This document discusses open source software and how it can be used for both fun and profit. It outlines the Agile Manifesto principles and emphasizes that open source is about creating value through support, validation, and community involvement rather than direct revenue. It discusses lean startup principles and how ideas are a form of inventory. It argues that open source works for vendors by giving them control, feedback, and pace of innovation. It stresses the importance of active contribution and leadership within open source communities to drive influence.
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How Open Source Can Lead to Fun & Profit
1. @zehicle on Open Source
for Fun & Profit
OK, YOU GOT AGILE?
HOW DOES THAT BECOME A PRODUCT?
2. Agile Manifesto
People over process > http://agilemanifesto.org/
Individuals and interactions
over processes and tools
Working software
over comprehensive documentation
Customer collaboration
over contract negotiation
Responding to change
over following a plan
3. Open Source
Profit?
Free in Open Source is NOT about revenue
Create Value!
It’s about fair use, not profit
Customers expect to pay for value
Support & Validation are value
Voice in the community is value
No product is instant: $ from Sustaining Open Source
License Models
Copy Left vs Copy Right
Legal matters: IP protection, liability limits
Know your model
GPL – requires you to pay it back into the community
Apache – “business friendly” because you don’t have to share
MIT – “over the fence” with minimal impacts
4. Lean + Agile
Lean is a Manufacturing Process
Goldratt: The Goal
Ries: Lean Startup
Kim: Phoenix Project
Ideas are Inventory <- this is POWERFUL
Iterative Learning!
Work in Pivots
Selling validates concepts
Vision is not the same as a commitment (interlocking = risk)
DON’T skip strategy chasing profit
You are NOT in as big a rush as you think
5. Process, Culture & Open Source
Culture matters
Doing is doing
Lean is about learning
Low inventory = agility
Inertia is your friend: get moving
Inertia is your enemy: don’t coast
Leave Room for Collaboration
Be flexible
Get feedback fast
Good ideas survive
Deliver
Learn
Measure / Commit
Alternatives / Collaborate
Accept Unknowns / Trust
6. When Agile/Lean Fails
Mismatch w/ larger process
Trust challenges
Feedback missing
Being too tactical – leave room for strategy!
Technical Debt not being paid
Mismatched risk tolerance
Inability to delivery iteratively
Unwillingness to collaborate with customers
7. Value of Open Source
Customers
Supply chain transparency
Cost – generally it’s comparable BUT multi-vendor
Quality – yes, actually higher
Pace of innovation – much faster
Vendors
Support Contracts
Consulting Engagements
Update / Subscription Sales
Accelerate Primary Product (e.g.: Linux sells Servers)
8. Risks for Open Source
Risks
Picking a project that dies
Lacking expertise to be successful
Loss of control of the project
Mitigations
Adopt slowly
Purchase from established companies
Build expertise if capability is core
Force Multipliers
More engaged technologists
Better able to adapt to your business
9. Why Open Source works for Vendors
Control
Direct Feedback / Customer Interaction
Defect detection / correction
Perception of leadership
Pace of Innovation / Velocity
Supply Chain with Customers
Collaboration with Partners
Cost
10. Driving Open Source Communities
Driving Open Source Communities
10
Leadership requires active contribution!
$$$
Build Customer Relationships
Leadership creates
• Design Influence
• Credibility with Customers
• API & Feature Advantage
• Ensures compatibility
Using without Leading:
Stuck with others designs
Get advanced features late
Changes are disruptive
Selling without Contribution
• Prone to defects
• Waiting on releases
• Angers community
Influence APIs & Features
Easy Way
To Influence
Contribution
& Leadership
Hard Way
To Influence
Needed Integration
& Advanced Capabilities
Advantaged Ecosystem
$$$
2/17/2014
11. Sales Funnel
This is Sales 101
If you want to closed deals, you
need to build a pipeline of
prospects. There’s a conversion
ratio of losses at each stage in the
funnel.
Generally, it costs $$$ to get
prospects into the funnel and you
only make $$$ when they exits the
bottom.
You care about inbound volume,
cost to acquire and conversion
rate.
12. Sales Funnel + Open Source
Open source engagement is (one of)
our sales funnels. People in our
community are much more likely to
become paying customers.
A positive experience is essential
Community Download
Trial Engagement
PoC and Pilot (may be silent)
Customer Conversion
The other funnels are partners and Dell lead generation. Most of those still enter our community!
13. Not all Open is Collaborative
We are focused on collaborative open source
We want projects with diverse contributors
We accept community input and changes
We lead by focusing on customer value
More sustainable project model
Less risk for users of the project
Easier to influence & participate
14. Cathedral vs. Bazaar
Books
Raymond, Cathedral & Bazaar
Bacon, Art of Community
Two approaches to design
Strongly lead with a small visionary core
Collaboratively lead with adaptive design
Linux, OpenStack & Crowbar: “bazaar style”
Humility in design
“all bugs are shallow”
Everyone has something to contribute
15. Upstream, Gates, Trunk & Branch
Trunk is main place where work is being done.
Trunk has all the latest stuff and changes
Going off trunk is usually less stable
Gates are code reviews before code is added
Multiple parties review code before it’s added to trunk
We have controls and tests to ensure new code is good code
Branches (or Forks) are a split off of the main trunk
may have special features or be more stable
generally, work is not shared back
Upstream is giving code back to community.
You take time to merge back into trunk
We “pull” code into trunk from contributors
16. Thinking Deeply…
OpenStack and Hadoop are being much more disruptive
than we expected. Why?
The benefit of open, collaborative projects is not cost!
The benefit is control of deliverables and features.
If IT is essential to your business (an that is true for nearly
everyone now), then open source projects give you control
and visibility into your supply chain.
Open source is about supply chain management