10.20.2005

Open Source + Big Data=Big Money

May 2011

2

http://redmonk.com/public/osbc.pdf

3

What do these vendors have in common?

4

5

These are PwC's Global Software Top 20

6

Source: PwC

7

What else do these vendors have in common?

8

All were founded before 1989

9

1989 was twenty-two years ago

10

Things that happened in 1989• The Soviet Union left Afghanistan• Time and Warner Merge • The Exxon Valdez oil spill• Tiananmen Square• Rain Man won best picture• Sega Genesis is released

11

Oh, and some show calledSeinfeld premiered

12

The average age of the Top 20 Software Companies, in fact, is

47 years

13

That's partially skewed by the likes of IBM (1911) NEC (1899!), though

14

Less outliers? 31 years

15

So?

16

Big, older companies outsource riskBy acquiring smaller, younger ones

17

But if older = bigger

18

Why is Microsoft the biggest?

19

And there's a bigger problem

20

21

Question: Is Google a software company?

22

Exactly

23

24

25

26

27

Growth through software salesis slowing

28

Growth through data is not

29

The Four Stages of Software Producers

30

STAGE 1

“The money is in the hardware,not the software”

31

STAGE 2

“Actually, the money is in the software”

32

STAGE 3

“The money is not in the software, but it is differentiating”

33

STAGE 4

“Software is not even differentiating, the value is the data”

34

What happens whencompanies of one stage

compete with another stage

35

Microsoft's Share Price

36

Share Price in Context

37

The Age of Data is upon us

38

The Age of Software The Age of Data

39

What does this mean?

40

Software is a means

41

What are you bad at?

42

Customer conversion

43

If you're in open source,you're good at distribution

44

If you're good at distribution, you're good at

generating data

45

USE IT

46

Open Source is not Growth

47

Open Source enables dataWhich enables growth

48

So if you're in open sourceand you're ignoring data

49

You're doing it wrong

50

QUESTIONS