|By Hal Steger, Alberto Onetti||
|October 1, 2007 08:15 AM EDT||
From a commercial open source company's point-of-view, open source is ideally the ultimate in "grass roots" marketing where people learn about the project by word-of-mouth and where they volunteer their time and effort, resulting in a vibrant community that benefits the company in many ways.
While this ideal may apply to some open source projects, for the vast majority of open source companies, it is not a case of "build it and they will come." Instead, most open source companies need to understand who comprises their community so they can formulate a viable business model. In particular, they need to understand that communities consist of heterogeneous types of people, with their own interests, motivation, needs, and ability.
Open source companies need to identify the groups in their community, decide which ones to focus on, and choose the best way to work with them. This is de rigueur for determining how best to monetize the interest in their software, ideally without disrupting the community spirit that differentiates their software from proprietary offerings. This is where "old school" marketing can help. Obviously these techniques need to be adapted for open source, requiring the blending of traditional marketing techniques and community relations.
Treating a community as an undifferentiated blob can result in failure to generate sustaining revenue as well as alienation of a community. As a community is perhaps the most distinctive component of an open source company, losing its community is tantamount to failure. If the community is not properly nurtured, an open source company's potential won't be realized.
This article suggests a general approach for segmenting a community to aid in formulating a business model and marketing plan to reach a project's potential. Moreover, it uses the example of an open source company, Funambol, Inc., to provide concrete examples of how open source community programs can be effectively used.
Does Open Source Need Marketing & Segmentation?
For many (Cherkoff 2005), open source is meant to be a disruptive business model where the conventional laws of business and marketing don't apply, e.g., it's ideally meant to be the ultimate in "viral marketing" (Rushkoff 1994, Helm 2000, Skrob 2005) or "guerrilla marketing" (Levinson 1984), where only interested parties raise their hands and volunteers give their time and/or money to the cause, and where you don't need to spend much time or money on traditional marketing.
While that may be the case for some open source projects, especially those that don't need to make money, and while it may work for start-ups and early stage projects (Rosenberg 2005), established commercial open source companies need to determine how they can monetize the interest in their software, ideally without disturbing the open source philosophy that differentiates their software from commercial offerings.
This is where time-honored marketing principles and best practices apply (among the others, Baker 2000, Doyle 1998, Kotler 1999 and 2002). This means understanding your community and what makes users tick, determining their needs and interests, and formulating products and services that your organization can offer and that the community is likely to want and buy.
The most successful open source companies such as MySQL, Red Hat, SugarCRM, and Zimbra all do this to a certain extent, albeit in a stylistically different way than pure commercial companies. The sooner an open source company comes to grip with the reality that it needs to practice standard marketing techniques such as segmentation, target marketing, and direct marketing, the better it will be.
Obviously, these techniques need to be adapted and adjusted to take into account the appropriate ways to communicate and interact with open source community members, so we're talking about the blending of two disciplines, marketing and community relations.
A widespread stereotype about open source is that communities mainly consist of hardcode hackers who only contribute code. In reality, communities are comprised of many different types of people, each of whom has their own interests, motivation, needs, and ability to contribute. As a project experiences success and crosses the "chasm" between the early and mainstream stages (Moore 2002), the community is composed not only of "techies" (developers and IT people), the typical early adopters, but increasingly by non-technical people, i.e., end users looking for products and solutions. Moreover, communities are increasingly composed not of individuals but professionals who work in companies such as system integrators, OEMs, and service providers and are involved to further the business objectives of their corporations. The fact that communities have corporate members is relevant because business-to-business marketing requires a different approach than marketing to individuals/consumers.
Communities are really heterogeneous groups that need to be addressed differently: various people and segments require communication through different channels with different messages. An open source company should identify the different groups in the community, decide which ones it's going to address, and choose the best way to leverage the target groups. Community segmentation and marketing are essential for designing effective business models and actions.
