Open Source Software: Recent and Future Changes, Challenges, and Conundra Henry W. (Hank) Jones III Intersect Technology Consulting -andLaw Office of Henry W. Jones, III Austin, Texas, USA Software Technology Forum, von Neumann Society, Budapest, Hungary 7 April, 2005 Today’s Scope & Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Orientation and Perspective Scope Today Themes Briefly, What Was Open Source Software? Briefly, What Is OSS Now? What Is Changing in OSS? What Are Key Risks for OSS Users & Advocates? Briefly, What Are OSS Management Best Practices? Briefly, “Homework” Resource Suggestions Q&A Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 2 1. Orientation for Me: Audience OSS Experience? Your Role(s) re. OSS? OSS Development Fluency Now? OSS Product Management Fluency Now? Audited Your Company’s OSS Usage? Audited Any Supplier’s OSS Current Usage? Audited Any Business Partner’s OSS Usage? Know An “Awkward OSS Surprise” Story? Deployed OSS Policy? Upgraded OSS Policy? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 3 2. Scope: Out Of Scope Today Which Linux Distribution is Best? OSS Quality/Maturity Debates OSS Total Cost of Ownership Debates OSS Security Debates Particular OSS Admin./Operations/Tools “Open Standards” Challenges Older “Software Law” Riddles: “Mandatory Licensing”; “Patent Pools”, “Look & Feel”, “Clean Rooming”, etc. Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 4 3. Themes for Today (Learning About OSS Through Global Literature and Music) Tristan und Isolde ¿Es la vida el sueno, o el sueno la vida? “/What a long, strange trip it’s been/” Do we “know jack” about OSS variations, trends, vector speeds, and impacts? Who is “feeling the heat” from OSS? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 5 3. Themes: Do You and Your Contacts Really “Know Jack” Now About OSS Strategies and Processes? Does Your or Your Contacts’ Worldview(s) Assume Precise Planning, Personnel Following Corporate Mandates, “Six Sigma,” “Command-and-Control,” and Other Older Corporate Traditions? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 6 3. Themes: Do You & Your Contacts Really “Know Jack” Now About Newer & Varying OSS Product Development Styles & Distribution Channels? Can Your New Software Development Projects and Products Thrive and Survive Without Harnessing That Rebellious, Creative, “DIY” (Do-It-Yourself) Spirit of Innovative, Independent Engineers and the OSS Movement? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 7 3. Themes: Who Is “Feeling The Heat” From The OSS Movement? – Just New-Style, Bleeding-Edge, Pure-Play OSS Vendors, or Everybody? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 8 4. What Was OSS, Originally? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 9 4. OSS “Definition”: Key Attributes Disclose Raw Materials, Design, and Other “Internals” (Source Code) Let Customers, Resellers, and Everybody On The Planet See and Comment Permit Changes by Everybody Permit Further Redistribution by Everybody Share and Share Alike; Give-Back; “The Commons” Big Caveat: Approaches, Assumptions, Vocabulary, Licenses, and Politics Vary Widely! Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 10 4. OSS Potential Benefits Free (No Charge) (Code, Not Services) Source Code “Freedom” (i.e., Availability = Ability To Customize) Ability To Assess Quality (In Theory) Increased Speed To Deployment? 24/7 Global “Community” To Debug/Improve Attracts Tech Talent (“Coolness” Factor) Long-Term I.T. Architecture/Planning: Less Vendor “Lock-In” Evidence of Innovation? Buffer to Offshoring/Outsourcing? Favorable Marketplace Perceptions? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 11 4. What Was OSS? Better Software Development Methodology? Customer Budget-Saver Customer Tool: Avoid Vendor Lock-In Individual Programmers: Skill & Career Development Path Vendors: Speed To Market: New Competitive Accelerator? Global Commerce: Another Impact of the Robust Public Internet Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 12 4. What Is OSS Called Recently, In Business? Clayton Christiansen (Innovator’s Dilemma) “... The development of open-source software is increasingly dominated by corporate interests … to make money.” - BusinessWeek online 8/13/04 “Open source’s influence is far greater than its current market share … might suggest” - Fortune magazine 4/6/04 “Open source continues to surge …” “Tech Trends to Watch in 2004”, Fortune 12/30/03 “… a broader issue that will not go away: how to manage the meeting of two worlds of programming. ...” New York Times 6/14/03 Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 13 5. What Is Open Source Now? New Design/Development Methodology New Career Path for Programmers New Set of Software Products and