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  • Roberto Galoppini 4:15 pm on September 1, 2008 Permalink | Reply  

    Sourceforge: About fulfilling End-Users’ needs 

    Understanding Sourceforge stakeholders’ expectations might help Sourceforge to better exploit opportunities and manage challenges ahead, considering also actual and future scenarios in terms of competition.

    End-usersFocusing the camera on end-users by Pete Ashton

    Thinking of mechanisms to capture the value of FOSS Group Forming Networks, Sourceforge today is largely taking advantage of the opportunity to sell advertisements and sponsorships, it is experimenting with transactions through its SF marketplace and sells on demand collaborative development resources. Sourceforge don’t sell individual subscriptions, neither sells information or other value added services for collaborative software production.

    Advertising has increased in recent years, and advertisers and sponsors – ubiquitous stakeholders in the internet era – might be interested to persuade potential customers to buy some services Sourceforge is not selling today. I could go into deeper detail on that, but I will leave that for another post later. Now let’s focus on some stakeholders’ needs.

    End users.

    End-users want just software meeting their needs. Easy to say, harder to put in practice. For example, considering users looking for a CMS. They can step by cmsmatrix and get a clue by searching a CMS for the many available criteria. Unfortunately there are few similar resources on the net, and Sourceforge is definitely in the position to know which are the more frequent searches. Specific whitepapers to help people to make decisions could be sold for a fee or funded by a sponsor.

    Sourceforge top downloads pages could be enriched with rollovers shortly describing the programs, links to pages containing tips&tricks, and a “users who downloaded this program also downloaded” list, as Amazon does.

    Q&A like Yahoo answers or Linkedin questions could really help to effectively build the SF.net community. Despite Google answer failed to accomplish the task to create a knowledge market, the idea to make it only for questions about FOSS could worth some speculations.

    Peer to peer network users.

    In Europe we feel the urgency to take action against the European lobby trying to criminalize P2P usage, and I totally understand this is not Sourceforge’s battle. But I think Sourceforge could find ways to highlight legitimate, professional uses for that technology. Someone from the Sourceforge crew told me that it could be achieve by offering BitTorrent as an alternate download mechanism for SourceForge.net and reporting on Sourceforge editorial sites that Blizzard uses BitTorrent legitimately for World of Warcraft downloads and patches.

    Only World of Warcraft reached 10 million users, so educating communities of gamers to open source software usage seems important to me, considering their average age and social network skills.

    Next I will cover the enterprise side, either from developers’ and organizations’ points of view.

    Technorati Tags: commercial open source, sourceforge, business models, Q&A, market knowledge, yahoo answers, google answer, linkedin questions, world of warcraft, group forming networks, peer to peer

     
  • Roberto Galoppini 12:13 pm on August 29, 2008 Permalink | Reply  

    Sourceforge: a Taxonomy of Sourceforge’s Stakeholders 

    Having a seat on the Sourceforge advisory board, lately I have been thinking about who are the stakeholders of world’s most famous open source repository, and how Sourceforge might travel to accommodate their changing needs.

    Stakeholders' taxonomyA possible taxonomy by recursion sees recursion

    Searching for Sourceforge on Google the first three different results summarize different aspects of how people look at it (bold emphasis is mine):

    The world’s largest development and download repository of Open Source code and applications
    (source: sourceforge.net).

    A media, services and e-commerce network that provides and promotes Open Source software downloads, development, discussion and news. (source: sourceforge Inc., NASDAQ LNUX).

    SourceForge.net is a source code repository and acts as a centralized location for software developers to control and manage open source software development. SourceForge.net is operated by Sourceforge, Inc. (formerly VA Software) and runs a version of the SourceForge software, forked from the last open-source version available. As of August 2008, SourceForge.net hosts more than 180,000 projects and more than 1.9 million registered users, although it does contain many dormant or single-user projects
    (source: wikipedia).

    Some stakeholders’ point of views in regards to what Sourceforge is are implicitly represented by those definitions, a taxonomization of all Sourceforge’s stakeholders is probably needed to better define how better support all of them.

    Let’s start from the developers.

    There are three different subcategories of developers interested in Sourceforge: newbies, experienced and professionals.

    Newbies can’t access any resource to easily jump start a development project. SF.net is definitely not aimed at them.

    Experienced developers’ needs are well matched by SF.net, offering them an integrated web platform to build software, centralizing development management for no cost and helping project visibility.

    Professionals, people making a living of it, needing to accurately track donwloads or willing to have full control of their repositories, today can’t easily migrate their projects in and out of SF.net, and they often choose to run their own forge.

