 Thanks for those of you who are still here. The idea is to talk a little bit about how companies can benefit From integrating open source into their corporate strategy. This presentation i normally use to talk to entrepreneurs, Startups, sometimes vcs, so it's content that's really Designed for this kind of audience. And the idea is that a lot of people in the enterprise world See open source as just a cool way to save money on licenses. So my task with these people is to make sure that they find a Way to use open source in a way that does much more than just Save a few bucks on licenses. And so with these elements that i'm going to cover in the Next 25 minutes, that's exactly what i try to achieve. So first of all, i'm going to do really quickly through here Because i suppose that after those four days, everybody here Knows what is open source, but it is just a reminder that Not only do you have permission to do things, but you also Have obligations as a developer using open source to do things. People think open source is freedom, it's also obligations. It's also an obligation to reshare code you've modified or Things you've added to a project. So that's the reminder i have. And normally i explain all of this. I just want to have a quiz here to see who's awake. Anybody can guess what that code is from on the left? I'm not going to ask for the right part, but for the left part, no guess. So it's open source, of course, which is why i'm picking it up. I'm going to say encryption routines of open ssl. So it's a crypto code, which you can sort of guess from the Entropy, it's part of a random number generator element. All right. I have those first two slides as a reminder for my enterprise Customers, for example, that open source is used in almost Every company on the planet, large and small. And that companies have been benefiting from open source. That's what i'm going to cover for the rest and the meeting part of this presentation. Enterprise have been benefiting from open source in many different ways. Sometimes they do that purely by luck. They realize that, oh, we've been doing open source for this long And this is what has happened or this is what has come out of it. Other companies make a point of, because they use open source, Trying to benefit from as much of open source as they can. This is where people like myself who do open source strategy Consulting for companies come into play. So we're going to go through some of the benefits that open Source brings to companies. I am sure you're aware of them, not necessarily all of them, Not necessarily how to benefit from all of them or who does. So let's look at a few of them. The first one, I'm sure you've all heard that open source is cheap or even free. And if you think that by using open source because it's free, You're going to save money, it is often a mistake. Typically what happens is that the cost of your licenses is compensated By cost of integration, training, support, and things like that. What is interesting with open source though is that you are in control Of your financial agenda. This means that you decide where you're going to put your money. And you decide you don't want to put it in licenses, which is fairly good. But there are other places where there's high value that you can Gain from investing in open source. As an example, there is a South African region called The government came to me when I was at Sun Microsystems, And they wanted to use something else in Microsoft Office Because Microsoft, well, you know, paying a bunch of millions of dollars Of money to a country far, far away and having zero local benefits Except the authorization to run a piece of code, didn't make sense to them. So they wanted to use something that was free to use. So they were purely looking at the cost aspect, but they didn't have a Support structure for open office. So at the time, Sun Microsystems, who were the maintainers of the Project open office, were asked, how can we do this? So I had a long session with them and I explained to them that, Okay, fine, they don't want to put a lot of money into Microsoft, Which, fair enough, why not put some money into training people? And we, at the time I was at Sun Microsystems, we will be very happy To take that money from you and to train people that, in Quasulunatal, Will be experts on open office, will have access to the support Structures that we have in place as the project maintainers. But these people, once they're trained, they will be able to train Other people, they will be able to build businesses that will Support the government users and the individual users in the country. So as a result, the money invested in running this open source piece Of software is fully re-injected into the local economy. My friends from the French Ministry, I'm French. So my friends from the French Ministry of Interior, they actually Have a very good way of saying that. They say that the cost of using and developing open source Software as a nation, so as part of the government, The cost is zero or positive. Meaning that every dollar, euro, Singapore dollar, whatever, Every bit of money that's injected as a government, not as an Industry, but as a government, into developing open source is Actually not money that is spent because you're injected by Paying developers, those developers, if, and that's the Key point, if they're in the country, they might be foreigners But they live in the country, these developers will spend that Money by renting houses, purchasing goods in stores, Paying their tax, having children, going to school, Creating new breed of people who are experts in something else So that money invested in an open source development gets Re-injected into the economy. And as such, the overall balance is actually zero Because you're injected into