Open Source Trends and Why
They Matter to Health Care
Andrew Aitken
Olliance Consulting, a Black Duck Company




10/31/2012          © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   1
We„ve Come a Long Way

                               “Open source, what is the
                              socialist,communist crap!”
                             CTO, Fortune 3 Company -2006

                                                                              “…some new
                                                                            modern-day sort of
                        “Open source is                                       communists”
                       intellectual capital                                    Bill Gates,
                           socialism”                                        Microsoft - 2005
                        Shai Agassi, SAP
                        President - 2005

10/31/2012        © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.            2
Open Source Trends Why Care?


                           What we‟re going to talk about today


              Me
              The State of Open Source
              Economics of FOSS
              Open Source and Healthcare
              Trends


       “Being an open source user is like living in a house inhabited by a large family of industrious
       beavers. Each morning when you wake up, the house is a little different; maybe there is a
       new bathroom, some walls have moved or there’s no floor under your bed."




10/31/2012                      © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.          3
Hotbed of FOSS – Durango, CO

In 2001 Mr. Aitken founded Olliance Group and brought together a team of
industry veterans to provide management and strategy consulting to
companies leveraging open source. In January 2005, Mr. Aitken
spearheaded and continues to host the software industry’s only “think
tank” on the future of commercial open source, now a bi-annual event held
in Napa, CA and Paris, France, and regularly attended by the industry’s
leading CEO’s and visionaries. (thinktank.olliancegroup.com) In
December, 2010, Black Duck acquired Olliance Group and today Mr.
Aitken is GM of Olliance, a Black Duck Company.


                                        Mr. Aitken has participated as an expert witness on the issues of open source
                                        to the California Senate and been an invited guest lecturer at Stanford’s
                                        Entrepreneur program. Andrew has chaired and spoken internationally at
                                        multiple industry and government conferences, is on the Board of Advisors of
                                        SugarCRM, Actuate, DotNetNuke, and Funambol and has personally worked
                                        with companies such as: IBM, Barclays, Intel, SAP, the U.S. Navy, and others,
                                        assisting them with developing their open source strategies. Further, in
                                        October 2009, Andrew was voted one of the most influential people in open
                                        source by a survey of peers.



 10/31/2012                      © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.                   4
About Olliance Consulting,
               a Division of Black Duck


  Open Source Strategy: Our Experience, Your Success
       The world’s leading organizations turn to Olliance Group to create
       and implement open source strategies to achieve business results.
       With more than a decade of experience and hundreds of
       engagements assisting companies ranging from start-ups to the
       world’s largest corporations, Olliance creates innovative open
       source strategies for business success.
       Founder and host of the Open Source Think Tank


                         Over 600 engagements




10/31/2012               © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   5
About Black Duck Software




             Acquire      Approve                 Catalog                          Audit       Monitor

                       The Industry Leader in FOSS Enablement

                                  Over 1000 Customers




10/31/2012                   © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.             6
The State of Open Source


                        Open Source
developing, licensing, distributing, acquiring and consuming software

                    Open Source Ethos
    collaboration, transparency, meritocracy and licensing model

                Open Source Innovation
   The collaborative and transparent creation or improvement of
                  products, technologies or ideas.
Open Source the IT Catalyst




Open Source is a vital facilitator of innovation and fundamental “market maker” of
technology adoption, and will continue to have a dramatic impact on all segments of IT
The Economics of FOSS


Moving from Scarcity to Abundance
  Scarcity = Limited Resources vs. Unlimited Wants




10/31/2012                     © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   9
The Mobile Ecosystem




• >18,000 cumulative projects
• 2X growth each of last 3 years
• 10,000 new in 2011 alone!




