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SOURCEOPEN2015

the future of

2

2015 the future of OPEN SOURCE@FUTUREOFOSS

#FUTUREOSS

AGENDA

PERVASIVE CORPORATE USE OF OPEN SOURCE

SECTION 2

THE OPEN SOURCE ADVANTAGESECTION 3

SHAPING THE FUTURE OF TECHNOLOGY AND SECURITY

SECTION 4

THE BUSINESS OF OPEN SOURCESECTION 5

CONCLUSIONSSECTION 6

SECTION 1 DEMOGRAPHICS

@FUTUREOFOSS #FUTUREOSS

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1

DEM

OGR

APHI

CS

DEMOGRAPHICS

@FUTUREOFOSS #FUTUREOSS

THE FUTURE OF OPEN SOURCE 5

SURVEYRESPONDENTS

RECORD-BREAKING RESPONSES

8222013

4532011

13002015

SECT

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1

DEM

OGR

APHI

CS@FUTUREOFOSS

#FUTUREOSS

Software engineer/developer

Analyst

CEO/founder CIO

Educator

Line of Business Manager Marketing

System Architect/Engineer Other

VP

Sales/Business Development Lawyer/

Investor

President

SURVEYRESPONDENTS

ROLESSE

CTIO

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DE

MO

GRAP

HICS

@FUTUREOFOSS #FUTUREOSS

PERVASIVE CORPORATE USE OF OPEN SOURCE

SECT

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78% OF COMPANIES RUN ON OPEN SOURCE

LESS THAN 3%DON’T USE OSS IN ANY WAY

SECT

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2XSINCE 2010

USE OF OPEN SOURCE TO RUN BUSINESS IT ENVIRONMENTS HAS GONE UP

@FUTUREOFOSS #FUTUREOSS

 “The numbers don’t lie. It has been another incredible year for OSS, with organizations large and small adopting open source solutions in greater numbers. The survey confirms what we’ve known all along, that open source is driving innovation for the world's most successful companies, and investors and Global 2000 brands are taking notice. As one of the most trafficked websites on earth, weather.com’s adoption of an open source platform is a testament that the old ways of delivering digital experiences are being replaced by newer, more agile solutions. The weather.com team gains the agility to deliver on customers’ increasing expectations, and is leading the way with contextual weather insight that anticipates every user’s needs."

DRIES BUYTAERT, CTO & CO-FOUNDER, ACQUIA

@DRIES @ACQUIA

Photo here, size to box

@FUTUREOFOSS #FUTUREOSS

CASE STUDY

CUSTOMER

CASE STUDY FOR

weather.com by the numbers:

• 100 million+ unique visitors every month• 50 million+ page views a day• 20 million+ different pages of content

weather.com needed an open delivery platform to help it adapt to fast changes in technology. Millions of people rely on weather.com every day; it is transforming how we interact with weather news. People expect accurate weather forecasts on-demand, and they want to be alerted to events that may impact their life, work, travel, and leisure.

weather.com started using Drupal last year to deliver dynamic experiences for its site visitors to meet ever-changing consumer demands. With Drupal, weather.com gains the right combination of agility and connectedness that allows it to expand its platform and maintain quality at the same time. Now it can better:

• Present contextual weather insight that anticipates every user’s needs

• Create and distribute content quickly• Ensure great performance through an elastic

cloud infrastructure

@ACQUIA

@FUTUREOFOSS #FUTUREOSS

UP 14% YOY

CORPORATE PARTICIPATION IN OPEN SOURCE PROJECTS ON THE RISE

64% SAID THEIR COMPANIES CURRENTLY PARTICIPATE IN OPEN SOURCE PROJECTS

OF ORGANIZATIONS WITH OVER 5,000 EMPLOYEES,

67% SAID THEY PARTICIPATE IN OSS PROJECTS

SECT

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#FUTUREOSS

SAY THAT MORE THAN HALF OF THEIR

ENGINEERS ARE WORKING ON OPEN SOURCE

>50%

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IN THE NEXT 2-3 YEARS CORPORATE ENGAGEMENT WITH OPEN SOURCE WILL DEEPEN

