1. Mediamaisteri Group 2008 © 03.04.09 Open source community and business - how to make it work? Mediamaisteri Group PL 82 (Yliopistonkatu 58D) 33101 Tampere, Finland www.mediamaisteri.com Timo VäliharjuCEO of

2. Mediamaisteri Group 2008 © 03.04.09 Mediamaisteri Group One of the leading open source e-learning and HRD vendor in Europe Established in 2000 in Tampere, Finland Offices are located in Tampere, Hämeenlinna, Turku, Helsinki 30 employees Turnover 1,6 Million Eur (2009-2010)

3. Mediamaisteri Group 2008 © 03.04.09 Open Source Projects – Success? Linux (different versions) Open Office MySQL Moodle Elgg Magento OsCommerce vTiger etc...

4. Mediamaisteri Group 2008 © 03.04.09 Open Source business models Deployment (distribution) Sales, Distribution, Support and counsulting services Franchising model Hybridization Dual licensing Probierory procuct failed/not good business> OS to boost business Complements Hardware + OS (LTSP) Save money with OS by using OS components as a part of the HW product Self-Service End users (could be also a company) create productin order to save money

5. Mediamaisteri Group 2008 © 03.04.09 Open Source - Challenges to focus in Credibility of Open Source is some regions SME`s financial status to in usually weak comparing to the risk How to organize the community in a way that community benefits enhance individual participation? How to organize community development process? How to develop a business model based on community? How to put developed business model in action?

6. Mediamaisteri Group 2008 © 03.04.09 Open Source – Challenges to focus in Differences of the legislation of the home market and the target market Difficult to find competent and trustworthy staff from the target region Language and cultural challenges Localization and customer dependent tailoring Finding clients on target market Finding partners in target market IPR issues Lack of references in target market

7. Mediamaisteri Group 2008 © 03.04.09 The Essence of Open Source Some propietary vendors consciusly confuse customers by using open in confusing context Some think that Open Source is not business model but only a smart way to share product development costs Mediamaisteri Group uses OS: – As community based product development in order to save costs – Because the cost structure of an OS model (development and distribution) gives a possibility to organise business value chain in a way that all parties can benefit

8. Mediamaisteri Group 2008 © 03.04.09 The Essence of Open Source In probietary model sales provision for example 30% and 70% to the company that owns all rights In OS ”sales provision” 0%-10% depeding how the revelue model is constructed Basic nature of an Open Source concept is global and more user/partner driven and natural process – In every country business support programs to push companies to global???? Viral distribution model saves a lot of marketing costs

9. Mediamaisteri Group 2008 © 03.04.09 The Essence of Open Source Community Success rate will be high if: - Launched product is innovative - Gives new perspectives to the process it is solving or is solving a new problem - Quality of SW and UI is high (look and feel) - Everyone sees in 2 seconds what the product is and how it will help users (Can this be really true - effect) - Needed resources to keep community active - Controlling the community and sustaining it! - Product is 90% of the success story > if the product works it is difficult to fail

10. Mediamaisteri Group 2008 © 03.04.09 The Essence of Open Source Community - There has to always be moral and ethical perspective that how this community makes the world a better place to live! - Customer or user benefits are not any more only valid value proposition that makes the concept work - Who controls the community usually controls the business - Licence: Open or propietory - In General: As a company you need to have a very good understanding of community administration, motivational aspects of the individuals, community size and structure, developmental traditions and ideology behind community

11. Mediamaisteri Group 2008 © 03.04.09 Mediamaisteri Group and Moodle Moodle project to public community in August 2002 Mediamaisteri joined October 2002 First client December 2002 Now almost 200 clients and over 200 000 users No Moodle partnership One of the world biggest Moodle service providers

12. Mediamaisteri Group 2008 © 03.04.09 Experiences of working in Moodle community First it was like a small and enthusiastic family One key developer in MMG Installation, hosting, training, tailoring, content to the customers Development of several tools to Moodle LMS market share 2002 0% (Finland) > 2006 LMS market leader 2003 MMG hired second key developer from the Moodle.org (Finnish person that was developing Moodle as a hobby) 2002-2007 we did a lots of tools to Moodle from customer point of view > some are still operational in global distribution

13. Mediamaisteri Group 2008 © 03.04.09 Some references

14. Mediamaisteri Group 2008 © 03.04.09 Thank you! CEO Timo Väliharju Mediamaisteri Group timo@mediamaisteri.com