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                  Siemens Platform for OpenSource
                            Applications
                             (SPOSA).
                                   Jose C. Lacal
                                Product Manager,
                            OpenSource Applications
                            Jose.Lacal@icn.siemens.de


                                                          Jose C. Lacal
SPOSA -19 November 1999               1
                                                        ICN ISA CCI BoIP
 s


                                            Table of Contents


     •     Jose C. Lacal
     •     Introducing GNU/Linux and OpenSource
     •     The numbers behind Open Source
     •     „Competing for the Future“
     •     Open Software + Open Hardware + Open Networks
     •     Market Potential Pyramid
     •     Where is the money?
     •     IBM profits fromOpenSource
     •     The Siemens Platform for OpenSource Applications
     •     Benefits of SPOSA



                                                                  Jose C. Lacal
SPOSA -19 November 1999                             2
                                                                ICN ISA CCI BoIP
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                                                   Jose C. Lacal


     • 1986-1994 First business at age 21.
            – Founder, President of industrial bakery in Miami, FL. Managed 40 employees. US$2 Mill/year sales.
            – In charge of Sales, Customer Care, Marketing and PR.
     • 1995-1996: First ISP in SE Mexico.
            – Founder, investor and Chief Vision Officer. 10 employees.
            – Introduced the Internet culture to this area.
     • 1997-now
            – Siemens ICN Boca Raton. Customer Service engineer, daily contact with large telco operators in the
              US and worldwide.
            – Munich: PM VoIP, developed concept of „Business over IP“
     • These are NOT just ideas. I know business, I know telcos.



                                                                                                           Jose C. Lacal
SPOSA -19 November 1999                                   3
                                                                                                         ICN ISA CCI BoIP
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                                      Introducing OpenSource and GNU/Linux


     • OpenSource software (OSS)
            – Freely distributed with source code
     • Widespread acceptance
            – OSS is at the heart of the Internet:
                    •     Apache ( >65% of all websites)
                    •     DNS and BIND (all name resolution)
                    •     Perl (behind most CGI scripts)
                    •     sendmail (processes 90% of e-mail)
     • GNU/Linux, best example of OSS:
            – Beat common Operating Systems (OSs)
            – Superior stability and usability*
            – GNU/Linux, fastest growing Network OS

                                                                        * - OS of the year, InfoWorld magazine

                                                                                                    Jose C. Lacal
SPOSA -19 November 1999                                        4
                                                                                                  ICN ISA CCI BoIP
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                                   The numbers behind Open Source


     • Red Hat: Linux distributor. IPO 30 days ago. US$90/share.
     • Cobalt: Linux mini-servers. IPO 10 days ago. US$100/share.
     • Hewlett-Packard: entire business unit only for Open Source; free e-speak (broker system) and
       mail server software.
     • Sun Mycrosystems: will release source code of Solaris; free Star Office package; publicly available
       Sparc64 spec files.
     • IBM Consulting Group: 300 out of 1,800 are Linux experts.
     • SCO (Santa Cruz Operation): Linux consulting group.

     • Microsoft was recently declared a monopoly by a US judge. That will generate a cascade of
       interest in Open Source.


                                                                                                    Jose C. Lacal
SPOSA -19 November 1999                               5
                                                                                                  ICN ISA CCI BoIP
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                    Relative (%)
                   opportunity cost

                    100
                                                           „Competing for the Future“
                      90
                                                           • Always-on "IP Tone“
                      80                                   • Telecom + IT "to the wall“
                      70                                   • No more charges for long-distance and local
                      60
                                                             calls
                                                                – Packet-based calls
                      50
                                                                – Circuit-switched calls
                      40                                   • Empowering the individual
                      30

                      20

                      10

                                                                                           Years
-03      -02       -01             01   02   03       04   05     06       07       08

                           Today

                                                                                             Jose C. Lacal
 SPOSA -19 November 1999                          6
                                                                                           ICN ISA CCI BoIP
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                                         Open Software + Open Hardware + Open Networks

 e
y

                                                                                 n                              s
                                                               #           tio                               ple
                                                            er           ni
                                                           y          ef
                                                                        i                                  am
                                                        La           D                                   Ex

                                                   01      Open core standards        WDM, TDM, SONET, etc.
                                                   02      Core equipment             Currently proprietary (Cisco IOS)
    01
emens      02    03   04    05      06   07   08
     01
IPRs
                                                   03      Open equipment API         Parlay Group (http://www.parlay.org)
                                                   04      Open transport standards   ATM, TCP/IP
                                                   05      Open hardware standards    ISA, PCI, VGA, OpenTelecom, etc.