UP FROM 56% EXPECTED GROWTH IN 2014

88%EXPECT THEIR COMPANIES TO INCREASE CONTRIBUTIONS TO OPEN SOURCE PROJECTS

SECT

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IN THE NEXT 2-3 YEARS CORPORATE PARTICIPATION WILL DEEPEN FURTHER

53%EXPECT TO REDUCE BARRIERS TO EMPLOYEE PARTICIPATION IN OSS

47%WILL RELEASE INTERNAL TOOLS AND PROJECTS AS OPEN SOURCE

39%PLAN TO START OWN EXTERNAL OSS PROJECT

UP 13% FROM 2014UP 9% FROM 2014 A 18% INCREASE FROM 2014

SECT

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OPEN SOURCE IS THE DEFAULT APPROACH FOR SOFTWARE

>66% CONSIDER OSS OPTIONS BEFORE PROPRIETARY SOFTWARE ALTERNATIVES

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“Open source has solidified its position as the default base for software development. It is infiltrating almost every facet of the modern enterprise and is outperforming proprietary packages on quality, cost, customization and security. In the startup community we are seeing a continued wave of open source born companies – the next wave of Red Hat, Acquia and Ubuntu while at the same time seeing traditional IT leaders such as H-P and Microsoft grafting open source DNA into their core. In the coming years, we will see open source unlock the potential of a new generation of technologies – the Internet of Things, big data and cloud computing creating many billions in value.”

PAUL SANTINELLI, GENERAL PARTNER, NORTH BRIDGE

@PAULSANTINELLI @NORTH_BRIDGE

@FUTUREOFOSS #FUTUREOSS

INCREASING ABUNDANCEOpen Source Projects

Source: Black Duck Software

BLACK DUCK KNOWLEDGEBASE

2007 2009 2011 2013 20150

200000

400000

600000

800000

1000000

1200000

1400000

SECT

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THE OPEN SOURCE ADVANTAGE

SECT

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PEN

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@FUTUREOFOSS #FUTUREOSS

OPEN SOURCE ATTRACTS TOP TALENT

50% SAID THEIR COMPANY’S PARTICIPATION IN OSS HELPS THEM FIND AND RECRUIT TOP TALENT

2014 2015

37%51%

SECT

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@FUTUREOFOSS #FUTUREOSS

"As adoption of open source continues to grow aggressively, so too does the need for a highly qualified workforce. At the Linux Professional Institute, we've spent the last 15 years creating programs to help IT professionals differentiate their skills and help employers find the talent they need."

JIM LACEY, CEO, LINUX PROFESSIONAL INSTITUTE

@LPICONNECT

@FUTUREOFOSS #FUTUREOSS

OVER

65%GAIN COMPETITIVE ADVANTAGE

OPEN SOURCE PARTICIPATION FUELS ENTERPRISE COMPETITIVE ADVANTAGE

UP FROM 45% IN 2014

SECT

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PEN

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@FUTUREOFOSS #FUTUREOSS

OPEN SOURCE SEEN AS SUPERIOR TO PROPRIETARY

43% SAID OSS PROVIDES

GREATER EASE OF DEPLOYMENT

58% BELIEVE OPEN SOURCE AFFORDS

THE GREATEST ABILITY TO SCALE

43% SAID OSS PROVIDES BETTER

COMPETITIVE FEATURES

SECT

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@FUTUREOFOSS #FUTUREOSS

CASE STUDY

CUSTOMER

CASE STUDY FOR

Bastø Fosen: Ferry operator in Norway. Operating in Norway’s busiest marine traffic area. 31,722 voyages per year. 3.4 million passengers and 1.8 million vehicles per year. Consumes 10 million liters of marine diesel per year.Problem solved: Real time route planning and optimization leading to 15% fuel savings per annum. Increased safety of operations and improved passenger comfort. The Voice of the Customer: Capt. Torleif Bakken: “This I believe in! It’s so simple to use!” Capt. Gisle Stava: “Current solutions are far too complicated to use and do not provide us with the right information at the right time. This is what MARSEC has solved for us and now we can make informed decisions on time.”The Solution: Open Bridge Platform with the REX app for Route Exchange based on MARSSA and Linux open source artifacts.

PROBLEM SOLVED

@MARSEC_XL

@FUTUREOFOSS #FUTUREOSS

AND THE GAP WILLWIDEN IN THE FUTUREIN THE NEXT 2-3 YEARS OPEN SOURCE ADVANTAGES OVER PROPRIETARY OPTIONS EXPECTED TO WIDEN

57% ANTICIPATE INCREASEDQUALITY OF OSS

61% SEE OPEN SOURCE SECURITY ON THE RISE

59% BELIEVE OSS WILL BE EASIER TO DEPLOY

52% EXPECT EASE OF USETO INCREASE

SECT

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@FUTUREOFOSS #FUTUREOSS

CASE STUDY

CUSTOMER

CASE STUDY FOR

The Bay Area Rapid Transit website (BART.gov) provides real-time train schedules, trip planning and fare calculations, as well as a catalogue of third-party apps for more than 400,000 daily riders. BART.gov delivers 30M pages to approximately 1M unique visitors every month, with around 20% of traffic coming from mobile devices.

