facebook: Cassandra, HHVM, Open Compute Project, ...
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
• Facebook: Cassandra, HHVM, Open Compute Project, ...
• GitHub: Atom, git LFS, Hubot, ...
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
• Facebook: Cassandra, HHVM, Open Compute Project, ...
• GitHub: Atom, git LFS, Hubot, ...
• Google: Android, Angular, Chromium, ...
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
• Facebook: Cassandra, HHVM, Open Compute Project, ...
• GitHub: Atom, git LFS, Hubot, ...
• Google: Android, Angular, Chromium, ...
• Microsoft: .NET, PowerShell, Visual Studio Core, ...
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
• Facebook: Cassandra, HHVM, Open Compute Project, ...
• GitHub: Atom, git LFS, Hubot, ...
• Google: Android, Angular, Chromium, ...
• Microsoft: .NET, PowerShell, Visual Studio Core, ...
• Twitter: Ambrose, Bootstrap, Bower, ...
5
Today every company is open sourcing their code
• Apple: CUPS, Swift, WebKit, ...
• Facebook: Cassandra, HHVM, Open Compute Project, ...
• GitHub: Atom, git LFS, Hubot, ...
• Google: Android, Angular, Chromium, ...
• Microsoft: .NET, PowerShell, Visual Studio Core, ...
• Twitter: Ambrose, Bootstrap, Bower, ...
• Uber: hyperbahn, ringpop, tchannel, ...
5
Why open source your code
6
Why open source your code
• Free developers
6
Why open source your code
• Free developers
• Linus’s Law
6
Why open source your code
• Free developers
• Linus’s Law
• Marketing
6
Why open source your code
• Free developers
• Linus’s Law
• Marketing
• Easier recruitment
6
Why open source your code
• Free developers
• Linus’s Law
• Marketing
• Easier recruitment
• Karma
6
Free developers
7
Free developers
• Possibility to create a community
7
Free developers
• Possibility to create a community
• Sporadic contributors
7
Linus’s Law
8
Linus’s Law
Definition
Given a large enough beta-tester and co-developer base, almost every problem will be
characterized quickly and the fix will be obvious to someone.
8
Linus’s Law
Definition
Given a large enough beta-tester and co-developer base, almost every problem will be
characterized quickly and the fix will be obvious to someone.
• Android: 157000+ bugs reported
8
Linus’s Law
Definition
Given a large enough beta-tester and co-developer base, almost every problem will be
characterized quickly and the fix will be obvious to someone.
• Android: 157000+ bugs reported
• PowerShell: 1500+ bugs reported in less than 11 months
8
Linus’s Law
Definition
Given a large enough beta-tester and co-developer base, almost every problem will be
characterized quickly and the fix will be obvious to someone.
• Android: 157000+ bugs reported
• PowerShell: 1500+ bugs reported in less than 11 months
• PowerShell: 1000+ PRs in less than 11 months
8
Marketing
9
Marketing
• ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X”
(Arstechnica)
9
Marketing
• ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X”
(Arstechnica)
• ”Microsoft’s open source .NET Core and ASP.NET Core hit 1.0” (TechCrunch)
9
Marketing
• ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X”
(Arstechnica)
• ”Microsoft’s open source .NET Core and ASP.NET Core hit 1.0” (TechCrunch)
• ”Apple’s new programming language Swift is now open source” (The Verge)
9
Marketing
• ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X”
(Arstechnica)
• ”Microsoft’s open source .NET Core and ASP.NET Core hit 1.0” (TechCrunch)
• ”Apple’s new programming language Swift is now open source” (The Verge)
• ”The 12 most exciting open source projects on the web” (creativebloq)
9
Easier recruitment
10
Easier recruitment
• ”Open Source” and ”Giving back to the community” has been listed as major
drivers for people to accept a job offer
10
Karma
11
Karma
• More than 90% of Fortune 500 companies use FLOSS
11
Karma
• More than 90% of Fortune 500 companies use FLOSS
• 100% of Fortune 500 companies in the following sectors use FLOSS:
• Airlines
• Telcos
• Healtcare
• Commercial Banks
• Financial services
11
Karma
• More than 90% of Fortune 500 companies use FLOSS
• 100% of Fortune 500 companies in the following sectors use FLOSS:
• Airlines
• Telcos
• Healtcare
• Commercial Banks
• Financial services
• Many others: CERN, all US executive departments, NYSE, LSE
11
Karma
• More than 90% of Fortune 500 companies use FLOSS
• 100% of Fortune 500 companies in the following sectors use FLOSS:
• Airlines
• Telcos
• Healtcare
• Commercial Banks
• Financial services
• Many others: CERN, all US executive departments, NYSE, LSE
• 99.79% of Top500 SuperComputer
11
Karma
• More than 90% of Fortune 500 companies use FLOSS
• 100% of Fortune 500 companies in the following sectors use FLOSS:
• Airlines
• Telcos
• Healtcare
• Commercial Banks
• Financial services
• Many others: CERN, all US executive departments, NYSE, LSE
• 99.79% of Top500 SuperComputer
• Probably every company, yours included
11
Why not to open source your core
12
Why not to open source your core
• Your competitor will look at your code
12
Why not to open source your core
• Your competitor will look at your code
• Your competitor might use your code
12
Why not to open source your core
• Your competitor will look at your code
• Your competitor might use your code
• Your code could be used for something you believe being wrong
12
Questions to open source a software
13
Questions to open source a software
• Is it your product?