    But if it is true that they don’t need a software development platform, many of them are happy with an high ranked page referring to their project. Guerilla marketing‘s fans maybe also interested in selling services through the SF marketplace, but the presence of competitors at (less than) a click away could be a problem.

    Peer-to-peer network users.

    All they need is an easy access to downloading their favorite file-sharing tool. Even if they can hardly seen as part of the SF developers community, since they pay little (if any) interest in free software, they are a very significant part of the whole users base.

    Public and Private Organizations.

    Organizations using SF facilities to build communities, are open and interested to a wide collaboration, probably going beyond the peer production of code, maybe willing to find an answer to the open source conundrum. Public administrations willing to share open source code are likely interested in sharing also solutions and experiences.

    End users.

    End users look for software to fulfill their idiosyncratic needs. Often their ability to conduct an effective software selection process is little, as is scarce the probability to find a solution to their unique problems in few clicks.

    Next I will cover the competitive landscape and opportunities in front of Sourceforge.

    Technorati Tags: commercial open source, long tail, sourceforge, open source mediation, open source marketplace, commons peer production

     
  • Roberto Galoppini 4:42 pm on August 21, 2008 Permalink | Reply  

    Open Source Foundations: Jim Zemlin interviews Mitchell Baker 

    The last Linux Foundation‘s installment in their Open Voices podcast series went live yesterday, featuring Mitchell Baker, chairperson of the Mozilla Foundation, interviewed by Jim Zemlin, the executive director of the Linux Foundation.

    Mitchell raises some interesting points about challenges and opportunities met by Mozilla on its path to success, below an excerpt of the original transcript.

    Jim asked Mitchell to describe the major turning points for Mozilla.

    Some of the early turning points were in the 1999/2000/2001 time frame, like before Firefox, so before most people knew of us. And these were the turning points in which we actually came of age as an open source project. Meaning we shifted development control and management control from the remains of the Netscape group into a true open source project. And these are things like gaining control of the tree. Who determines who’s got access? Obviously in an open source project you have a set of technical criteria for who can access the source code, but when you come out of a commercial organization there’s this long tradition that all employees of that organization get access. And so these are very nitty-gritty development policies, but it took us a couple of years to figure out how to make that work, given this large commercial organization called Netscape. And those are not as glamorous as the success of Firefox, but they’re absolutely fundamental to having what is a legitimate open source project at the core of what we’re doing. So that was one set.

    Commercial organizations willing to shape an open source future – like Nokia with its open source flavor of Symbian, just to make an example – have probably a lot to learn from that.

    Success like Firefox stand on strong foundation(s).

    And so in July of 2003, we formed the Mozilla Foundation. Up to that point we had had no legal organization at all. We were a virtual organization. And we’d gotten pretty far with that, but there were a lot of difficulties, right. You couldn’t own anything because there was no entity to own it. So you couldn’t own a machine or a trademark, a name like Mozilla, or you couldn’t have any money or a bank account or pay anybody, so it was really a big turning point to create that organization.

    And then of course, Firefox. And probably shipping the 0.8 version of Firefox, which happened in the spring of 2004 was an important milestone; not as big as public as the 1.0 release, but it was really the 0.8 release, and I’ll bet any of the people—your listeners—may well have been using Firefox 0.8. It as at that release that we began to be clear we were on to something important.

    Jim asked about the role of foundations, and advice for them.

    I don’t think that every open source project needs or wants or would benefit from a foundation. But, certainly in our case, we found many things. There are some obvious ones like you’ve got a name. Do you want to own a name? Do you want to be able to protect it? You may or you may want to. Sometimes people would offer to donate money, and being able to have a set of people work full-time and be paid on it can be very helpful to open source projects. Again, it’s not for all open source projects, but for a number of us it’s an important piece. We found that other organizations were much more comfortable talking to us once e had a legal organization. So a government, for example, that’s interested in pen source software; it’s one thing to come to the Mozilla Foundation and talk to us. It’s another thing to come to a group of five or six people who call themselves Mozilla, don’t have an organization, and there’s a policy document maybe on the website, but you’re not really sure who it is. That’s a lot harder. [..]

    I’m convinced that the nonprofit status makes people more comfortable in contributing their time and energy and work and effort, and knowing that what we do is legally dedicated to the public benefit. That may not be true of all open source projects, and I’m not trying to be proscriptive and say everyone needs to organize themselves this way, only that we have and I think it’s been important to our success.