whatever you're running already And it's positive when, as a turnout, there are new companies Created startups, et cetera. So depending on where you sit In the user families of open source, you can look at your Budget for using open source as something that's either Totally controlled, where do i want to put it, where does it Make sense, or even better as a government, as something that Injects money into the economy. So that's something that Is quite interesting. Another aspect also is that If you're in the enterprise world, sometimes your finance People will want you to stop investing into capital Do not buy stuff, rent it, so shift from capex Capital expenditures to opex. And that makes sense for some Companies and using open source, in particular if your Software comes with a subscription model, turns your Capex, i'm buying licenses into opex, i'm paying a subscription. And that can be interesting also as a start-up, because as a Start-up when you're getting funding, your vc who's pouring Millions of dollars in the company would like to know that Those millions of dollars is going into something that Actually makes sense and not something that after the Evaluation in three years will make zero sense. A software license for microsoft office 2010, five Now dead. So actually now dead. Because everybody wants to go to 2013, 2018 or whatever. So shifting to opex actually makes sense for some cases. So keep in mind that crucial aspect, when people say Open source is free, that's not what you're looking for. Open source is a great way to control your spending. A great way. But it can turn out to be More expensive. If you look at all the integration costs, Service costs, support costs, et cetera. If you don't do it well and hear shameless blood from My company, if you don't know how to do the integration of Your open source stuff, talk to system integrators like And this is the only time i'm going to talk about my company. So don't worry about that. Good. The next one which is quite interesting is innovation. And i'm not going to read the numbers, i'm just using this As kind of a reminder of what i want to talk about. But one of the most commonly mentioned benefits of Open source is the ease and the speed of innovation. When you're developing your software with people From the outside, they bring you great ideas. One of some ecosystems founders once said something Really true. Innovation happens elsewhere. Inside the box, you're not getting the new ideas. It's all framed by hundreds of years, depending on the kind of Company you're in, tens of years, whatever. Frame of mind. If you ask Boeing to imagine new Things, they're going to imagine new planes. They're not going to imagine new ways of cooking stuff. And it's very rare that a company that's doing something Very specific turns 90 degree and does something completely different. So innovation from the outside is great. And when you're doing open source, you're encouraging that. You're encouraging your users to go way beyond what your Marketing team can do. Your marketing team is saying we need To develop these features and these features and these features Because we think they make sense and we will get more customers And it will generate bloatware, which is where you go with The guys from redmond. If you're doing open source, What happens is your users look at your product and say I really miss this feature and I miss it enough that I'm Actually going to write it myself and give it to the guys So that it's integrated as part of the project. To give you an idea, I was talking to the Japanese Well, the Japanese government came and talked to me and said We, that was years ago, we are now bringing in a new Extended kanji character set that's going to be used everywhere And we need our office suite to actually implement that Extended kanji character set. We've asked Microsoft, they're Going to come with that directly in their new version of Office and that's in two years or whatever, two and a half years At the time it was until the next release of office was planned Bad timing. And they would, of course, Have to upgrade their licenses and everything. So they came to Sun and said, guys, can you do it for us on open office? And I said, no, we can't do it for you. But you guys can do it. What I will do is I will help you Find the right team to do that. Experts in programming, Graphics experts, fonts experts, and make sure that this team Has direct links to the development team of open Office so that if you run into trouble, you can actually Have somebody to ask the questions to and not just throw Them into the wild. And they thought about it and They said, okay, let's try that. And instead of waiting For two and a half years for microsoft to do the next release Of office, they did it in two and a half months. So think about the difference in speed. It cost them paying Developers for two and a half months, so probably a fair amount Of money but probably a lot less than upgrading their Licenses to mfs office for every user. And by doing this the way they did and contributing it, Well, if you get open office and now libre office Actually, the support for extended kanji character set is In there because it was contributed by them, accepted By the community and is now part of the software forever. So that's one great way to look at innovation and speed of Innovation, speed to market is by getting people from the Outside to help you with developing your software. Which is a fantastic link to here. So keep in mind that Instead of spending your resources as a developer And on trying to imagine new ways of doing things, You're getting that support, that manpower from the outside. Instead of having to do the work yourself, you have to Coordinate the work yourself. So you need to put in place the Right