2010 future of open source survey results
DESCRIPTION
The results of North Bridge Venture Partners 2010 Future of Open Source survey were released at the Computerworld Open Source Business Conference. Michael Skok led a panel discussion on the topic with Dries Buytaert from Acquia, Jim Whitehurst from Red Hat, Tim Yeaton from Black Duck Software and Larry Augustin from SugarCRM.TRANSCRIPT
Future of Open Source
4TH Annual Leadership Keynote
Michael Skok
Tim YeatonPresident & CEO
Larry AugustinCEO
Dries BuytaertCTO & Co-FounderJim Whitehurst
President & CEO
Michael SkokGeneral Partner
April 8, 2023 2
Agenda
DirectionApril 8, 2023 3
Industry
Investment
Industry
Investment
Direction
You!Survey!
04/08/2023 4
April 8, 2023 5
Who Took the 2010 Survey?
Record response
43520092010
551April 8, 2023 6
Survey Respondents
Vendors Non-Vendors
4 58 2%%
April 8, 2023 7
Survey Respondents Titles
Vendors Non-Vendors
April 8, 2023 8
04/08/2023 9
What You Asked For…
Which sectors are susceptible to disruption?
What are the barriers for Open Source?
What business strategies create value?
242
206
181
Agenda
DirectionApril 8, 2023 10
Industry
Investment
Industry
Investment
Direction
You!Survey!
Is a Turbulent Economy Goodor Bad for Open Source?
April 8, 2023 11
Good Bad0%
20%
40%
60%
80%
100%
2009 2010
What Makes OSS Attractive?
Lower costs
Superior security
Freedom of VENDOR Lock
Community support
Access to code libraries
Rapid pace of innovation
Freedom of DIY
Lower costs
Superior security
Freedom of VENDOR lock-in
Better quality software
Access to code libraries
Rapid pace of innovation
Freedom of DIY
200820092009
Lower costs
Superior security
Freedom of VENDOR lock-in
Better quality software
Access to code libraries
Rapid pace of innovation
Freedom of DIY
20102010
April 8, 2023 12
Drivers of OSS Tipping Point
EconomicDownturn
Public SectorAdoption
Private SectorAdoption
PastExperienceWith OSS
Other
April 8, 2023 13
April 8, 2023 14
Barriers to OSS?206
Top 3 Barriers to OSS selection
Unfamiliarity with open source solutions
Lack of internal technical skills
Lack of formal commercial vendor support
April 8, 2023 15
1
2
3
April 8, 2023 16
IMPACT of Open Source
Sectors to be Disrupted by OSS Over the Next 5 Years
April 8, 2023 17
ERP/CRMOffice Productivity
WCM/CMS/Social Software
OperatingSystems
Database
Security tools
MOST Susceptible to Disruption
LEAST Susceptible to Disruption
242
Sectors to be Disrupted by OSS Over the Next 5 Years
April 8, 2023 18
ERP/CRM
Office Productivity
WCM/CMS/Social Software
OperatingSystems
Database
Security tools
MOST Susceptible to Disruption
LEAST Susceptible to Disruption
242
Office Productivity
OSS Component Impact on the Complexity of Managing Apps
MoreLess
Same
2009
2010
April 8, 2023 19
April 8, 2023 20
So, what ARE you
doing with OSS?
Your Use of OSS
Vendors
Non-Vendors
April 8, 2023 21
Build & Sell OSS Exclusively
Build & Sell OSS & Proprietary
Build Solutions on OSS
Limited OSS Use
Substantial OSS Use
Exclusive OSS Use
Other
VENDOR Revenue Generation
April 8, 2023 22
Services
Support
Custom software for
clientsTraditional license sales
SaaS
Cloud computing
Other
Appliance sales
Dual Licensing
Pro-Serv & Consulting
Subscription-based Support
12%
29%
27%
9%
31%
38%
Strategies to create value
2009
20102010
April 8, 2023 23
Which business strategies will create the most value for OSS Vendors ?
181
0% 20% 40% 60%
201020092008
Impact on OSS Vendors?
April 8, 2023 24
SaaS
VirtualizedInfrastructure
CloudComputing
Cool OSS Projects!
April 8, 2023 25
Up & Coming OSS Companies
April 8, 2023 26
2009
2010
Agenda
DirectionApril 8, 2023 27
Industry
Investment
Industry
Investment
Direction
04/08/2023 28
Magic Numbers
37%
$375M
DollarsInvested
20%
66
DealsDone
12
12
M&A $4.3B
OverallExists
1.2
Agenda
DirectionApril 8, 2023 29
Industry
Investment
Industry
Investment
Direction
04/08/2023 30
Direction?
OPEN
142
111119
155
TODAY: How much OSS is Deployed in Your Organization
% of IT Deployment which is OSSApril 8, 2023 31
75%-100%50%-75%
25%-50%
0%-25%
IN 5 YEARS: What % of Software Purchases Will be OSS?
April 8, 2023 32
2009-2014
2010-2015
2008-2013
50% or more on OSS
Agenda
DirectionApril 8, 2023 33
Industry
Investment
Industry
Investment
Direction
You!Survey!
04/08/2023 34
Summary
Tipping point
New sectors
Innovation
But…
Traditional cycle
See Try Buy Fly Die
Die Free?
See Try Buy Fly Die
Open Source barriers:
Skills?Visibility?Unfamiliarity
Value add? Solo?Vendor support
Free?
Die Free or Live Open?
See Try Buy Fly Die
Live OpenCommercial Open Source v2.0:
Open Source barriers:
Marketplace
Friction free
Self service
On demand
… as a ServiceSupported
Skills?Visibility?Unfamiliarity
Value add? Solo?Vendor support
Free?
Virtuous Cycle of open innovation
Managed
April 8, 2023 38
tinyurl.com/FOOS2010