    At PLIO, the Italian association of volunteers who develop, support and promote OpenOffice.org, we are experiencing similar feedback from the market. Coping with Italian local public administrations or central ones seem easier now that we created a noprofit organization, and we can receive tax-deductible donations now (included the possibility to devolve the 8/1000 of taxes paid).

    Talking about open source business models, the Mozilla finances come from the advertising model, but not the way it have been made real.

    About the relationship with Google.

    [..] the Google AdSense program existed, and Yahoo had similar options. So when you went to look at a website, you could already see that the websites would have ads on them and there was revenue to be shared. And so we though, “Well, we might as well have those discussions.” And we had them for months. Because it was clear pretty early on that there was some revenue relationship that could be had. We didn’t know amounts or numbers, but what spent months—and this is both Google and Yahoo—what took months was to get to know each other well enough to understand this principle that the revenue relationship would not result in technical decision-making about the product. [..]
    And we can’t be united with that set if we let the technical decisions about our product move because of a business relationship. And so it’s really the power of the community behind us that makes that possible.
    And we spent, as I say, months making sure we all understood this. And when
    we were finally clear that that was the case, you know, we ended up with signed contracts, but with a relationship with each of Google and Yahoo.

    Retaining full control over technical decisions was mandatory, the Firefox community wouldn’t have accepted it. About the business side, I agree that an interesting question would be whether or not search will continue to be lucrative in five or ten years from now. As a matter of fact this is definitely not just a Mozilla’s problem, though.

    About the importance of the trademark.

    I mean, we have had people tell us, you know, they want to rip out whole subsections of the code and replace them and call it Firefox. Those are the things that are very hard to reach agreement on. And I think that the trademark in general, or the name or the recognition that comes with a name is really a very different concept than free and open source software. [..]

    But the name and the trademark, especially in the consumer setting is, how does a consumer who doesn’t understand the technology know what they’ve got? It’s all about understanding what you’ve got, not changing it. And so they’re very different concepts and in the open source world, you know, we haven’t figure out how to live easily within both of them.

    Talking about trademark, Zemlin asked what Linux can learn from Firefox.

    The first place I would start is that trademark is unsettled in this area. And so if, for example, the Linux desktop had a trademark that was treated like Firefox, there will clearly be parts of the Linux community that are extraordinarily upset and it will be highly divisive. I think you have to start there at one end of it. And so I’d be really cautious.

    I am looking forward to ask some questions to Jim about Linux trademark and how and if to empower it in a similar way.

    Read the full original transcript.

    Technorati Tags: open source foundations, mozilla foundation, mitchellbaker, jimzemlin, google ads, open source business, commercial open source, business model, PLIO

     
  • Roberto Galoppini 7:11 pm on July 28, 2008 Permalink | Reply  

    Open Source Workshops: Building an Effective Commercial Open Source Strategy 

    Olliance Group and InitMarketing, the Open Source Marketing company, will co-lead a workshop on Building an Effective Commercial Open Source Strategy at OSIM, on the 19th of September in Berlin.

    Building BalanceBuilding Balance by mr.Mark

    Today open source is being leveraged by hundreds of vendors to varying degrees of success with more entering the arena every day.This workshop will address the core elements of building and implementing an effective open source strategy.Attendees will learn how to identify open source opportunities and challenges, understand resource issues and come away with an idea of how to determine if their existing or planned open source strategies will help them meet their business objectives.Among the open source topics to be addressed are: mapping open source into your business model, licensing, marketing, building a sustainable community and partnering.The workshop will be conducted through a series of presentations and business case examples with a focus on industry best practices.

    Basically I will cover topic ranging from open source governance, included open source licensing, to managing open source communities, analyzing pros and cons of choices like building your own or tapping into an existing one.
    I will also speak about open source business models, giving also details about open source franchising and open source network marketing.

    Talking about open source marketing I will tell you about what’s special about it, how to position an open source product and company, and how to develop a strong open source brand.

    Andrew Aitken Stephen Walli and Sandro Groganz will help me to prepare materials for the different sessions.

    See you there!

    Post Scrittum:  I got some spare discounted pass to attend this event, feel free to contact me directly by email if you are interested.

    Technorati Tags: OSIM, OSIM Berlin, Open Source Workshop, InitMarketing, Olliance Group, StephenWalli, SandroGroganz, Business models, Open Source Marketing, Commercial Open Source

     
    • Carlo Piana 9:32 am on July 29, 2008 Permalink

      Hi, Roberto. I have noted your presence in the presentation material I have received. If I can make it to Berlin next September I will surely be at your Workshop.
      Osim is a very important event. I have been at the first one in Amsterdam (2006), and the workshop I paneled was very high-profile, both in terms of the discussion generated and of importance of the industry represented there.
      All those who want to attend should register ASAP. The early bird discount is going to expire soon, if I recollect correctly.

