Welcome!

Open Source Cloud Authors: Liz McMillan, Zakia Bouachraoui, William Schmarzo, Elizabeth White, Yeshim Deniz

Related Topics: @CloudExpo, Microservices Expo, Linux Containers, Open Source Cloud, Containers Expo Blog, Apache

@CloudExpo: Blog Feed Post

Big Data and The Open Source Model

Can This Marriage Be Saved?

It is amazing how many open source software companies out there are trying to get hit by the same $1B bolt of lightning that hit MySQL without realizing that the MySQL result is not repeatable.

Looking at the current batch of big data high flyers, from TenGen to Cloudera to Hortonworks, each seems to be vying for the same kind of ubiquitous usage that enabled MySQL to get a more than 20x multiple. What they don't realize is that the failure of early open source acquisitions to deliver substantial value to owners has made buyers much more wary.

Companies like MySQL were valued based on a mystical belief that downloads could be monitized (not unlike the similarly wishful belief in monetizing eyeballs that motivated disastrous dot com acquisitions in the 90s). Moving forward, open source companies will be valued the old-fashioned way: by the viability of their business model.

Here are the top three places most big data open source companies are missing the boat:

  1. Prioritizing business model behind buzz: although buzz is critical for adoption growth, a viable business model trumps all in positioning a company for IPO or acquisition. First and foremost, this means being able to charge significant prices for add-on product pieces that customers want, such as security, clustering and monitoring.
  2. Confusing services with sales: low margin services revenues are no substitute for high quality license revenues. More importantly, companies that build up large services teams often neglect to fully integrate their product, as product integration provides a driver for services engagement. This lack of product maturity in turn prevents customers from being willing to pay much for the product itself - a classic vicious cycle.
  3. Hoping for a desperate buyer: companies that purchased open source players have by and large to translate open source leadership into commercial market share. The open source downloads generate lots of buzz but little license revenue, saddling their owners with an expensive, services-led business. In the immortal words of Mitt Romney, hope is not a strategy (although it *did* turn out to be an ok strategy for the incumbent in that case).

Read the original blog entry...

More Stories By Christopher Keene

Christopher Keene is Chairman and CEO of WaveMaker (formerly ActiveGrid). He was the founder, in 1991, of Persistence Software, a San Mateo, CA-based company that created a new approach for managing data in high-transaction banking and communications systems. Persistence Software investors included Cisco, Intel, Reuters and Sun Microsystems. The company went public in 1999 on the NASDAQ exchange and was sold in 2004 to Progress software.

After leaving Persistence Software in 2005, Chris spent a year in France as chairman of Reportive Software, a Paris-based maker of business-intelligence tools, and as an adjunct professor and entrepreneur-in-residence at INSEAD, a leading graduate business school.

IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...