way to manage a team, to manage an open source Project and that's okay. That's not necessarily easy. But if you look at companies out there, they're actually All of them are saying a vast majority are saying that it is Helping them go faster and that can be by saying we're going To move our code to the open source and waiting for people to Contribute or by saying we're opening a challenge. There's a company, it was acquired by Wipro, but it's a Company that's out there called top coders and these People can be used to fund open source challenges, Fund any kind of challenges actually, but guys like Apple are using them so the way it works is you want to Develop a functionality, a tool, a product, an extension Or whatever, you go to top coder and you say I have this Project, here are the specs, here is the scope, etc. I'm putting a bounty and for whoever does the best Development for it, they get the bounty, runner ups Get something less and etc. So it's a great way to Actually incentivize the open source community, there's No such thing, but the people out there who like to do Open source to actually contribute to your own project And the nice way to do it is to do it open source obviously But you could do it proprietary if you want, I don't Encourage it because, well, I'm an open source guy. Marketing tool, this is a really interesting one, people Don't think about that often enough, but it's a great Way to position yourself in the market. One example that I have which is really fun, I used To think that Mercedes cars, and I know that we have People from the company here in the room, but Mercedes cars Tend to be grandfather cars. They have some really fancy Roaches, by the way. But my dad has had Mercedes For quite some time. And the last one he bought, he Came to me and he showed me a CD and he said, jeez, I Have no idea what this is. And the CD is all of the Open source licenses for all the open source software in The car. And suddenly I looked at the CD and I Looked at this car completely differently. Like, oh, my God, this is a really cool car. So it will appeal to a certain population. In the more common world, what happens is, for Example, companies like Novartis, they're in a World which is a really secretive world. It's pharmaceutical, most people don't publish Their findings, their formulas, even their Algorithms. And internally they use windows, They use Linux and quite a few open source Technologies. But what is really cool about Novartis is they have a lab that is publishing Oncology specific algorithms that help in Identify molecules that are present in the cancer Type of treatments. And they're publishing all of This source code on github. So if you search for Novartis github, you'll find they have a lab That's called O-N-P-C or whatever. They have a Lab which is publishing their source code on The internet. And they're doing this for Speed of innovation because they're hoping people Will participate. But they're positioning Themselves as the thought leader in this Aspect. They're saying, we're the guys who Do it best. Have a look. So that's a Really interesting aspect and it's clearly seen As part of their marketing budget to have this Code posted to github. So keep that in mind. You might want to consider if you're a Commercial vendor to take your products that Can be open sourced and push them out to the Community to get a completely different Perception of who you are and attract a whole Range of different users. What example can I Have on those lines that make some sense? If you look at the lingsis routers, for Example, they became hugely popular when They open sourced the hardware. If you Here remember the wrt54g routers, it Started badly, by the way. Somebody had to Find out that there was linux and ask them For the source code and they said no and Everybody started going legal on them and They said, okay, fine, publish the source Code and it was a mess because they Published the source code of Broadcom Drivers which was not open sourced. You guys are doing something really bad. So they negotiated, they got it done and Now every lingsis router that has linux Based firmware has the source code published. They have a website called the gpl Download center and they're using that And because of that, they're probably One of the most popular brands in the Geek community. So the guys who Actually buy their own routers and not Use the one that's provided by their DSL provider. So it's a great way to Suddenly become extremely attractive to Your user population. Another one that's Interesting is HR benefits. Again, you have Some statistics here. I'm just going to give You an example. I work with, as a customer Of mine, a company that is in the Tobacco industry. Now, if you look at it This way, who wants to work for a company That's manufacturing poison? So they're Having hard time getting really good People on board. They have three ways of Getting really good people on board. Huge Salaries. A friend of mine is now Working for the united nation but he was Offered a job there ten years ago and Even today, he still regrets that salary. Gives you an idea of how good it was back Then. They have amazing campuses so When you go there, it's like ultra Modern stuff with little spaces where you Drink free. Great working environment But they're trying to attract a specific Population. Developers. Really good Developers. And those guys, I'm sure you're Familiar with the idea. Salaries are Interesting but working in a way that is Really fun and interesting and creative Etc. It makes sense to you guys. It Probably trumps everything else. So What are they doing? They're doing open Source. And they're talking about it. They're communicating on the fact that They're participating in project x or y. That they're looking for specific open Source