Tag Archives: opensource

How Open Source can be a Game Changer

A few years back, I read a very interesting article (that I can’t find anymore) by John Newton, the CEO of Alfresco, explaining how Open Source changed their strategy. Of course, one of the main interests of having an Open Source version of your product is to expand your market by making it more accessible, thus creating opportunities for high-value services such as training, customization and so on. But beyond this shift in “how do we make money?”, he explained that it totally changed the nature of their salesforce. When you sell that kind of enterprise system, the best way to get potential customers to know and see your product is to invest a whole lot of money in marketing and sales. And you end up with a sales cycle of several months between the first prospection call and the actual sale… when it goes through. No wonder why license fees are so expensive for that kind of product, making it even harder to sell, increasing the length of the sales cycle, and here goes the vicious cycle.

Having at least an Open Source version of your product completely changes that because people who don’t have the checkbook but will eventually use your product can try it on their own. Maybe they’re working on personal projects, maybe even Open Source projects, and they can install and use your product for free. Then if they like it, they are more likely to go see their boss at work and recommend your product. In other words, you can replace a big chunk of your very expensive salesforce by free happy end-users and their recommendations. Hence not only does Open Source change how you make money, it makes it possible for you to save money where it’s not that necessary, and focus a lot more on your core business: building a great product.

But the way I see it, there’s another very important change with Open Source. As I said before, when your business model is based only on license fees, you focus most of your attention on your salesforce, which costs a lot of money, which makes your license fees so high that it is very likely to represent a big investment for your customers. So your salesmen end up attacking prospects at high levels of management. The problem is that the guys who have the checkbook also have very different concerns and priorities compared to the people who will eventually use your product. Let’s say you are building a software project tool suite with things like issue tracking, source control and so on. You try to sell your product to companies who do in-house software development, and the people who will eventually use your software are developers. But you don’t talk to those guys directly because they have almost no decision power, especially when it comes to spending several hundreds of thousands of euros for software tools. So you talk to their Program Manager or VP of Software Engineering or CTO of some sort. And all of a sudden, you realize that those people have concerns like keeping things under control whatever happens, minimizing risk (whatever that means), reporting, making sure that no developer does anything on their own, and so on. So of course, you will implement features to satisfy those needs because you want the big guys to be happy.

Now let’s go back to the Open Source alternative. If you hope that developers will use your software on their own project, find it cool and then go back to their boss and say “we should have that”, you’re not talking to the same people. It really makes things straight again because you’re back to consider end-users’ concerns first. Developers want tools that don’t get in their way, that allow them to save some time, not waste it, that are integrated in their development environment, and so on. My point is that an Open Source model does not only change where you make money, or how you balance your own investments. It can also change your whole product itself by changing whom you’re talking to.

Now of course, I’m opposing 2 strategies here: the traditional top-down approach that forces you to focus on upper-management priorities versus the Open Source bottom-up strategy in which end-users are the ones you have to convince. And I know that this kind of 2-way alternative is likely to create controversy because project managers will read this article and think “but we need reporting, we need control, we need power!”. Now of course you know that I don’t agree with this obsession for power and control as it is associated to the software engineering mirage. It’s like the big guys couldn’t stand the IT guys anymore, with their strange language and culture and so on. So they irrationally tried to isolate us from them with layers and layers of project management and control. But they lost a great deal of intelligence in the process and they’ve created a whole generation of frustrated developers who just execute what they have been asked to, even when decisions are made by people who don’t understand a damn thing about what software is and how powerful it can really be. And of course, big old-school software vendors have created opportunities out of this mess and we’re all forced to work with their products now. But hopefully, Open Source is already changing that, it is participating in a movement of IT empowerment, together with Agile methodologies, that will lead to more intelligent uses of technology and fill in the gap between business and IT.