                                                   06      Open source software       Linux, GNU C/C++, Perl. Python
                                                   07      Open source applications   Apache, Open H.323, GNOME, KDE

                                                   08      New business models        [to be created]

                                                                                                                      Jose C. Lacal
          SPOSA -19 November 1999                                     7
                                                                                                                    ICN ISA CCI BoIP
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     Market Potential Pyramid
                                Industry elements.

                                              ?
                                                                        ? ? unknown
                                                                            today
                                          Sensory
                                        augmentation

                                        Avatars, VR,                    Community
                                       on-line auctions                  building


                                 Multimedia content for sale,             Content
                                 real-time IP voice and video.          aggregation

                                 Application and development          Content creation
                                software, specialized hardware         and delivery


                                   Voice, data, video, fax.           Service providers


                                  IP                      ATM         Routers, switches


                           DWDM                               SONET   Wires and fiber


                                                                                            Jose C. Lacal
SPOSA -19 November 1999                              8
                                                                                          ICN ISA CCI BoIP
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                                      Revenue potential / time.                                              Financial analysis.

                                         Un-born, un-named entities.
                    ?? unknown                                                                                                                  Very                     Very
                                                                                                   Huge                Huge
                       today                                                                                                                    low                      low
                                         Un-born, un-named entities.

                    Community          AOL, Compuserve, eBay, eWorlds,
                      building                 ICQ, slashdot
                                                                                                   High                High                      Low                     Low
                     Content                 amazon.com, Yahoo,
                    aggregation                most portal sites

                  Content creation           Inktomi, Microsoft,
                                                                                              Medium                Medium                    Medium                    Medium
                    and delivery            Netscape, SoundBlaster

                                               British Telecom,
                  Service providers                                                                Low               Low                        High                     High
                                                 AT&T, MCI

                                                   Alcatel,
                  Routers, switches                Lucent,
                                                   Nortel                                          Very                Very                     Huge                     Huge
                                                   Dupont,                                         low                 low
                  Wires and fiber                   Ciena




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                                                                                                                                                             Jose C. Lacal
SPOSA -19 November 1999                                   9
                                                                                                                                                           ICN ISA CCI BoIP
 s


                                       IBM profits from OpenSource


     • IBM OpenSource business model
                                                                  Proprietary Solutions
            – Bundle with own solutions
            – Offer support packages                                 Support Contracts
            – Enhance with proprietary extensions                         Websphere
                                                                            Apache
     • Commitment to OpenSource
            – Funding Apache group
            – Porting DB2 to GNU/Linux                                     Proprietary
                                                                           extensions
            – Offering GNU/Linux pre-installed and supported in
                                                                            Bundled




                                                                                                 Services
                                                                  Tools
              IBM servers                                                 OpenSource
                                                                           extensions
                                                                          OpenSource
                                                                          T cl / T k core

                                                                                              Jose C. Lacal
SPOSA -19 November 1999                                 10
                                                                                            ICN ISA CCI BoIP
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                                       The Siemens Platform for OpenSource Applications

                                       SPOSA: Siemens Platform for OpenSource Applications

                                          Currently
      Siemens'                         Siemens' value add
       profit




                                                                                           Proposed
                                            Cost of
                                          commercial
                                          applications            Siemens'
                                                                   profit
                                                                                            Siemens'
                          Total cost




                                                                              Total cost
                                                                                            value add


                                                                                           OpenSource
                                                                                                          Jose C. Lacal
SPOSA -19 November 1999                                      11
                                                                                                        ICN ISA CCI BoIP
 s