  10/31/2012                   © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   10
Generation One
Generation Two
Generation Three
Generation Four
FOSS Trends




10/31/2012        © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   15
Trends– Coexisting Feast and Famine


• Abundance
   – Over 2,000 repositories
   – 100s of forges
   – Maturation and proliferation
     causing:
        • Balkanization
        • Sourcing and evaluation challenges
        • Brand confusion


• Scarcity
   – Those same developers that drive
     abundance are themselves, scarce
   – Demand outstripping availability
Trends - Complexity


                                      Vendor




                 Project
                                      Project

                                                Android        GENIVI

                             Integrators
                           & Small Support
                              Providers
                                                        Linux
                                                     Distributions

End Users
Follow the Money




10/31/2012          © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   18
Follow the Money




             Total private investment in open-source-related vendors has surpassed
             $4bn since 1997 – from 543 deals and 216 different vendors.

10/31/2012                    © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   19
VC Insights



   -
                     Emphasis on Integrating Building Blocks

   Recent -

                      $25M                  $100M              $11.25M

Investment Focuses
• Accumulating developers
• Code assembly and management
Investment Themes
• Developers/Community greatest assets
                                                               $12m
• Code assembly/management lower risk, better ROI
Inner-source


  Inner source - the application of select elements of the
  ethos and culture, processes and methodologies and
  tools of open source software in a corporate
  environment.

  Inner source applies an open, transparent and
  meritocratic model of collaboration to corporate software
  development and innovation initiatives to enhance their
  effectiveness, timeliness and ROI.

10/31/2012          © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   21
Inner-source




Key Benefits:
            Broader innovation base and faster time to innovation
            Improved code re-use, standardization and quality
            Cross-org visibility: code, projects, skillsets
            Cross-org collaboration, buy-in
            Developer engagement, productivity & morale




10/31/2012              © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   22
Inner-source



Key Characteristics
          Open, transparent development processes
          Company sponsored, but self-organized and led by
           evangelists/champions
          Meritocracy regarding contributions
          Integration with standard development tools
          Utilize central repository, forge or catalog of components
          Plus search tools and dashboards



10/31/2012             © Copyright 2012 Black Duck Software, Inc. All Rights Reserved.   23
Inner-Sourcing Forge.mil


- 15,000+ DoD developers, IT experts, and users sharing
  lessons learned, best practices, and solutions          87% Savings!
- Over 700 development efforts
- Over 100 sub-communities
- 1,700 software releases available
- Contributions include over
      • 144,000 software commits
      • 86,000 downloads
      • 11,000 discussion posts
      • 66,000 documents
      • 7,200 wiki pages
      • 1,600 software repositories
and Growing . . .
“Super Communities”

   Aligned around a vertical industry platform
   Collaboration on lowest-value software
                                                           Education
   Self-organized ecosystem and supply chain
   Coop-etition model

                                                                Automotive
Healthcare




Aerospace                                                            Finance
  Eclipse - Polarsys
                                                                  Lodestone
                                                  - Open Source for Capital Markets and Beyond
Silicon         OSVs, M/W, H/W, Services   Tier I   OEMs
                                                           GENIVI Alliance




          and over 100 others
Foundations

                                                             The
          Copyleft
           Strong




                                                             Foundation
                                  Linux Kernel



                                                               Openstack                      Firefox
          Copyleft
           Weak
License




                                                                      The Apache Foundation
          Copyleft
           Non-




                                                                                                        GENIVI



                                                                   Eclipse            OSEHRA
            Permissive




                                                                                                             Android


                                   Opinion        Single           Committee-          Commercial            Members
                         Ad Hoc                                                                                        Closed
                                   Leaders       Moderator           Based              Support                Only
                                                 Governance Model (how contributions are managed and accepted)
Open Source - Beyond Technology




