hope 2010 - how to run an open source hardware company
DESCRIPTION
=HOW TO RUN AN OPEN SOURCE HARDWARE COMPANY= In this session open source hardware pioneers Limor "Ladyada" Fried of Adafruit Industries and Phil Torrone of MAKE magazine show how anyone can start their own open source hardware business. The talk will show how Adafruit runs its open hardware business, top to bottom - from choosing a PCB (printed circuit board) manufacturer to selecting which open source online shopping cart works best for selling electronics online. Limor and Phil will also give a detailed overview of the top 10 open source hardware businesses, what they do and what you can learn from their projects and products. If you're considering turning your electronics hobby in to a full-fleged business this is a session not to miss. =SPEAKERS= Limor "Ladyada" Fried - Founder of Adafruit Industries and recipient of the EFF pioneer award for her work in open source hardware. Phillip Torrone - Senior Editor of MAKE magazine, contributing editor to Popular Science and founder of Hack-a-day.TRANSCRIPT
How to run an open source hardware company
Businesses designing and selling open source hardware, making millions
[email protected]@ladyada.net
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What is opensource hardware?
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The designer will:
• Provide design files (in the preferred format for making modifications to them).
• Allow the modification and redistribution of the design files.
• Allow the manufacture, sale, distribution, and use of devices from the design files or modifications of the design files.
• Publish documentation and/or any software it has developed that is essential to the proper functioning of the device.
Source: OSHW definition v 0.2 4/30/2010
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The designer may require others to:
• Provide attribution when distributing design files based on the original designer's.
• Provide attribution when manufacturing devices based on the original designer's design files or derivatives thereof.
• Release as open-source hardware devices based on the original designer's design files or derivatives thereof.
Source: OSHW definition v 0.2 4/30/2010
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Manufacturers of a derivate device must not:
• Imply that the device is manufactured, tested, warrantied, guaranteed, or otherwise sanctioned by the original designer.
• Make use of any trademarks owned by the original designer without explicit permission .
Source: OSHW definition v 0.2 4/30/2010
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0
100
200
300
400
2005 2006 2007 2008 2009 2010 est. 2011 est.
Total projects
Open source hardware projects:
Source: OSHW annual - Torrone, MAKE magazine
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Approaching $1m Over +$1m Over +$10m
Who is doing open hardware?
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Adafruit Industries
New York, NY
Educational electronics, Arduino products, tutorials & culture jamming
Over one+ million in revenue
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Arduino
Italy, worldwide
Open source physical computing platform. Open dev, documentation, ADC, I/O. Over 150,000 sold
Over one+ million in revenue
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Worldwide
Low cost fan-less, computer board. Expandable, 3rd party manufactures, Digikey, Mouser TI
BeagleBoard
Over one million in revenue
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New York, NY
“LEGO” computers. Plug and play, modular system for building devices, rapid prototyping, VC funded
Approaching one million in revenue, est. 2010
Bug Labs
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Chumby
San Diego, CA
Open source ambient computer. Web connected, licensing to 3rd parties. Chumby patent, VC funded
Over one+ million in revenue
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Netherlands
Open source reverse engineering tool, new to OSH, started as a community project on Hack-a-day
Dangerous Prototypes
Approaching one million in revenue, est. 2010 - 2011
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San Francisco, CA
Open source micro-sized civil UAVs for aerial mapping and education. Community driven, project co-founder EIC Wired
DIY Drones
Approaching one million in revenue, est. 2010
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Oakland, CA
Open source educational projects. Craft and hack, hardcore OSH. Fully OSS tool chain. Fun projects
Evil Mad Scientist Labs
Approaching one million in revenue, est. 2010
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Brooklyn, NY
Open source 3D printer kit. Based on RepRap. Companion 3D repository “Thingaverse”, funded
Over one million in revenue
MakerBot Industries
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Sebastopol, CA
Bring making things to pop culture, Make magazine, TV show, Maker Faire - gift shop is the Maker Shed
Maker Shed
Over one+ million in revenue
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Parallax
Rocklin, CA
Kit heritage (BASIC stamp, PIC). Robotics, education, tutorials, “New” entry in OSH
Over one+ million in revenue
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Shenzhen, China
Arduino derivatives, break out boards, sensors, rapid manufacturing & proximity to supply chains
Over one million in revenue
Seeed Studios
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Solarbotics
Calgary, Canada
Educational electronics, robot kits, BEAM robotics, solar kits, OSH - Arduino related
Over one+ million in revenue
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Boulder, CO
Educational electronics, break out boards, large selection, BatchPCB, rapid manufacturing
SparkFun Electronics
Over TEN million in revenue
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The numbersthe future
• These are just a few companies representing approx. $50 million
• There are currently about 200 OSHW projects, 300+ in 2011
• Most of the $1m+ companies are rapidly approaching $5m
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How we runour business
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LAMP
LinuxApacheMySQLPHP
Open source Software
Adafruit.com
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ServIntVPS $80 plan
Hosting Provider
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Shopping Cart
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Credit Card processor
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Paypal Payments
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Paypal Payments
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Embedded Content (blog)
Wordpress
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Embedded Content (blog)
Wordpress
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Measurements (Traffic, source, etc..)
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Forums Customer support & community
phpbb forums+tweaks
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Documentation Customer support & community
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Tools Shipping, office & beyond
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Tools Shipping, office & beyond
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Tools Shipping, office & beyond
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Tools Shipping, office & beyond
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Tools Shipping, office & beyond
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Tools Shipping, office & beyond
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Your turn• You need a skill or interest
• Think of a memorable name for your company
• Register the domain name, file a DBA
• Get a digital camera
• Get 2 to 4 projects under your belt
• Take photos, take the “money shot” - show product in action
• Put documentation online
• For pricing, allow a 40% profit margin or about a 66% markup (resellers too)
• Buy enough parts to make 25, start off with Paypal “buy it” button
• Create a support network, mailing list / forums, make a FAQ, update it
• Fill out the web site with all purchasing info, make it easy to copy/paste for lazy bloggers
• Include contact information
• Send emails to sites in your arena
• Watch the web stats
• Repeat
• Profit