The High Cost of "Free"

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You see it all the time: a company offers a Free! product that does exactly what you need. But free often comes with associated costs of one kind or another. During this session, Brenda Huettner will go over some of the most common types of expenses associated with free (such as time, effort, portability, expertise required, licensing issues, and compatibility). She’ll talk about the types of “free,” and look at open source, ad-supported, and limited-functionality models. She’ll also take a close look at some popular free programs to evaluate first hand what they might really cost you and your company.

Liderazgo y gestión

The High Cost of “Free”
Brenda Huettner
@bphuettner #CostofFree #LavaCon

@bphuettner #CostofFree #LavaCon
14
http://www.homewetbar.com/free-beer-tomorrow-metal-sign-p-1454.html

http://www.howtogeek.com/howto/31717/ @bphuettner #CostofFree #LavaCon

Free Software Foundation
Categories
@bphuettner #CostofFree #LavaCon
http://www.gnu.org/philosophy/categories.html

Other Categories of “Free”
@bphuettner #CostofFree #LavaCon
• Software Trial
• Free with Purchase
• Freemium
• Creative Commons
• Shareware
• Beerware

http://www.theboomerway.com/boomers-blog/there-is-no-such-thing-as-free-lunch @bphuettner #CostofFree #LavaCon

Functionality Costs
Pandora Spotify Slacker iHeartRadio
Monthly Unique Users 65.6 million 20 million 4 million 48 million
Launched 2000 2008 2007 2008
@bphuettner #CostofFree #LavaCon
Free version available
Yes: limited skips, ads,
reduced quality
Yes: ads, limited listening
time
Yes: ads, limited skipping
Yes: fifteen combined
skips per day, six per hour
per station
Paid Versions
PandoraOne: $36/year or
$3.99/month no ads,
higher quality
$4.99/mo. for desktop &
laptop, no ads.
$9.99/month lets you use
all devices, no ads
$3.99 ad-free, $9.99
custom playlists and full
on-demand streaming
No paid tiers
Music Library Size 900,000 20 million 13 million 15 million
Stations
Custom stations,
supported by Pandora
algorithm
Custom, unlimited skipping
Custom, 200+ curated
stations, 750 terrestrial
stations, live talk radio
Custom, 1,500 Live
Stations
Excerpted from http://mashable.com/2013/02/13/music-services-compared-2/ by Charlie White

Support Costs
• Tech Support: Who you gonna call?
• Documentation: There are some FLOSS
manuals you can download (or buy)
• Upgrades: Well, it depends.
@bphuettner #CostofFree #LavaCon

Security Costs
• Privacy Issues
• Security of Personal Information
• Bonus: malware and trojans included for
free!!
@bphuettner #CostofFree #LavaCon

Compatibility Costs
@bphuettner #CostofFree #LavaCon
http://www.dedoimedo.com/computers/libreoffice-vs-microsoft-office.html

Legality Issues
GPL (GNU General Public License)
AGPL (Affero General Public License for
servers)
FDL (GNU Free Documentation License)
BSD (Berkeley Software Distribution)
Creative Commons (6 different ones)
@bphuettner #CostofFree #LavaCon

Legality Issues
Excerpt from the Open Source Definition
• The program must include source code
• The program must allow modifications
• The license shall not restrict any party
from selling or giving away the software
• The rights attached to the program must
apply to all to whom the program is
redistributed
– Open Source Initiative www.opensource.org
@bphuettner #CostofFree #LavaCon

Survey Says…
@bphuettner #CostofFree #LavaCon
http://www.slideshare.net/blackducksoftware/2014-future-of-open-source-survey-results

City of Munich
@bphuettner #CostofFree #LavaCon
http://waste.informatik.hu-berlin.de/Grassmuck/Texts/Limux.html

City of Munich
http://www.techrepublic.com/article/how-munich-rejected-steve-ballmer-and-kicked-microsoft-out-of-the-city/
@bphuettner #CostofFree #LavaCon

References
• Open Source Initiative www.opensource.org
• Free Software Foundation www.fsf.org
• Open Office www.openoffice.org
• LibreOffice www.libreoffice.org
• FLOSS Manuals www.flossmanuals.org
• Open Source survey
http://www.slideshare.net/blackducksoftware/2014
-future-of-open-source-survey-results
@bphuettner #CostofFree #LavaCon

Thank You!
Brenda Huettner
bphuettner@p-ndesigns.com
@bphuettner #CostofFree #LavaCon
@bphuettner

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The High Cost of "Free"

1. The High Cost of “Free” Brenda Huettner @bphuettner #CostofFree #LavaCon

2. @bphuettner #CostofFree #LavaCon 14 http://www.homewetbar.com/free-beer-tomorrow-metal-sign-p-1454.html