Suppliers New Worldview New Way Customers Save Costs New Impact on Pricing New Set of Ambiguous Licenses Tangle of New Intellectual Property Issues New Educating of Customers/Prospects New Training For R&D Folks & Execs. New Disclosure, Compliance, & Risks New Business Model Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 14 5. Key OSS Attributes: Who Is Doing It Now? No Longer Just Geeks & Radical Specialty Vendors Heavy Hitters: IBM, C.A., H-P, Sun, PalmSource, WebMethods, Apple, Novell, Sybase, SGI, etc., etc. Re-Purposed Older Proprietary Products Wall St. Journal 7/8/04: “More Old Software Is ‘Open Sourced’ ” New Competitor Category: Non-Profit Foundations Even Microsoft Does It Your Company Already? (Your Employees?) (Are You Really Sure?) Your Suppliers? (Are You Sure?) Your Business Partners? (Are You Sure?) Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 15 5. Key OSS Attributes: How It’s Done (Generally) Open Prior Technology and Product Plan Secrets To Market & All Comers Open Decision-Making Visibility To Participants Open Decision-Making Inclusion To Some Participants (Varies) Grant New Rights To Recipients (Varies!) Caveat: Lots of Variation, Confusion, & De Facto Fluidity, Plus Recent Explicit Experimentation Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 16 5. What Do OSS Activities Look Like Now?: One Actual/Historical View Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 17 5. Open Source Technology Map: Note Steady Progress Now To Legitimization and Mainstream Note: 2 year old survey data shown, so shift each box right two clicks! Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 18 6. OSS Changes: How Is OSS Being Developed These Days? (Tools & Processes) “Anarchy Subsiding”?: Trends Toward New Disciplines, Disclosures, & Quality? Changes: New Testing/QA Discipline (Varies) Changes: New “Provenance” Concerns (e.g., “Contributor License Agreement”) (Varies) Changes: Better Version Control Tools? Changes: Assigned Salaried Corporate Employees, Not Just Volunteer Anonymous Geeks Changes: Vendors Pitching “Professional” OSS Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 19 Software engineering & related disciplines (academic view) Software Engineering Computer Science Information Systems Management Computer Engineering Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved Excerpted from November 2004 IEEE SIGSOFT slides 20 Crowston, Howison and others OSS Participants (1 View) Contributors Inactive Users Active Users Developers/ Leaders Community Illustration is Figure 1, titled “A Very Abstract Picture of an Open Source Project”), from Crowston, Kevin and Howison, James (2004) “The social structure of Free and Open Source software” (University of) Syracuse FLOSS research working paper, available at http://floss.syr.edu (and at http://opensource.mit.edu) Henry W. (Hank) Jones, III Intersect Technology Consulting & Law Office of Henry W. Jones, III 2002 Mountain View Rd., Austin, TX 78703 USA memphishank@aol.com Initiators/ Owners/ Core Developers Software: - Source Code - Binary Files - Documentation Artifacts OSS Participants (Speaker’s View) Contributors Important Influencers: “Community” - Employers of Contributors - Customers / Users - Competitors - Management Gurus -Tools Providers - Investors - Government Regulators - Others Original illustration is Figure 1, titled “A Very Abstract Picture of an Open Source Project”), from Crowston, Kevin and Howison, James (2004) “The social structure of Free and Open Source software” (University of) Syracuse FLOSS research working paper, available at http://floss.syr.edu (and at http://opensource.mit.edu) Henry W. (Hank) Jones, III Intersect Technology Consulting & Law Office of Henry W. Jones, III 2002 Mountain View Rd., Austin, TX 78703 USA memphishank@aol.com; derivative additions 2005 Inactive Users Active Users Developers/ Leaders Initiators/ Owners/ Core Developers Software: - Source Code - Binary Files - Documentation Artifacts 6. OSS Changes: Tech Industry Impacts: Revenue Impacts Are Emerging & Accelerating Microsoft’s S.E.C. Filings “Is open source essentially a disruption that will cause the software business in general to be less profitable 10 years from now than it is today?” quoting Ballmer, “Low Prices And High Complexity”, Information Week, 8/30/04 p. 47 “Government Prospects/Buyers May Defect” 8/9/04 Quest Software 10-Q Prospects’ Perceptions = “Free, Almost As Good, and Everybody Else Does It”? