Updates from March, 2007 Toggle Comment Threads | Keyboard Shortcuts

  • Roberto Galoppini 7:08 pm on March 10, 2007 Permalink | Reply  

    Open Source Users: the Value of a “Free” Customer 

    Keeping in mind the value of non-paying customers I happened to read an Alex Fletcher’s post about the paper “The Value of ‘free’ Customer” mentioned by Nick Carr in another recent post.

    For free - skypeAn application fo free by malthe

    The paper is about so-called two-sided markets, markets in which one or several platforms enable interactions between end-users, and try to get the two (or multiple) sides “on board” by appropriately charging each side.

    While Open Source firms do not play in a two-sided market, the mathematical model created , as suggested also by the authors, might be applied in other areas, hopefully in the OS arena too.

    Gupta, one of the authors, said:

    working on understanding and modeling complex network structures such as those of MySpace. Here the issue that we are grappling with is the tangible and intangible value of customers. In other words, customers provide tangible value to a firm through direct purchases but they also provide intangible value through network effects or word of mouth. It is quite possible that some customers have low tangible but high intangible value. Traditional models would label such customers as low value and would miss a huge opportunity for a firm.

    Technorati Tags: open source, network effect

     
  • Roberto Galoppini 5:53 pm on March 10, 2007 Permalink | Reply  

    Open Source Business Intelligence: IDC survey predicts little impact 

    Dan Vesset, research director for Analytics and Data Warehousing at IDC, wrote an interesting commentary about a recent survey conducted by IDC and DM Review on Business Intelligence.

    Toothpaste for dinner strip Toothpaste for dinner

    IDC’s research states that the Business Intelligence market moves in 15-year cycles:

    • from 1975 to 1990 characterized by production reporting on mainframes;
      .
    • from 1990 to 2005 characterized by friendy client/server solutions;
      .
    • the current market cycle, focused on expanding the reach of Business Intelligence.

    Talking about software upgrades, IDC noticed that:

    BA software vendors want and need rapid adoption of newer versions of their software to increase satisfaction levels and reduce support costs. It also ensures a steady stream of maintenance revenue. When adoption of upgrades slows greatly, customers are sending a signal that they do not see additional benefits in new products relative to the costs of implementing and supporting the new products. According to the survey, 45 percent of organizations upgrade BI software within the first year or as soon as it becomes available. Close to 80 percent of organizations upgrade their BI software within two years of release.

    IDC survey in other words says that at this stage in the BI market there is no much space for disruptive innovation – described as a technology having characteristics that traditional customer segments may not want, but interesting for marginal or new segment looking for a cheaper and simpler solution.

    Interesting open source BI software. It makes sense that a tool perceived to have just enough functionality at a low cost would be appealing to many companies with simpler reporting requirements. Several community projects and commercial companies have emerged to address the potential market for open source BI software. Interest among respondents for these offerings was modest, with 18 percent evaluating the products. However, the majority of respondents indicated no interest in the coming year. These tools will need to mature and prove themselves in the market before wider adoption can occur. Companies will continue to feel comfortable in allocating budgets toward commercial products, especially as system integrators largely choose to recommend these products and offer resources skilled in their implementation. The functionality available in open source products may be suitable as a replacement for commercial products, but skepticism still abounds. In markets where software is directly facing end users rather than just IT employees, open source alternatives have been slowly adopted. IDC does not believe open source BA products will have significant impact on the market in the coming year.

    The Open Source BI market need customers demanding for products not as good as the proprietary products currently in the market. Moreover System Integrators have to get proficient with Open Source BI products, otherwise uncertainty and skepticism will prevail.

    I know people from the Corporate Open Source project called SpagoBI, and I’m going to meet them next week in Sardinia. I’ll be back with more news about the OS BI market.

    Technorati Tags: Open Source, Business Intelligence, disruptive innovation

     
  • Roberto Galoppini 8:14 pm on March 9, 2007 Permalink | Reply  

    Community development: O’Reilly joins MySQL Board 

    MySQL is really working hard to foster its community, and now the MySQL Winter of Code initiative sounds just like the first notable step. Today Tim O’Reilly explained why he just joined the MySQL Board.