   Open Source
Biomedical Research




                                       Project Haystack

Open Source Trends and Why They Matter to Health Care

  • 1.
    Open Source Trendsand Why They Matter to Health Care Andrew Aitken Olliance Consulting, a Black Duck Company 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 1
  • 2.
    We„ve Come aLong Way “Open source, what is the socialist,communist crap!” CTO, Fortune 3 Company -2006 “…some new modern-day sort of “Open source is communists” intellectual capital Bill Gates, socialism” Microsoft - 2005 Shai Agassi, SAP President - 2005 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 2
  • 3.
    Open Source TrendsWhy Care? What we‟re going to talk about today  Me  The State of Open Source  Economics of FOSS  Open Source and Healthcare  Trends “Being an open source user is like living in a house inhabited by a large family of industrious beavers. Each morning when you wake up, the house is a little different; maybe there is a new bathroom, some walls have moved or there’s no floor under your bed." 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 3
  • 4.
    Hotbed of FOSS– Durango, CO In 2001 Mr. Aitken founded Olliance Group and brought together a team of industry veterans to provide management and strategy consulting to companies leveraging open source. In January 2005, Mr. Aitken spearheaded and continues to host the software industry’s only “think tank” on the future of commercial open source, now a bi-annual event held in Napa, CA and Paris, France, and regularly attended by the industry’s leading CEO’s and visionaries. (thinktank.olliancegroup.com) In December, 2010, Black Duck acquired Olliance Group and today Mr. Aitken is GM of Olliance, a Black Duck Company. Mr. Aitken has participated as an expert witness on the issues of open source to the California Senate and been an invited guest lecturer at Stanford’s Entrepreneur program. Andrew has chaired and spoken internationally at multiple industry and government conferences, is on the Board of Advisors of SugarCRM, Actuate, DotNetNuke, and Funambol and has personally worked with companies such as: IBM, Barclays, Intel, SAP, the U.S. Navy, and others, assisting them with developing their open source strategies. Further, in October 2009, Andrew was voted one of the most influential people in open source by a survey of peers. 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 4
  • 5.
    About Olliance Consulting, a Division of Black Duck Open Source Strategy: Our Experience, Your Success The world’s leading organizations turn to Olliance Group to create and implement open source strategies to achieve business results. With more than a decade of experience and hundreds of engagements assisting companies ranging from start-ups to the world’s largest corporations, Olliance creates innovative open source strategies for business success. Founder and host of the Open Source Think Tank Over 600 engagements 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 5
  • 6.
    About Black DuckSoftware Acquire Approve Catalog Audit Monitor The Industry Leader in FOSS Enablement Over 1000 Customers 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 6
  • 7.
    The State ofOpen Source Open Source developing, licensing, distributing, acquiring and consuming software Open Source Ethos collaboration, transparency, meritocracy and licensing model Open Source Innovation The collaborative and transparent creation or improvement of products, technologies or ideas.
  • 8.
    Open Source theIT Catalyst Open Source is a vital facilitator of innovation and fundamental “market maker” of technology adoption, and will continue to have a dramatic impact on all segments of IT
  • 9.
    The Economics ofFOSS Moving from Scarcity to Abundance Scarcity = Limited Resources vs. Unlimited Wants 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 9