    • Roberto Galoppini 7:19 pm on July 29, 2008 Permalink

      I really appreciate your kind words, Carlo.

      About terms and conditions there are a number of cost options, and only members of the WiFi Alliance/OMTP/.MobiAG qualify for a 15% discount.

  • Roberto Galoppini 4:08 pm on July 14, 2008 Permalink | Reply  

    Open Source Conference: OSCON 2008 is coming! 

    OSCON 2008 – the biggest open source convention in the world run by O’Reilly, celebrating this year its 10th anniversary, – will take place in Portland next week, bringing together more than 2500 professionals from all over the world.

    The convention includes 40 technology tutorials and over 400 sessions focusing on many different topics, ranging from business to security and Web Applications, along with a new event dedicated to open source mobile (Open Mobile Exchange).

    OSCON 2008

    Only few people from Europe will join OSCON 2008, among them Cedric Thomas (OW2 consortium), Stefano Maffulli (Funambol Community), Pierre Baudracco (Linagora) and Francesco Cesarini (Erlang Training and Consulting).

    I am looking forward to follow the Participate 08 session, aimed at exploring the issues and opportunities presented by community development, in particular the themes of hybrid models. On Tuesday I won’t miss Mark Shuttleworth‘s keynote, and I am definitely sorry that I’ll fly away before Chris DiBona‘s google open source update talk, on Wednesday.

    If you are planning to stay at OSCON on Wednesday don’t miss Open Source Software Economics, Standards, and IP in One Lesson by Stephen Walli, and Open Source / Open World on Thursday, moderated by Danese Cooper. Last but not least I suggest you to follow Does Open Source Need to Be “Organic”?, a session following the now famous Theodore’s post on the subject.

    I will be covering the event writing articles for Italian ICT magazines, see you there!

    Technorati Tags: OSCON 2008, OSCON, Portland, open source conferece, DaneseCooper, StephenWalli, TheodoreTs’o, ChrisDiBona, MarkShuttleworth, FrancescoCesarini, ERLANG, PierreBaudracco, Linagora, StefanoMaffulli, Funambol, CedricThomas, OW2

     
    • Theodore Ts'o 4:28 pm on July 18, 2008 Permalink

      By the way, since you seem to have misspelled my name not only in this posting, as well as the previous one, I thought maybe I’d send a correction. My name is “Theodore Ts’o”. That’s with a trailing ‘e’ in my last name, just like the former U.S. president, Theodore Roosevelt.

      Regards,

      — Ted

    • Roberto Galoppini 5:30 pm on July 18, 2008 Permalink

      Sorry about that, I corrected it. I hope to meet you at OSCON then!

    • Debbie Morgan 10:58 pm on July 18, 2008 Permalink

      I’d love to attend but absolutely cannot.

      If possible, please post a review when it’s over.

      Thanks a bunch!

  • Roberto Galoppini 2:12 pm on June 26, 2008 Permalink | Reply  

    Open Source Mobile: Funambol keeps growing and raises 12.5 Millions in Venture Capital 

    Congratulations to the Funambol team for raising 12.5 millions of funding in a series B financing led by mobile-focused venture capital firm Nexit Ventures, along with Castile Ventures (new investor) and was joined by existing investors, Walden International and HIG Ventures.

    Investors are banking in a long term perspective, while Funambol is cash flow positive from the beginning of this year, so I asked my friend Fabrizio Capobianco, CEO of Funambol, the following question:

    How is this money going to be spent?

    Tight-ropeA tight-rope walker (funambol) by hdc.

    Our plan is to use the cash to scale up the organization. In particular, around sales and operations. Commercial open source companies tend to have leads in every part of the world, which is a great thing. However, in order to follow the leads through, you need people on site (in particular if you are selling a product to service providers). Therefore, we are opening a few more offices world-wide, where we already have customers, to properly serve them and expand our presence.

    Sometimes easy questions are a valuable tool to get interesting insights. Open source ISVs facing the “turning OSS users into customers” are likely to meet Lead Users – a term coined by Eric Von Hippel referring to users of a product experiencing needs actually unfulfilled and who could significantly benefit from the solution to those needs – from all over the world. If thinking global is the natural choice for open source firms, acting locally requires individualization and customizations to your customers’ needs, yet a local structure to effectively implement such needs.