    O'ReillyO’Reilly by Duncan Davidson

    Second, Märten, Monty, and David asked me nicely :-), and after some substantial discussions with them, I came to the conclusion that I could add some value to the company. They were looking for someone who had a sense of the competing pressures of business and open source idealism, and could help them steer a careful course through the obstacles. As open source grows up, there can be tension between its community roots and its business aspirations. But that tension can also be a creative force, and MySQL AB wants to be sure to continue to harness the creativity of the open source developer community, as it becomes an ever-more viable alternative to existing closed source commercial databases.

    Well done MySQL, well done.. and they are already getting the very first result:

    While I’m on the subject of MySQL, I should mention that O’Reilly produces the MySQL User Conference in conjunction with MySQL AB. The conference will be held April 23-26 in Santa Clara. The early registration discount ends March 14, so if you’re interested in MySQL, you should sign up now.

    Whatever you call it – Word of Mouth, Liquid, or Viral Marketing – it works, and any commercial open source firm just need it indeed.

    Technorati Tags: open source, MySQL, O’Reilly

     
    • Savio Rodrigues 11:32 pm on March 9, 2007 Permalink

      Cool – thanks for pointing this out Roberto!

      I think the thing I really like about MySQL as a business is that they are up front about their commercial aspirations.

      They do x,y and z and it just so happens that z=”make $$ using a dual license approach”. And since x=”build & maintain an active community”, it just feels like a good balance.

  • Roberto Galoppini 6:05 pm on March 9, 2007 Permalink | Reply  

    Open Source Government Policies: UK shadow chancellor criticised the government 

    Wether is true or not that government agencies tend to choose FLOSS strategically, it is definitely true that Government policies toward Open Source are pretty under the radar now. The shadow chancellor George Osborne criticised the government saying that most central government dipartments don’t take advantage of open source software.

    Westminster - Big BenWestminster – Big Ben by wallyg

    Few months ago Osborne talking about Politics and Media in the Internet age spent some words for Linux, and more recently, speaking at a conference, he said:

    In recent months, Conservative MPs have put down parliamentary questions that reveal most central government departments make use of no open source software whatsoever.

    The problem is the cultural change has not taken place in government and, within government, the balance is weighted against open source. There isn’t a level playing field for open source software.

    Too many companies are frozen out of government IT contracts, stifling competition and driving up costs. Not a single open source company is included in Catalyst, the government’s list of approved IT suppliers.One of the problems is that a government IT system is incompatible with other types of software, which stifles competition and hampers innovation.

    Read the full article.

    Technorati Tags: open source, government policies, osborne

     
  • Roberto Galoppini 9:26 pm on March 7, 2007 Permalink | Reply  

    Open Source ecosystems: Corporate vs Hybrid production model 

    Savio Rodriguez recently posted commenting MySQL Quality Contribution Program observing that MySQL’s list of leading community contributors isn’t stacked with MySQL employees. Then he eventually ended talking about the difference between “good community” vs. “good company”.

    Mural by M.C. Escher

    M.C. Escher’s Mural by deVos

    Yesterday talking about the symbiotic approach I mentioned that MySQL and Sun are beginning to approach their communities more effectively, and are likely to see positive returns very soon in my opinion – here I am considering that a significant percentage of contributed code come from developers outside the firm in few known Open Source projects.

    Reading Savio’s post I got that the job I did few years ago classifying the FLOSS production model into three organizational categories (Corporate, Voluntary and Hybrid) still makes sense. Projects falling under the Corporate category – i.e. where all stages of software production are carried on within the organization – have the same organizational attributes of projects conducted under a traditional firm. The Corporate category miss the opportunity to get involved individuals (partially) self-selected, and as clearly stated Savio it makes a difference.

    Read his full article.

    Technorati Tags: Open Source, Community, MySQL, Sun

     
    • rufo 6:32 am on March 11, 2007 Permalink

      there is a typo at “idealtypically” 🙂

    • Roberto Galoppini 5:14 pm on March 12, 2007 Permalink

      You learnt a new word today, isn’t it? 😉
      To be honest I didn’t know it, my mentor Giampaolo Garzarelli taught me.

