Kevin Randall

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OPEN SOURCE SOFTWARE
Business Models

• Kevin Randall
• Jeff Grabeel
• Wil Satterwhite

O S S
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Definition
O S S

• Free redistribution.
• Source code included.
• Allows modification and derived works.
  Derivatives must be allowed to follow the OSD.

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MODEL Support Sellers
Support Sellers
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Definition
Support Sellers

• Companies that sell
• Support Goods

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Making Money
Support Sellers

• The 2 Ways
• Physical goods, e.g., media and hard-copy
  documentation like books and CDs that the free
  software is on.
• Services, e.g., technical support, contracts.

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Major Players
Support Sellers

• Cygnus
• First Mover 1989
• Founders
• John Gilmore,
• Michael Tiemann
• David Henkel-Wallace
• Job
• Commercial support for Free Software
• 1999
• Merged with Red Hat

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Major Players
Support Sellers

• Caldera
• Now under the name SCO Group
• Founded in 1994 by Bryan Sparks
• Made money mostly distributing Linux
• Since its creation, Caldera has been involved in
  many lawsuits against many organizations
  including
• Microsoft, Red Hat, Autozone, Daimler - Chrysler

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Major Players
Support Sellers

• Red Hat
• Most well known Company
• Founder
• Marc Ewing 1994
• Went Public
• in 1999
• Largest Supplier of
• GNU/Linux operating Systems

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Major Players
Support Sellers

• Red Hat
• The Fedora Project
• The Fedora Project is a Red Hat-sponsored,
  community-supported open-source project. Its
  stated goal is to promote the rapid progress of
  free and open-source software and content, and
  its rapid innovation is possible using open
  processes and public forums.

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Major Players
Support Sellers

• Red Hat
• Sells
• subscriptions to the support, training, and
  integration services that help customers in using
  the open source software.
• 24/7 customer support
• One set Price

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Major Players
Support Sellers

• Red Hat
• Initial Public Offering (IPO)
• 6 million shares
• 14/share
• Total of 84 million Dollars
• Business Model
• The market doesnt know what to do with Open
  Source phenomenon. This is causing volatility to
  show in the stock charts.

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Major Players
Support Sellers

• Red Hat

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MODEL Widget frosters
Widget Frosters
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Widget Frosters
Definition

• In this model, a hardware company (for which
  software is a necessary adjunct but strictly a
  cost rather than profit center) goes open-source
  in order to get better drivers and interface
  tools cheaper.

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Linux Certified
Widget Frosters

• Pre-loaded with Red Hat/Fedora or Ubuntu Linux.
  Linux distribution CDs included. Optional
  Dual-Boot Install with Windows XP
• No Windows Tax! Most laptops come with built-in
  cost of Windows, regardless of whether you want
  to use Windows or not. LC2000 series is free of
  any such baggage. You only pay for Windows if you
  want to use it.
• LC2000 Series Linux Laptops

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Los Alamos Computers
Widget Frosters

• LACLinux
• based in Los Alamos, New Mexico USA
• Started in September, 2000
• Offers workstations, portable systems, laptops
  and servers
• Can choose Ubuntu, Debian GNU/Linux, Red
  Hat/Fedora Core, Slackware Linux, SuSE Linux, Red
  Hat Enterprise Linux, and Microsoft Windows XP or
  Vista

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IBM
IBM
Widget Frosters

• The entire IBM Systems product line is Linux
  enabled
• Accessible to any size business
• Linux Technology Center
• Team of IBM open source software developers who
  work in cooperation with the Linux open source
  development community

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MODEL Accessorizers
Accessorizers
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Accessorizers
Definition

• With accessorizing, companies sell anything
  related to OSS.
• From computers programmed with open source
  software and books on open source software at the
  high end.
• To t-shirts, mugs, dolls and mints at the low
  end.

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Accessorizers
OReilly Media

• Website
• Since 1978, O'Reilly has been a chronicler and
  catalyst of leading-edge development, homing in
  on the technology trends that really matter and
  spurring their adoption by amplifying "faint
  signals" from the alpha geeks who are creating
  the future. OReilly Media
• Sells Training materials, books, magazines,
  conferences, on-line services, t-shirts, coffee
  mugs, and more.
• Started out as OReilly and Associates as a
  technical writing consultant company.
• In 1984, started retaining rights to manuals they
  created.
• We weren't afraid to say in print that a
  vendor's technology didn't work as advertised
  OReilly Media
• Became an early user of the internet, pioneers in
  putting books online and selling subscriptions to
  their library.
• In 1998 OReilly Media hosted a
  meeting/conference known as the Open Source
  Summit. A few years down the road they added the
  Open Source Convention (OSCON)
• In 2005 They came out with Make, a magazine
  devoted to do-it-yourself technology projects.

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Accessorizers
SourceForge,inc.

• Website Network
• President and CEO Ali Jenab
• Provides information exchange, goods, and open
  source software distribution and services.
• Provides news, original articles, downloadable
  resources, and community forums.
• Worlds largest website for open source software
  development.
• Hosts open source software development projects,
  more than 100,000.
• Links users, over 1,000,000, with resources for
  managing projects, communication, issues, and
  codes.
• Largest repository of open source codes and
  applications on-line.
• Also owns ThinkGeek, which sells items from fun
  gadgetry to computer accessories to apparel

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SourgeForge, Inc.

• Initial IPO up around 300/share in December of
  1999
• By mid-March LNUX was down to 100/share
• And in mid-December of 2000 they were selling for
  under 10/share
• Currently trading _at_ 4.28/Share

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MODEL Loss Leaders
Loss Leaders
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Loss Leaders
Definition

• A loss leader gives open sources a piece of
  software to increase their market position for
  another closed source product.
• One example is Netscape
• open source of their Navigator web browser to
  increase name recognition for the web server
  products they sell

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The End
O S S
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Bibliography

• http//www.opensource.org/advocacy/case_for_busine
  ss.php
• http//laclinux.com/en/Start
• http//www.linuxcertified.com/
• http//www.ibm.com/us/
• http//hecker.org/writings/setting-up-shop
• http//en.wikipedia.org/wiki/Red_Hat