The Peer PioneersThe Peer PioneersSoftware Was Just the BeginningSoftware Was Just the Beginning

Presented By:Presented By:

Jonathan CullumJonathan Cullum

LaPortia JamesLaPortia James

Kelly PowellKelly Powell

What is Peer Production?What is Peer Production? Purest form- A way of producing goods or Purest form- A way of producing goods or

services that relies entirely on self-services that relies entirely on self-organizing, egalitarian communities of organizing, egalitarian communities of individuals who come together voluntarily individuals who come together voluntarily to produce a shared outcome.to produce a shared outcome.

In reality- peer production mixes In reality- peer production mixes elements of hierarchy and self-elements of hierarchy and self-organization where the most skilled and organization where the most skilled and experienced members of the community experienced members of the community provide leadership and integrate provide leadership and integrate contributions from the community.contributions from the community.

Peer ProductionPeer Production

2 Companies that are great 2 Companies that are great examples:examples:

LinuxLinux WikipediaWikipedia

Tux- mascot of LinuxTux- mascot of Linux

Larry Ewing, Simon Budig and Anja GerwinskiLarry Ewing, Simon Budig and Anja Gerwinski

What is Linux?What is Linux? Linux is basically a generic term for a Linux is basically a generic term for a

software language that is produced software language that is produced by free and open source software by free and open source software collaborationcollaboration

Linux is now a multi-billion dollar Linux is now a multi-billion dollar revenue industry that is used in revenue industry that is used in servers, cable boxes, TiVos, and servers, cable boxes, TiVos, and online search engines such as online search engines such as Google or Yahoo.Google or Yahoo.

Don’t let them scare you….Don’t let them scare you….

Richard Stallman, left, founder of the , left, founder of the GNU project, and , and Linus Torvalds, , right, creator of the right, creator of the Linux kernel

How is Peer Production How is Peer Production Possible?Possible? InternetInternet … … has made it possible for people to has made it possible for people to

contribute free of charge.contribute free of charge. Open Source Licensing enables Open Source Licensing enables

anyone to contribute.anyone to contribute. One benefit of this is that people tend One benefit of this is that people tend

to self select and contribute only if they to self select and contribute only if they are good at something. are good at something.

Example of this- software engineers Example of this- software engineers love solving technical problems and will love solving technical problems and will do so for free since it interests them. do so for free since it interests them.

3 Conditions for Peering to 3 Conditions for Peering to work bestwork best 1- object of production is information 1- object of production is information

or culture, which keeps cost low for or culture, which keeps cost low for contributorscontributors

2- Tasks can be chunked out into 2- Tasks can be chunked out into bite-size pieces that individuals can bite-size pieces that individuals can contribute in small increments and contribute in small increments and independently of other producers.independently of other producers.

3- The costs of integrating those 3- The costs of integrating those pieces into a finished product must pieces into a finished product must be low.be low.

WikipediaWikipedia

Jimmy Wales, Jimmy Wales, FounderFounder

WikipediaWikipedia At approaching 5 million articles it is At approaching 5 million articles it is

the largest encyclopedia in the world.the largest encyclopedia in the world. By allowing multiple users to create By allowing multiple users to create

and edit the same page, it can and edit the same page, it can provide rapid and vast amount of provide rapid and vast amount of information on a wide array of topics.information on a wide array of topics.

Average article is edited 20 times to Average article is edited 20 times to update and correct mistakes.update and correct mistakes.

WikipediaWikipedia Concerns- can have false or Concerns- can have false or

erroneous data, edit wars, vandalismerroneous data, edit wars, vandalism

Benefits- huge amount of Benefits- huge amount of contributors, up to date information, contributors, up to date information, cross checking, 730,000 new cross checking, 730,000 new articles/year, thorough- links to other articles/year, thorough- links to other related data is readily accessible.related data is readily accessible.

IBMIBMThe Open Source ExperimentThe Open Source Experiment

Part IIPart II

Before Open SourceBefore Open Source

““Proprietary King”Proprietary King”

Failing web servers and Failing web servers and operating systemsoperating systems

Competition from Microsoft and Competition from Microsoft and SunSun

The Apache ExperimentThe Apache Experiment

Brian Behlendorf and team of Brian Behlendorf and team of server software programmersserver software programmers

Had ½ of Web server marketHad ½ of Web server market Apache Software FoundationApache Software Foundation Websphere + ApacheWebsphere + Apache

TransitionTransition Customer satisfactionCustomer satisfaction Linux fluent graduatesLinux fluent graduates InnovationInnovation Huge cost reductionHuge cost reduction Shift from operating system to Shift from operating system to

service and solutionsservice and solutions Continual updates globally and Continual updates globally and

after “release”after “release”

Linux CollaborationLinux Collaboration

Linux development group – Linux development group – code testing, defect code testing, defect management, writing management, writing documentationdocumentation

Linux culture and processes – Linux culture and processes – emphasis on Implementation, emphasis on Implementation, Testing, and SupportTesting, and Support

Philosophy: To spur Philosophy: To spur qualityquality and and fast fast growthgrowth!!