Now to conclude, I’m not saying that management is totally useless. YES, we have a strange culture and a weird way to look at things. So YES, we need people to help us interface with business people and teach us how to do it ourselves. NO, the solution is certainly not to reduce our field of action to the minimum but YES, we need people who understand both the power that we have AND the big picture of what is necessary, and are able to make them coincide. And YES, this mission might require additional features in the tools we’re using, for things like reporting, prioritization and so on. But those features should never conflict with our concerns as end-users, they should never get in our way to building better software. But the good news is that there are very clever ways to do just that: have a look at Mylyn, or FogBugz. And of course, I myself am thinking about bringing my own contribution. So stay tuned…

Now I would love to try an experiment and use comments on this post as an informal survey. So if you are a software developer, what tools are you using at work for things like source control, issue tracking, documentation management, and so on? Do you like those tools and why?

Why The H*** Would I Open Source My Project?

A friend of mine asked me this question today. And even though I’m NOT one of these “free software” zealots who think that beyond Open Source, there is nothing valuable, I found it interesting to think about a few arguments. But let’s be clear right away:

  • I’m not opposing Open Source and commercial software, so I focused on the reasons to open source a project, not the reasons NOT TO sell it
  • Even though I do believe in those, I won’t mention philosophical reasons, but only on reasons that could convince my boss (and my boss doesn’t give a damn about “users should be free”)

#1 To build an indirect but wider business model

Most people think of software applications as normal products. Exactly like RIAA majors would like to reduce music to the same status. But common usage has proven them wrong, and for a very simple reason: a traditional product is something that you don’t have anymore once you’ve sold it to somebody. The main part of the unit price for each instance of this product covers raw materials and production cost. Software is fundamentally different, so the business model has to be adapted. Many big companies have already understood that: instead of selling a few instances to those who can afford it, you give it to everybody for free and then you charge them for additional services: training, customization, hosting. Of course, this implies that your product can generate such satellite services, that it can be of some interest to professional users. The general idea is: the wider your user base, the more services you can sell, which can potentially be much more profitable.

#2 More hands and brains

Sometimes, a software application becomes really interesting once it has enough features to be adapted in as many different situations as possible. But on the other hand, it’s very important to focus. So if your application is modular, like a CMS for example, the bigger the developer community, the more feature-rich your application, the wider your user base… and back to #1.

#3 Believe it or not, some returns from users are more important than money

Feedback, ideas, feature requests are the best way to make your product evolve in the right direction and make sure it is as useful as it can be. But gathering feedback for something you sell is more difficult: “why would I contribute to a product I’ve already paid for, all the more so as I have nothing to gain from contributing?” On the contrary, Open Source plays on what is called “the reciprocity principle”: people who get something for free are more volunteer to “pay for it” in other ways. The general idea is simple: give it to one user for free, he will suggest one excellent feature that will convince 10 more users to use it, 5 out of which will buy satellite services… and back to #1.

#4 Double licensing

Open Source doesn’t mean that anyone can do anything with your code. Open Source projects are protected by a license. The most popular Open Source license out there is GPLv3. It might be controversial, it offers one major protection: anyone that reuses or integrates your code MUST open source their project under GPLv3 too. This has a very important corollary: no one is allowed to sell your product instead of you. Practically, this is just a legal protection and some big companies violate it every day. But if it happens to you, you can sue them!

But since you understand that some users might be interested in reusing or embedding your product for commercial purposes, it makes a lot of sense to offer an alternative: a commercial license that people will have to pay for. And all of a sudden, your free users become your best salesmen: they use your product for free at home, they suggest it at work, and their boss buys a commercial license… and satellite services. You win!

#5 Do it first, before someone else does

If you are not convinced yet with the 4 reasons before, someone else might be. And even if you don’t release your code, unless you have protected your application with a patent (which doesn’t exist here in Europe since it’s pure nonsense, but that’s another debate :oP), anyone can take your idea, do it better, and open source it, thus cutting the grass right under your feet. On the other hand, if you open source your project, people will have more interest in contributing to it than creating their own version. And if they still do, it means your execution of the idea is really bad anyway so…

Now what do YOU think? Do you see other reasons why Open Source might be a good option for your next big idea? On the contrary, what reasons do you see NOT to Open Source a project?