Presented at OSBC, this presentation examines the growth opportunity for firms whose primary revenue mechanism is software sales and licensing. Specifically, it compares and contrasts them with data oriented revenue opportunities.

1. Open Source + Big Data=
Big Money
May 2011
10.20.2005

2. http://redmonk.com/public/osbc.pdf
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3. What do these vendors
have in common?
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4. 4

5. These are PwC's
Global Software Top 20
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6. Source: PwC
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7. What else do these vendors
have in common?
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8. All were founded
before 1989
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9. 1989 was twenty-two years ago
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10. Things that happened in 1989
•
The Soviet Union left Afghanistan
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Time and Warner Merge
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The Exxon Valdez oil spill
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Tiananmen Square
•
Rain Man won best picture
•
Sega Genesis is released
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11. Oh, and some show called
Seinfeld premiered
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12. The average age of the
Top 20 Software Companies, in fact, is
47 years
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13. That's partially skewed by the likes
of IBM (1911) NEC (1899!), though
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14. Less outliers? 31 years
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15. So?
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16. Big, older companies outsource risk
By acquiring smaller, younger ones
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17. But if older = bigger
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18. Why is Microsoft the biggest?
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19. And there's a bigger problem
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20. 20

21. Question:
Is Google a software company?
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22. Exactly
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23. 23

24. 24

25. 25

26. 26

27. Growth through software sales
is slowing
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28. Growth through data is not
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29. The Four Stages of
Software Producers
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30. STAGE 1
“The money is in the hardware,
not the software”
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31. STAGE 2
“Actually, the money is in the software”
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32. STAGE 3
“The money is not in the software,
but it is differentiating”
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33. STAGE 4
“Software is not even differentiating,
the value is the data”
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34. What happens when
companies of one stage
compete with another stage
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35. Microsoft's Share Price
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36. Share Price in Context
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37. The Age of Data is upon us
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38. The Age of Software The Age of Data
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39. What does this mean?
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40. Software is a means
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41. What are you bad at?
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42. Customer conversion
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43. If you're in open source,
you're good at distribution
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44. If you're good at
distribution, you're good at
generating data
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45. USE IT
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46. Open Source is not Growth
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47. Open Source enables data
Which enables growth
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48. So if you're in open source
and you're ignoring data
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49. You're doing it wrong
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50. QUESTIONS
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