Comments on: Open source = market development
Marten Mickos is a very smart man who gets market development, says CNET Blog Network contributor Matt Asay.
Marten Mickos is a very smart man who gets market development, says CNET Blog Network contributor Matt Asay.
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Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.
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Excellent post. I would add this new product distribution model is works effectively because access to the source code allows localization. Another factor is the massive 'partner' ecosystem which gets developed. MySQL has done a great job in building this ecosystem and, like customers, some partners generate demand and revenue.
This whole thesis that if you build it, they will arrive is not true. It is true for a few projects on a massive scale, and most others on a small scale, but the true OSS winners will be business execution teams, that manage the technology at all levels of the value chain. Business has not changed, pricing has.
This is the 2nd post in 2 days that promotes the theory that OSS has it won, and that "proprietary" apps and companies are left to maintain their base, but not to compete. I think this is mis-guided, for there is nothing guaranteed about JBoss, MySQL, and Alfresco's assault on these types of companies, just because they have OSS licenses.
Huge amounts of investment are needed in the business side of managing innovation, and having a rock-star CEO is not enough. All of the things that OSS companies need to do can be encapsulated in the theory of competitive advantage, where pricing is but 1 component. Much, much more is needed for JBoss, MySQL, and Alfresco to knock off the incumbents, and simply following the trend is not enough.
Matt, again, I understand the purpose of your blog, and I appreciate it, read it, and look to it for some of the best info. on the software biz. But it would be naive to think that a certain trajectory assures victory. Would not the same have been said about the trajectory following the advent of the Internet, and be used to argue for Netscape's impending dominance.
Great people from Netscape and great product strategy could not overcome all factors, and it fell. Glassfish, LDAP, and JavaScript, notwithstanding, nothing is left of their efforts. All good, but only a certain measure of success for something that may have once seemed so inevitable.
- by jkunz001 April 9, 2009 12:10 PM PDT
- @douglasdooley no need to apologize as there is nothing anti about your post. The fact is that oss companies are waking up to the reality that you can't get away from business 101. While the community effects are real and valuable, they are insufficient to scale. I think you hit the nail right on the head. Well done.
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