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OSCON talk about business and my perspectives on the advantages and disadvantages building business around open source software.
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Unicorns, Dragons, Open Source Business Models And Other Mythical Creatures
Andrew Clay ShaferOSCON 2014
@littleidea
@littleidea
this guy
disclaimera school of thought
buckle upkeep your arms and legs inside the ride at all times
http://www.flickr.com/photos/spatch/4630771984/
three stone cutters walk into a Pareto Inefficient Nash Equilibrium
this talk is for me
Makers
Business Guy
this talk is for you…hopefully
I changed this talk to protect the innocent.
how many of you pay rent?
mortgage?
fun?
food?
in conclusionconvince people to give you more money in exchange for something
that costs you less than said moneyrinse and repeat
if I was holding a mic…I would now drop it
let’s rewind that
I don’t love computers
I love maths
I love learning
I love games
I love puzzles
I love people
I want to have nice things
I want people to have nice things
one way to get nice things is $$
one way to get $$ is software
in case you lost the plot…software keeps eating the world
Open Source is Big Business
recognize privilege
let’s get a few things out of the way
you will NOT be the RedHat of X
many open source ‘exits’ were fundamentally not ‘businesses’
you cannot exchange downloads
more context about me
I was born
Fur Trading formative years
Washing Cars
One Bright Day
I studied math on a debate scholarship
Worlds Colliding
mistakes were made
disregarding ‘business’
–George Bernard Shaw
“Forgive him, for he believes that the customs of his tribe are the laws of nature!”
sshBASH
TCP/IPLAN lun
ACL
HTTP
SANTLS
git
haskell functional
OOP
scalago
EBITA
NPVP&L RFP
IRR
IPOMargin
ROI
ProfitM&A
community != business
undervaluing the solution
value is created
not allowing people to pay
value is captured
not managing expectations
not respecting relationships
not recognizing opportunities
not scaling/scaling too much
none of that was specific to open source…
but open source has unique advantages
inverted information asymmetry
authenticity
existing relationships
obvious leads
internal champions
open source also has unique disadvantages
inverted information asymmetry
at odds with the community
no one likes to be sold
tragedy of the commons
the user is not the buyer
finally…
choose your own adventure
make the choice explicit
make great software
make great money
have nice things
don’t limit yourself
don’t limit us
and they all lived happily ever after
come at me
@littleideaOSCON 2014