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How to build commercial
      open source business models
      (short introduction)

       Dr. Karl Popp
       http://www.drkarlpopp.com

       Version 1.3 6/19/2012


Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
Background information



  Business    Models, Ecosystems and Partnerships
    in the software industry

                                               Profit from Software
                                               Ecosystems
                                               ISBN-13: 978-3842300514

                                               Examples from over 50
                                               software companies




Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
Question in focus



     • Can a commercial open source business
       be constructed as a combination of
          – Business models
          – Product and licensing strategy
          – Way to leverage the community?
     • I say: YES!




Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
Commercial Open Source Business Model

                   Type        of
                   Products/
                   Services
                   offered
                   Intangi Huma
                     ble     n
           Creato Invent n/a
           r         or
           Distrib    IP    n/a
           utor    distri
                  butor     IP = Intellectual Property
  Based on the work by Weill et. al.
           Lessor   IP  Contr
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
Commercial Open Source Business Model

                       • Software vendors can create different
    Invent               business models for open source
      or               • Starting with services
      IP                 (consulting, maintenance, support) at
    distri               the bottom additional business
    butor                models can be added:
      IP                    – IP Lessor: commercial licenses can be
                              sold to customers
    lesso
                            – IP distributors: distribute open source
       r                      software
                            – Inventor: create software
     Contr
    IP = Intellectual Property
     actor
Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
Open Source Business Model variation:
  Dual Licensing




       IP                                          Provide
     distri                        Software
                                                   Open Source
                                                   Software      Custo-
     butor                          vendor         Provide        mer
                                                   Commercial
       IP                                          Software
     lesso
                                       Identical software or software versions
       r                               are provided
                                       under two different licenses

  Products,
  Assets or
  Services

Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
Summary


   • A commercial open source business can
     be constructed as a combination of
        – Business models
        – Product and licensing strategy
        – Way to leverage the community




Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
The offering


     • Learn where you are and when you like
          – Books                     or        On demand video lessons
             print or iBooks
             or kindle




       Profit from Software                          ProfitfromSoftwareEcosystems.
       Ecosystems                                    mindbites.com
       ISBN: 978-3842300514

Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM

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How tocreateopensourcebusinessmodelsappetizer

  • 1. How to build commercial open source business models (short introduction) Dr. Karl Popp http://www.drkarlpopp.com Version 1.3 6/19/2012 Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 2. Background information Business Models, Ecosystems and Partnerships in the software industry Profit from Software Ecosystems ISBN-13: 978-3842300514 Examples from over 50 software companies Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 3. Question in focus • Can a commercial open source business be constructed as a combination of – Business models – Product and licensing strategy – Way to leverage the community? • I say: YES! Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 4. Commercial Open Source Business Model Type of Products/ Services offered Intangi Huma ble n Creato Invent n/a r or Distrib IP n/a utor distri butor IP = Intellectual Property Based on the work by Weill et. al. Lessor IP Contr Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 5. Commercial Open Source Business Model • Software vendors can create different Invent business models for open source or • Starting with services IP (consulting, maintenance, support) at distri the bottom additional business butor models can be added: IP – IP Lessor: commercial licenses can be sold to customers lesso – IP distributors: distribute open source r software – Inventor: create software Contr IP = Intellectual Property actor Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 6. Open Source Business Model variation: Dual Licensing IP Provide distri Software Open Source Software Custo- butor vendor Provide mer Commercial IP Software lesso Identical software or software versions r are provided under two different licenses Products, Assets or Services Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 7. Summary • A commercial open source business can be constructed as a combination of – Business models – Product and licensing strategy – Way to leverage the community Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM
  • 8. The offering • Learn where you are and when you like – Books or On demand video lessons print or iBooks or kindle Profit from Software ProfitfromSoftwareEcosystems. Ecosystems mindbites.com ISBN: 978-3842300514 Copyright © 2012 Dr. Karl Popp http://WWW.DRKARLPOPP.COM