3. http://www.howtogeek.com/howto/31717/ @bphuettner #CostofFree #LavaCon

4. Free Software Foundation Categories @bphuettner #CostofFree #LavaCon http://www.gnu.org/philosophy/categories.html

5. Other Categories of “Free” @bphuettner #CostofFree #LavaCon • Software Trial • Free with Purchase • Freemium • Creative Commons • Shareware • Beerware

6. http://www.theboomerway.com/boomers-blog/there-is-no-such-thing-as-free-lunch @bphuettner #CostofFree #LavaCon

7. Functionality Costs Pandora Spotify Slacker iHeartRadio Monthly Unique Users 65.6 million 20 million 4 million 48 million Launched 2000 2008 2007 2008 @bphuettner #CostofFree #LavaCon Free version available Yes: limited skips, ads, reduced quality Yes: ads, limited listening time Yes: ads, limited skipping Yes: fifteen combined skips per day, six per hour per station Paid Versions PandoraOne: $36/year or $3.99/month no ads, higher quality $4.99/mo. for desktop & laptop, no ads. $9.99/month lets you use all devices, no ads $3.99 ad-free, $9.99 custom playlists and full on-demand streaming No paid tiers Music Library Size 900,000 20 million 13 million 15 million Stations Custom stations, supported by Pandora algorithm Custom, unlimited skipping Custom, 200+ curated stations, 750 terrestrial stations, live talk radio Custom, 1,500 Live Stations Excerpted from http://mashable.com/2013/02/13/music-services-compared-2/ by Charlie White

8. Support Costs • Tech Support: Who you gonna call? • Documentation: There are some FLOSS manuals you can download (or buy) • Upgrades: Well, it depends. @bphuettner #CostofFree #LavaCon

9. Security Costs • Privacy Issues • Security of Personal Information • Bonus: malware and trojans included for free!! @bphuettner #CostofFree #LavaCon

10. @bphuettner #CostofFree #LavaCon

11. Compatibility Costs @bphuettner #CostofFree #LavaCon http://www.dedoimedo.com/computers/libreoffice-vs-microsoft-office.html

12. Legality Issues GPL (GNU General Public License) AGPL (Affero General Public License for servers) FDL (GNU Free Documentation License) BSD (Berkeley Software Distribution) Creative Commons (6 different ones) @bphuettner #CostofFree #LavaCon

13. Legality Issues Excerpt from the Open Source Definition • The program must include source code • The program must allow modifications • The license shall not restrict any party from selling or giving away the software • The rights attached to the program must apply to all to whom the program is redistributed – Open Source Initiative www.opensource.org @bphuettner #CostofFree #LavaCon

14. Survey Says… @bphuettner #CostofFree #LavaCon http://www.slideshare.net/blackducksoftware/2014-future-of-open-source-survey-results

15. Survey Says… @bphuettner #CostofFree #LavaCon http://www.slideshare.net/blackducksoftware/2014-future-of-open-source-survey-results

16. Survey Says… @bphuettner #CostofFree #LavaCon http://www.slideshare.net/blackducksoftware/2014-future-of-open-source-survey-results

17. City of Munich @bphuettner #CostofFree #LavaCon http://waste.informatik.hu-berlin.de/Grassmuck/Texts/Limux.html

18. City of Munich http://www.techrepublic.com/article/how-munich-rejected-steve-ballmer-and-kicked-microsoft-out-of-the-city/ @bphuettner #CostofFree #LavaCon

19. References • Open Source Initiative www.opensource.org • Free Software Foundation www.fsf.org • Open Office www.openoffice.org • LibreOffice www.libreoffice.org • FLOSS Manuals www.flossmanuals.org • Open Source survey http://www.slideshare.net/blackducksoftware/2014 -future-of-open-source-survey-results @bphuettner #CostofFree #LavaCon

20. Thank You! Brenda Huettner bphuettner@p-ndesigns.com @bphuettner #CostofFree #LavaCon @bphuettner

Notas del editor

Copylefted software is free software whose distribution terms ensure that all copies of all versions carry more or less the same distribution terms
There are lots of variations between free options Freemium and Demo versions often have limited functionality Know what you need Graphics courtesy Pandora, Spotify, Slacker and iHeartMusic; composite by Mashable/Charlie White
Open Source.org has list of different types of licenses Fsf.org has resources w/ case studies for example, has its own licenses called the NASA Open Source Agreement
See also State of California www.cio.ca.gov/Government/IT_Policy_Letter_10-01_Open_Source_Software.pdf Currently involves 15,000 desktops, saves 11 million Euro per year (?)
See also State of California www.cio.ca.gov/Government/IT_Policy_Letter_10-01_Open_Source_Software.pdf Currently involves 15,000 desktops, saves 11 million Euro per year (?)

The High Cost of "Free"

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