PROBLEM SOLVEDSupporting a large ridership (over 400,000 daily riders), with an exceptional digital experience to keep them connected and informed.

OUR WORK

@appnovation @AppnoWay CASE STUDY

@FUTUREOFOSS #FUTUREOSS

“The Future of Open Source survey results demonstrate that open source technologies continue to play an increasingly important part in organizations and are now considered just as reliable, if not more so than their proprietary counterparts. It's information like this that further supports Appnovation’s continued expansion of its portfolio of open source and open technology-based services and solutions.”

ARNOLD LEUNG, CEO, APPNOVATION

@APPNOVATION

@FUTUREOFOSS #FUTUREOSS

SECT

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TECH

NO

LOGY

SHAPING THE FUTURE OF TECHNOLOGY AND SECURITY

@FUTUREOFOSS #FUTUREOSS

OSS IMPACTS TECH

CLOUD BIG DATA OPERATING SYSTEMS

CONNECTED PRODUCT/IoT

SECT

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TECH

NO

LOGY

@FUTUREOFOSS #FUTUREOSS

CASE STUDY

CUSTOMER

CASE STUDY FOR

With an expensive upgrade to its hardware-based load balancer on the horizon, growth in its domestic customer base and expansion into international markets — Discovery Education was motivated to find a solution for managing site traffic that could scale out quickly on demand. The company also needed to modernize its infrastructure for streaming video to customers.

SOLUTIONDiscovery Education turned to NGINX Plus for proper test environments, evenly distributed and normalized traffic, and 24/7 on-the-spot support from the NGINX team, which includes access to the core developers. The company deployed NGINX Plus for streaming media, enabling seamless streaming of video content to its growing customer base, at scale, and across all devices.

RESULTS• Greater Stability & Flexibility• Cost Effectiveness• Seamless Integration• Around-the-Clock Support

PROBLEM

@FUTUREOFOSS #FUTUREOSS

“A decade ago, companies went open source to save money. Now, companies need OSS for agility, especially in the age of mobility and IoT. Some of the world’s most disruptive companies are exponentially growing with no signs of stopping. Why? These early adopters built business around OSS—delivering the always-on performance consumers now expect. We’re in the midst of a revolution—shifting from legacy hardware and software to the OSS technology suite. The modern web architecture delivers flexibility, scale and power enterprises need to stay competitive.”

GUS ROBERTSON, CEO, NGINX

@GUSROBERTSON @NGINX

@FUTUREOFOSS #FUTUREOSS

MOST VALUABLE OPEN SOURCE PROJECT?SE

CTIO

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CHN

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GY@FUTUREOFOSS

#FUTUREOSS

CASE STUDY

CUSTOMER

CASE STUDY FOR

The Document Foundation is a not for profit foundation based in Germany, and the house of LibreOffice: the best free office suite, and as such the best alternative to proprietary solutions.Migrating to LibreOffice is an opportunity for both enterprises and public administrations, to switch to standard document formats and reduce desktop TCO.In order to ease the process and make it predictable, The Document Foundation has developed a protocol for migrations based on best practices, which has helped several large organizations to succeed.The workflow and the timeline on the right provide a visual representation of a migration project, which should always be backed by certified professionals.Information are available on the website at http://www.documentfoundation.org/certification.

PROBLEM SOLVED

Migration Protocol Workflow

Migration Protocol Timeline

Enterprises &Public Administrations

@FUTUREOFOSS #FUTUREOSS

“The number of organizations migrating to open source applications - such as LibreOffice - on the desktop is increasing. This is due to the maturity of the software, and a growing ecosystem of companies able to provide value added services on top of free software. Business opportunities are attracting both enterprises and volunteers, and fostering the development of a stronger community.”