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 23 6. OSS Changes: Tech Industry Impacts: Costs Impacts Are Emerging & Accelerating CIO Magazine 3/03: “The CIO Without OSS Procurement Strategy in ’03 = A Fool” Indian Outsourcing Services Co. C.E.O. to Wall Street: Services Spending Juiced By Increasing OSS Use Trends OSS = Offshoring Alternative to Cost Containment for Software Vendors? “Nearly Everybody Does It”?: Increasing “Safety In Numbers” in OSS Component Deployment Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 24 6. OSS Changes: Customer Requirements & Satisfaction Tech Customers Do OSS Due Diligence Non-Tech Customers Asking Questions and Educating Sourcing Professionals I.T. Buyers Groups Adding OSS to Agendas Leading Non-Tech Users Adopting OSS Filtering, Disclosure, and Opt-Out Policies Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 25 6. OSS Changes: More Oversight Soon?: Software Design/Development Before OSS: Supposedly, Processes Primarily Sequential Plan & CostEstimate Design Test Document Manufacture Market Sell/License Product Lifecycle Develop Design Develop Test Document Customize Install Manufacture Integrate Support Market/ Sell/Ship Henry W. (Hank) Jones, III Intersect Technology Consulting & Law Office of Henry W. Jones, III, Austin, TX, memphishank@aol.com; © HWJ 2005 6. OSS Changes: More Oversight Soon?: Software Design/Development After OSS: Processes More Simultaneous & Blurred!? Design Document Manufacture Market Sell/License Customize Product Lifecycle Test Manufacture ? Design Develop Develop Sell? Test Ship? Install Integrate Support Henry W. (Hank) Jones, III Intersect Technology Consulting & Law Office of Henry W. Jones, III, Austin, TX, memphishank@aol.com; © HWJ 2005 7. OSS = New Set of Risks “Inertia Is Inadequate”: Lack of Prior-Company Precedent in Processes Blended R&D/Experimentation and Production Changing “Legitimacy”/Acceptance “Bar Being Raised”: At Least in U.S., New Corporate Compliance, Disclosure & Risk Management Standards “Learn By Doing”/Shipping!? “The Code Is The Documentation” Some Coders Think “Lawyers = Fools; I.P. = A Mere Obsolete Artifact” and “Management = Fools; Technical Meritocracy Rules” Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 28 7. What are OSS Risks? Who’s Accountable?: No “1 Throat To Choke” Transitional Effort: Planning, Training, etc. Lack of Management Awareness/Oversight? Lack of Long-Term Support? Project “Forks” (Splits) Intellectual Property Infringement Ambiguities in Licenses Future Regulatory Constraints? Security / “Malware”? Novelty (FUD: “Fear, Uncertainty & Doubt”?) Unfavorable Marketplace Perceptions? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 29 7. OSS Risks: Plenty of Litigation (Contrary to Myth and Advocates’ Assumptions) SCO v. IBM, Novell, Red Hat, AutoZone, & Daimler-Benz Are NOT Only OSS Litigation (Techies’ Myths Are Wrong) Hungarian Involvement: Monotype v. Red Hat Munich, Germany case Speaker’s Client’s Suit v. Ex-Employees MontaVista Software v. Lineo Gracenote/CDDB v. Roxio/Adaptec and v. MusicMatch Computer Associates v. Quest Software Progress Software & NuSphere v. MySQL Davidson & Assoc., Inc., d/b/a Blizzard Entertainment & Vivendi Universal Games, Inc. v. bnetd.org, Internet Gateway, Inc., Tim Jung, Ross Combs, & Rob Crittenden DrewTech v. Society of Automotive Engineers Others Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 30 7. OSS Potential Risks: How Can Open Source Enter Your Shop, Perhaps Unexpectedly? Tech Vendors New OSS-Focused Software Vendors “Opening” Older Products Business Partners Your Company M.I.S. & I.T. Services Vendors, including Systems Integrators & Offshore Vendors Hardware & Peripherals Vendors Non-M.I.S. Employees Market Pressures To Cut Costs & Show Innovation Component Suppliers Independent Contractors OSS Support Services Vendors Wireless Devices Vendors’ Upstream 3d Party Technical Support Web Hosting Vendor’s Infrastructure “Skunkworks” Projects Henry W. (Hank) Jones, III Intersect Technology Consulting & Law Office of Henry W. Jones, III; 2002 Mountain View Rd., Austin, TX 78703 memphishank@aol.com; © HWJ 9/1705 8. What are OSS Best Practices? #0: “Think Really Different” #1: Re-Assess Relationships and Processes #2: Prepare Now To Dance “Open” Soon #3: Educate Decision Makers & Influencers #4: Create New OSS Policies and Processes #5: Evaluate Others’ “Open” Outcomes #6: Implement Risk Management Steps #7: Do Personal OSS Homework #8: For Technology Vendors, Conduct “Open Source Planning Retreat” Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 32 8. OSS Best Practice #0: “Think Really Different” It’s No Longer “OSS Is Just For Geeks” OSS ≠ Either/Or (Not “OSS / Proprietary”) It’s Not “OSS Versus Proprietary” (“Dual Paths”) OSS ≠ Either/Or: Some Vendors “Opening” Previously Proprietary Products “No Such Thing As A Free Lunch” ≠ New Reality “Proprietary” Might Have Some OSS Inside Some OSS Can Go Proprietary Later “We Don’t Know Jack” Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 33 8. “Think Really Different” So, Assume Continued Proprietary (“Closed”) Products Dominance For Many Markets But, Watch For Expanded OSS Usage, Even Opportunism Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved Recognize That There Will Be Blends, “Flavor” Choices, Changes, & Ambiguities! 