    As mentioned in my first interview to Fabrizio, Funambol addresses only the “top of the pyramid” (carriers, large ISP, etc), enabling also the base of the pyramid – the “free” Customers – to generate value for Funambol, as it is happening with AOL who just selected Funambol to help with synchronization of its own online and mobile mail.

    In the meantime Funambol ignited also a partnership with SpikeSource, in order to address through SpikeSource and their partners other layers of the “pyramid”. Fabrizio himself commenting the partnership said:

    This partnership with SpikeSource enables every company, regardless of size, to benefit from the simple implementation of Funambol’s mobile open source application.

    Funambol besides fostering its community and delivering its wireless sync application for the iPhone, is creating an open source (mobile) ecosystem around its platform, as every open source firm should do.

    Kudos to Fabrizio and his team!

    Technorati Tags: Funambol, SpikeSource, Spikeignited, Venture Capital, Nexit Ventures, Castile Ventures, Walden International, HIG Ventures, FabrizioCapobianco, lead users, free customers, pyramid market

     
  • Roberto Galoppini 3:12 pm on June 12, 2008 Permalink | Reply  

    Open Source Business Models: let’s start from the production of code 

    I would like to join the the ongoing discussion about open source software business models driven by Matthew Aslett who in turn was answering Savio Rodrigues‘s post on how to fix the ‘broken’ open source business model.

    ProductionProduction by The Library of Congress

    Before getting into the conversation, it is useful to recap what is an open source business model. Researchers, tech writers and consultants often taxonomize open source business models mentioning just the license scheme and what is sold the most. The result is that the vast majority of the open source firms seem to use just the same business model. Under this approach we might consider firms like Zenoss and GroundWork as if they were applying the same business model – i.e. differentiating on features their commercial and community products. But the two firms are using different open source production models, resulting in different core capabilities and configuration of activities (2 of the 9 building blocks used to describe a business model).
    Zenoss develops its own platform, building it with the classical corporate production model, where all stages of software production are carried on within the organization using some open source plumbing. GroundWork has adopted an hybrid production model, relying on existing projects and contribute directly to them, and also indirectly spending effort coordinating some inter-projects collaborations.

    Differences like these can affect what customers choose to buy, eventually ending to better determine your customer segment. For example customers interested in Nagios, could be not happy with an open source project supported by a services organization. Instead they might prefer a software company offering subscriptions services along with a corporate community support. Others in order to avoid lock-in risk might want to buy only from a community driven open source firm, privileging one of the ISVs delivering services on Nagios.

    Open source customers are more right than others.

    Business models are a simplified representation of how a company makes business, and elements to describe it have to be choosen carefully.

    Technorati Tags: commercial open source, Zenoss, Hyperic Nagios, Groundwork, subscription services

     
    • GoodDebate 8:22 pm on June 16, 2008 Permalink

      Seems like the open source debate is heating up. PacketTrap Networks had a similar debate with others in commerical open source several months ago. The debate continues i guess. I tend to agree with Goodman from PacketTrap in his post here:
      http://www.packettrap.com/blog/index.php/june-16th-2008-commercial-open-source-debate/

    • Roberto Galoppini 10:07 am on June 19, 2008 Permalink

      I read the old “debate”, and also their position paper on open source. They do not distinguish between corporate and hybrid production models, so that open source is always about communities in their perspective. Moreover in their opinion open source is always about coordinating volunteers, while just open source network management projects like MRTG or RRDTool are developed by a single developer.

      Their theorem is pretty clear:

      PacketTrap’s position that IT departments should be skeptical of POSS vendors (i.e. Hyperic, GroundWorkOpen)because shareholder profit motive overrides community and, for this reason, the long term viability of these companies is questionable

      On the contrary Tobias Oetiker seems to be happy with GroundWork sponsorship, and I believe that asking Cacti guys and others we might get similar feedback.

      Talking about long term viability, I am afraid that small proprietary vendors are a much more risky bet, though.

  • Roberto Galoppini 5:36 pm on May 29, 2008 Permalink | Reply  

    Introducing Open Source Network Marketing 

    My decision to start Commercial Open Source blog was significantly influenced by my desire to share ideas on open source business models, extending my quest for feedback and opinions from other authoritative open source thought leaders.

    Rereading Matt Asay‘s post about “the convenience of proprietary software“, to which just yesterday followed Stormy Peters’ answer, I thought it was time to throw another business model idea: open source network marketing.

    Making a differenceMake a difference by aepoc

    Wikipedia’s entry on Network Marketing reports (the italic emphasis and URLs are mine):

    Network marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.