competency to work on their Open source infrastructure. And they're Turning open source into a recruitment Tool. And there are some companies, Deutsche Bank also recently said that They were doing open source because it's A great way for them to recruit and Retain top talent. So combine that With a marketing communication strategy and Make sure that, as a company, when you Want to attract the best, give them the Best possible working environment and That includes developing, participating Into real cool open source project. So that's another of these benefits. Okay. Ethical and other reasons. So here, I mentioned already a little Bit of this, but in particular when You're in an NGO or in a government Or if your company has a specifically Ethical oriented focus, open source Taps into this spirit, right? Into the community spirit, into the Sharing spirit. So governments See this as sharing the knowledge. I think it was the UK government that Said everything that we developed Belongs to the state, so it belongs To the people, so it should be open Source because that's the only way That it can belong to the people And not belong to some stupid So that's also a great way. If you're in a startup and you're Going to do things that are, you know, Based on community and sharing, you Really want to do that with open Source, but we all know that here. But for a great, bigger corporation, It actually makes sense to position Yourself that way. So that also Combined, of course, with a Marketing benefit, right? You do things Ethically, but if you're not Going to communicate about it, you're missing Half of the benefits of doing ethical stuff. Combine ethical and marketing, and You have some really great tools. Finally, for startups, it can Be seen sometimes as a little bit Of a challenge convincing a VC to Invest in a project where your Products are free, right? Give us 20 million dollars because We all know the first 20 million Is the artist to get that type of A little book and give us 20 Million and we'll develop these Equal products that we will give away For free to everybody who wants to Download them. And VCs tend to not Look at that really, really well Because a typical VC is not your Average investor. They're expecting To throw money at you and to get 10x, 100x, 1000x the investment. So if you tell them that there's No revenue stream from your product, That doesn't work. So when you're Doing open source, and that's a Team of a completely different subject, Feel free to come and discuss it With a business model and you want To make it really clear to your Investors why that business model Makes sense for them. And some Business models make sense for VCs, Some business models just make sense For a bank that is looking for a Specific risk profile and if that Risk profile is met, they will Invest. And for some others, you Might want to look at ICOs or Crowdfunding because there's no Real business model and so you Need somebody else to put the Business model. So those are a few Aspects that you want to take into Account when you're looking at Open source strategy, why am I Doing open source in the long Term and how that can be connected Into the enterprise strategy. There's things like risk management As well. People want to know That the software they're running Is secure, how do you control The security of open source. There's a really cool study that Dates back to 2014 so it's Not too old that shows that the Average number of defects Per 1,000 line of code In 2014 it was 0.76 For commercial software So 0.76 Defects per 1,000 line of code and it's 0.61 Slightly lower but in the same Ballpark from open source. So Whenever somebody tells you open Source is less secure because all The hackers have tested the code And tested it really quick so you End up with less defects per lines Of code and actually a shorter time To fix but it's a very Interesting debate between the People who think security by Security is better than security In the open. So we have a minute And a half left for questions And hopefully answers. Please feel free to shoot. The questions not bullets. Any questions about this Approach to open source and Kind of the merits Of why to use open source Anybody Were any of these points completely new To everybody or just some of you Or was this like already all known Thanks for The input. Why do you think Not all governments are jumping On open source Just coming to your example where You said it's injected back into The community of the country There used to be A study Of governments that Had put in place open source Legislation And that study And I don't remember last time We looked at it was long time ago because It seems more or less a given Now but that study tended to say That almost all of the governments Had some kind of open source Either regulation or recommendations In place and those recommendations Can go from Put a level playing field between Open source and proprietary or open source first So some governments still Don't do that but most of them Have some form of Open source friendly or at least Open source neutral Regulation in place so The answer is actually most of them do The majority of them do That's not sometimes always Visible but even like even the U.S. government has that The Department of Justice The Department of Defense has a whole Website that has recommendations on Writing software for the government and includes You should first start with open source So pretty good Another question up there So while the microphone goes up That's actually something that took some time A bunch of years ago I went to present Open Solaris to the Chinese government and I was explaining That it was open source and The representatives from the government At the end of the presentation to Mr. Gavi, aren't you afraid that people are