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FOSS HISTORY BY MARTIN VOSS
===========================

Agenda, definition history licence models and pros and cons

foss definition, technically/legally it is software, not hardware not documentation

<kaeru> note: these could be links
<ulinskie> it is publishedunder a license which has been approved by either the fsf or osi

FSF Freedoms 0 to 3
-------------------

frdm 1: freedm to run the progrm for any purpse

floss orgnizationally, individual style, linux torvals' style one project leader

<kaeru> resource link: http://freedomsoftware.info/content/category/1/1/45/

<ulinskie> community style, regulatory panel eg. apache
commercial dvlpnt. indvdl style, 1 ompny develops and promotes the ssoftware like mysql
floss busness point of view

<kaeru> note: links to FSF and Wikipedia articles

* purserj is wishing he could see this

<kaeru> ulinskie: you can just put the points on this, eg. Netscape, we can find links later
on wikipedia

<ulinskie> okay... I think a lot of the people here knows it already... but will do the writing later 

<ulinskie> kaeru: have u seen the video he sent UP diliman

<ulinskie> he gave a comment on the foss bill in the philippines

<kaeru> no.. (another link/resource we need)

<ulinskie> i'll try to create a link on that too in the wiki

<kaeru> btw I'm going to cut and paste this into the wiki
and we just edit the wiki later
when it's not freaking slow

<ulinskie> yeah... i'm having a hard time browsing using konqueror
.me downloading firefox.. still 1%

* ulinskie downloading firefox.. still 1%

<kaeru> business examples: 

1. netscape
2. IBM examples
3. novell and ms 2006 (some issues, links)

<kaeru> note: iosn primers licensing and introduction also available as introductory materials
http://www.iosn.net/foss-primers

<ulinskie> oracle adaptation of linux too 

<ulinskie> http://www.fsf.org

<ulinskie> bsd, more freedom that gpl

<kaeru> bsd - encourages usage of standards into proprietary software
<killerbee> how can i restore a file system level backup in pgsql

<kaeru> gpl - prevents people hoarding code, and ensures all code is shared

<ulinskie> all are subjective which means perceved by individuals
disadvatages triggers invention and innovation

<ulinskie> its where foss comes to the rescue

<kaeru> pros

- lower price
- re-use
- independent bug fixing
- customisation
- mature projects, high quality and reliability

cons

- often lack of documentation
- limited warranty and liability
- data exchange
- poor usability, not user friendly

Discussion

noy: partnership between MS and novell is not good

noy: example of MS, they bought company/support for foss company, but then let the company languish

<purserj> the other option is (if its a full system dump) to run the file system dump under chroot and then do pgsqldump and so on

<kaeru> noy: can you change the license for GPL?

martin: you cannot change the license as a user, only the copyright owner (the person who released it) can do that

martin: bsd license however allows this, the gpl requires that all deriatives be released under the same terms

<kaeru> Markus: re: IBM, companies that have invested in IPR like IBM, that it's more profitable to sell services than to monopolise the patents

* kaeru says that linux scales up, therefore consolidates it

<kaeru> issue: there is no liability in open source software
"it's your own risk, if you want to use it, security it's in your own choice"

Markus: "it provides an opportunity for companies, to fill the role to provide the service"

<rjian> Yeah hiring new person hehehe

<kaeru> participant: "Need open source, need to know more about it. Does it mean, that you need to hire a dedicated IT person"

Markus: "Depends on what FOSS software you're talking about, in terms of usage"

Markus: "As a company, you need assessment, same with FOSS software"

<purserj> and the availability of support companies

<kaeru> Noy: "The company that provides the support whether proprietary or foss, is the one liable"

Noy: "If you download and use it yourself, of course you have no liability"

Noy: "It's an issue for the support companie's liability"

<kaeru> Marvin: "As far as he knows, there is no software company that provides warranty or losses due to bugs"

Marvin: "If it's for in house use.. there is no need to release the source code"

