Open Source Business Models

David Richards
Twitter: @drichards
Feedback: spkr8.com/t/4770
Additional Resources: fleetventures.com
Business Models
• Like Doing It
• Do It Well
• Paid to Do It
Almost Too Cheap to
Meter
• Bandwidth
• Storage
• Processing Power
Chris Anderson-Wired Magazine
Scarcity

• Money
• Time
• Respect
Chris Anderson-Wired Magazine
Growth and
Underinvestment

Peter Senge-The Fifth Discipline

Free Changes
Everything
$2 $1 $0

$1 Infinite
Gift Economy

• Open Source Software

• Craigslist
• Wikipedia
• Blogosphere
 Ecosystem for
Software Adoption
Buzz
Search Rank
Discover
Download
Buy
Install Compete
Use Support
Extend
Perceptual Positioning

• Rather than concrete/physical

• Buying benefits, not features
• Simpler models
4 Steps to the Epiphany

• Customer Discovery
• Customer Validation
• Customer Acquisition
• Company Development
Segmentation and ROI

• Highest Margins
• Lowest Investment
• Foothold Position
Segmentation and ROI
Revenue Sources
Customers Licensing Fee Training Support
Technologists 0% 20% 10%
Enterprise Users 80% 40% 60%
Service Providers 100% 100% 40%
Segmentation and ROI
Revenue Sources
Customers Licensing Fee Training Support
Technologists 0 1,000 2,000
Enterprise Users 800 400 600
Service Providers 100 100 40
Some Models


Freemium

Advertising

Cross-subsidies

Zero Marginal Cost

Labor Exchange
Customer Lifetime Value

All the sources of:

• Money
• Time
• Respect
Avoiding Knee Jerk
Reactions
• Why Open?
• When to Open?
• What to Open?
Perspective

• Rationalist Perspective
• Incrementalist Perspective
• Pragmatist Perspective
Live Case: Informant
Document Management System
 
• Storage
• Manipulation
• Search
• Discovery
Live Case: Informant
Market
 

Imaging

Document Management

Document Storage
Live Case: Informant
Recommendations?
 
• Proprietary/Dual License/Open
• License Fees/Support/SAAS/After
Market Service
• Discovery/Search/Storage
Open Source Business Models

David Richards
Twitter: @drichards
Feedback: spkr8.com/t/4770
Additional Resources: fleetventures.com