Future of Open Source

5TH Annual Leadership Keynote

The Panel

2

Jim WhitehurstPresident & CEO

Mike OlsonCEO

Michael SkokGeneral Partner

Tom EricksonCEO

Adrian KunzleManaging Director

Agenda

3

Industry

Impact

Direction

Investment

Collaborators

4

5

Who we heard from.(you!)

Survey Response

6

Survey Respondents

7

Vendors Non-Vendors

%%

Survey Respondent’s Titles

8

9

FutureOpensource.net

Agenda

10

Industry

Impact

Direction

Investment

Backdrop

11

Turbulent economy

Get Out the Vote!

12

66937Is a turbulent economy

good (goodfor)

or

bad (badfor)

for Open Source?

Is a Turbulent Economy Good or Badfor Open Source?

13

0%

20%

40%

60%

80%

100%

Good Bad

2009 2010 2011

LIVE Vote! Txt Your Vote to 66937

15

What makes Open Source software

most attractive?

“quality”Better Quality Software….

Lower Acquisition Costs… “lower”

Abundance of Code…..…. “abundance”

Flexibility…………............. “flexibility”

Rapid Pace of Innovation.. “rapid”

Superior Security…………. “superior”

Vendor Freedom……….... “vendor”

What Makes OSS Attractive?

16

Lower costs

Freedom from

VENDOR Lock-in

Access to code

libraries

Lower costs

Superior security

Freedom from

VENDOR lock-in

Lower costs

Freedom from

VENDOR lock-in

Rapid pace of

innovation

2008 2009 2010 2011

Freedom from

VENDOR lock-in

Lower costs

Flexibility

18%

15%

15%

15%

14%

13%

7%3%

Tipping Point – What’s Driving Adoption?

18

Vendor

Lock-in

Economic

Downturn

Public Sector

Adoption

Private Sector

Adoption

OSS

Experience

Quality

OtherMobility

Top Barriers to OSS Selection

20

Lack of internal technical skills

Unfamiliarity with open source solutions

Lack of formal commercial vendor support

126

122

98

responses

84

65

Legal concerns about licensing

Does not conform to internal policies

What Sectors will be Disrupted by OSS Over the Next 5 Years?

22

Mobile

OS

DatabaseMOST

LEASTERP/CRM

Office

Productivity

Business

Intelligence

How is the use of OSS Components impacting the Manageability of Applications?

24

More

Less

None

29%

24%

47%

26%

20%

14%

15%

17%

8%

Top Vendor Revenue Sources Today

26

Custom

Development

Support

Subscriptions

Ad-hoc

Support

“Closed-source”

Licensing

Value-add

Subscriptions

Other

17%

25%

7%20%

18%

9%4%

+ 2Years

Advertisements

LIVE Vote! Txt Your Vote to 66937

29

Which of the following will have the greatest

impact on software delivery for OS vendors?

“software”Software-as-a-Service.......

Mobile Devices………….... “devices”

Private Clouds……………. “private”

Public Cloud Computing.... “computing”

App Stores………………... “stores”

Impact on OSS Vendors?

31

SaaS

PrivateCloud

PublicCloud

App Stores

Mobile Devices

Cool OSS Projects mentioned…

32

2009

Top 5 up & coming OSS Companies

35

2010 2011

Agenda

36

Industry

Impact

Direction

Investment

22% 72%

2.7%

24%

OSS Investment – by the numbers

37

2009

Dollars

Invested

Deals

Completed

Ave Deal

Size

Seed,

Series A

$375M 73 $5.7M $65M

$466M

71

$7.0M $112M

Agenda

39

Industry

Impact

Direction

Investment

96

6762

75

42

9489

85

OSS Deployed in Your Organization

40

75%-100%50%-75%

25%

-50%

0%-

25%

Percentage of OSS is Deployed

Responses

TodayIn 5

Yrs

IN 5 YEARS: What % of Software Purchases Will be OSS?

42

2015

2014

50% or more on OSS

2016

2013

Wrap-up: The Open Source Path

43

OSS is Mainstream…

44

Private Sector

Adoption

Lower

Costs

Growing

Investments

Avoid Vendor

Lock-In

Public Sector

Adoption Higher

Quality

… But Not Yet Mature!

45

Internal technical skills

Unfamiliarity

Vendor support

Watch for Path Traps

46

Innovation vs. bloat

Maintenance costs

DevOps

Opportunities!

47

Big Data

Mobile

Cloud

49

http://www.northbridge.com

/open-source

A big thank you from North Bridge to…

50