    Independent unsalaried salespeople of multi-level marketing referred to as distributors (associates, independent business owners, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are rewarded a commission relative to the volume of product sold through each of their independent businesses (organizations). Independent distributors develop their organization by either building an active customer base, who buy direct from the parent company and/or by recruiting a downline of independent distributors who also build a customer base, expanding the overall organization. Additionally, distributors can also earn a profit by retailing products which they purchased from the parent company at wholesale price.

    Skepticism around Multi Level Marketing has its place, and there are many resources explaining what’s wrong with Multi Level Marketing. As a matter of fact the legitimacy of MLM businesses can’t be given for granted, and many pyramid schemes try to present themselves as legitimate MLM businesses. Apparently the Federal Trade Commission advises that MLM companies setting greater incentives for recruitment than product sales are to be viewed skeptically. Others state that the real problem with MLM is the people it attracts, highlighting that network marketers often have little or no experience developing business relationships other than that of employer/employee, and they are in danger of disappointment caused by the failure to quickly satisfy unrealistic economical expectations.

    So, why do we need a scheme like an MLM to sell open source?

    Information asymmetry make categorizing open source customers a not so easy task, and I believe that is not uncommon to see users – read potential customers – spent a lot of time (therefore money) instead of buying commercial open source products and services. Someone, somewhere in the IT department, knows how much time spends to make things work.

    These people can make the difference, they can really help to turn users into customers, from inside.

    They use open source software, they know what kind of support do they need, they are the best distribution channel than ever. They do know how to reach customers – rather they live by them – and how to offer your value proposition.

    The point is: what you can offer them?

    Technorati Tags: Open Source Business, Open Source Marketing, Open Business, Network Marketing, business models

     
    • Fabio Marzocca 5:01 pm on May 31, 2008 Permalink

      What can you offer them, is your (and mine) question…

      One answer is hidden in Open Source’s main weapon: the Community. Qou can try to join all those people into an horizontal, cross community not strictly related to a software project but to a wide knowledge of main attractive themes of Open Source.

      It is not easy and I am here just putting my thoughts on a keyboard, but maybe we shoudl brainstorm on it.

      Fabio

    • Roberto Galoppini 3:57 pm on June 1, 2008 Permalink

      Hi Fabio,

      open source world is becoming more and more valuable, but only a tiny fraction of OS actual value goes back to the original author and to whoever it may concerns. I call this the “appropriating returns from Commons” problem.

      Open source network marketing – if applied responsibly and ethically – could be an effective response to such problem. Positive network effects are making few OS products ready for prime time, but half of them lack of enterprise support. CIOs are asking OS companies behave like proprietary vendors, pre-sales support included. Proficient open source personnel are, by no means, the better option.

      The frittering is truly in the details: how the compensation scheme pays, allow or not to allow downstream partnering, etc.

      Lose weight now, ask me how! 😉

    • Fabio Marzocca 1:07 pm on June 2, 2008 Permalink

      Roberto,

      you know very well that your words apply globally, and not on the poor italian OS market. Here we are far away from asking ourselves why the OS value doesn’t get back to original authors: there is NO value here to get back anywhere.

      But let’s talk globally. The benefits of the network effect are by no doubt interesting. And it could be a chance, too. I see just one problem: network effects have positive returns when you reach and go over a certain critical mass: how many investments should you draw in order to reach the critical mass?

      And now, here it is, my question: how does the compensation scheme pay? 🙂

    • Roberto Galoppini 4:45 pm on June 3, 2008 Permalink

      Hi Fabio,

      you are right, open source vendors are not popular in Italy, despite there are quite a few open source developers here.

      Talking about positive network effects, you are right saying that (big) investments are necessary. New players need to spend big bucks to reach a critical mass, and to become the next philanthropic arm of free software business is not for all. All in all there are enough well known open source products to which apply OS networking business models, though.

      The compensation scheme has to be build in a way that preserve and enhance open source values, and no economic rewards have their own place in the equation alongside economic ones. Moreover potential conflicts of interest has to be kept as low as possible, users have to turn into customers because it makes sense, not because network marketing has cheated them.

      The compensation scheme is just like a dress, and it has to fit you absolutely perfectly. It is definitely not a one-size-fits-all system.

    • Fabio Marzocca 11:01 pm on June 3, 2008 Permalink

      Roberto,

      while I’ll keep waiting to find my perfect dress to fit, I can tell you to add also myself into that “few italian open source developers” list! .-)

    • Roberto Galoppini 7:30 am on June 4, 2008 Permalink

      Fabio,

      I am afraid that great tools like your Baobab maybe not the perfect for open source network marketing, but I would be happy to tell people about you, let’s talk about that.