going to Steal your software? It's like No, you can't steal it It's open source. We're giving it to you Please use it, do whatever you want with it And by the way if you're going to Steal it probably wouldn't have been The ones to buy it anyway so we couldn't care less And if you're going to use it in production You probably will want some form of support in the end So money is going to come back To people who can support it Most likely us so we're not worried at all But it took some education to get to the point Where people understand that using open source Isn't stealing open source Thanks for the talk You mentioned the example Of governments using open source Software instead of proprietary software I remember I think it was Munich in Germany That used open source For a long time and I think they just Switched back to proprietary Could you maybe give us A couple of insights in terms of What type of setting Or what type of Of setup Is actually necessary In order to have a nurturing environment For the use of open source software With incorporations or even governments Yeah, so the first thing The really important first thing Is get prepared Don't do it like head on If suddenly you say I'm going to replace Everything in Microsoft with Linux And LibreOffice it's going to fail Big time The first government who did that Was the city of Dublin in Ireland And They said we're ditching Microsoft Going to open office in Linux And a couple of months back afterwards They went back to Microsoft It was a huge failure and they basically Did it by themselves and messed up There are a whole bunch of companies out there That can help you do that We're not the guys because We don't do anything with desktop I can say there's a whole bunch of other ones That will Go to your setup Look at what you're doing Do a full audit of documents Formats If you're using specific kind of macros And procedures and things in documents Like MS Office will have you identify What's migratable What's the best way to do this and that And follow their recommendations Because those people really Know how to do it Only when you do that That job the right way That is going to work Once you're there, of course You want to make sure that All of the benefits are in place So as a government for example You're going to want to Communicate Make it visible What you're doing with open source And you're going to want to make it visible The benefits you get from open source If you're developing open source software You want to make sure that everybody understands Why you're doing that You want to make sure that your citizens are involved Communicate, put in a portal This is all of the open source software We're developing, please participate The French government has a document That's publicly available Which is a reference list Of all of the open source software That's being used If you want to use a video player You're going to use VLC It's listed there Use until the general benefit Of the state Visibility, communication, preparation Is the best way to do that Okay Very good answer Any other last questions We could take one more Any questions in the back Perfect Very relevant topic Thank you for your talk In a market Where it's dominated by The proprietor of Microsoft Or I can understand Which sector do you recommend To first adopt open source Is it education Private sector government To start at least Everywhere Honestly Everywhere that makes sense Open source can be If it's well done everywhere There are law firms that have been Adopting Libra Office To their production environments I'm going to tell you a story here A friend of mine Is a CEO of a company that does Audit and quality audits So it's not SGS It's a competitor And they're present all over Europe They're not global And one summer They fired an employee who was Misbehaving In July They got a mail from Microsoft's lawyer To believe that you're using Copies of Microsoft Office So you have until September To sort that out So the guy came to me And said, can you talk to me about Your open office stuff in those days And so I said, yeah He said, is it free? Can I use it for anything? How do I go about using it? You download it, you install it, you run it And there you go. So he said, let me think about it So they had 1,500 people on board They had documents with Macros and things like that So he went to see his IT manager And he said, you have 15 days to move everybody To open office 15 days, 1,500 employees And the guy said, let me think Okay, we'll do it. It took him three weeks So over the summer they moved everybody To open office And they didn't do an audit But the guy was reasonably competent anyway So they left a few PCs With officially licensed versions of Microsoft Office That had the documents that were the most complex To run, things that had integration Between spreadsheets and the word and things like that Everybody else was moved To open office There's only one person who complained It was the secretary who came to the CEO And said, I have an issue with this We'll open office in those days Open office doesn't look as good as Microsoft Office on my resume And the guy told her Are you working to make this company run Or are you working to get a good CV You're right And that was it Everything else went according to the book It was perfect and in September They sent a letter to the lawyer He said, this is what we did We ditched MS office We used open office, thank you And that's In the quality control But I've seen people use open source In the data center In the pharmaceutical world And the plane industry And basically everywhere So it's never too late to start Just do it Great, thank you very much And a round of applause for our speaker Super, so everybody from the back Please do come down Come closer and find your seats