WSO2Con ASIA 2016: New IT Business Models and Open Source Middleware Economic Value

ImpactofOpenSource

SamisaAbeysingheVicePresidentDeliveryWSO2

WhyuseOpenSource?

•  Buildanecho-systemaroundproductsandservices•  GrowyourusercommuniDes•  Costadvantage…•  Qualityadvantage!

JustbeJersoKwareisn’tenoughtotransformanindustry.

CostvsOtherBenefits

•  MostassumeOSStobecheap•  Itisnotjustaboutfinancialvalue•  Culture

–  IswhatOSSisallabout–  Communitydrivenwithrespectandethicsbeingthecorner

stones•  Resultsinqualityandsecurityaspects•  FosterinnovaDon

OpenSourceasengineeringprocess

•  ModelforeffecDvemassively-distributedcollaboraDon

•  LeveragesextensivebaseplaWormoftechnologies•  WriJenwithsharingandreusabilityasfundamentals•  Slashesfeedbackcycle(beJerfit)•  Acceleratesreleasecycle(fasterevoluDon)•  Crowd-sourcedqualitycontrol(manyeyeballs

improvessecurity)

OpenSourceasanOrganizaDonalModel

•  Convergenceofthetechnicalproblem–fit,quality,support

•  Breaksdownsiloeddepartmentthinking•  InsDllssharedresponsibilityforsaDsfacDon–enabled

flaJerorgstructures•  DistributedgovernanceandmeritocracypracDces

propagatethroughoutthebusiness

EconomicValueofOSS

LaborEconomics

• ResulDngfrompersonalgraDficaDonandreputaDon

Directcostsavings

•  Improvedpricingflexibility

Efficiency

• Technically• Strategically• Socially

Controlovercost

• Gettherightandquickresponses

OpenSourceasaCustomerValue

•  EaseofAdopDon-  Permission-less,foranypurpose-  Amenabletoprototyping,failing-fast,iteraDng,evolving-  Fullytransparent-  Standardlegalterms(minimizereviewburden)-  Transcendscorporatehistoryandstability(escrow)

•  CosteffecDve-  DramaDcdownwardpressureonprices-  AllowsDme/moneytradeoffs

ITSoluDons

Services

SoKware

Hardware

•  Whathaveyougottopayfor?

•  OSSdrivesdownsoKwarecosts–  Loweroverallprojectcost

ProjectEconomicswithOSS

ValueProposiDon

•  SincesoKwarecostsgodownwithOSS–  Moreroomforservices–  CanprovidebeJerqualityservices–  Morevaluetothewholeproject

•  FasterROI•  BroadervalueproposiDon

IntegratedStacks

•  SavesintegraDonDmeandcomponentcostswhenOSSused

•  ReplacesomepartswithOSSifnotalltolowerthetotalcost

•  WhenyousellthesoluDontootherBUsthedemandcanriseifyourpriceislow–  PutsmorepricesensiDvecustomerswithinreach

•  QualityofOSS–  SaDsfiedcustomers

LowerLearning/TrainingCosts

OSSAvailabilityAdvantage

Downloadandplay

Exploreandinnovate

aroundusage

Communitytohelp

Contributeback

OpportuniDes

•  Breakthebarriertoentry–  Tryoutthenewprojects/pilotprojectswithOSSforfree

•  Moveonorthrowawaydecisionbasedonsuccess•  Riskislessevenifyoufail

–  Provision,maintenanceandsupportwillcost•  butlater•  whentheprojectisupandrunning

OpenSourceasaRelaDonshipEqualizer

•  Technologybecomesasharedresource–contribuDon,parDcipaDon,evoluDon

•  ReducesinformaDonasymmetry,cutsoutthemiddleman

•  EncouragescollaboraDon,educaDon•  MaintainconstantdemonstraDonofclearand

presentvalue(thelock-inproblem)

OpenSourceasaRecruiDngVehicle

•  AJractsandretainstoptalent•  WidelyusedineducaDonalinsDtuDonsandresearch

projects•  Extendscommunitybeyondcorporateboundaries

ContributeandInfluence

CommiJers

Contributors

Users Benefits•  Fasterfixes•  Strategyalignment•  EmployeeaJracDveness

•  Visibilityinthecommunity

OpenSourceasaBrand

•  “OpenSource”brandisonparwithestablishedbrands(IBM,Oracle)

•  IntroducesawaveofdisrupDonforinnovaDvevendors

•  BrandstrengthreflectedbyapreferenceforOSSinmanykindsoforganizaDons(private,governmental,non-profit)

OpenSourceisbecoming“thedefault”

FutureofOpenSourceSurvey2015:•  78%ofrespondentssaidtheircompaniesrunpartorallof

itsoperaDonsonOSS•  66%saidtheytakeanopensource-firstapproachto

soKware•  64%ofcompaniescurrentlyparDcipateinopensource

projects•  55%believeopensourcedeliverssuperiorsecurity

comparedtoproprietarysoluDonshJps://www.blackducksoKware.com/resources/webinar/2015-future-open-source-survey-results

Whatarecustomersdoing?

•  DevelopingOSSPolicies–  Don’tprecludeOSS–itmaybethebestoronlysoluDon–  IncludeOSSinevaluaDonmatrix–  EstablishapreferenceforOS–  MandateOSS–  ContributetoOSS

•  DevelopatransiDonstrategy–  AllnewprojectsonOSS

•  WorkwithvendorsinacollaboraDvewaythroughoutaproject–architecture,development,deployment

Conclusion

•  Controlovercost•  Overallprojectsuccess•  Efficiency•  Quality•  Influence

ThankYou