Is Open Source the right model in the Cloud Rush era?

I finally found the time to share the slides for the ApacheCon talk I gave a couple of weeks ago in Austin, Tx.

The topic is pretty ambitious and quite business oriented, although the most technical in my audience will still appreciate the details around how Open Source technologies are powering the Cloud world, and how the DevOps movement is entrenched in strong open source cultural roots.

I hope you’ll take the time to read the preso below and I’d love to hear your feedback below, since I imagine there would be some heated disagreement 🙂

But if you are too lazy even for checking the slides below, here’s the 3 key take-aways from that preso:

1. It’s not Open Source vs. Cloud, it’s Open Source + Cloud, in the way that there would not be Cloud without the economies of scale provided by Open Source and that most SaaS companies are increasingly seeing the value of Open Source contributions (Google, Linkedin, Facebook and the likes are by no chance the biggest contributors)

2. Open Source has won, and it’s no more a positive differentiation (positive incentive) but more like a de facto standard for writing code (especially at infrastructure level), so it’s a negative differentiation (negative incentive) not to be Open Source (e.g. Govmts around the world use increasingly open source first policies in their software provisioning processes). In a way, Open Source is a commodity.

3. There will not be another RedHat, i.e. a $1B company only based on support and services of pure Open Source software. Sure, Hortonworks and the likes can still make a few hundred millions, but the growing technical and market expertise (due to the commoditization) around Open Source will reduce their chances to do a pure open source services play. Furthermore, we see more and more examples of the winning pattern being running a SaaS service and contribute (at least most of) code to the Open Source: this allows you to scale in the cloud and leverage the profitable SaaS business model, while de-risking investments and creating de facto standards by contributing and  leveraging the Open Source ecosystem.

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