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The value add of OPEN SOURCE for innovation Balázs Scheidler co-founder and CTO, BalaBit

NIAS 2015 - The value add of open source for innovation

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Page 1: NIAS 2015 - The value add of open source for innovation

The value add ofOPEN SOURCEfor innovationBalázs Scheidlerco-founder and CTO, BalaBit

Page 2: NIAS 2015 - The value add of open source for innovation

Introduction

Started programmingat age 12 on

Commodore 64

First exposure to Linux at 16-17:

Slackware 1.0, Linux kernel 0.99pl14

Contributor to open source projects at 19: Free Pascal Compiler

and others

Starting my own open source project at 21:

syslog-ng

Starting my own company with an

Open Source business model at 23:

BalaBit

Balázs Scheidler, founder & CTO of BalaBit

Page 3: NIAS 2015 - The value add of open source for innovation

What is Free, Libre and Open Source Software (FLOSS)?

The freedom to run the program as you

wish, for any purpose

The freedom to study how the program works, and change it so it does your computing as you wish.

The freedom to redistribute copies so

you can help your neighbor.

The freedom to distribute copies of your

modified versions to others.

The four freedoms

Presenter
Presentation Notes
Before talking what the value-add of open source, let's see what that is. Source refers to the programming language engineers use to write functionalities of the software. Without source code, it is possible but unpractical to modify software. What the four freedoms boil down is simply: You can run an open source program in its original form or with changes. You can also give it to anyone you want it to either with or without your changes. In order to make and redistribution possible, source code must be available alongside the program. Money is not even mentioned, it IS possible to charge for open source software. But once I have the code I do what I want, I can give it to my neighbor for free.
Page 4: NIAS 2015 - The value add of open source for innovation

Claim: Everyone is directly or indirectly using Open Source software.

Presenter
Presentation Notes
With all this said, I want to make a bold statement: Everyone is using open source software.
Page 5: NIAS 2015 - The value add of open source for innovation

Internet infrastructure:Social:Mobile:Cloud:IoT:Big Data:Others:

Proof

Amazon Kindle, TVs, embedded computing, PoS terminals, …

standards, TCP/IP, DNS, ...

Presenter
Presentation Notes
Internet infrastructure: standards, TCP/IP, DNS, ... Social: Facebook, Google, Twitter Mobile: Android Cloud: Amazon, Linux IoT: Arduino, Raspberry Pi Big Data: Hadoop, HBase, Storm Others: Amazon Kindle, TVs, embedded computing, PoS terminals, ...
Page 6: NIAS 2015 - The value add of open source for innovation

Why do companies spend money on engineersand give away the results for free?

Presenter
Presentation Notes
If source code makes it possible for anyone anywhere to use one's creation without paying a dime, why do companies choose to publish source code?
Page 7: NIAS 2015 - The value add of open source for innovation

Because it yields the best product&

enables much higher adoption

Presenter
Presentation Notes
Another bold statement :) I work in the software industry, we are creating products. Are all our products open source? No. Do we integrate open source into our products? Yes. Do we publish components of our products as open source? Yes. We open source the platform, the core technology, and build the rest of the offering in a closed form. Open Source is not the free, crippled, entry version which only drives customers to the “paid for” version, Open Source project has to stand on its own feet with its own vision and own business value. There must be no glass ceiling above the open project which it cannot pass but it would be logical to pass. It can never abandon a direction or feature because the original creator has a paid for feature that it would compete with.
Page 8: NIAS 2015 - The value add of open source for innovation

If and only if a proper communityis formed around it

Presenter
Presentation Notes
Another bold statement :) I work in the software industry, we are creating products. Are all our products open source? No. Do we integrate open source into our products? Yes. Do we publish components of our products as open source? Yes. We open source the platform, the core technology, and build the rest of the offering in a closed form. Open Source is not the free, crippled, entry version which only drives customers to the “paid for” version, Open Source project has to stand on its own feet with its own vision and own business value. There must be no glass ceiling above the open project which it cannot pass but it would be logical to pass. It can never abandon a direction or feature because the original creator has a paid for feature that it would compete with.
Page 9: NIAS 2015 - The value add of open source for innovation

Proper community

Initially most projects come from

a single source

Forming a real community is a

challenge that takes energy, resources and

focus

Code drops do not form a community!

Everything is transparent, everything isin the open

Presenter
Presentation Notes
Initially most projects come from a single source Forming a real community is a challenge that takes energy, resources and focus Code drops do not form a community! Everything is transparent, everything is in the open
Page 10: NIAS 2015 - The value add of open source for innovation

Proper community II.

Users & contributors: both

are important!

Contributors are from multiple companies that

invest

More likely to be formed around “platforms” than “applications”

Presenter
Presentation Notes
Users & contributors: both are important! Contributors are from multiple companies that invest More likely to be formed around “platforms” than “applications”
Page 11: NIAS 2015 - The value add of open source for innovation

Company motivation

ENGINEERS: THE KNOWLEDGE AND ABILITY TO: support it in deployments enhance it in new directions

fix problemsTHEY KEEP CONTROL AS LONG AS THEY HAVE MERIT (as in meritocracy)

Companies give the code and control away

Presenter
Presentation Notes
Also, vendors or companies that publish their code as open source only give their code away. This allows someone else to do the same the company is doing. However the original creator of the code has a definite advantage over others.
Page 12: NIAS 2015 - The value add of open source for innovation

IN EXCHANGE FOR CODE AND CONTROL,COMPANIES GET THE BEST PRODUCT

AND THE BEST POSITION TO PRODUCTIZE IT

Presenter
Presentation Notes
An advantage that can diminish over time, but as a company employs the engineers that created the product the first place, they are the first to go to if someone wants help. They have the ability to support customers in business critical environments, they are the best to fix bugs or enhance the product in new directions. Basically they are in the best position to deliver a product using the open source project's output...
Page 13: NIAS 2015 - The value add of open source for innovation

THEY ALSO GRANT THE RIGHT TOANY OTHER COMPANY TO DO THE SAME.