  • Roberto Galoppini 6:40 pm on March 3, 2007 Permalink | Reply  

    Business development: Open Source firms are created equal, but some.. 

    Don Dodge, Director of Business Development for Microsoft’s Emerging Business Team, wrote a post claiming that what he calls “the Open Source identity crisis” – i.e. what constitutes an Open Source company – is quite pointless in his opinion.

    Categories of softwareDiagram by Chao-Kuei, excerpt from FSF we site

    On the contrary I believe that is important to agree on what is an open source firm, “false positive” like Enterprise DB cause uncertainty, which never helps the market.

    Is this a distinction without a difference? Do customers really care about the details of all these licenses? It should be noted that Microsoft, Oracle, IBM, HP, and every other software company have unique licenses as well. In my experience, customers care about a reliable solution to their problem, that works well with what they already have, with professional technical support, at a reasonable price.

    Customers do care about licenses when it comes to open sources. Ask lawyers advising companies on complex merger and acquisition. Answering questions raised up by SMEs to the OpenOffice.org voluntary support for four years now, I know that licenses issues are the most frequently asked ones.

    Customers demand solutions, that’s why Open Source firms able to listen to users, sharing roadmap decisions and cooperate with the community do go beyond marketing. The Open Source choice might be really effective to answer customers’ needs, though it might be not so easy.

    Is it all about the source code? To me anyway, Open Source means you get access to the source code. The particular license determines what rights you have to the source code and what you can do with it. For most customers any of the licenses will allow them to do whatever they need to do for internal use. The reality is that only a tiny percentage, 8% or so, actually touch the source code, and still fewer contribute any changes back to the “community”.

    I totally agree here, customers don’t like Open Source because they can change it. Availability of source code is required only if it might enable competitive advantages over competitors or, on another line of thought, if it can make a technological club happens. By the way I would really be interested in knowing more about studies reporting the 8% result.

    Is it all about the community? The GPL demands that any enhancements or changes to the source code be offered back, free of charge or encumbrance, to the community. The myth is that Open Source code is developed by thousands of members of “the community”. The reality is that in most cases probably 50% of the code is developed by not more than 20 people.

    Thinking in general the community is an exaggerated myth, but some projects are community intensive and among them the Linux kernel is an exception that it’s worth to mention: the stream of patches that changed the 2.6.19 kernel into the 2.6.20 were contributed by 741 different developers.

    Customers don’t care if the software was developed by one individual, a community, open sourced, out-sourced, or any other way. Customers care about solving a problem, having the software work well with what they already have, and having access to good support and documentation, all at a reasonable price.

    Customers do care indeed: a project backed up by multiple vendors is a better bet in the long run, while a project owned by a single company, either proprietary or open source oriented, it’s a risky bet (see The manufacturing delusion, “The Magic Cauldron” – Eric Raymond).

    What if my idea of Open Source Franchising might eventually turn in a good business, Don?

    Technorati Tags: commercial open source, franchising

     
  • Roberto Galoppini 8:25 pm on March 2, 2007 Permalink | Reply  

    Linux platform of choice: most popular websites got the facts 

    The uptime monitoring company Pingdom performed a survey (PDF) to sort out what seven of the most popular websites use to deliver services like blogging, blogging tools, file sharing, instant messaging, stock photo libraries, video sharing, and web statistics.

    The article “What the Web’s most popular sites are running on” explores the underlying hardware and software that keep these famous websites working under heavy traffic conditions.

    No news most of them use Apache, holding 58.7% of the market share, while for the very first time below 60 percent since September 2002, as is not a surprise that the database of choice for all but one of them is MySQL, and PHP is the most common server-side language scripting.

    Pingdom Infrastructure Survey 2007Graph excerpt from the Pingdom Infrastructure Survey 2007

    The seven participants all responded to a set of 28 survey questions (all responses available in the PDF matrix) plus a number of follow-up questions about their website infrastructure where they could further explain their choices.

    Let’s see what participants said about their choices.

