1. 1  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology Confidential

2. 2  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Open Source Software – What is it?  Open Source Software - Benefits  Open Source Software - The Awareness  Open Source Software – The Kroger Journey  Wrap-Up Agenda

3. 3  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Some historical key dates for OSS:  1970s: UNIX operating system developed at Bell Labs and by a diverse group of contributors outside of Bell Labs; later AT&T enforces intellectual property rights and “closes” the code  1983: Richard Stallman founds the Free Software Foundation  1993: Linus Torvalds releases first version of Linux built  1997: Debian Free Software Guidelines released  1998: Netscape releases Navigator in source  And it continues 40+ years………. OSS – What is it?

4. 4  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  OSS is software whose source code is available for modification or enhancement by anyone.  Most importantly to me it is a journey to freedom and flexibility. OSS – What is it?

5. 5  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Open Source software is distributed with its source code.  A licensing model that encourages (and in some ways enforces):  Collaboration and communal stewardship of software assets ranging from tiny components and modules to massive platforms (e.g., Linux).  It is licensed software and protected under the same intellectual property laws that govern traditional closed- source solutions OSS – What is it?

6. 6  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  It is………  Not a "market“  Not an architecture or design philosophy  Not a software methodology  Not public domain, shareware or freeware  Not a revolution against the traditional software industry or individual vendors OSS – What is it?

7. 7  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology OSS - Benefits 3 Key Drivers for Enterprises to Evaluate or Adopt Open Source Software?

8. 8  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology OSS - Benefits  3 Key Adoption Drivers  Cost  Flexibility  Innovation

9. 9  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology OSS - Benefits  Other Important Drivers To Be Aware Of  Try Before You Buy  It cost you nothing for trial  Auditability  Closed Leap of Faith – Open Audit the code for yourself  Security –  Linus law “Given enough eyeballs, all bugs are shallow”  Freedom  Users are in control –vision, priorities

10. 10  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Research shows that a large majority (80%+) of OSS adopters expect considerable TCO savings via open source.  However, only 40 to 50% can demonstrate significant cost savings with open source across multiple projects.  IT organizations can save money with open source, but are not guaranteed to do so in every circumstance. OSS - Benefits  OSS Adoption Drivers: Cost Reduction

11. 11  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  OSS provides users with a wide range of options not afforded by closed- source solutions:  Self-support, including the ability and freedom to customize the software  Community support — massive knowledge bases that accompany mature open-source solutions  Vendor support — the option of commercial support when appropriate  Not all options are appropriate for all users  Most importantly, cost of acquisition can be and are at times $0 cost OSS - Benefits  OSS Adoption Drivers: Flexibility

12. 12  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Today, in emerging markets, OSS is often the leading technology implementation:  Web 2.0  Cloud Computing  Social computing -- Facebook  Cloud computing -- AWS OSS - Benefits  OSS Adoption Drivers: Innovation

13. 13  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology OSS – How is it Different?

14. 14  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  OSS is about freedom  The freedom to operate (that is, run) the software, for any purpose  The freedom to redistribute copies to others  The freedom to distribute copies of your own modified versions to others OSS – How is it Different?

15. 15  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  OSS is about community  Good OSS investments can occur on a case-by-case basis, but:  Fully realized OSS success depends on the network effect created by a community.  OSS is more about we than about me. OSS – How is it Different?

16. 16  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  The Linux Kernel  Since 2005, more than 9,000 developers have contributed to Linux:  Top 10 contribute ~8%  Top 30 contribute ~ 30%  Unpaid developers contribute ~13%  More than 500 companies have contributed in recent years  Top 10 companies contribute over 50% Source: Linux Foundation OSS – How is it Different?

17. 17  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Massive Growth of OSS projects OSS – How is it Different?

18. 18  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Misconceptions of OSS What are the common misconceptions and myths of open-source software we must avoid? OSS - Awareness

19. 19  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  The Myth of OSS vs. Commercial  It is open versus closed  It is not open versus commercial:  Many closed software solutions are given away (e.g., freeware, shareware, bundled)  Many OSS solutions have optional commercial service and support options (e.g., Red Hat Linux, MySQL, Hadoop and many others) OSS - Awareness

20. 20  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  The Myth and Reality of an OSS strategy  There are over 80 licenses approved by “The Open Source Institute” with well over 1000 variations.  Most Common Licenses – Apache, GPL, GPLv2, LGPL, BSD License.  What we routinely refer to as an "OSS strategy" is actually an "OSS governance strategy" (aka an OSS metastrategy). OSS - Awareness

21. 21  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  3 key opportunity takeaways that we must remain aware of with OSS  Governance is important  Insure you have a defined strategy  One strategy doesn’t fit all use cases  OSS must be managed  Managing solutions through good governance drives a better ROI.  Many companies fail to obtain an ROI  OSS may not be the most cost effective solution OSS - Awareness

22. 22  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology The Kroger Journey OSS – Kroger Journey

23. 23  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Examples of OSS within Kroger today OSS – Kroger Journey OpenNMS FreeRadius PYTHON PuTTy Audacity TomCat Ubuntu ISC-DHCP Openstack MySQL Android 3.x SNORT OpenSSL PDFcreator Java Jira plugins Red Hat Linux Nagios Combodo-iTop TeamCity TeamCity Plugins MongoDB and more…….

24. 24  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology  Our own motivations for adopting OSS:  Cost savings:  OpenNMS – eliminate annual maintenance  Flexibility  Lock-in-long term closed source engagements.  Innovation  freeRadius – SDDC-SDN-Increased Security -- profile based VLANS. OSS – Kroger Journey

25. 25  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology OSS – Kroger Journey Level 1 Ad Hoc Level 2 Repeatable Level 3 Defined Level 4 Optimized Level 5 Innovating Governance process not specified Corporate process defined and documented, but limited to defensive strategies Scope of governance process includes strategies targeted at competitive advantage Scope of governance process includes transformative business strategies Teams determine need and manage selection Only light awareness of threats and opportunities Program is consistently enforced across the organization Measures show clear impact of investments OSS investments anticipate technology and industry trends Repeatable process, but isolated within teams Individuals determine needs and manage selection Inconsistent duplicated efforts Run the Business Grow the Business Transform the Business

26. 26  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology 26 Determines existing risks and potential value Step 1: Audit Step 4: Contribute Step 3: Compete Action Outcome Improves the quality of key OSS investments and increases ROI Leverages the unique aspects of OSS for business value when appropriate Audit our enterprise software portfolio, and identify OSS assets Engage with the OSS community when specific solutions offer significant business value Step 2: Manage Creates a chain of command for new OSS investments — both direct and indirect Implement an open-source governance program Consider if and how OSS solutions can offer competitive ROI to alternative investments OSS – Kroger Journey

27. 27  The Kroger Co – Copyright 2008 Confidential Customer 1 st Technology Discussion & Questions Wrap-Up