Innovation and Security Software

Devtar Singh Analyst IDC

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8/20/11

Overview

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Open Innovation vs Open Source
Open Innovation “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” Open Source “Software for which the original source code is made freely available and may be redistributed with or without modification”

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Open Innovation vs Open Source

Open Innovation

Studies have found 1/3 of previously unsolved problems found successful solutions “ Innovations happen at the intersection of disciplines” Organizations fear loss of intellectual property however opening up presents novel solutions to problems

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Open Innovation vs Open Source

Open Source Eric Raymond coined “the cathedral and the bazaar”

Advocating a collective approach against a bureaucratic model Recognition is ranked as the top motivator to contribute in an open environment

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Security Software

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Security Software
The security software market in Malaysia represents $52.34 million in 2010

Southeast Asian security software market is valued at $165.78 million in 2010

Vendors apply a hub-and-spoke presence structure with significant presence in Malaysia

Unique opportunities seen in Malaysia by security software vendors

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Security Software
Global security vendors are consolidating through acquisitions

Security vendors spent an estimated $28 billion acquiring in 2010

Large security software M&A deals in 2010: • Intel-McAfee at $7.68 billion • Attachmate-Novell at $2.2 billion • Symantec-Verisign at $1.3 billion

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Security Software

SEA Security M&A Deals by Market Segment, 2010
Market Segment Identity and access management Information protection and control Governance, risk management, and compliance Security and vulnerability management Secure content and threat management Security services Managed security services Mobile security Others Source: IDC, 2010 Number of Deals 9 4 3 3 2 2 1 1 2

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Innovation vs Acquisitions

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Innovation vs Acquisitions

Technology vendors view consolidation as means to grow

Tougher R&D spend justification as perception lies with acquiring proven technology

In view of OPEX spending cut pressures, technology vendors are risk-averse

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Innovation vs Acquisitions

R&D spend is seen as a risk “Innovative culture experiments” conducted

However beurocratic structures hinder ideas as innovation agendas are dispersed through a chain of hierarchy
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Focus on quantity of patent filings then quality Herein lies a false sense of open innovation

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Innovation vs Acquisitions
An innovative mind coupled with entrepreneurial spirit is the essence of many great tech stories

As organization grows with processes and policies, risk is managed at the expense of trust with employees

Believing in the best of human potential unlocks greater possibilities
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Ideas = People (Knowledge+Information) [Fredrik Hären]

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Potential for open source

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Potential for open source
Open source is developed with the sole intention for it to be distributed freely

However without clear objectives and goals, great ideas can fizzle into the abyss

Intrinsic benefit to society is apparent with a myriad of successful projects

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Potential for open source

Collaboration is key with open source development

All it takes is an idea and persistence to churn milk into butter in an open source model

Recognition gained has greater value that can translate into personal career development growth. Transparent recognition structure.

Business models can be developed around open source software developed with revenue generated from services
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A myriad of grants available for budding startups
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Start coding!

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Discussion

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Thank You

Contact:
Devtar Singh Analyst dsingh@idc.com

© 2007 IDC 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved. Copyright

8/20/11

Malaysia Open Source Conference 2011 (MOSC2011) http://www.mosc.my/

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