1. The Peer Pioneers Software Was Just the Beginning Presented By: Jonathan Cullum LaPortia James Kelly Powell

2. What is Peer Production? Purest form- A way of producing goods or services that relies entirely on self- organizing, egalitarian communities of individuals who come together voluntarily to produce a shared outcome. Purest form- A way of producing goods or services that relies entirely on self- organizing, egalitarian communities of individuals who come together voluntarily to produce a shared outcome. In reality- peer production mixes elements of hierarchy and self- organization where the most skilled and experienced members of the community provide leadership and integrate contributions from the community. In reality- peer production mixes elements of hierarchy and self- organization where the most skilled and experienced members of the community provide leadership and integrate contributions from the community.

3. Peer Production 2 Companies that are great examples: 2 Companies that are great examples: Linux Linux Wikipedia Wikipedia

4. Tux- mascot of Linux Larry Ewing, Simon Budig and Anja Gerwinski Larry Ewing, Simon Budig and Anja Gerwinski

5. What is Linux? Linux is basically a generic term for a software language that is produced by free and open source software collaboration Linux is basically a generic term for a software language that is produced by free and open source software collaboration Linux is now a multi-billion dollar revenue industry that is used in servers, cable boxes, TiVos, and online search engines such as Google or Yahoo. Linux is now a multi-billion dollar revenue industry that is used in servers, cable boxes, TiVos, and online search engines such as Google or Yahoo.

6. Don’t let them scare you…. Richard StallmanRichard Stallman, left, founder of the GNU project, and Linus Torvalds, right, creator of the Linux kernel GNU projectLinus TorvaldsLinux kernel Richard Stallman GNU projectLinus TorvaldsLinux kernel

7. How is Peer Production Possible? Internet Internet … has made it possible for people to contribute free of charge. … has made it possible for people to contribute free of charge. Open Source Licensing enables anyone to contribute. Open Source Licensing enables anyone to contribute. One benefit of this is that people tend to self select and contribute only if they are good at something. One benefit of this is that people tend to self select and contribute only if they are good at something. Example of this- software engineers love solving technical problems and will do so for free since it interests them. Example of this- software engineers love solving technical problems and will do so for free since it interests them.

8. 3 Conditions for Peering to work best 1- object of production is information or culture, which keeps cost low for contributors 1- object of production is information or culture, which keeps cost low for contributors 2- Tasks can be chunked out into bite-size pieces that individuals can contribute in small increments and independently of other producers. 2- Tasks can be chunked out into bite-size pieces that individuals can contribute in small increments and independently of other producers. 3- The costs of integrating those pieces into a finished product must be low. 3- The costs of integrating those pieces into a finished product must be low.

9. Wikipedia Jimmy Wales, Founder

10. Wikipedia At approaching 5 million articles it is the largest encyclopedia in the world. At approaching 5 million articles it is the largest encyclopedia in the world. By allowing multiple users to create and edit the same page, it can provide rapid and vast amount of information on a wide array of topics. By allowing multiple users to create and edit the same page, it can provide rapid and vast amount of information on a wide array of topics. Average article is edited 20 times to update and correct mistakes. Average article is edited 20 times to update and correct mistakes.

11. Wikipedia Concerns- can have false or erroneous data, edit wars, vandalism Concerns- can have false or erroneous data, edit wars, vandalism Benefits- huge amount of contributors, up to date information, cross checking, 730,000 new articles/year, thorough- links to other related data is readily accessible. Benefits- huge amount of contributors, up to date information, cross checking, 730,000 new articles/year, thorough- links to other related data is readily accessible.

12. IBM The Open Source Experiment Part II

13. Before Open Source “Proprietary King” “Proprietary King” Failing web servers and operating systems Failing web servers and operating systems Competition from Microsoft and Sun Competition from Microsoft and Sun

14. The Apache Experiment Brian Behlendorf and team of server software programmers Brian Behlendorf and team of server software programmers Had ½ of Web server market Had ½ of Web server market Apache Software Foundation Apache Software Foundation Websphere + Apache Websphere + Apache

15. Transition Customer satisfaction Customer satisfaction Linux fluent graduates Linux fluent graduates Innovation Innovation Huge cost reduction Huge cost reduction Shift from operating system to service and solutions Shift from operating system to service and solutions Continual updates globally and after “release” Continual updates globally and after “release”

16. Linux Collaboration Linux development group – code testing, defect management, writing documentation Linux development group – code testing, defect management, writing documentation Linux culture and processes – emphasis on Implementation, Testing, and Support Linux culture and processes – emphasis on Implementation, Testing, and Support Philosophy: To spur quality and fast growth! Philosophy: To spur quality and fast growth!

