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Open source community and business - how to make it work?

Open source community and business - how to make it work?. Timo Väliharju CEO of. Mediamaisteri Group PL 82 (Yliopistonkatu 58D) 33101 Tampere, Finland www.mediamaisteri.com. Mediamaisteri Group. One of the leading open source e-learning and HRD vendor in Europe

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Open source community and business - how to make it work?

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  1. Open source community and business - how to make it work? Timo Väliharju CEO of Mediamaisteri Group PL 82 (Yliopistonkatu 58D) 33101 Tampere, Finland www.mediamaisteri.com

  2. Mediamaisteri Group • One of the leading open source e-learning and HRD vendor in Europe • Established in 2000 in Tampere, Finland • Offices are located in Tampere, Hämeenlinna, Turku, Helsinki • 30 employees • Turnover 1,6 Million Eur (2009-2010)

  3. Open Source Projects – Success? • Linux (different versions) • Open Office • MySQL • Moodle • Elgg • Magento • OsCommerce • vTiger • etc...

  4. Deployment (distribution) • Sales, Distribution, Support and counsulting services • Franchising model Hybridization • Dual licensing • Probierory procuct failed/not good business> OS to boost business Complements • Hardware + OS (LTSP) • Save money with OS by using OS components as a part of the HW product Self-Service • End users (could be also a company) create productin order to save money Open Source business models

  5. Open Source - Challenges to focus in • Credibility of Open Source is some regions • SME`s financial status to in usually weak comparing to the risk • How to organize the community in a way that community benefits enhance individual participation? • How to organize community development process? • How to develop a business model based on community? • How to put developed business model in action?

  6. Open Source – Challenges to focus in • Differences of the legislation of the home market and the target market • Difficult to find competent and trustworthy staff from the target region • Language and cultural challenges • Localization and customer dependent tailoring • Finding clients on target market • Finding partners in target market • IPR issues • Lack of references in target market

  7. The Essence of Open Source • Some propietary vendors consciusly confuse customers by using open in confusing context • Some think that Open Source is not business model but only a smart way to share product development costs • Mediamaisteri Group uses OS: • As community based product development in order to save costs • Because the cost structure of an OS model (development and distribution) gives a possibility to organise business value chain in a way that all parties can benefit

  8. The Essence of Open Source • In probietary model sales provision for example 30% and 70% to the company that owns all rights • In OS ”sales provision” 0%-10% depeding how the revelue model is constructed • Basic nature of an Open Source concept is global and more user/partner driven and natural process • In every country business support programs to push companies to global???? • Viral distribution model saves a lot of marketing costs

  9. The Essence of Open Source Community • Success rate will be high if: • - Launched product is innovative • - Gives new perspectives to the process it is solving or is solving a new problem • - Quality of SW and UI is high (look and feel) • - Everyone sees in 2 seconds what the product is and how it will help users (Can this be really true - effect) • - Needed resources to keep community active • - Controlling the community and sustaining it! • - Product is 90% of the success story > if the product works it is difficult to fail

  10. The Essence of Open Source Community • - There has to always be moral and ethical perspective that how this community makes the world a better place to live! • - Customer or user benefits are not any more only valid value proposition that makes the concept work • - Who controls the community usually controls the business • - Licence: Open or propietory • - In General: As a company you need to have a very good understanding of community administration, motivational aspects of the individuals, community size and structure, developmental traditions and ideology behind community

  11. Mediamaisteri Group and Moodle • Moodle project to public community in August 2002 • Mediamaisteri joined October 2002 • First client December 2002 • Now almost 200 clients and over 200 000 users • No Moodle partnership • One of the world biggest Moodle service providers

  12. Experiences of working in Moodle community • First it was like a small and enthusiastic family • One key developer in MMG • Installation, hosting, training, tailoring, content to the customers • Development of several tools to Moodle • LMS market share 2002 0% (Finland) > 2006 LMS market leader • 2003 MMG hired second key developer from the Moodle.org (Finnish person that was developing Moodle as a hobby) • 2002-2007 we did a lots of tools to Moodle from customer point of view > some are still operational in global distribution

  13. Some references 03.04.09

  14. Thank you! • CEO Timo Väliharju • Mediamaisteri Group • timo@mediamaisteri.com

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