… with enough investment

Presenter
Presentation Notes
… at least until someone else invests enough to learn the ins and outs of the system and start their product as well.
Page 14: NIAS 2015 - The value add of open source for innovation

The code becomes an independent entity of its original creator

The creation itself does not grant a monopoly over the product

Presenter
Presentation Notes
Some examples: Linux kernel is supported by RedHat, SUSE, Oracle, Ubuntu All of them work on the kernel and try to hire as many upstream developers as possible MySQL Oracle (through acquisition), SkySQL, Percona
Page 15: NIAS 2015 - The value add of open source for innovation

Best Product, why?

MORE USERS,MORE FEEDBACK →BETTER PRODUCT More adaptable, more

environments Scratching an itch

HIGHER ADOPTION Nothing stops anyone from trying it (it's free

to use and study) Network effect (more users lead to even

more users) Making the pie larger in the long term

Presenter
Presentation Notes
My bold statement was that open source delivers the best product, why? Linux for instance: Started as a hobby project for i386, not intended to be running anywhere else. Today: from small devices the size of a matchbox, running to IBM mainframes From web servers, through Xray machines to cars and airplanes Technology and “general purpose computing” is very adaptable, the question is whether we can connect the dots and have the required skillset to implement what we want. Commercial sw development inherently limits the scope, whereas transparency in an open source project opens up a lot of opportunities that would have not been used.
Page 16: NIAS 2015 - The value add of open source for innovation

Best Product II.

ITERATIVE SOFTWARE ENGINEERING W/ COLLABORATION “Standing on the shoulders of giants” Instead of huge increments:o smaller steps, o one at a time, o potentially by a different contributor, o continuously refining the whole

COMPETITION Successful projects are backed by

multiple vendors, competing in the marketplace Competing companies work on the

same code base

Presenter
Presentation Notes
Open Source is by necessity iterative, quite akin to agile software engineering practices that emerged the last couple of years. A series of smaller steps deliver much more value if the intermediate steps are used for pivots, validations and new ideas. Competition is always good, if a project sponsor falls behind, someone can take his/her place.
Page 17: NIAS 2015 - The value add of open source for innovation

Best Product III.

ENGINEER ENGAGEMENT The intrinsic desire to create the best Probably the most important reason

Presenter
Presentation Notes
Probably the most important reason why doing stuff the open source way results in larger innovation: The way engineers engage with the product and the goals.
Page 18: NIAS 2015 - The value add of open source for innovation

Motivating Engineers

Page 19: NIAS 2015 - The value add of open source for innovation

Engineer motivationSource: janfredrik.wordpress.com

Learning, skill developmentPeer recognition, status Curiosity,

„scratching an itch” Having fun

IdealismContribute to a bigger purpose

Lojalty

Career opportunitiesMonetary rewards (salary/bonus)

„Share back” to communityHelp others

Beat the „enemy” (i.e. Microsoft)Socail commitment

Political support

Intrinsic

Extrinsic

Egoistic Altruistic

Presenter
Presentation Notes
Monetary rewards (e.g. extrinsic) “be done with it” The most efficient manner, short term Self defined (e.g. intrinsic motivation) create the best, Peer recognition/pride Serving a greater good
Page 20: NIAS 2015 - The value add of open source for innovation

The power of a community

Open source communities trigger much more on

intrinsic motivations than commercial settings

Voluntary participation Learning & curiosity Peer recognition, pride Having fun

Commercial settings

Monetary rewards Getting things done

Presenter
Presentation Notes
Open source communities trigger much more on intrinsic motivations than commercial settings Voluntary participation Learning & curiosity Peer recognition, pride Having fun Commercial settings Monetary rewards Getting things done
Page 21: NIAS 2015 - The value add of open source for innovation

Hobby & jobEngineers take a job to pay their bills…… but usually still have retain hobbies

Open Source can be one of those hobbies

Making one's hobby his jobhas enormous benefits through motivation

Inherent understanding of the problem space (less need for product management) Attention to detail, solving problems the best way possible Making decisions at an individual level, without management overhead Collaboration with like-minded peers becomes very easy

Presenter
Presentation Notes
Engineers take a job to pay their bills… … but usually still have retain hobbies Open Source can be one of those hobbies Making one's hobby his job has enormous benefits through motivation Inherent understanding of the problem space (less need for product management) Attention to detail, solving problems the best way possible Making decisions at an individual level, without management overhead Collaboration with like-minded peers becomes very easy
Page 22: NIAS 2015 - The value add of open source for innovation

It is not just Software

Wikipedia Creative Commons

(creative works such as photos,

music)

Open Hardware (Arduino)

Maker community (3D printing, DIY)

Presenter
Presentation Notes
Wikipedia, Creative Commons (creative works such as photos, music) Open Hardware (Arduino), Maker community (3D printing, DIY)
Page 23: NIAS 2015 - The value add of open source for innovation

Summary

Open Source Transparency createsan opportunity to join and trustMotivations become intrinsic

Innovation happens :)

Presenter
Presentation Notes
Open Source Transparency creates a opportunity to join and trust Motivations become intrinsic Innovation happens :)
Page 24: NIAS 2015 - The value add of open source for innovation

Thank You!

Questions?