open_source_business_case_final

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					   Open Source Business Case




                             FITT
(Fostering Interregional Exchange in ICT Technology Transfer)


               www.FITT-for-Innovation.eu
            Practice in General

 Siruna NV has developed Software for development of mobile
  websites through a dual Open source business model
 Nature of reusability: this model can be easily copied as far as it
  helps to cover development costs by the help of a large and free
  developer community, helps to market the product, quickly sets a
  reference in a rapidly evolving market and succeeds in creating
  value within an open source setting.
 Case is mostly generic
 Quality/Nature of stakeholders: High tech start-up company,
  starting form research results
 Processes related to case: business model, IP management
How we can help you open the
mobile experience.
Who are we?
About Us


   The experts in web-to-mobile: Make Anything Mobile

   Professional Open Source company

   Venture Capital backed startup

   Located in Belgium | UK | US | India | UAE | China




                                                         5
: the   leading OPEN SOURCE platform
                    and
        managed SOLUTION provider
         for mobile web applications
Internet is everywhere

CONTENT




                         USER experience
WEB App’s
Nice USABLE stuff …
 Mobile News             Mobile Search           Mobile Portal




                                                            8




  (POWERED BY SIRUNA)      (POWERED BY SIRUNA)    (POWERED BY SIRUNA)

m.deredactie.be          m.goldenpages.ie           m.zita.be
  (STANDARD WEBSITE)       (STANDARD WEBSITE)     (STANDARD WEBSITE)

www.deredactie.be       www.goldenpages.ie         www.zita.be
Open vs. Closed Source
         OPEN SOURCE                           CLOSED SOURCE

      Revenue from services                  Selling software licenses
      Source code is publically              Source code protected as
     available « Copyleft »                  intellectual property
      Source can be adapted /                Customer can’t get the
     improved                                source code
      Development by a                      Development inside the
     community                               company


  The business models are linked with the license model:
  •GPL/LGPL business models
  •BSD/Apache models
  •Multi license business models: Dual license
Customer value
First Generation Business
Models
                     Revenues are generated through support, consulting,
 Services based      training, documentation



                     A free OS product is used to create a market position for
 Loss leader         the traditional commercial software.




                     Vendors as IBM, Apple, Novell, Oracle.. realize that OS provides a way to
                     compete against Microsoft because:
 Fight competition   • They can reduce R&D costs
                            • Eliminate dependencies on competitor’s technology
                            • Of the access to a large, external development community

                     Example: instead of competing with Symbian, Motorola committed to OS




               11
Siruna OSS strategy


   Is NOT to create a large developer community
          Can be a side effect

          We control it through the Contributor License Agreement. (CLA)


   Disruptive business model
          People can try the code, see the internals

          They buy what they like (quality)

          They can modify the code for their customer

          Create a developer/user pull




                                                                            12
Dual Licensing


     Product available under a regular commercial license for
      commercial customers and under a free software licence
      (AGPL) for those who live by the principles of free software
     The product is technically identical under both licences, but the
      financials and the legal ramifications are different
     It is up to the customer to decide what path he wants to follow
      and what licence to use but restricted by our policy &
      commercial strategy.
     MySQL AB, Sleepycat Software & Trolltech AS use dual
      licensing

             Siruna is the copyright holder
Copyright of Siruna


Necessary          condition for dual licensing.
Gives      us rights and protection
         We decide what license is used by who:
           • Commercial
           • AGPL
         We can introduce “golden lines” or
          credentials.

   Our “golden lines”
       Adapted for Mobile by Siruna
       Google Analytics transformer insert

                                                    14
Affero GPL license


GPL    license:
     Everything that touches it becomes GPL
      (viral)
     If you redistribute a GPL software package,
      you need to publish your code
     Service provider loophole


AGPL    license:
     Closes the MSP loophole
     Software distribution & network access


                                                    15
OSS Sales Funnel




                   16
OSS Marketing




                17
Open Source Trends

   By 2010, Global IT organizations will use OS in 80% of infrastructure
    investments and in 25% of business software investments (Source:
    Gartner).

   OS impact on infrastructure SW is 20 B $ growing to 46 B $ in 2011




                                                   OS infrastructure SW

                   16.000,0

                   14.000,0

                   12.000,0                                                                OS
                                                                                           DBMS
                   10.000,0
                                                                                           AD
                    8.000,0                                                                Security
                                                                                           AIM
                    6.000,0
                                                                                           ITOM
                    4.000,0                                                                Others

                    2.000,0

                        0,0
                              2004   2005   2006     2007     2008   2009    2010   2011




                                                            (Source GIMV )
          18
VC activity

    Increased VC investment in OS:
            2005: 294 M $ was invested
            2006: 475 M $ was invested, up 61% from 2005 (Source: Computer
             Business Review, Feb. 2007)


    Why do VCs invest in Open-Source?
           The increased adoption of OS by corporate users.
           Attracted by the success of Red Hat,:
                Marketcap of 3.8 B $ and .. profitable!
                Revenues increasing very fast: 200 M $ in 2005, 280 M $ in
                 2006 and 400 M $ in 2007
           Belief that there could me more money made from OS than from
            proprietary software
           Lower cost of development
           Also lower cost of sales & marketing due to the viral effect of the
            dvlpt community
           OS leads to better quality assurance, more frequent releases,
            community dvlpt



                                                           (Source GIMV )

         19
M&A activity


    Recent deals:
           There were 35 transactions

           There were 3 significant transactions;

               • Sun acquiring MySQL for 1 B $, EV/S of 14.3 x
               • Yahoo acquiring Zimbra for 350 M $ (email
                 collaboration),
               • Nokia acquiring Trolltech for 153 M $,
               • Citrix acquiring Xensource for 500 M $
               • RedHat acquiring JBoss for 350 M $




                                                     (Source GIMV )

         20
 OSS Facts & Figures


     MySQL           – Database vendor
           Founded in 1995.
           Challenger for Oracle, Sybase, ..
           External VC in 2001:
           Revenues
               • 2002: 6,5 Mio Revenue
               • 2005: 34 Mio Euro
               • 2006: 50 Mio Euro
           Exit 2007: Sun acquiring MySQL for 1 B $,
           2009:   Oracle acquiring Sun


     OpenBravo                – ERP vendor (GIMV investment)
           Founded in 2003. (Univ. of Navarra – 2001)
           External VC in 2006: 4 Mio Euro from SODENA
           Revenue 2007: 1,1 Mio Euro
           External VC in 2008: 9 Mio Euro
           Target 2008: 3,3 Mio Euro
           Target 2010: 24 Mio Euro (requiring 15 Mio Euro investment)


21
Contact Us


FRANK GIELEN, CEO

Zuiderpoort Office Park
Gaston Crommenlaan 10/101
9050 Gent, Belgium

Tel +32 (0)9 331 48 36
contact@siruna.com




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