34 8. OSS Best Practice #1: Re-Assess Relationships & Processes Don’t “Assume” You’re Not “Open” Now What Are The Software Processes & Policies of Your Customers, Business Partners, Investors, and Other Key Parties? Can OSS Believed Benefits Be Captured Safely in Your Situation? What Are Particular OSS Risks Here? Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 35 8. OSS Best Practice #2: Prepare Now To Dance “Open” Soon Envision Collective Adaptation: OSS Is MultiDisciplinary (Sourcing, M.I.S., Legal, Finance, H.R., Sometimes P.R./Marketing Impacts) Track Other Companies’ Open Announcements Include OSS Advocate(s) Buy Time/Acceleration and Odds/Savvy/Precision By Using Outside Veterans/Specialists/Expertise Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 36 8. OSS Best Practice #3: Educate Decision Makers and Their Influencers Nobody Likes Awkward Surprises Show Them The Holes In Current Processes & Policies Show Them The Richard Stallman Photo Show Them Scatter-Graphs Showing Actual OSS Project Histories Show Them Competitors’ S.E.C. Filings Show Them OSS-Specific Litigation Pleadings Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 37 8. OSS Best Practice #4: New OSS Policies & Processes Update (Debug) Technology Vendor Policies Identify and Manage Indirect Vendors Update New Hiring & Recruiting Processes Update R&D Employee Evaluation Standards Compare New “Code of Conduct” at Citrix Update I.P. Policies & Agreements Update Email/Web Surfing Policy Update Employee Moonlighting Policy “Other” Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 38 8. OSS Best Practice #5: Evaluate Others’ “Open” Outcomes Breadth & Depth of OSS Myths Mine S.E.C. and Other Disclosures Assess and Quantity P.R./Marketing and H.R. Results Monitor Impacts on I.P. Assets, Evaluation, and Enforcement Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 39 8. OSS Best Practice #6: Implement New Risk Management Steps Revise Procurement Processes/Documents Revise Outbound Licensing/Distribution “The Price of Freedom Is Eternal Vigilance”: Allocate Staff Time to OSS Projects “Embracing The (OSS) Community”: Earning OSS Credibility Via OSS Project Participation Consider OSS-Specific Insurance DMZ in R&D?: Segregate OSS Assets? Consider Self-Audits (For Vendors, With Attorney-Client Non-Disclosure “Privilege”, Per Likelihood of Finding OSS Problems) Other Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 40 8. OSS Best Practice #7: Do Personal OSS Homework Attend a LUG (Linux Users Group) Good “OSS 101” and “OSS History” Books Do You Need “OSS Executive Coaching”? “Tough Love” Reading: Litigation Pleadings, OSS-Specific Tech. Vendor S.E.C. Disclosures Video To Rent: “Revolution OS” Articles by Speaker Other Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 41 8. OSS Best Practice #8: For Tech Vendors, Conduct “Open Source Planning Retreat” Remember “The Mythical Man-Month,” So Start Your OSS Adaptation Now (“Later” Will Be Too Late) Multi-Disciplinary Nature of OSS Challenges Suggests Diverse Attendees Preparation: Agenda, Reading, Questions Facilitation by OSS Veteran Consultant for Progress versus Chaos Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 42 9. Available OSS Homework Resources Process Disclosures at Mozilla.org Excellent Books: - Free For All - Open Voices - Rebel Code - Others Excerpts from Varied S.E.C. Filings by Increasing Number of Publicly Traded U.S. Tech and Other Companies Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 43 9. Homework Resources: Articles by The Speaker Available On The Web Article: Defective Contract Drafting and Administration Triggered Litigation, Bad P.R., and Big Costs to LongStanding Publicly-Traded U.S. Software Vendor/Publisher: www.linuxjournal.com/article.php?sid=6025 (Linux Journal 8/02) Article: OSS Impacts on Tech Mergers & Acquisitions: www.softwarebusinessonline.com/newsletter2_march04. htm#feature2 Article: Software Sales Teams OSS Impacts: www.sterlinghoffman.com/cgibin/index.pl?p=newsletter/articles/article78.html Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 44 10. Q&A Thank You For Your Time and Interest Good Luck! (Though Hard Work & Diverse Expertise Are Necessary For Successful OSS Analysis, Adaptation & Evolution) Henry W. (Hank) Jones III, Esq. Law Office of Henry W. Jones III and Intersect Technology Consulting 2002 Mountain View Rd., Austin, Texas 78703 USA memphishank@aol.com; US 512.695.4673 Copyright 2004 Henry W. (Hank) Jones III Esq. All Rights Reserved 45