1. Commercial Activities and OSS - Success Stories and Failures Erkki Kerkkonen Pauli Paaso Ahmed Rafiq-ul-Islam

2. Introduction How do you make money with Free Software? What are learning objectives for this presentation?

3. A business model is nothing else than a representation of how an organization makes (or intends to make) money

5. How do you make money with Free Software? A business model is nothing else than a representation of how an organization makes (or intends to make) money

6. OSS Business models

7. Dual licencing model

8. Dual Licencing business model

9. StarOffice is a commercial product OpenOffice Dual Licencing business model TrollTech AS uses a dual-licensing model with its QT product, a C++ application development framework MySQL Community Edition MySQL Enterprise Edition The world's most popular open source database

10. dual-licensing model seems to be serving the companies doing it - not only for financial success but to engender community support as well

11. Open-Core Licensing Open core is a commercial open source strategy It offers core components for free, but charges licensees for additional premium products

12. Vendor example Zimbra Open Core business model The Zimbra Collaboration Suite (ZCS) Open Source Edition is available for your download free of chargedownload Standard Edition ZCS Network Standard Edition is an enterprise-grade email and collaboration solution with no cap on the number of mailboxes that can be licensed. It features Zimbra Mobile, Zimbra Advantage Support (upgradeable to Premium) and can have Zimbra Archiving and Discovery included as an optional service. Professional Edition ZCS Network Professional Edition is an enterprise-grade email and collaboration solution with no cap on the number of mailboxes that can be licensed. It features Zimbra Mobile, Zimbra Connector for Outlook, Zimbra Advantage Support (upgradeable to Premium) and can have Zimbra Archiving and Discovery included as an optional service.

13. Product specialists business model Vendor example Acquia, OpenCascade Customers ALCATEL SPACE, BMW, RINA, CEA, EDF, EADS, MITUTOYO, ARCELOR as well as numerous software editors and research centers. 3D geometric modeling The main revenues are provided from services like training and consulting

14. Platform providers business model Examples Red Hat Enterprise Linux Commercial clones like CentOS or Oracle Linux GNU General Public License (GPL) and is available for free download through Oracle EDelivery 20 October 2010 - Linux kernel 2.6.36 was released (13,499,457 lines of code)

15. R&D cost sharing business model A good example is the Maemo platform, used by Nokia (-> MeeGo) MeeGo is an open source, Linux project which brings together the Moblin project, headed up by Intel, and Maemo, by Nokia In February 2010, Intel and Nokia merged their popular open-source platforms (Moblin and Maemo, respectively) into a unified Linux- based platform called MeeGo MeeGohas reached the 1.1 release and the first devices are out in the market

16. Swedish mobile software firm UIQ Failures UIQ Symbian-based mobile platform When Symbian was founded it was envisioned that it would provide a full software suite from kernel and device drivers to the user interface single user interface for multiple device Failure of the UIQ platform No needs, no customers UIQ Technology, the company responsible for developing and licensing the UIQ user interface for Symbian smartphones, has filed for bankruptcy January, 2009

17. Symbian Board of the Symbian Foundation has today decided to transition the role of the non-profit organisation NOVEMBER 8, 2010 All Symbian Foundation public web-sites, wiki and code repositories will shut down on December 17, 2010 R&D cost sharing business model Future of smart phones OS: Qt + “own” symbian kernel Qt + MeeGo (MobileLinux kernel) Android The Android Open Source Project (AOSP) iPhone OS

18. Model name# companies product specialist131 open core52 indirect44 dual licensing19 R&D sharing6 training5 aggregate supp.5 legal cert5 platform providers4 selection/consulting4 http://guide.flossmetrics.org/index.php/6._FL OSS-based_business_models

19. Questions?

20. [1]http://en.wikipedia.org/wiki/Free_and_open_source_software [2] http://meego.com/abouthttp://meego.com/about [3] http://www.opensource.orghttp://www.opensource.org [4] http://www.gnu.org/licenses/quick-guide-gplv3.htmlhttp://www.gnu.org/licenses/quick-guide-gplv3.html [5] http://www.redhat.com/about/whysubscriptions/http://www.redhat.com/about/whysubscriptions/ [6] http://www.opensourcestrategies.org/http://www.opensourcestrategies.org/ [7]http://en.wikipedia.org/wiki/Open_source_software [8] B. Kogut and A. Metiu, "Open-source software development and distributed innovation," Oxford Review of Economic Policy, vol. 17, pp. 248–264, 2001. References