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We now live in a world where Open Source Software is as generally accepted as any commercial software. This doesn’t mean that there are lack of commercial aspects for OSS, because I’m here to tell you, Open Source is a perfectly viable business model. Don't worry! You don't have to sell your soul to the suits on Wall Street and give up on the core values of open source to make it work. I'm employed by a company that (hopefully) embodies these values with a lot of success. I’ve also interviewed many business leaders in Open Source companies. Let me share some of what I’ve learned so you too can be successful. The topics I will be covering: - Picking the right open source license - Business models for monetizing open source - Engaging the community in a mutually beneficial way - Competing with commercial alternatives - The selling process (yes, we have to talk about that)
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Making Money with Open Source and Not Losing Your Soul:
A Practical GuidePatrick McFadin @PatrickMcFadin
Intro to meWhy you might want to listen to this clown
OSS advocate
1992 - Linux .9 Apache TomcatHTTP
Started a service company…
Current Status
Chief Evangelist for Apache Cassandra
Work at a OSS company, DataStax
I love my job!!!
A Little Background
Is commercial OSS evil?
Lock it down and make the freeloaders
PAAYYYY!!!
Give it all away!
Some say it’s all evil
Cathedral - Code is developed behind closed doors and final release is available as source code
Bazaar - All code is developed out in the open
Why would someone buy OSS?
Tour de Open Licenses
The Restrictives
License Can Can’t Must Special Case
GPLv2• Commercial • Modify • Distribute• Place Warranty
• Sublicense • Hold Liable
• Include Original • Disclose Source All changes have to stay GPL
GPLv3• Commercial • Modify • Distribute• Place Warranty
• Sublicense • Hold Liable
• Include Original • Disclose Source• State changes
Fixed “Tivo Hole” in GPLv2
AGPL• Commercial • Modify • Distribute• Place Warranty
• Sublicense • Hold Liable
• Include Original • Disclose Source• State changes • Include Copyright
Made clause for “Network Software”
Source: tldrlegal.com
Internal Use: Safe, SAAS Application: Warn, Product Distribution: Danger
The PermissivesLicense Can Can’t Must Special Case
Apache
• Commercial • Modify • Distribute• Place Warranty • Sublicense • Private use
• Use Trademark• Hold Liable
• Include Copyright• Include License • State Changes • Include Notice
Provide a notice in each file changed. Explicit patent license from contibuter.
BSD
• Commercial • Modify • Distribute• Place Warranty • Sublicense
• Use Trademark• Hold Liable • Include Copyright Do anything you want, just
include the BSD copyright
MIT
• Commercial • Modify • Distribute• Private use • Sublicense
• Hold Liable • Include Copyright • Include License
Do whatever. Include license and copyright
Internal Use: Safe, SAAS Application: Safe, Product Distribution: Safe
Source: tldrlegal.com
Business Models
Services
Support
Consulting Training
ProductAdded features and tooling
Selling a license at a unit cost
Open Source Software
Tooling
Commercial extensions
Commercial Product
Dual License
AGPL or Commercial GPL and Commercial
Embedded revenue
Make money inside your product
Finding the fine lineDon’t hurt the small teams Build things large
organizations will pay for
Open Closed
Pitfalls
SugarCRM
So called "Crippleware"
Limited use license. You can only use X amount of…
Engaging the Community
Be an important part of your projects community
Work together!
Being open and transparent
Talk about what you are doing
Acknowledge mistakes
Avoid the "hidden agenda"
Missteps
Eucalyptus Systems is pulled by Ubuntu
Eucalyptus was once "the" open source cloud computing project. It was the core of Ubuntu's cloud strategy, and more or less the only game in town. Unfortunately, it was not a particularly open
project. While most of the code was available under an open source license, it wasn't developed in the open and failed to
develop much of a community… !
Joe Brockmeier Nov 17, 2011
Competing with Commercial Alternatives
Take the high road
Don't get dragged into a dog fight
Marketing and FUDMarketing is about awareness
OSS is the anecdote to FUD
Here is the source code
I now know the 1000 truths
The Selling Process
It's all about the relationship
Make salespeople better community members
Commercial relationships complete the picture
Effective OSS selling
Know that some will never buy
Know your target customer
Probably a
Sales vs Users
Commercial Open Source
Total users
Total users Sale
Sale
Wrap up
Pick your license carefully
Product over services
Be good to your community
50% off Training Day Pass (~$350 value!)!
!
Discount Code: OSCON50!*Valid through Thursday, July 24th!
!Register: datastax.com/
cassandrasummit14
Exclusive OSCON Promotion
Thank you and good luck!
We’re hiring awesome engineers! Ask me about it. !
Follow me for more musings @PatrickMcFadin
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