Foss Biz Model - Holden Hao

FOSS BUSINESS IN THE PHILIPPINES

by: Holden M. Hao

The Business Side of FOSS

● FOSS is not free as in cost, rather the emphasis is in FREEDOM

● In using FOSS, as in other things in life, there is always a cost

● But with FOSS, the cost is most likely to be less● Thus, there is business to be made

Costs of Using FOSS

● acquisition cost● implementation cost

– installation– configuration– customisation

● training cost● maintenance cost● upgrade cost

International Business Models for FOSS



Applied Models in the Philippines

● software development– outsourced development (PHP/ Java)– Winston Demarilo sold GlueCode (Java products) to IBM for

$100M● solutions provider● technical support● training

Organizational Structures of Philippine FOSS Businesses

● Traditional companies● Independent Consultants● Partnerships

Market Acceptability of FOSS in the Philippines

● many companies use unlicensed software● threat of raids is now regular● great improvement in terms of ease of use of FOSS● cost savings

Hindrances to FOSS Marketability● fears of migration

– perceived difficulty– incompatibility issues– productivity loss

● human resistance to change● lack of technical support/ human resource● high initial cost of migration

Strategies to Counter Hindrances

● Marketing Stage– Highlight future cost savings– Highlight open standards and compatibility– Do not insist on FOSS as the only solution– Do not call your potential clients as pirates! Use the term

unlicensed software


● Pre-deployment Stage– Conduct group discussions with management and employees

before migration– address issues raised from meetings– provide test systems


● Deployment Stage– deploy in stages– minimize disruptions


● After Deployment– conduct trainings– convince management to lead by example– be there for technical support

Afterfive

● A division under Kimbrez Corporation● provides FOSS solutions and technical

support● composed of a team of consultants with

different fields of expertise

Afterfive Experiences

● Marketing– most of our clients are from referrals– the market is very sensitive to price for service– clarify scope of job/contract


● Deployments– client wants to see you physically as you work– insist on proper implementation (hardware, bandwidth,

equipment storage, etc.)


● Technical Support– sell monthly support contracts– train company technicians or in-house techies to provide first

level support– be there when you are most needed


● Human Resource– A FOSS developer is more valuable; his/her tools are free– you most likely need to train– find people from a FOSS group

Other Opportunities● embedded applications/ appliances● software as a service model

Have Fun with Your FOSS Business!