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Translation Workflow The case for Open-Source Frank Bergmann, 2005-10-24. Sourcing Options Overview. "Pure Make". " Pure Make " (100% in-house) " Make " with external consultants " Make " with subcontracted functions " Make ", followed by spin-off
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Translation Workflow The case for Open-SourceFrank Bergmann, 2005-10-24
Sourcing Options Overview "Pure Make" • "Pure Make" (100% in-house) • "Make" with external consultants • "Make" with subcontracted functions • "Make", followed by spin-off • "Buy" from provider and customize in-house • "Buy" from provider, with financial investment in the provider • "Buy" from provider, but "nurture" provider with partnership and long-term contract • "Pure Buy" (100% external) • ... CoveredbyOSS "Pure Buy" Source: ]project-open[, own elaboration, http://www.project-open.com/whitepapers/
Typical ERP Lifecycle Phases OSS-Consult. or DIY No vendor lock-in. Buy consulting or DIY Eval. ImplementPhase I ImplementPhase II ExtendingValue MaintainingValue DecliningPhase ProductLicense &Maint Training License &Maintenance Training Customization Customization License & Maint Evaluation ChangeMgmt. Training Customization Project Management Project Management Source: Own elaboration based on “ERP Life Cycle: From Birth to Death and Birth Again“ by Andy Klee, September 10, 2005 in Technologyevaluation.com
OSS Business Model • Little Sales, just marketing & PR • Reuse of Softwarefrom other OSS-Projects • Sales is usually 50% of IT company costs... • Saves 50%- 80% of development costs • 4x - 10x better value for Customers • 50% (free software) • Still 2x - 5x value to be distributed
Open-Source "Dissonance" • Company Size:Usually smaller then closed-source • No "pushy" Sales Organization • New possibilitis for customer:May cause fear • Open-Source FUD:Incomprehension of Biz model, patents, ... • Profile of the people in the OSS-Companies:Dominated by Techies
Project Self Diagnosis Businessfocus Sometechnology Strong technology >50employees Size 5-50 employees 1-5 employees Technology Sophistication
Buy Make or Adapt Project Self Diagnosis Businessfocus Sometechnology Strong technology >50employees Size 5-50 employees 1-5 employees Technology Sophistication
Project Self Diagnosis Businessfocus Sometechnology Strong technology OSS + Partners OSS + Consulting >50employees Size 5-50 employees OSSDIY 1-5 employees Technology Sophistication
OSS is Market Leader ... (# Installed Systems) Market Leaders • Web Browsers (Apache) • Content Management (Typo3) • Databases (MySQL) • Instant Messaging (Jabber) • Java Application Servers (Apache/JBoss) • All Internet Technology (Bind, Postfix, ...) 2nd: • Server Operating Systems (Linux) Now coming: • SugarCRM • ...
End Frank Bergmann frank.bergmann@project-open.com www.project-open.com