Wednesday Sep 23, 2009

Mind Your Own Business (Model)

Achat de Chevaux

I'm not sure why, but the "there is no open source business model" discussion has woken up again, with Matthew Aslett and Stephen Walli in particular chipping in views. Last time this debate arose was when 451 published a report of the same name. That report made quite a few people in the FOSS communities unhappy because it propagated the "open core" view that a business with an open source element somewhere in its activities (what Stephe calls a tool) could be described as an "open source business".

Oxymoron

Why is there no "open source business model"? Because open source is not a business. It's the same oxymoronic thinking as the question "how can you make money if you give the software away for free", which simply can't be answered without correcting the questioner's worldview.

To assert there is "an open source business model" is to lose sight of the nature of open source. It may have been a fair thing to do when open source was a novelty to business minds, but even considering there could be such a thing leads people to misunderstand open source and treat the exceptions - like MySQL - as the rule. Not that it's wrong to monetise ubiquity at the point of deployment by delivering the value that allows scaling (enabling adoption-led behaviour). It's just most open source community members don't do that.

Synchronisation of Interest Elements

An open source project is a community of participants that gathers around a free software commons, with each participant aligning an element of their interests with the interests of all the others there, in order to collaborate. The OSI-approved license gives them the freedom to do so. Each participant comes to the community with their own individual interest, which in the case of a business will stem from their own business model. The community itself is about the Free code in the commons. Just about the code - all other matters are subjugated (at least in working communities!).

An open source community is thus a mix of many motivations. If there's only one motivation present - only one "business model" - it's unlikely there is any true community either. People only care about the business model when there's only one business; in a real community the only way to get along is to mind your own business (model) and not try to mess with anyone else's.

Monday Nov 10, 2008

Phase 3 of the Sun Model

Liberty Staircase

I wrote recently about the Sun Model for open source business, my high-level overview of how Sun is working with open source.

To summarise:

  1. remove barriers to software adoption between download and deploy;
  2. encourage a large and cohesive community of software deployers;
  3. deliver, for a fee, the means to create value between deploy and scale, for those who need it.

I've had a number of comments and questions about that third phase. It can include all kinds of value-creation, depending on the product in question. Here are some examples of delivering value for people who have already deployed and are heading towards scale:

  • For Solaris and OpenSolaris, Sun offers subscriptions that include the updates, support and warrantly that allows deployers to get the maximum up-time and performance for the minimum cost. You can get the same results yourself by hiring experts to do the work for you, but the Sun subscriptions save money and time.
  • For MySQL,there is the same sort of deal with the addition of software features needed only by those between deploy and scale, such as MySQL Enterprise Monitor.
  • For Glassfish, again, there is a subscription offering that's perfect for those who have taken the decision to deploy and now want the greatest value with the least fuss.
  • ... and so on, across the portfolio.
Devlievering value can take many forms, and nothing is absolutely forbidden unless is creates a barrier between download and deployment in any way.

...and hardware too

But it would be a mistake to believe Sun's open source strategy is only about software. As has been frequently explained, Sun is a systems company, and the news last week and today underlines that fact by showing two new ways Sun is offering value for those between deploy and scale:

  • Systems for MySQL

    Recently, the first database servers optimised for MySQL were made available. For MySQL users who have moved beyond initial deployment and are now looking for high performance servers with rock solid support at great price points, these are excellent. They are optional, but I'd wager most people will save money and create more value by graduating to them for some applications.

  • Unified Storage

    Today's huge news is the release of the new Sun Storage 7000 Series. These new storage appliances create value by combining open source software with commodity hardware and very clever programming and hardware design to deliver low cost storage appliances with great performance. And the use of open source means the extra access protocols other storage vendors try to charge for are included free.

There's plenty more to say on this subject.  For Sun, open source is not a matter of warm statements of alignment while we carry on with the same old business or keep our core products proprietary. I hope it's becoming clear that the Sun Model is a directional matter.

Thursday Oct 30, 2008

The Sun Model

Jetting away

As time has gone by, a clear "Sun Model" for open source business has been emerging, at least to my eyes. The summary of it is:

  1. remove barriers to software adoption between download and deploy;
  2. encourage a large and cohesive community of software deployers;
  3. deliver, for a fee, the means to create value between deploy and scale, for those who need it.

Each software team at Sun interprets this model in a slightly different way, but the model holds pretty much everywhere and works regardless of the license for the code. As a business model, it doesn't have much to say about the nature of the development community, but I believe dysfunction in that area is a barrier to adoption so it's always an issue if dysfunction exists.

This model is the natural progression of the concept of monetising at the point of value, and I hope to explore it more over the coming weeks. Feel free to ask questions below about the things needing clarification.

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Thoughts and pointers on digital freedoms and technology markets. With a few photos too.

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