    Linux was selected for multiple reasons. It has a proven track record in scaling, open source code to allow for altering code as necessary, price, excellent support if necessary and ease of finding talent to support and maintain it.
    (Jan Mahler, network operations manager at YouSendIt)

    Initially, the fact that the software stack was free (as in beer) had a major influence on our decision. But moving forward, standardness and supportability started becoming major factors. Using the big-name Linux distributions gives us support with big-name hardware vendors, and vice versa.
    (Brent Nelson, senior systems administrator at iStockPhoto)

    The features that you get for free on MySQL, with replication, in-memory and fault-tolerant databases (if using MySQL cluster), transaction support, and the wicked performance, cost thousands of dollars with other database engines
    (Joseph Kottke, director of network operations at FeedBurner)

    And, out of the chorus, Ron Hornbaker, who built the first version of Alexaholic in just one weekend, a definitive proof of productive can be the ASP.NET environment.

    I’m most comfortable coding with C#.NET, and this was a personal project.

    Alexaholic is the only site in this survey to use Windows and IIS, but it is worth to mention that IIS is actually gaining ground on Apache and 31.1% of the Internet’s websites hosted on IIS.Read the full article.

    Technorati Tags: Apache, Linux, get the facts, Pingdom

     
  • Roberto Galoppini 5:02 pm on February 26, 2007 Permalink | Reply  

    OpenOffice.org Italian Association meets its first goal: Press release 

    “OpenOffice.org Italian Association meets its first goal”

    PLIO, 26th of February 2007 – The Association PLIO, the Italian community of volunteers who develop, support and promote the open-source office productivity suite, OpenOffice.org, has met the first goal of the yearly program: the inclusion of the Italian dictionary and thesaurus – released by Italian volunteers – in one of the next official versions of OpenOffice.org.

    In the very next future the full release (dictionary and thesaurus included) of OpenOffice.org Italian version, today available for download only by PLIO servers, will be available also by the official site.

    Sun Microsystems, OpenOffice.org primary sponsor and contributor, through the authoritative voice of Simon Phipps, Chief Open Source Officer of Sun, announced the decision on Roberto Galoppini’s blog. Galoppini had previously written an open letter to Simon Phipps on behalf of the Association asking help with Sun’s legal team to get a public comment about the implications of distributing the dictionary and the thesaurus with OpenOffice.org.

    Roberto Galoppini, one of PLIO’s historical members and recently appointed PLIO Institutional Relationship Manager, commented:

    Simon Phipps’s comment, nowadays the most visited page of my blog, returns a positive feedbacks from Sun’s lawyers and announces that the inclusion of our great facilities will proceed forthwith – and I guess before this summer we’ll get them included in the official version.

    The problem was due to a suspected licenses mismatch between the linguistic tools’ license and the openoffice.org one. I am convinced that the PLIO Association for Sun might be an important interlocutor within the OpenOffice.org community, and this is just the first goal in the direction to build a more collaborative dialogue.

    PLIO Association can be found at the following address: http://www.plio.it. PLIO is on duty for the Italian Native-Lang Project, that can be found at the following address: http://it.openoffice.org, where is available for download the last version of the suite, namely OpenOffice.org 2.1.

    Roberto Galoppini, commercial open source software and open source business models expert, founder of the first Italian open source consortium. His blog can be found at the following address: http://robertogaloppini.net.

    PLIO, the OpenOffice.org Italian Native-Lang Project, is the Italian community of volunteers who develop, support and promote the open-source office productivity suite, OpenOffice.org. OpenOffice.org supports the Open Document Format for Office applications (standard ISO/IEC 26300) and is available on major computing platforms in over 90 languages, available to 90% of the world-wide population in their own mother tongue.
    OpenOffice.org is provided under the GNU Lesser General Public Licence (LGPL), can be legally used in any context.