                                                  Benefits of SPOSA


     • For Siemens:
            –    Control its own future
            –    Take a leadership position
            –    Offer add-on services
            –    Faster "Time To Revenue“
            –    Offer an "end to end solution"
     • For Customers:
            –    Long-term viability
            –    True adherence to standards
            –    100% customer control via modules (plug and play)
            –    Lower overall prices
            –    „Security by transparency“


                                                                        Jose C. Lacal
SPOSA -19 November 1999                                   12
                                                                      ICN ISA CCI BoIP
 s


                          Backup slides




                                            Jose C. Lacal
SPOSA -19 November 1999        13
                                          ICN ISA CCI BoIP
 s


                                    Support issues
                                                                                                      Deliver and             Close
                                                                           Customer reports          verify solution         Ticket #
• Irish call center?                                                          problem /
                                                                           running a patch.

• Back to back support contracts?
                                                                                                                          Send patch           Yes
                                                                                                                          to customer


                                                                 Update
                                                                               SPOSA's                Open / query               Final
                                           Tier 01 FAQ,                       Call Center              Ticket #                solution?
                                          Knowledge base         Query

                                                                                              Query / update
                                                                                                ticket info
                                                                                                                              No    Send fix
                                                                                                                                    or patch

                                                                 Update        SPOSA's
                                           Tier 02 FAQ,                        Customer
                                          Knowledge base         Query          Service

                                              Test   Verify
                                                                             Pass       Get
                                                                          ticket info   fix


                                                                                                     Vendors' support:
                                         Confirm ticket issue,
                                                                                Vendor's
                                          reproduce problem
                                                                               Contracted              Apache.com
                                                                                Support              PostgreSQL.org
                                                                                                      sendmail.com


                                                                                                                         Jose C. Lacal
SPOSA -19 November 1999                  14
                                                                                                                       ICN ISA CCI BoIP
 s


                           The Siemens Platform for OpenSource Applications




                               User-centered Communities                      06



                                               04        User Applications    05
               SSS         Building Tools

                           SRI (Service Ready Infrastructure)                 03



                                               01          Infrastructure     02
                          Hardware

                                                                                 Jose C. Lacal
SPOSA -19 November 1999                             15
                                                                               ICN ISA CCI BoIP
 s


                                         Phases of SPOSA‘s development
                                                                                  Phase 01 => B10
           App 01          App 03         App 05          App 07         App 09   Ident ificat ion and
                                                                                  select ion of t he
                                                                                  applicat ions t o be
                                                                                  included as basic
                                                                                  component s of
           App 02          App 04         App 06          App 08         App 10
                                                                                  SP OSA for rel 1.0




                                                                                  Phase 02 => B130
           App 01          App 03         App 05          App 07         App 09   Int egrat ion of t he
                                                                                  applicat ions via
                                                                                  common int erface
                                                                                  element s.
           App 02          App 04         App 06          App 08         App 10




                                    Business development services
            s                 Customization services                              Phase 03 => B600
                      Integration and support
                                                                                  Creat ion of a
                                                                                  Siemens-branded
                   App 01      App 03     App 05      App 07        App 09        coherent bundle of
                                                                                  applicat ions. Wit h
                                                                                  support and ot her
                   App 02      App 04     App 06      App 08        App 10        value-added
                                                                                  element s.

                                                                                                     Jose C. Lacal
SPOSA -19 November 1999                                      16
                                                                                                   ICN ISA CCI BoIP
 s


     .




SPOSA v. 1.0 - Module plug-in framework.

                                App
                                                      Interchangeable
                           Application
                                                      modules
                           Application
                          SQL         Perl 5.x
          GNU/LinuxRFC-compliant software
                Global TCP / IP infrastructure

                                                                          Jose C. Lacal
SPOSA -19 November 1999                          17
                                                                        ICN ISA CCI BoIP
 s

                                                New products, new services,
                                                    new applications,                                        Brings revenue
                                                  new revenue streams.                                      immediately and
                                                                                                           in the near future.
                                           Offer saleable products, services and applications.




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                                 RFC-compliant services

                                                                                                            Common code
                                                GNU / Linux                                                     base
                                                                                                            (OpenSource)
                                                             TCP / IP

                                                                                                                               Jose C. Lacal
SPOSA -19 November 1999                                                     18
                                                                                                                             ICN ISA CCI BoIP

				
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