Open Source in the Enterprise: Compliance and Risk Management

[object Object],[object Object],Sebastiano Cobianco CEO and CTO Ex Machina SAGL 6900 Lugano

Copyright protection for Proprietary Software ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Defining Open Source ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

An epochal change in IT ,[object Object],[object Object],[object Object],[object Object]

Open Source Adoption ,[object Object],[object Object],[object Object],“ 85% of companies are already using open-source software, with most of the remaining 15% expecting to do so within the next year .” – Gartner Research, Nov. 2008

Open Source: a business enabler! Accelerate Time to Market Use open source software to avoid reinventing the wheel Increase Innovation & Product Capability Readily available to fill out feature list Focus internal resources on valuable new features that provide strong value to customers or differentiation against competitors Control Development Costs Reuse to lower development and licensing costs Improve development and group productivity Used by permission of Black Duck Software, Inc.

Evolution in software development Reuse Component-Based Development 1980’s 1990’s 2000’s Focus Scope Development Ecosystem Used by permission of Black Duck Software, Inc. Code Design Individual Software Developer Application Life Cycle Management Single Enterprise Project Team Collaboration

The hybrid development ecosystem Used by permission of Black Duck Software, Inc.

Hybrid Development Challenges ,[object Object],[object Object],[object Object],[object Object],Who owns your code? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Used by permission of Black Duck Software, Inc.

Hybrid Development Risks Used by permission of Black Duck Software, Inc. Loss of Intellectual Property Export Regulations Injunctions Security Vulnerabilities Software Defects License Rights and Restrictions Contractual Obligations Escalating Support Costs

Open Source Licences: a closer look ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],GPL LGPL/ Mozilla BSD/ MIT/X11

Examples of Licences: GPL ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Examples of Licences: other examples ,[object Object],[object Object],Corona License License Agreement Released under the 'Corona License' You are free to use this SW for any purpose you see fit under 2 conditions: 1) Keep my name on it 2) If you find it useful, send me a sixpack of Coronoa or the $$ equiv via paypal (pasko@pasko.net):

Legal actions against infringement ,[object Object],Matthew Katzer and Kamind Associates, develop commercial software products for the model train industry and hobbyists. Jacobsen brought an action for copyright infringement against Katzer, accusing them of copying certain portions of his software code and incorporating it into their own commercially available software products without abiding by the terms of the Artistic License. On Aug. 13, 2008 the NY Court of Appeal ruled that violations of open source licenses can constitute copyright infringement, because the language in the licenses imposes "conditions" of use, such as the notice and other requirements. Violation of a condition of a license constitutes copyright infringement!

Licence violation: Cisco’s Software SCM FSF accused Cisco of a license violation Major loss of Cisco’s Intellectual Property rights and competitive advantage. Loss of revenue est. $50M Developers modified firmware turning a low-end $60 device into a high-function $399 router How did this story end up? Used by permission of Black Duck Software, Inc. After much bad press, source code was made available by adopted this technology into its WRT54G wireless broadband router bought for $500M in 2003 used GPL code to customize Broadcom’s standard Linux distribution embedded the code in one of its chipsets

Licence violation: more examples … and more to be found at http://gpl-violations.org

The name of the game is Governance ,[object Object],[object Object],[object Object],[object Object],Knowledge of Code is paramount to prevent Compliance and Security issues! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Who should care about Compliance? ,[object Object],[object Object],[object Object],[object Object],[object Object],Software Vendors Technology transfer Companies Embedded software products Financial Services Public Administration Government (Serial) Acquirers Venture Capitals Private Equities Proper management of full software lifecycle ensures compliance and full exploitation of benefits brought by OSS to Companies of any type

[object Object],[object Object],[object Object],[object Object],Thank you in <code> we trust

Open Source in the Enterprise: Compliance and Risk Management

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