Ulinskie: "FOSS needs more promotion/advocacy, you need to get the right people in your MIS department and it's advantageous if your MIS person is aware of both solutions FOSS and proprietary

Ulinskie: "Education sector comes in, graduates need to be aware of both"

Noy: "Usually in IT, the technical person and the accounting/owner has different concept"

Noy: "Owner, wants lower cost. IT want's latest technology"

Noy: "In this case, FOSS is best from accounting, viewpoint.. but then needs to be explained to the IT people that now you get all the features"

<kaeru> Ulinskie: "The idea is more migration planning computers, where SMEs can go and ask. Proper information, looking for more companies on migration planning."

<PhilH> Owner may want lower costs but often also wants M$ brand name products, regardless of the quality of alternatives.

<kaeru> That often results in piracy.
Then you get both no liability and illegality.
With proprietary software, especially in SEA.

Markus: "There is a lot of companies now supporting it from commercial viewpoint."

<PhilH> that rarely results in piracy, but often results in continued use of proprietary software with a total ignorance of FOSS
in the UK that is

<kaeru> PhilH: ok.. here piracy is rampant in south east asia

Marvin: "Most end-users don't care about the OS, but about the office productivity suite"

<PhilH> kaeru, indeed, and with pirated software so readily available incentives for FOSS adoption are minimal :(
kaeru, not in my experience, getting people using OO.o is a lot easier than getting them to adopt linux

<PhilH> even if they were able to run MS office through wine under linux, i suspect that they'd still much rather have OO.o on windows

Developement policy objectives
==============================

<rjian> the status of CICT in developing countries

- Digital divide between countries
- also between regions within countries

--> iel (n=yelbetan@202.61.68.151) has joined #iosn

<rjian> welcome back iel

<iel> yeah rjian just rebooted to implement upgrade to edgy eft

<kaeru> - ICT also has an iimportant role for MDGs

- ICT has a range of technologies from radio to computers

<kaeru> Example

- Mobile phone based project - SIMPill in South Africa
 - SMS Server on this project is running FOSS

another example Simputer (Open Hardware)

- <kaeru> OLPC - One Laptop Per Child


FOSS core values are in line with FOSS and MDGs

- Freedom
- Equality
- modify and redistribute
- same access to the software for all
 
ICT Sustainability

- flexible contracts for support and maintenance to local providers
 
Security

- introducing diversity into the base of function software code
- FOSS allows to verity data integrity and security
eg. German Federal Foreign Office usses hardened Linux System for 115 embassies
- NSA working on their own Linux version
 
IPR

- FOSS provides legal alternative
- FOSS for transfer of wealth
- combined with cheap labor = to create competitive advantage
- FOSS enables countries to be producers
 
ICT policy options

- procurement policy
- incentives
- keep internet free
 
resource: IOSN FOSS and Government Policy primer
 
Examples 

South Africa

- proceeding to FLOSS adoption as an enabling approach

Brazil

- Pernambuco, mandatory law for FOSS

China

- indirect, developing Linux through government companies
 
Case Studies

<rjian> China: indirectly developed red Flag Linux
<kaeru> - translate.org.za
for african languages
 
Health

- Wrong radiological diagnostic services
 
sustainable livelihoods

- Laos remote villages using wirelss
- villages using KDE (see APDIP ICTRND grants for this project)
 
Awareness

- IOSN
- IT@FOSS 

Awareness building at all levels

advocacy provided by

- linux user groups

- Creation of market demand

Conclusions

<rjian> FOSS is a appropriate tool in developement cooperation

<kaeru> "Core values are consistent with MDGs (not only goal) but more importantly the process that needs to be undertaken"

"if you achieve the goal without participation, it ends up being useless"

"ICT helping people for health is even more relevant, with villagers co-operating and organising support groups"

"Only issue is then is adding advocacy for villages"

"From social development viewpoint FOSS works, but needs more case stuides in support of FOSS"

"Need case studies'

<kaeru> "co-operative movement (ph) also supporting this)