  • 10.
    The Mobile Ecosystem •>18,000 cumulative projects • 2X growth each of last 3 years • 10,000 new in 2011 alone! 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 10
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
    FOSS Trends 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 15
  • 16.
    Trends– Coexisting Feastand Famine • Abundance – Over 2,000 repositories – 100s of forges – Maturation and proliferation causing: • Balkanization • Sourcing and evaluation challenges • Brand confusion • Scarcity – Those same developers that drive abundance are themselves, scarce – Demand outstripping availability
  • 17.
    Trends - Complexity Vendor Project Project Android GENIVI Integrators & Small Support Providers Linux Distributions End Users
  • 18.
    Follow the Money 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 18
  • 19.
    Follow the Money Total private investment in open-source-related vendors has surpassed $4bn since 1997 – from 543 deals and 216 different vendors. 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 19
  • 20.
    VC Insights - Emphasis on Integrating Building Blocks Recent - $25M $100M $11.25M Investment Focuses • Accumulating developers • Code assembly and management Investment Themes • Developers/Community greatest assets $12m • Code assembly/management lower risk, better ROI
  • 21.
    Inner-source Innersource - the application of select elements of the ethos and culture, processes and methodologies and tools of open source software in a corporate environment. Inner source applies an open, transparent and meritocratic model of collaboration to corporate software development and innovation initiatives to enhance their effectiveness, timeliness and ROI. 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 21
  • 22.
    Inner-source Key Benefits:  Broader innovation base and faster time to innovation  Improved code re-use, standardization and quality  Cross-org visibility: code, projects, skillsets  Cross-org collaboration, buy-in  Developer engagement, productivity & morale 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 22
  • 23.
    Inner-source Key Characteristics  Open, transparent development processes  Company sponsored, but self-organized and led by evangelists/champions  Meritocracy regarding contributions  Integration with standard development tools  Utilize central repository, forge or catalog of components  Plus search tools and dashboards 10/31/2012 © Copyright 2012 Black Duck Software, Inc. All Rights Reserved. 23
  • 24.
    Inner-Sourcing Forge.mil - 15,000+DoD developers, IT experts, and users sharing lessons learned, best practices, and solutions 87% Savings! - Over 700 development efforts - Over 100 sub-communities - 1,700 software releases available - Contributions include over • 144,000 software commits • 86,000 downloads • 11,000 discussion posts • 66,000 documents • 7,200 wiki pages • 1,600 software repositories and Growing . . .
  • 25.
    “Super Communities”  Aligned around a vertical industry platform  Collaboration on lowest-value software Education  Self-organized ecosystem and supply chain  Coop-etition model Automotive Healthcare Aerospace Finance Eclipse - Polarsys Lodestone - Open Source for Capital Markets and Beyond
  • 26.
    Silicon OSVs, M/W, H/W, Services Tier I OEMs GENIVI Alliance and over 100 others
  • 27.
    Foundations The Copyleft Strong Foundation Linux Kernel Openstack Firefox Copyleft Weak License The Apache Foundation Copyleft Non- GENIVI Eclipse OSEHRA Permissive Android Opinion Single Committee- Commercial Members Ad Hoc Closed Leaders Moderator Based Support Only Governance Model (how contributions are managed and accepted)
  • 28.
    Open Source -Beyond Technology Open Source Biomedical Research Project Haystack

