Eurostaff: the opportunity of open source

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EUROSTAFF Connect – Gent
How can large open source projects be monetized?
Bruno Lowagie, CTO iText Group NV

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Introduction: who and what?
How can large open source projects be monetized?2
Bruno Lowagie
Original developer of iText
ex-CEO, current CTO at iText Group

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Awards
•BelCham Entrepreneurship Award: “Most Promising Company of the Year 2014” (New York)
•Deloitte’s Technology Fast 50: Winner in Belgium (Brussels)
2014
•Best In Business International 2015 Silver Award: “Product of the Year” (USA)
•American Business Awards 2015 Bronze Stevie: “Most Innovative Company of the Year” (San Francisco)
•European Business Awards 2015/16 National Champion: “Entrepreneur of the Year” (Brussels)
•Deloitte’s Technology Fast 50: 2nd place in Belgium (Brussels)
•JavaOne Rockstar Award: “IANAL: What developers should know about IP and Legal” (San Francisco)
2015
•European Business Awards 2015/16 National Public Champion: winner of the national vote in Belgium (Milan)
•Flanders Investment & Trade 2016: top 3 in the “Lion of the Export” (Brussels)
•American Business Awards 2016 Bronze Stevie: “Most Innovative Company of the Year” (New York)
•International Business Awards 2016 Silver Stevie: “Most Innovative Company of the Year in Europe” (Rome)
•European Business Awards National Champion 2016/17: “Business of the Year with Revenue of 0 to 20M euro” (Brussels)
2016
How can large open source projects be monetized?3

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An economic law
How can large open source projects be monetized?4

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How can large open source projects be monetized?5
You’re an open source developer…

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… What are the implications?
Users will ask
questions on how to
use it,
Users will demand that
you fix bugs,
Companies will expect
warranties (even if the
license says they
accept FOSS as-is),
Companies will want
100% clarity with
respect to the IP,
Companies will expect
you to maintain and
update the software,
Companies will want
you to upgrade to the
newest specifications,
You will be cursed if
you don’t answer fast /
friendly / accurate
enough!
What if you can’t live
up to all these
expectations?
How can large open source projects be monetized?6

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How can large open source projects be monetized?7
What can you do about it?

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Create a business model
How can large open source projects be monetized?8
http://www.theserverside.com/news/2240234582/Reflecting-on-open-source-software-Java-9-and-startup-strategies-at-Devoxx-2014
http://www.zdnet.com/article/openssl-needs-corporate-funding-to-avoid-heartbleed-repeat/
http://arstechnica.com/information-technology/2014/04/tech-giants-chastened-by-heartbleed-finally-agree-to-fund-openssl/

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Ideas to monetize your project
How can large open source projects be monetized?9

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How can large open source projects be monetized?10
iText: the early years

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Donations
How can large open source projects be monetized?11

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Generating revenue using ads
How can large open source projects be monetized?
Free online tutorial:
• Google AdSense
• 2004: $8,900
• 2005: $14,500
• 2006: $6,200
• 2007: $2,350
• 2008: $1,900
• 2009: $1,500
• 2010: $280
• 2011: $520
• 2012: $350
• 2013: $160
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Making money with ads?
How can large open source projects be monetized?13

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Writing documentation
How can large open source projects be monetized?
1st Edition: 2006
• 11.600 copies
• Approx. $33K
2nd Edition: 2010
• 9.200 copies
• Approx. $30K
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Selling support
How can large open source projects be monetized?15

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Selling professional services
Not scalable
There are only so many hours in a day
All time spent on a tailor-made application is time you don’t spend on your product
Are you really going to compete against these guys:
How can large open source projects be monetized?16

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How can large open source projects be monetized?17
What did we do at iText?

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Copyright versus Copyleft
Copyright law
• allows an author to
prohibit others from
reproducing, adapting, or
distributing copies of the
author's work.
Copyleft
• gives every person who
receives a copy of a work
permission to reproduce,
adapt or distribute the
work as long as any
resulting copies or
adaptations are also bound
by the same copyleft
licensing scheme.
How can large open source projects be monetized?
©
©
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Open Source License overview
How can large open source projects be monetized?19
Original iText license: MPL/LGPL
In 2009: switched to AGPLv3

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GPL-style software licenses
It’s all about distribution
How can large open source projects be monetized?20
License: MPL / LGPL GPL AGPL
Car distribution
(e.g. OEM)
Commercial use? OK for gratis commercial use Commercial license needed Commercial license needed
Bus service
(e.g. SaaS)
Commercial use? OK for gratis commercial use OK for gratis commercial use Commercial license needed
Free/Proprietary Before iText 5:
Improvements engine: LGPL
Car or bus: can be proprietary
Car: must be GPL
Bus: can be proprietary
Since iText 5:
Car or bus: must be AGPL
Or: buy commercial license

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Dual licensing
Viral effect of the open source
license
• The product is available for
free for those who accept and
comply with the F/OSS license
• As soon as the product is also
distributed under another
license, a commercial license is
needed
Commercial license for
commercial use
• The product is available under
a custom license for those
who pay for the product
• Support
• Warranty, Indemnification
• Release from the
requirements of the F/OSS
license
How can large open source projects be monetized?21

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Open Core licensing: e.g. iText 7
How can large open source projects be monetized?22
Open source
Closed source

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Business Source License: e.g. MariaDB
How can large open source projects be monetized?23
All source code is open,
but not “open source”:
it’s “business source”.
MaxScale is only needed
in case of heavy use of
MariaDB.
This prevents perceived
abuse by GAFA & co.

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How can large open source projects be monetized?24
What are GAFA companies doing?
Googleplex, Mountain View, CA

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When to use a permissive license?
How can large open source projects be monetized?25
Suppose that you’re Google, Apple, Facebook, Amazon, or a similar big corporation

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Beware of “anti GPL” propaganda
How can large open source projects be monetized?26
Suppose that you want to be the next big GAFA company

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How can large open source projects be monetized?27
Questions from the audience?
iText Group NV
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+32 9 298 02 31
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