FOSS in Action
==============

martin Voss

Impact of FOSS on IT Industry

Porter's Five Forces Framework

- attractiveness of market
- competitive rivalry within industry
- bargaining power of supplies and custoemrs
- threat of new entrants
- threat of substitute products
 
Bargaining power of customers

- buyer concentration to firm concentration
- buyer volume
- buyer switching costs

Bargaining power of suppliers

- concentration ratio
- no substitutes
- threat of forward integration
- importance of volume to supplier

Threat of new entrants
- barriers to entry
- product differences

Threat of substitutes
- loyalty
- differentiation

Competitive rivalry

- number of competitors
- rate of growth
- intermittent over capacity
- exit barriers
- brand equity
 
New Threats to FOSS

- FOSS substitute products
- Rising customer power
- new entrants, lower barrier to entry
- developer communities can handle complexity
- increasing intra-market competition
 
<kaeru> from customer prospective:

- entry barriers reduced
- standarized software stacks
- prerequsite for dot.com boom in late '90s
 
Summary: FOSS changed the rules of the game!
 
- Lower barriers of entry into the markets
- Traditional vendors threatened by subsitute products
- Price decline due to increased buyer's power

Response
- FUD - Fear Uncertainty Doubt
- mainly IPR issues - example IBM vs SCO (FUD)
- change of business models
 - commoditization of software products
 - who is going to pay for an office suite/database/os in ?? years
 - How to make money from commodity products?
 
Words of caution

- software is not better (technically) just because it's FOSS
- FOSS can be seen as an enabler, it empowers people
- FOSS doe not make a business profitable
- FOSS has to support the business case and the processes
 
<zakame> of course, FOSS is a tool not a panacea

Which efforts should be realized?

- different application scenarios
relates to
- strategy and leadership
- realization and organization of software projects
- competences and know-how
- technology and project management
  
Strategy and leadership

- does management support the efforts
- is mgmt ready 
 
Realization and organization of software projects

- Does the company provide a proper organizational structure
 - dedicated dept
 - steering committee
 
Competences and know-how

- respect to their knowledge about process management and controlling

Technology and project management

- Level of existing technical infrastructure
  - are new tech necessary?
 
Business Strategies
-------------------

- Dual License
- Free use is granted with some limitations
- Alternatively a commercial distribution is offered
 
Example MySQL
-------------

- db published under GPL
- customers pay a per-server fee
- uses can avoid copyleft of derived software using commercial license
- helps to gain market share
 
Consulting strategy
-------------------

- licences earning a smaller portion of IT investment, while consulting and services continue to rise
Example: enomaly and SpikeSource
- offer consulting
- different scenarios are covered by standardised software stacks
 
Patronage Strategy
------------------

- FOSS participate in order to drive standards and adoption
- commoditise a layer in the software stack
 
Hosted Strategy
---------------

- google and salesforce com

<purserj> Host instances for cash: For an instance www.wsmcarclub.com is drupal
 
Embedded Strategy
-----------------

- Linux is in many embedded systems
- FOSS allows vendors to utilise standards and commodities
- platform and a commodity
Example
 - Linksys router

Questions
---------
- Software patents, how can I protect myself?
- not a FOSS issue, but a software industry issue
 
Strategies
 - for building businesses 

Martin "services is a good strategy"
Martin "Hosting strategy"
 
"Development of CRM etc.. how can the business earn from that? if it's released as GPL"

<kaeru> examples

successful ones 

- Imedio (Nokia and Maemo)
- Fluendo
- MySQL
- Zenoss
- EnFold

What happens when another company does it
 
- Joomla and Mambo

Unsuccessful ones

- netscape
- VA linux
 
Noy "recommendation.. do research and look at other case studies"
"If you there is a good case for business, go ahead"

Note: this topic could be a separate wiki

<marko> Noy says: consider different successes and failures


Building a Business on FOSS
===========================

Patick D. Reidenbach
 
What are SME Concerns?