Editor's Notes

  • #3 Start with VC storyWe’ve come a long way… FOSS is becoming the FIRST choice of technology, it is running our planes, our trains and our automobiles and not the least powering a revolution in healthcare through initiatives like OSEHRA and many othersAs the expression goes, “Software is eating the world” and open source is leading the way
  • #4 What I’m going to talk about today is some of the key industry trends and dynamics impacting the open source ecosystem today:Me – a little background so that you understand what I say is like as if it was written on stone tabletsState of FOSS – where we are in the evolution of FOSSEconomics – the financial impact of FOSS and how it has changed the software ecosystemFOSS and EHR – where FOSS plays in healthcareMajor trends impacting FOSS adoption and their impact on healthcare
  • #5 I live in the hotbed of open source Durango, CO,do any of you know where that is?It’s a little ski resort and old west town in southern Colorado where I moved with my family a couple of years after spending 25 years near S.F.
  • #6 FOSS SDLC management
  • #8 SOME of the fundamentals of open source are:Developing – collaborative, transparent and meritocratic wayLicensing – freedom to modify and distribute softwareDistribution – frictionless distribution Acquiring – download and useConsuming – use, contribute, publish your ownLet’s talk about Innovation – in the early days it was about “good enough”, lower cost, and disintermediation, now people and companies are realizing that open source can DRIVE technology innovation (hadoop, nosql movement) and computing models (Inner source)Commoditizer
  • #9 All right, now that the intro is over lets get on to the main contentToday, companies with outdated hierarchical and closed development models are chasing more innovative companies who are incorporating open source, open,transparent and agile development models and leveraging and engaging withexternal and communities. By 2016, FOSS will be included in 99% of global 2000 enterprises software portfolios With 100% enterprise penetration, being a core underpinning of all new major technologies from virtualization to mobile, big data and cloud computing, along with the rapid influx of end users into, and driving, communities, open source is the most important fundamental technology and way of computing today.
  • #10 Supply whether or not there is demand Long tail economics – think about this, what other source of economic value can exist and flourish like this?Jeff Bezos – Amazon - $65mDue to abundance developers skills have changed from writing completely new code to seekers and assemblers – more effeciency
  • #12 Gen 1. the advent of the individual innovators/originators – Richard Stallman, Linus, Eric Raymond, Bruce PerensCharacterized by extremism – necessary to break through the current status
  • #13 Gen 2. the advent of “commercial” open source innovators – Larry Augustin, Marten Mickos, Bob young, Eric Fleury, Rod Johnson
  • #14 Gen 3. traditional vendors start getting engaged – VMWare & Spring, Rackspace and OpenStack, Yahoo and Hadoop, Facebook and Cassandra and Hive, IBM - Linux
  • #15 Gen 4. Now it’s the end users time – VA and OSEHRA, NYSE and OpenMAMA, Nasa – lots of FOSS, Airbus and Polarsys, JP Morgan and CDS and OpenMAMA, BMW and Genivi
  • #17 AbundanceThe maturation and proliferation of FOSS is causing sourcing and management challenges for vendors and consumers alike.ScarcityThe developers themselves are not scarce but their capacity for contributing to individual and multiple projects is limited and can constrain growth of communities. Also, the development of a commercial community takes tremendous financial and human resources and time.
  • #18 End users can obtain code/support for MySQLAs a commercial product from OracleAs part of standard Linux distributionsFrom a range of smaller integrators and support providersDirectly from the project repositoryNote that they can also (in theory) contribute to the project as well
  • #21 Meteor is an open source framework that promises to help developers quickly build rich and responsive applications using JavaScript.
  • #26 How many of you drive a car? How many of you bought one in the last 2 years?Super or End-User driven communities are one of the latest trends in open source. Their formation can have a tremendous affect on multiple constituencies:Industry segment – the existing industry segment has to learn new ways of developing and deploying technologies and business models, while potentially supporting existing customers who are not participating in the new initiative, disruption can occur when new industry participants are facilitated by an open source initiativeOpen source startups and innovation –open source companies can be either negatively impacted by industry consortia open sourcing a competitive technology to what they’re monetizing or positively if their technology is adopted by the consortiaTraditional technology vendors – see aboveAligned around a vertical industry platform – a “community of communities”Self-organized ecosystem and a supply chain usually driven by a consortium or alliance of key industry playersCollaboration on lowest value-add non-differentiated software Coop-etition model to achieve industry-wide economies of scaleCollaborative, transparent community / meritocracy-based development styleReduces dependency on any single entity and increases rate of innovation and adoption
  • #27 GENIVI is a non-profit alliance committed to driving the broad adoption of an In-Vehicle Infotainment (IVI) SW reference platformTarget non-differentiating elements of the IVI software / platform stackDeploy classic FOSScontribution & distribution model, building upon standards Members represent billions of $$$ in products, solutions and services
  • #28 Linux: The free software kernel for the GNU/Linux operating systemThe Linux Foundation: non-profit consortium dedicated to fostering the growth of Linux, and promoting standardization and technical collaboration of Open SourceOpen Stack: the leading open source Cloud management platformFirefox: the leading open source browser – part of the Mozilla projectThe Apache Foundation: provides support for the Apache community of over 100 open-source software projects, covering code, licensing, governance Genivi: non-profit industry alliance committed to driving the broad adoption of an In-Vehicle Infotainment (IVI) open-source development platformEclipse: IDE environment, platform and frameworkOSEHRA:  supports an open, collaborative community of users, developers, and companies engaged in advancing electronic health record software and health information technology.Android: mobile applications platformVANITY Foundations