      Ciao!

    • Savio Rodrigues 1:21 pm on June 4, 2008 Permalink

      Roberto, I don’t’ think the problem is that users unknowingly spend time. They knowingly spend time to save money.

      The problem is that the OSS movement has used “low price…heck, we’re free” as the value driver for years now. Users have bought into this and now we expect users to all of a sudden pay for support or something else around OSS?

      This is why I strongly believe that selling support is the wrong decision for the OSS industry. Support is of little value…so why would I pay for it?

    • Roberto Galoppini 2:27 pm on June 4, 2008 Permalink

      Hi Savio, great hear from you again!

      I believe you are right about users knowingly spend time to save money, at least in US. But Europe is a different “country”, where CIOs look for solutions instead of products, as John Newton confirmed. TCO and ROI are rarely evaluated, attitude to risk taking is pretty low, and information asymmetry plays a role.

      So said, I am afraid you are generally right saying that support is of little value into mature IT markets, while it is growing interest in emerging ones.

    • Anonymous Coward 4:13 am on June 9, 2008 Permalink

      Nice. Turn open source into a scam.

      No one in their right mind would ever pay for open source software. There will never be sufficient economic value to charge for copies.

      There is no money in distribution. How can anyone compete with apt and yum?

      Digital copies will always be free as in beer. The value comes from the creation of originals. There are many professional open source developers getting paid to do just that.

      If you’d like to see more software, forget distribution, feed and shelter the creators of originals.

    • Roberto Galoppini 10:18 am on June 11, 2008 Permalink

      My idea of open source network marketing is neither a pyramidal nor a Ponzi scheme – that are both illegal and unethical – and it doesn’t pay on levels.

      You are right, an IT department could manage a Linux distribution on its own environment by itself. So said companies like Red Hat are delivering value to the market, even if the determination of this value is the result of subjective judgments.

      I definitely agree with you, when you say that to see more free software the market need to feed authors. Note that it doesn’t say anything about how this might actually be done, and I think that an appropriate network marketing could help to create economical resources for funding code development.

    • Zurvita 7:50 am on December 3, 2008 Permalink

      Why is it that every time somebody says “Network Marketing” the word SCAM is always attached?

      Although MLM or Network marketing attracts some people that are scammers and schemers there are some of us that are professionals that have been highly successful by helping others.

      Your compensation plan (it’s not a scheme) is vitally important and if you were to actually consider an Open Source MLM it would be extremely important to consult someone who has been successful in the industry.

    • Roberto Galoppini 8:43 am on December 3, 2008 Permalink

      Open source is different, also in this respect. First, a large part of the free software crowd has strong ethics. Second, many open source developers and hackers have strong technical expertise on open source software.

      So said, I believe open source network marketing needs a team to be properly designed and implemented, and a MLM expert would definitely be one of them.

    • Kim Dion 12:16 pm on April 20, 2009 Permalink

      It is true that network marketing companies do push their people to recruit. I work with a training that coaches network marketers to lead with product and offer the option of an opportunity with the company. We believe that if a person is not passionate about the product they cannot not promote.

    • mlm classifieds 1:20 am on February 4, 2010 Permalink

      Kim,

      Your comments are thought-provoking. The industry is flooded with many mlm biiz opp. Success goes to the person who is passionate about the product. Now thats a long term biz.

      Regards,
      Alexander

    • Larry Rivera 10:01 pm on August 17, 2010 Permalink

      Hi Roberto,

      I think the biggest problem in the network marketing industry is there are so many people who are selling the sizzle of the business but not the steak.

      Just because something has a binary plan or a 5×5 doesn’t make it illegal or immoral. Unfortunately it only takes a few bad apples to ruin it for the bunch.

      I think in general the network marketing business model is one of the businesses models around that allows for motivated people to really get in there and earn some money.

      Personally I believe that if more people adopted mlm pay structures for their affiliate programs online they would find more people willing to promote their products.

  • Roberto Galoppini 5:07 pm on May 19, 2008 Permalink | Reply  

    Open Source Consultancy: InitMarketing welcomes me on board! 

    I am glad to announce the start of my collaboration with InitMarketing, a consultancy bringing companies and organizations behind Open Source products into the spotlight, developing strategy and creating market attraction.