13
Questions to open source a software
• Is it your product?
• Is it your competitive advantage?
13
Questions to open source a software
• Is it your product?
• Is it your competitive advantage?
• Are you willing to develop in an open source way?
13
Resources
• Slides: https://slides.fale.io/20161027-en-floss_economy.pdf
• Choose a license: http://choosealicense.com
14

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Smau Milano 2016 - Fabio Alessandro Locati

  • 1. FLOSS Economics Making money partecipating to the Open Source movement Fabio Alessandro Locati 27 October 2016
  • 2. Outline Intro Definitions Open Source or not Open Source, this is the question Software types Advantages Disadvantages Conclusions 1
  • 5. About me • FLOSS user since 2001 2
  • 6. About me • FLOSS user since 2001 • FLOSS contributor since 2002 2
  • 7. About me • FLOSS user since 2001 • FLOSS contributor since 2002 • IT consultant since 2004 2
  • 9. FLOSS • FLOSS: Free Libre Open Source Software 3
  • 10. FLOSS • FLOSS: Free Libre Open Source Software • Software that respects the 4 core liberties as defined by Richard M Stallman: 3
  • 11. FLOSS • FLOSS: Free Libre Open Source Software • Software that respects the 4 core liberties as defined by Richard M Stallman: • To run the program as you wish, for any purpose 3
  • 12. FLOSS • FLOSS: Free Libre Open Source Software • Software that respects the 4 core liberties as defined by Richard M Stallman: • To run the program as you wish, for any purpose • To study how the program works, and change it 3
  • 13. FLOSS • FLOSS: Free Libre Open Source Software • Software that respects the 4 core liberties as defined by Richard M Stallman: • To run the program as you wish, for any purpose • To study how the program works, and change it • To redistribute copies 3
  • 14. FLOSS • FLOSS: Free Libre Open Source Software • Software that respects the 4 core liberties as defined by Richard M Stallman: • To run the program as you wish, for any purpose • To study how the program works, and change it • To redistribute copies • To distribute copies of your modified versions to others 3
  • 15. Open Source or not Open Source, this is the question
  • 17. Software types • Your software is your product 4
  • 18. Software types • Your software is your product • Your software is the base of your product 4
  • 19. Software types • Your software is your product • Your software is the base of your product • You use the software internally 4
  • 20. Today every company is open sourcing their code 5
  • 21. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... 5
  • 22. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... • Facebook: Cassandra, HHVM, Open Compute Project, ... 5
  • 23. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... • Facebook: Cassandra, HHVM, Open Compute Project, ... • GitHub: Atom, git LFS, Hubot, ... 5
  • 24. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... • Facebook: Cassandra, HHVM, Open Compute Project, ... • GitHub: Atom, git LFS, Hubot, ... • Google: Android, Angular, Chromium, ... 5
  • 25. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... • Facebook: Cassandra, HHVM, Open Compute Project, ... • GitHub: Atom, git LFS, Hubot, ... • Google: Android, Angular, Chromium, ... • Microsoft: .NET, PowerShell, Visual Studio Core, ... 5
  • 26. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... • Facebook: Cassandra, HHVM, Open Compute Project, ... • GitHub: Atom, git LFS, Hubot, ... • Google: Android, Angular, Chromium, ... • Microsoft: .NET, PowerShell, Visual Studio Core, ... • Twitter: Ambrose, Bootstrap, Bower, ... 5
  • 27. Today every company is open sourcing their code • Apple: CUPS, Swift, WebKit, ... • Facebook: Cassandra, HHVM, Open Compute Project, ... • GitHub: Atom, git LFS, Hubot, ... • Google: Android, Angular, Chromium, ... • Microsoft: .NET, PowerShell, Visual Studio Core, ... • Twitter: Ambrose, Bootstrap, Bower, ... • Uber: hyperbahn, ringpop, tchannel, ... 5
  • 28. Why open source your code 6
  • 29. Why open source your code • Free developers 6
  • 30. Why open source your code • Free developers • Linus’s Law 6