    PLIO, Progetto Linguistico Italiano OpenOffice.org:
    http://it.openoffice.org
    “Vola e fai volare con i gabbiani di OpenOffice.org: usalo, copialo e regalalo, è legale!”
    For further information: Italo Vignoli (+39.348.5653829), stampa@openoffice.org

     
  • Roberto Galoppini 1:29 pm on February 25, 2007 Permalink | Reply  

    Debian and business: HP making big money out of free Debian GNU/Linux 

    HP few months ago announced its support services for Debian, because as Jeffrey Wade, worldwide marketing manager at HP’s Open Source and Linux Organization, explained:

    We’ve had a number of customers continuing to ask us to have broader support for Debian. [Linux customers requested the Debian support, after wondering if they could get] a better value with a distribution that doesn’t require a subscription fee and subsequent renewals for that subscription.

    money andy warhol

    As recently reported by InternetNews HP in fiscal year 2006 $25 million in hardware sales in the EMEA area were directly related to HP’s Debian support.

    Hewlett-Packard is known to be a Linux Foundation supporter, as said Christine Martino, vice president, Open Source and Linux Organization of HP:

    HP has been a long-time member of both OSDL and FSG, and is proud to continue supporting the advancement of Linux and open source as a founding Board member of the Linux Foundation.

    HP is also an important Debian’s developer partner, and sponsors many other open source projects, but despite of all this HP is not even listed in the top ten business contributors in the now famous final report on the economic impact of FLOSS.

    HP was already supporting both Novell and Red Hat distros, and Wade commenting the somehow unexpected extremely good results due to Debian support said:

    Every additional distribution that we pick up is a big investment in testing and support which is a challenge from the service side. When we decided to do Debian, we had to figure out what the opportunity was and what sales we would generate.
    This information exceeds what we were expecting to see.

    As reported by Sean Wilson, IBM has also come on board the Debian support services bandwagon with their French partner Alcôve in order to to provide Debian support for their IBM Global Linux Support Line.

    Technorati Tags: Debian, HP, IBM, FLOSS

     
  • Roberto Galoppini 12:08 pm on February 24, 2007 Permalink | Reply  

    Licensing: more on Alfresco going GPL 

    Yesterday many commented Alfresco’s decision, among them Matthew Asslet’s article talks about the mentioned exception approach and the attribution thing.

    Commenting the FLOSS exception, Matthew wrote:

    It is an interesting approach that solves some of the problems Alfresco faced as an emerging commercial open source vendor, and do so better than the company’s previous Mozilla + Attribution approach.

    Matthew spoke to Matt Asay, Alfresco’s VP of business development, recently, about Alfresco’s decision to abandon MPL+attribution in favor of the GPL.

    While that is a good reason for the company to have turned to the GPL, Asay also maintained that it is his belief that the GPL does a better job of encouraging attribution and contribution, either in the form of support revenues or code development.

    “The problem with application companies is there’s no protection for you,” he said, noting that there is more opportunity at the application level than the operating system level for developers to pick up code and turn it into something else.

    While the GPL does not prevent developers from doing that, it does mean that they are required to publish any code they distribute under the GPL, ensuring any modifications remain open.

    According to Asay, this is a more elegant method of retaining attribution than dictating to developers how they use and display a trademarked logo in any modified code. He explained that it was understandable why several open source start-ups took up the MPL+ Attribution approach, however.

    “As a company we didn’t feel comfortable that we had the brand that would push people to buy support from us,” he said. “It’s really, really hard to take that leap of faith that you’re providing the value that people will buy from you.”

    It will be interesting, as Matthew wrote, to see how Alfresco’s move will affect integration with other open source projects and, moreover, to see how Alfresco will eventually find its way to a symbiotic approach.

    Post Scrittum: read also the Internews article, it reports interesting spots of Matt’s thoughts:

    We would be ecstatic if someone forked the GPL version of Alfresco because then they get to go off on their fork and develop their own system but we would also benefit from the work that they do. If we can’t compete based on the work that we’re doing on our own code as well as benefiting form the work that a fork would do on theirs, then we don’t deserve to be in business.

    We want the conversation around Alfresco to be much broader than Alfresco the company, we want it to be about the code and the value of the project first and the company secondarily.

    Let’s see how Alfresco will cope with the upcoming community, I’m sure they’re working on it..

    Technorati Tags: Open Source, GPL, MPL, Alfresco

     
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