THORSTEN BEHRENS, CHAIRMAN, THE DOCUMENT FOUNDATION

@LIBREOFFICE @TDFORG

@FUTUREOFOSS #FUTUREOSS

THE SECURITY OF OPEN SOURCE

55% SAID OPEN SOURCE DELIVERS SUPERIOR SECURITY

46% GIVE OSS FIRST CONSIDERATION AMONG SECURITY TECHNOLOGIES

HOWEVER,

67% DON’T MONITOR OPEN SOURCE CODE FOR SECURITY VULNERABILITIES.

SECT

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TECH

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LOGY

@FUTUREOFOSS #FUTUREOSS

 “We envisage significant growth of open source in the area of Industrial Internet of Things. The transport sector including maritime will benefit greatly from this paradigm shift. This year’s survey results point in the direction of increased security by using open source. This is another important factor for the maritime sector."

KRYSTYNA WOJNAROWICZ, CHAIR & CO-FOUNDER, MARSEC INC.

@MARSEC_XL

@FUTUREOFOSS #FUTUREOSS

THE BUSINESS OF OPEN SOURCE

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OPEN SOURCE =GOOD BUSINESS

NEARLY 9 in 10 SAY THAT OPEN

SOURCE GREATLY IMPACTS THE SPEED OF INNOVATION – ALIGNING WITH TIME TO MARKET FOR NEW PRODUCTS

89%

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“Nowhere is the effect of open source software (OSS) more pronounced than in the growth markets of Fast + Big Data, Cloud, and IoT. As enterprises move beyond collecting Big Data for later analysis to driving value in real time from fast streams of incoming data, their reliance on OSS will continue to grow. Developers prefer to use OSS, CIOs are breaking down institutional barriers to enable use of OSS tools, and consumers are snapping up OSS in nearly everything they buy, from mobile phones to connected cars. The 2015 Future of Open Source Survey reflects these market trends, and points the way to cross-industry innovation and opportunity.”

BRUCE READING, CEO, VOLTDB

@VOLTDB @BRUCEMREADING

@FUTUREOFOSS #FUTUREOSS

OPEN SOURCE =GOOD BUSINESS

NEARLY 8 in 10 SAY THAT OPEN

SOURCE IMPROVES MARGINS AND GROWS REVENUES

78% IMPROVES MARGINS75% GROWS REVENUE

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CASE STUDY

CUSTOMER

CASE STUDY FOR

There was an urgent need for the client to move numerous internal applications to open source to grow revenue across multiple divisions and ensure better application performance, response time and flexibility.

The client selected Wipro for its knowledge, expertise and deep experience in large-scale open source-based project implementations. Wipro’s open source team took ownership of the transformation and consolidation, implementing an open source adoption strategy that helped migrate 300+ Java/J2EE applications to private cloud, and adopt an open source ESB platform based on Apache Camel and JBoss Fuse technologies.

The financial services company was able to seamlessly migrate applications and adopt open-source in their environment, delivering:• Faster time-to-market• Increased scalability and flexibility of

existing applications• Significant reduction in hardware and

software licensing cost• More control of IT environment and

reduced vendor lock-in

A LEADING FINANCIAL SERVICES COMPANY

@FUTUREOFOSS #FUTUREOSS

OSS AT FIRST GLANCE

WHEN INCLUDING OPEN SOURCE IN ITS CODE BASE,

NEARLY 3/4OF COMPANIES ARE MORE THAN SATISFIED WITH THEIR COMPLIANCE WITH LICENSES AND GETTING APPROVAL FOR OSS COMPONENTS

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MORE THAN 55% HAVE NO POLICIES AND PROCEDURES

ONLY 27% REPORT HAVING A FORMAL POLICY FOR EMPLOYEE CONTRIBUTIONS TO OSS PROJECTS

A MERE 16% REPORT HAVING AN AUTOMATED CODE APPROVAL PROCESS

SECT

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WHAT DRIVES OPENSOURCE POLICY

TWO THIRDS HIGHLIGHT DISCOVERY AND MAINTENANCE/SUPPORT AS DRIVING OSS POLICY

54% CITE SOURCE CODE MANAGEMENT AS KEY

49% CALL OUT COMMUNITYINTERACTION

SECT

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VENTURE INVESTMENTS IN OPEN SOURCE