To Collaborate? Or Not to To Collaborate? Or Not to Collaborate?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?

To Collaborate!To Collaborate! Do Do notnot criticize criticize Adapt to community norms and Adapt to community norms and

speedsspeeds Build credibility before leadingBuild credibility before leading Make it a priorityMake it a priority

Open Source EcosystemOpen Source Ecosystem 11stst Wave – Web servers, operating Wave – Web servers, operating

systems, and Internet codesystems, and Internet code LAMP stack: Linux, Apache, MySQL, LAMP stack: Linux, Apache, MySQL,

& Perl/PHP& Perl/PHP 22ndnd Wave – Enterprise software Wave – Enterprise software

applicationsapplications DigiumDigium MedsphereMedsphere PentahoPentaho SugarCRMSugarCRM

ExamplesExamples Pentaho – effective data Pentaho – effective data

managementmanagement Reporting, analysis, data mining, and Reporting, analysis, data mining, and

workflow managementworkflow management Revenues generated from support, Revenues generated from support,

training, and consulting for company-training, and consulting for company-specific requirementsspecific requirements

Medsphere – records Medsphere – records management for small to mid-management for small to mid-sized hospitalssized hospitals Support and installation included at ¼ Support and installation included at ¼

cost of other softwarecost of other software

Managing Open Source Managing Open Source ComplexityComplexity

Part IIIPart III

The Three Rules of Open The Three Rules of Open SourceSource

Nobody Owns itNobody Owns it Everybody Uses itEverybody Uses it Anybody can improve itAnybody can improve it

ComplexityComplexity

Open source complexity is a Open source complexity is a feature, endless innovationfeature, endless innovation

Open source complexity is a Open source complexity is a bug, for those dealing with the bug, for those dealing with the complexity (IT)complexity (IT)

Too many choicesToo many choices

Open Source ProgramsOpen Source Programs

Step One:Step One: Distinguish between Distinguish between quality and garbagequality and garbage

Shelf life of days to weeks Shelf life of days to weeks (Open Source)(Open Source)

The shelf life for Mainstream The shelf life for Mainstream software houses can be yearssoftware houses can be years

Solutions to Open Source Solutions to Open Source ComplexityComplexity

The current belief is that The current belief is that consolidation can solve the consolidation can solve the open source complexity issue.open source complexity issue.

Large vendors could opt to buy Large vendors could opt to buy small open source competitorssmall open source competitors

Others, believe a more Others, believe a more collaborative solution is collaborative solution is necessarynecessary

Automated Test FrameworkAutomated Test Framework

A solution developed by SpikeSourceA solution developed by SpikeSource Breakthrough InnovationBreakthrough Innovation ““Digital Assembly Line”Digital Assembly Line” New information will be integrated New information will be integrated

into the stack, or solutioninto the stack, or solution Downloading the stack is freeDownloading the stack is free The company will make its money by The company will make its money by

providing customer service and providing customer service and supportsupport

Future of Open SourceFuture of Open Source

More money is being spent on More money is being spent on open source start upsopen source start ups

Purists worry that for profit Purists worry that for profit companies will end the ethics of companies will end the ethics of sharing, reciprocity, and opennesssharing, reciprocity, and openness

In the past, the goal was to draw In the past, the goal was to draw in the customer and keep in the customer and keep competition outcompetition out

Today collaboration is encouragedToday collaboration is encouraged

Benefits of Peer Production Benefits of Peer Production for Businessesfor Businesses Harnessing external talentHarnessing external talent Keeping up with UsersKeeping up with Users Boosting demand for Boosting demand for

complementary offeringscomplementary offerings Reducing CostsReducing Costs Shifting the locus of competitionShifting the locus of competition Taking the friction out of Taking the friction out of

collaborationcollaboration Developing Social CapitalDeveloping Social Capital

ConclusionConclusion

Peer production will continue to Peer production will continue to grow in importancegrow in importance

The conditions enabling this growth The conditions enabling this growth are: are: access to computing power and access to computing power and applicationsapplications, , transparencytransparency, , globalizationglobalization, , and the increasing and the increasing complexity of systemscomplexity of systems..

Firms must invest and prepare for Firms must invest and prepare for challenges and threatschallenges and threats

THE ENDTHE END

ANY QUESTIONS??ANY QUESTIONS??