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Copyright, Stephen R. Walli, some rights reserved Distributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed Open Source Software Economics, and Standards, and IP in One Lesson August, 2008 Stephen R. Walli
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Open Source Software Economics, Standards, and IP in One Lesson

May 10, 2015

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Stephen Walli

Talk I gave at OSCON 2008. http://en.oreilly.com/oscon2008/public/schedule/detail/2313
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Page 1: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Open Source Software Economics, and Standards, and IP in One Lesson

August, 2008

Stephen R. Walli

Page 2: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Always question: “And that would be different from other proprietary or closed software how?”

Page 3: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

3

MakersUsersBuyers

Page 4: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Page 5: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Source code for the software is always available, and the user of the software is licensed (always) to change and redistribute the software without fee, penalty or asking permission

Page 6: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

10 Lines-of-code per day1 Bug: 1000 lines-of-code

Page 7: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

“Making” Open Source Software

cost

functionality

time

Share the costs of value creation, maintenance, and support

Page 8: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

“A community is just a group of people that share a common interest – they don’t have to like each other.” – Bob Young, former CEO, Red Hat

Page 9: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

The maintenance cost over an application’s life time (~75%)The number of applications that never get fully deployed (~60%)

Page 10: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

It’s not a stack – Open your thinking

Hardware

Applications

Tools

RDBMS

App Server

OS

Page 11: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

It’s not a stack – it’s a network.

Hardware

Applications

Tools

RDBMS

App Server

OS

i.e. the “stack” is a view through the network.

Hardware

Apps

Tools

RDBMS

App Server

OS

Page 12: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Geoffrey Moore’s“Whole Solution”

Page 13: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

“The early community is willing to trade time to save money; the late community is willing to trade money to save time. My customer is in the late community.” -- Marten Mickos, CEO, MySQL AB

Page 14: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Value Proposition versus Competency

Page 15: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Standards

Page 16: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Standards and FOSS

Page 17: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

IANAL

Page 18: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

The Legal Risks of Open Source Software

vs.

Page 19: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

License Management and Compliance

Page 20: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

20

“All complex ecosystems have parasites.” Cory Doctorow

Page 21: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Intellectual Property versus Innovation

Page 22: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

#1 Did you buy the Honda over the Toyota because it had more patents?#2 If Toyota then tried to license their patents directly to you: would

you?

Page 23: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

In Summary

• It’s just software• It’s just economics• It’s just business• It’s just software licensing• There’s nothing inherently “new” about developing

good software, communities, collaboration, standards, or software licensing

Always question: “And that would be different from other proprietary or closed software how?”

Page 24: Open Source Software Economics, Standards, and IP in One Lesson

Copyright, Stephen R. Walli, some rights reservedDistributed under a Creative Commons, Attribution-NonCommercial-NoDerivs 2.0 Deed

Thank You! [email protected]

“Once more unto the Breach” http://stephesblog.blogs.com