$ $ $2011 2012 2013

INVESTMENTS

$398MAVERAGE DEAL SIZE

$8M

INVESTMENTS

$669MAVERAGE DEAL SIZE

$14M

INVESTMENTS

$920MAVERAGE DEAL SIZE

$18M

DEALS

49DEALS

49DEALS

51SOURCE: DOW JONES/VENTURESOURCE 45

$2014

INVESTMENTS

$1.3BAVERAGE DEAL SIZE

$33.9M

DEALS

39

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IN OPEN SOURCE

$1.3B VALUATIONUP 86% YOY

@ACQUIA @CONFERINC @COUCHBASE @REVOLUTIONR @WPENGINE

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@COOLANCO

@FUTUREOFOSS #FUTUREOSS

THE IMPORTANCE OF INDEMNIFICATION

CONSIDER OSS INDEMNIFICATION KEY FOR SELVES OR CUSTOMERS

42%WHEN ADDRESSING INDEMNIFICATION, SUPPLY CHAIN EDUCATION IS THE MOST COMMON ISSUE ORGANIZATIONS NEED TO DEAL WITH

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CONCLUSIONS

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“It is obvious open source has entered the main stream of the software industry. At Eclipse, we are seeing more and more companies participate in Eclipse open source projects since it is good for their business. In the future, we expect more and more companies will collaborate at open source foundations, like Eclipse, to create new technology for a wide spectrum industries.”

MIKE MILINKOVICH, EXECUTIVE DIRECTOR, ECLIPSE FOUNDATION

@MMILINKOV @ECLIPSEFDN

@FUTUREOFOSS #FUTUREOSS

CORPORATE USE OF OPEN SOURCE IS PERVASIVE

64% SAID THEIR COMPANY CURRENTLY PARTIPATES IN OPEN SOURCE PROJECTS

OVER66% CONSIDER OSS OPTIONS BEFORE PROPRIETARY SOFTWARE ALTERNATIVES

SECT

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CON

CLU

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@FUTUREOFOSS #FUTUREOSS

“Open Source has been the foundation for many key mission critical systems across the globe and its adoption has been increasing at a rapid pace. The research findings confirm that Open Source is expected to have a significant impact on applications, cloud computing, big data, operating systems, and IoT, over the next 2-3 years. This survey also reiterates that enterprises are actively embracing Open Source technologies and are leveraging the talent base of Open Source communities to create modern and scalable architectures.”

KRISHNAKUMAR N MENON, VICE PRESIDENT & GLOBAL HEAD, OPEN SOURCE INITIATIVE, WIPRO LTD.

@WIPRO

@FUTUREOFOSS #FUTUREOSS

CORPORATE USE OF OPEN SOURCE IS PERVASIVE

87%EXPECT THEIR COMPANY TO INCREASE CONTRIBUTIONS TO OPEN SOURCE PROJECTS IN 2-3 YEARS

SECT

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@FUTUREOFOSS #FUTUREOSS

THERE IS NO SUCH THING AS PROPRIETARY SOFTWARE ANYMORE

OPEN SOURCE IS SO PERVASIVE THAT ALL SOFTWARE CATEGORIES USE IT OR HAVE DEPENDENCIES ON IT

SECT

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@FUTUREOFOSS #FUTUREOSS

MORE THAN

55% HAVE NO POLICIES AND PROCEDURES IN PLACE FOR CONSUMING OPEN SOURCE

GROWING USAGE CALLS FORPROPER MANAGEMENT & GOVERNANCESE

CTIO

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“We look forward to analyzing the results of the Future of Open Source survey each year as it helps us validate the trends we’ve seen through our involvement in the open source community and our work with customers to help discover open source in a company’s code base, identify known security vulnerabilities, and track remediation. In the results this year, it has become more evident that companies need their management and governance of open source to catch up to their usage. This is critical to reducing potential legal, security, and operational risks while allowing companies to reap the full benefits OSS provides.”

LOU SHIPLEY, PRESIDENT AND CEO, BLACK DUCK SOFTWARE

@LOUSHIPLEY @BLACK_DUCK_SW

@FUTUREOFOSS #FUTUREOSS

WHO WILL BE THE NEXT GREAT OPEN SOURCE

COMPANY?

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57

THANK YOU COLLABORATORS@FUTUREOFOSS

#FUTUREOSS

#FUTUREOSS I @FUTUREOFOSS

HTTP://NORTHBRIDGE.COM/OPEN-SOURCE I @NORTH_BRIDGE

HTTP://WWW.BLACKDUCKSOFTWARE.COM/ I @BLACK_DUCK_SW

HTTP://OPENSOURCEDELIVERS.COM/ I @OSDELIVERS

58

FIND OUT MORE@FUTUREOFOSS

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