The risk of unfocused actions is to de-energize the community, which could result in losing the unique competitive advantage distinguishing open source companies. The community is an open source company's primary distinctive asset and if not properly leveraged and nurtured, the "disruptive" potential (Christensen 1997) can stagnate (Onetti and Capobianco 2005). Just being open source is not itself a guarantee of success; there are plenty of companies without active communities. Anyone can go to Sourceforge and see projects that languish because of minimal community involvement; furthermore, projects are like stars, they can shine for periods of time but if they don't continuously renew their energy, they can burn out. Consider the case of a highly popular and publicized open source project such as Evolution, a one-time alternative to Outlook that has languished.
Recognizing that your community consists of several kinds of people and grouping them according to their needs and profiles has broad implications for the business model in terms of how to best work within each of these groups. This article aims to describe, through case study research, a generic approach for how commercial open source companies can segment their communities to aid in formulating a business model and marketing plan to reach their potential. It's for anyone who works in an open source company or project who's trying to determine a viable business model.
The article is structured in two parts. The first part proposes how an open source company can segment its community. In the second part we will present the experience of Funambol, a provider of open source consumer push e-mail and personal information management (PIM) synchronization. We'll describe how it segmented its community and created nurturing and leveraging open source programs.
Segmenting an Open Source Community
An open source community often consists of an assortment of people, developers, end users, IT people, ISVs, SIs, ODMs, and partners. Segmentation helps by identifying these distinct groups. One question we'll try to answer is how it's possible to segment an open source community.
Note that for this article, we broadly define the use of the term "community" to include everyone who participates in an open source community. This includes people who download project software and documentation, read or post messages to community mailing lists, visit the project Web site looking for project information, and participate in project events such as webinars. This definition of community may be different than the more narrowly defined group of hardcore developer enthusiasts but in our experience, the broader use of the term is more relevant to an open source community. Note that it doesn't necessarily include commercial customers and partners though there's likely to be some natural overlap.
A community can be segmented according to several characteristics. We could refer to demographic variables such as age and technical skills (dividing community members into "techies" and "unskilled" individuals), or psychographic characteristics such as the purpose of community involvement (separating people who operate for business purposes from individuals moved by hobby/volunteering aims). Moreover, for corporate community members, we could segment using typical B2B criteria, e.g., dividing them by company size (discerning SMEs from large corporate), location, industry and/or business type (e.g., distinguishing among service providers, system integrators, independent software vendors, device manufacturers, and so on).
|alberto onetti 04/09/08 09:41:48 AM EDT|
Hi Ross, thank you for the update about Evolution project. You provided to us a really helpful insight.
|Ross Burton 09/28/07 10:21:38 AM EDT|
"Consider the case of a highly popular and publicized open source project such as Evolution, a one-time alternative to Outlook that has languished."
This isn't really true. The Evolution project in the last six months has gained three core maintainers, and just released EDS 1.2/Evolution 2.12.
Evolution has strict time-based release cycles, releasing every six months, and my tools tell me that in the last six months there have been 2018 files changed, 395302 insertions and 214719 deletions. That doesn't look like a stagnating project to me.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 25, 2017 02:15 AM EDT Reads: 828
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Apr. 25, 2017 02:15 AM EDT Reads: 8,978
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Apr. 25, 2017 01:15 AM EDT Reads: 1,288
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Apr. 24, 2017 11:45 PM EDT Reads: 714
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Apr. 24, 2017 11:30 PM EDT Reads: 2,151
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Apr. 24, 2017 11:15 PM EDT Reads: 2,265
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 24, 2017 11:15 PM EDT Reads: 824
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Apr. 24, 2017 11:00 PM EDT Reads: 810
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 24, 2017 10:45 PM EDT Reads: 713
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Apr. 24, 2017 10:45 PM EDT Reads: 1,735
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 24, 2017 09:45 PM EDT Reads: 3,617
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busin...
Apr. 24, 2017 08:15 PM EDT Reads: 454
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 24, 2017 07:45 PM EDT Reads: 2,157
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 24, 2017 06:45 PM EDT Reads: 726
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 24, 2017 04:45 PM EDT Reads: 2,096
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 24, 2017 03:45 PM EDT Reads: 645
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Apr. 24, 2017 03:30 PM EDT Reads: 1,103
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 24, 2017 03:30 PM EDT Reads: 2,554
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 24, 2017 03:00 PM EDT Reads: 1,906
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 24, 2017 02:45 PM EDT Reads: 659