  • 31. Why open source your code • Free developers • Linus’s Law • Marketing 6
  • 32. Why open source your code • Free developers • Linus’s Law • Marketing • Easier recruitment 6
  • 33. Why open source your code • Free developers • Linus’s Law • Marketing • Easier recruitment • Karma 6
  • 35. Free developers • Possibility to create a community 7
  • 36. Free developers • Possibility to create a community • Sporadic contributors 7
  • 38. Linus’s Law Definition Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix will be obvious to someone. 8
  • 39. Linus’s Law Definition Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix will be obvious to someone. • Android: 157000+ bugs reported 8
  • 40. Linus’s Law Definition Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix will be obvious to someone. • Android: 157000+ bugs reported • PowerShell: 1500+ bugs reported in less than 11 months 8
  • 41. Linus’s Law Definition Given a large enough beta-tester and co-developer base, almost every problem will be characterized quickly and the fix will be obvious to someone. • Android: 157000+ bugs reported • PowerShell: 1500+ bugs reported in less than 11 months • PowerShell: 1000+ PRs in less than 11 months 8
  • 43. Marketing • ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X” (Arstechnica) 9
  • 44. Marketing • ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X” (Arstechnica) • ”Microsoft’s open source .NET Core and ASP.NET Core hit 1.0” (TechCrunch) 9
  • 45. Marketing • ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X” (Arstechnica) • ”Microsoft’s open source .NET Core and ASP.NET Core hit 1.0” (TechCrunch) • ”Apple’s new programming language Swift is now open source” (The Verge) 9
  • 46. Marketing • ”PowerShell is Microsoft’s latest open source release, coming to Linux, OS X” (Arstechnica) • ”Microsoft’s open source .NET Core and ASP.NET Core hit 1.0” (TechCrunch) • ”Apple’s new programming language Swift is now open source” (The Verge) • ”The 12 most exciting open source projects on the web” (creativebloq) 9
  • 48. Easier recruitment • ”Open Source” and ”Giving back to the community” has been listed as major drivers for people to accept a job offer 10
  • 50. Karma • More than 90% of Fortune 500 companies use FLOSS 11
  • 51. Karma • More than 90% of Fortune 500 companies use FLOSS • 100% of Fortune 500 companies in the following sectors use FLOSS: • Airlines • Telcos • Healtcare • Commercial Banks • Financial services 11
  • 52. Karma • More than 90% of Fortune 500 companies use FLOSS • 100% of Fortune 500 companies in the following sectors use FLOSS: • Airlines • Telcos • Healtcare • Commercial Banks • Financial services • Many others: CERN, all US executive departments, NYSE, LSE 11
  • 53. Karma • More than 90% of Fortune 500 companies use FLOSS • 100% of Fortune 500 companies in the following sectors use FLOSS: • Airlines • Telcos • Healtcare • Commercial Banks • Financial services • Many others: CERN, all US executive departments, NYSE, LSE • 99.79% of Top500 SuperComputer 11
  • 54. Karma • More than 90% of Fortune 500 companies use FLOSS • 100% of Fortune 500 companies in the following sectors use FLOSS: • Airlines • Telcos • Healtcare • Commercial Banks • Financial services • Many others: CERN, all US executive departments, NYSE, LSE • 99.79% of Top500 SuperComputer • Probably every company, yours included 11
  • 55. Why not to open source your core 12
  • 56. Why not to open source your core • Your competitor will look at your code 12
  • 57. Why not to open source your core • Your competitor will look at your code • Your competitor might use your code 12
  • 58. Why not to open source your core • Your competitor will look at your code • Your competitor might use your code • Your code could be used for something you believe being wrong 12
  • 59. Questions to open source a software 13
  • 60. Questions to open source a software • Is it your product? 13
  • 61. Questions to open source a software • Is it your product? • Is it your competitive advantage? 13
  • 62. Questions to open source a software • Is it your product? • Is it your competitive advantage? • Are you willing to develop in an open source way? 13