    InitMarketing Logo

    InitMarketing Logo by Wirawan Harianto

    Sandro Groganz start up InitMarketing after his experience at eZ Systems and Mindquarry, and today welcomed me on board:

    The InitMarketing team welcomes Roberto Galoppini who will join us from today. He is located in beautiful Rome, Italy and a highly valuable addition to our team.

    Most notably, I value Roberto’s experience as an Open Source entrepreneur which aligns nicely with the pragmatic marketing approach we pursue at InitMarketing.

    I will be wearing my new InitMarketing hat at OSIM in Berlin, and I am looking forward to work with Sandro and the InitMarketing team!

    Technorati Tags: InitMarketing, SandroGroganz, Open Source Consultancy, Open Source Marketing, Open Source Strategy

     
    • Marc 4:03 pm on May 20, 2008 Permalink

      Congrats Roberto!

      This is the best thing that can happen to InitMarketing.

    • Savio Rodrigues 9:58 pm on May 20, 2008 Permalink

      This is great news Roberto! InitMarketing is lucky to have you.

      I look forward to seeing some of your work (via the companies that you’ll advise/do work for).

      Where will you be based?

    • Carlo 1:09 pm on May 21, 2008 Permalink

      Good luck, Roberto!
      Nice team, nice experiences.. nice company 😉

    • stefano maffulli 3:23 pm on May 21, 2008 Permalink

      Well done Roberto, congratulations 🙂

    • Martin Michlmayr 11:23 am on June 5, 2008 Permalink

      Congratulations, Roberto! I think this is wonderful news. I’ve always felt the need for more FOSS related marketing services, so this sounds like a great opportunity.

  • Roberto Galoppini 12:50 pm on May 12, 2008 Permalink | Reply  

    Open Source Identity Management: OpenID gets momentum 

    SourceForge Community blog announced OpenID support, following Google, IBM, Microsoft, Verisign and Yahoo! decision to join OpenID Foundation board.

    OpenID logoOpenID logo by protimegallery

    OpenID – the open source decentralized framework for user-centric digital identity – is getting tremendous traction and it is estimated that there are over 160-million OpenID enabled URIs with nearly ten-thousand sites supporting OpenID logins (among many also Free Software Magazine).

    I asked Scott Kveton , Chairman of the OpenID Foundation board and VP of Open Platforms for Vidoop, to tell us something about the importance of big companies’ support and how it reflects on the business case for OpenID.

    Having more and more big companies supporting OpenID has been fantastic for the technology. Let’s not forget that OpenID is nearing its 3rd anniversery of its inception. We’ve covered a lot of ground in such a short time. The fact that organizations both large and small are moving to this technology is a testament to the necessity of it.About the business model of OpenID, that’s an interesting question. Just like my mom didn’t get SMTP, she got email the same will be true with OpenID. The magic isn’t in the technology, its in what the technology enables and the real world solutions it will create for users. This is akin to RSS and Feedburner. Users of Feedburner don’t know they are using RSS but its what powered that company and they found a unique way to monetize that. What are the specific ways that people will do this with OpenID? I don’t have a good answer for that.

    Why OpenID is getting included in more and more open source stacks?

    OpenID has been added to more and more open source stacks for the same reasons that technologies like PHP, Linux and others have been adopted. OpenID is built in the same “open” fashion as many other technologies on the Internet and a such I think open source developers trust this technologies over other ones. In addition, OpenID solves a problem set for developers that takes away from their “main thing”. If I have a CMS, managing user accounts isn’t my “main thing”; its secondary. Finally, we were very lucky with OpenID and other open source projects in that we launched the OpenID Bounty program which has helped folks like Drupal and Plone see a reward for integrating sooner rather than later.

    The consistent increase in adoption of OpenID will tell about OpenID business case. To track the take off of OpenID I asked Ross Turk some feedback about the recent decision to use it.

    Our decision to undergo this project was simple. There was a strong community interest, the engineering resources required were modest, and the benefit to our users could be substantial. My dream for SourceForge.net is for it to be a truly open architecture that allows integration with a wide variety of tools and frameworks, and I think my dream is shared by many of us over here. This brings us a step closer.

    This was probably the most straightforward thing we’ve done in a long time. Hats off to the OpenID folks for designing something that’s easy to integrate! If it were hard to do, we might not have done it. Of course, that’s the key to the success of anything like OpenID: if it’s not easy to take advantage of, nobody will.

    Easiness of integration is key to OpenID success, apparently. I am looking forward to tell about how and if someone will eventually take economical advantage of it.

    [tags] OpenID, RossTurk, SourceForge, Identity Management, ScottKveton, OpenID Bounty program[tags]

     
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