- Poor infrastructure
- Viruses and other malware
- poor security
- lack of data and funcationality
- expensive software
- very aggressive anti-piracy campaign
"A lot of SMEs don't have IT staff"

<rjian> FOSS is Ideal for SMEs by Patrick D. Reidenbach
very aggressive anti -piracy campaign

<marko> many SMEs do not even have IT people
Patrick says: a lot f SMEs turn to piracy

<kaeru> for 40 workstation office
Total is over USD35,000 on licenses only
office suite, os, file server, mail server
- does not include installation costs

<marko> Patrick has a prior costing...

<kaeru> - not counting other proprietary applications
- not counting maintenance
 
Patrick "Most companies feel they should implement it themselves because they've spent a lot of money already on licenses. But the implementation is a failure."
<marko> TCO studies claim that only about 8% of TCO is initial licensing
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<marko> that's TCO studies from developed countries ...
<purserj> is there any from developing countries?
<kaeru>  
<marko> purserj: I'm not aware of one, but would assume there are
<kaeru> Their company needed to rationalize their software licenses
Cost was too high for proprietary software
We researched and trained on Linux
<purserj> greebo might know
<rjian> ursolutions start out cost was too high for proprietary software
<kaeru> Saw business opportunity
<rjian> - rel
-saw a business opportunity
<kaeru> ok rjian you go..
<marko> ursolutions had an in-house need that they satisfied and then turned into a business model
offering to do for others what they had done internally
"anti-piracy" campaign gave them additional thrust
<rjian> ursolutions conduct a comparison study..

typical SME IT problems

-various licenses 
-obsolete hardware
-incompatible functionality
-incompatible file formats
-many illegal copies(often carelessly installed)
how to shift to linux & open Source?
<marko> the strategy ursolution followed:
<rjian> stage 1 convert servers
<marko> migrate the servers first
only directly affects the IT people
<rjian> stage 2 install Open Office
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<marko> a lot of whining and complaining at first
<rjian> Stage 3 convert workstations
<marko> macros needed conversion, formats were messed up
took some time to iron out the wrinkles
<rjian> stage 4 implement open source application
<kaeru> btw the wiki is now open publically
<marko> Patrick says: you can stop at any stage
<rjian> reasons why open source is ideal for SMES:
-software cost  free and open source
- hardware cost - linux can run on old hardware
<-- greebo has quit (Read error: 110 (Connection timed out))
<rjian> -stability -linux is resistant to viruses.
<marko> most of the company had converted to Linux before the myDoom outbreak
the department that hadn't got "wiped out"

<rjian> Reasons why SMEs dont use open source

1. lack of awareness
2.Can't or don't want to change existing OS

<marko> chalenge to convince business people that this is serious software
"why don't they advertise?"
<rjian> 4 optios for a vital application that runs on windows

-it might run on linux
-there maybe an open source equivalent
- you may use a windows emulator like VMWare, wine and Crossover office
- keep it on windows:install a hybrid system
some software that runs on both linux and windows
-open office
-mozilla
-the gimp
-etc..

some silly reasons user refused to shift to linux

- "where is the neighborhood button?"
- i want to install my favorite screen saver
- i want to download from the internet and play netwok games.
- IT tech staff was worried he would look stupid

<pusakat> s/supid/stupid
<rjian> hehe sir eric
thats stupid
sorry for that
FUD - fear uncertainty Doubt

- you dont know anything about it
informaton is freely available on internet
-what if it doesnt work well?
actual linux and open source performance is openly given by user
- its not backed by any major corporation
reliable open source projects are backed by thousands of programmers.
- you dont get support
support comes from companies like us.
- Itll disappear tomorrow.
genie is already out of the bottle and disappear

Why do IT projects Fail?

-lack of planning and direction
<-- beorn has quit ()
<rjian> -unrealistic expectation
-poor projects management
-inadequate budget
- inadequate management support

How do the ursolutions business do?

- ursolutions are IT consultant
- we help companies develop an IT PLAN
- we help plan the migration
- we provide support