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한국어 지부 




           28th, Oct 2011
           FOSS4G Korea 2011 Keynote Talk


           OSGeo Korean Language Chapter
           Shin, Sanghee(endofcap@gmail.com)
1.  Lower cost of innovation
2.  Faster time to market
3.  Share risk with others
Price                              Price

    Demand Curve                       Demand Curve
                   Supply Curve                       Supply Curve 1




                                                            Supply Curve 2




                        Quantity                           Quantity
“   If it’s digital, sooner or later
    it’s going to be free.


                                   ”
Free




                   KRW 800




       KRW 5,000
KRW 3,500




                            KRW 120,000




            KRW 1,995,000
USD 4.95

Free
Culture

Brand

Reliability

Experience
Community Open Source Software Developing Model

                                            Roadmap
                                             Design
                                            Software
                                           ‘The Project’
                  Core Developers
                                          Contributions
                       Administrators
                                                           Community
                          Engineers      Contributions

                                           Peer Review
                                            Use Cases
                                             Testing
                                         Documentation
                                           Translations
                                             Features
                                           Forum Help
                                            Bug Fixes




* Source : James Dixon, The Beekeeper
Open Source Software Advantages over Proprietary
                                                                     * Source : Barracuda Networks


                            Price                                                    80%

             Source Code Access                                     57%

        Community Code Review                                 41%

                     Don’t Know                       20%

             Bug Fix Turnaround                      18%

                         Security               15%

                    Code Quality                15%

       Best Product Functionality               15%

  Easier to Adopt in Organization             10%

                           Other         6%

                    IP Protection        5%

                                    0%              20%     40%     60%           80%                100%
Proprietary Software Advantages over Open Source
                                                                              * Source : Barracuda Networks



       Vendor Professional Services                                                                     65%

    Easier to Adopt in Organization                                                 47%

               Automated Updates                                                 44%

               Reduced IT Support                                       35%

         Best Product Functionality                               28%

                           Security                         23%

                      Code Quality                    17%

                       Don't Know                9%

                      IP Protection             7%

                             Other         4%

                              Price        3%

                                      0%        10%   20%     30%        40%        50%        60%        70%
1. Lack of formal support
                                                      and services


                                                   2. Velocity of change



                                                   3. Lack of roadmap



                                                   4. Functional Gaps



                                                   5. License Types


                                                   6. Lack of endorsements
                                                      by independent ISVs




* Source : Ray Lane, 6 barriers to open source adoption
Commercial Open Source Software


       Advantages                    Advantages
           of                            of
       Proprietary                   Open Source
1.    Professional service     1.    Cheaper price
2.    Continuous support       2.    Source code access
3.    Easy to use              3.    Community review
4.    Reliability              4.    Quicker bug fix
5.    Functionalities          5.    More standard based




                     ‘Whole Product’
Installation
    Integration
<Open Source SW>


                   Support
                              Services

    Software
                                    Software
                                                            Other 
                    VARs
                               SW/HW


                                            Certification
                              Training


                                <Whole Product>
Actual Product
                                     (Quality, design, brand,
Core Product                          packages)
(Basic functions, symbols,
  experiences)




Whole Product                Market Offering
(Additional services)        (Additional benefits offered
                              by partners)
Commercial Open Source Software Business Model
              Community can hear more functionalities & requests

                                      +
                                                                                 The bigger community
                          Commercial Open Source
                                                                                 the more resources
                                Company

 Customers
                     ‘Go To Market’
                        Open
  Partners
                 Sales, Marketing, Support,
                             Services, Engineering, Pro
                                                                      Source
                                                                     Software
            +
   OEMs
                                                            Community
                                    duct Mgmt.




                                           +
              Customers can gain higher quality software at a better price
Next Demand

         SKILL
A
C
C                 M
E                 O
S                 N
S                 E
     Customer     Y
     TIME

    Next Market
Thank You!!!

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How to make money out of open source software?

  • 1. 한국어 지부 28th, Oct 2011 FOSS4G Korea 2011 Keynote Talk OSGeo Korean Language Chapter Shin, Sanghee(endofcap@gmail.com)
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  • 10. 1.  Lower cost of innovation 2.  Faster time to market 3.  Share risk with others
  • 11.
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  • 15. Price Price Demand Curve Demand Curve Supply Curve Supply Curve 1 Supply Curve 2 Quantity Quantity
  • 16.
  • 17. If it’s digital, sooner or later it’s going to be free. ”
  • 18.
  • 19. Free KRW 800 KRW 5,000
  • 20. KRW 3,500 KRW 120,000 KRW 1,995,000
  • 22.
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  • 28. Community Open Source Software Developing Model Roadmap Design Software ‘The Project’ Core Developers Contributions Administrators Community Engineers Contributions Peer Review Use Cases Testing Documentation Translations Features Forum Help Bug Fixes * Source : James Dixon, The Beekeeper
  • 29. Open Source Software Advantages over Proprietary * Source : Barracuda Networks Price 80% Source Code Access 57% Community Code Review 41% Don’t Know 20% Bug Fix Turnaround 18% Security 15% Code Quality 15% Best Product Functionality 15% Easier to Adopt in Organization 10% Other 6% IP Protection 5% 0% 20% 40% 60% 80% 100%
  • 30. Proprietary Software Advantages over Open Source * Source : Barracuda Networks Vendor Professional Services 65% Easier to Adopt in Organization 47% Automated Updates 44% Reduced IT Support 35% Best Product Functionality 28% Security 23% Code Quality 17% Don't Know 9% IP Protection 7% Other 4% Price 3% 0% 10% 20% 30% 40% 50% 60% 70%
  • 31. 1. Lack of formal support and services 2. Velocity of change 3. Lack of roadmap 4. Functional Gaps 5. License Types 6. Lack of endorsements by independent ISVs * Source : Ray Lane, 6 barriers to open source adoption
  • 32. Commercial Open Source Software Advantages Advantages of of Proprietary Open Source 1.  Professional service 1.  Cheaper price 2.  Continuous support 2.  Source code access 3.  Easy to use 3.  Community review 4.  Reliability 4.  Quicker bug fix 5.  Functionalities 5.  More standard based ‘Whole Product’
  • 33. Installation Integration <Open Source SW> Support Services Software Software Other VARs SW/HW Certification Training <Whole Product>
  • 34. Actual Product (Quality, design, brand, Core Product packages) (Basic functions, symbols, experiences) Whole Product Market Offering (Additional services) (Additional benefits offered by partners)
  • 35. Commercial Open Source Software Business Model Community can hear more functionalities & requests + The bigger community Commercial Open Source the more resources Company Customers ‘Go To Market’ Open Partners Sales, Marketing, Support, Services, Engineering, Pro Source Software + OEMs Community duct Mgmt. + Customers can gain higher quality software at a better price
  • 36. Next Demand SKILL A C C M E O S N S E Customer Y TIME Next Market