17. To Collaborate? Or Not to Collaborate? What are your weaknesses? What are your weaknesses? Will it be cost effective? Will it be cost effective? Will there be a consumer attraction? Will there be a consumer attraction? Can you make it solo? Can you make it solo?

18. To Collaborate! Do not criticize Do not criticize Adapt to community norms and speeds Adapt to community norms and speeds Build credibility before leading Build credibility before leading Make it a priority Make it a priority

19. Open Source Ecosystem 1 st Wave – Web servers, operating systems, and Internet code 1 st Wave – Web servers, operating systems, and Internet code LAMP stack: Linux, Apache, MySQL, & Perl/PHP LAMP stack: Linux, Apache, MySQL, & Perl/PHP 2 nd Wave – Enterprise software applications 2 nd Wave – Enterprise software applications Digium Digium Medsphere Medsphere Pentaho Pentaho SugarCRM SugarCRM

20. Examples Pentaho – effective data management Pentaho – effective data management Reporting, analysis, data mining, and workflow management Reporting, analysis, data mining, and workflow management Revenues generated from support, training, and consulting for company- specific requirements Revenues generated from support, training, and consulting for company- specific requirements Medsphere – records management for small to mid- sized hospitals Medsphere – records management for small to mid- sized hospitals Support and installation included at ¼ cost of other software Support and installation included at ¼ cost of other software

21. Managing Open Source Complexity Part III

22. The Three Rules of Open Source Nobody Owns it Nobody Owns it Everybody Uses it Everybody Uses it Anybody can improve it Anybody can improve it

23. Complexity Open source complexity is a feature, endless innovation Open source complexity is a feature, endless innovation Open source complexity is a bug, for those dealing with the complexity (IT) Open source complexity is a bug, for those dealing with the complexity (IT) Too many choices Too many choices

24. Open Source Programs Step One: Distinguish between quality and garbage Step One: Distinguish between quality and garbage Shelf life of days to weeks (Open Source) Shelf life of days to weeks (Open Source) The shelf life for Mainstream software houses can be years The shelf life for Mainstream software houses can be years

25. Solutions to Open Source Complexity The current belief is that consolidation can solve the open source complexity issue. The current belief is that consolidation can solve the open source complexity issue. Large vendors could opt to buy small open source competitors Large vendors could opt to buy small open source competitors Others, believe a more collaborative solution is necessary Others, believe a more collaborative solution is necessary

26. Automated Test Framework A solution developed by SpikeSource A solution developed by SpikeSource Breakthrough Innovation Breakthrough Innovation “Digital Assembly Line” “Digital Assembly Line” New information will be integrated into the stack, or solution New information will be integrated into the stack, or solution Downloading the stack is free Downloading the stack is free The company will make its money by providing customer service and support The company will make its money by providing customer service and support

27. Future of Open Source More money is being spent on open source start ups More money is being spent on open source start ups Purists worry that for profit companies will end the ethics of sharing, reciprocity, and openness Purists worry that for profit companies will end the ethics of sharing, reciprocity, and openness In the past, the goal was to draw in the customer and keep competition out In the past, the goal was to draw in the customer and keep competition out Today collaboration is encouraged Today collaboration is encouraged

28. Benefits of Peer Production for Businesses Harnessing external talent Harnessing external talent Keeping up with Users Keeping up with Users Boosting demand for complementary offerings Boosting demand for complementary offerings Reducing Costs Reducing Costs Shifting the locus of competition Shifting the locus of competition Taking the friction out of collaboration Taking the friction out of collaboration Developing Social Capital Developing Social Capital

29. Conclusion Peer production will continue to grow in importance Peer production will continue to grow in importance The conditions enabling this growth are: access to computing power and applications, transparency, globalization, and the increasing complexity of systems. The conditions enabling this growth are: access to computing power and applications, transparency, globalization, and the increasing complexity of systems. Firms must invest and prepare for challenges and threats Firms must invest and prepare for challenges and threats

30. THE END ANY QUESTIONS??