1. Free Software: Driving Innovation
By Knut Yrvin

2. Agenda Economic impact of free and open source software
Empirical studies
Development methods
Examples with Qt
©Nokia 2009

3. FLOSS Impact 2006
The European Commission released a study of the economic impact of Free/Libre or Open Source Software (FLOSS) on the European ICT sector in 2006.
Key findings:
FLOSS potentially saves industry over 36% in software R&D investments
Increased profits, or invest more usefully spent in further innovation
Source:
©Nokia 2009

4. Job demographics
Only 7% of programmers in the US work in packaged software companies
30% work in sectors producing mainly custom software / integration / support
Almost 60% work in the “user sector” - finance, government, manufacturing, retail, etc
Source:
©Nokia 2009

5. Spendings
16% of software spending in the US is on packaged proprietary software (19% in EU)
>50% is in-house software development (30% in EU)
Rest is custom software
Source:
©Nokia 2009

6. 68% incorporated FLOSS in their products in 2006
Rishab Aiyer Ghosh
Licensed under: Creative Commons cc-nd-nc
Source:
©Nokia 2009

7. Gartner predicts 80% will include Free and Open Source software in their products in 2012
©Nokia 2009

8. Take home
You might reduce R&D investments with 34% by reusing software made by volunteers and free or dual license software companies
You might increase your market opportunity with more than 50% targeting in-house and custom development with free software
Source:
©Nokia 2009

9. What's in it for me? Maintenance Development platform n Maintenance
Platform lock-in n
Purchasing proprietary software
Development reuse on all platforms
Reuse
Reuse
Proprietary software
Open Source with Qt
©Nokia 2009

10. Value of reuse Maintenance Development platform n Maintenance
Platform lock-in n
Purchasing proprietary software
Development reuse on all platforms
Reuse
Reuse
Proprietary software
Open Source with Qt
©Nokia 2009

11. Value of cross platform
Maint...
Maintenance M.
Dev... platform n
Development platform n+1
Dev. n+2
Maintenance
Platf... lock-in n
Platform lock-in n+1
Pl.
n+2
Purchasing proprietary software
Development reuse on all platforms
Reuse
Reuse
Proprietary software
Open Source with Qt
©Nokia 2009

12. Thanks KitWare: Bill Hoffman, VP & CTO
VideoLAN: Jean-Baptiste Kempf, Chairman
Ogre: Steve Streeting, Founder & Project Lead (Munich only)
©Nokia 2009

13. Traditional product development
Users identified
Developers identified
COMPETITIVELY BID
CONTRACT DEVELOPMENT
PRODUCT DEVELOPMENT
IN-HOUSE AND
CUSTOM DEVELOPMENT
Time
Project Start
System Delivered
Introducing fellow developers late as in product development, it may exclude the power FLOSS
©Nokia 2009
Jonathan Grudin: The development of interactive systems

14. In-house development or competitive bid with external contributors
Users identified
Developers identified
COMPETITIVELY BID
CONTRACT DEVELOPMENT
PRODUCT DEVELOPMENT
IN-HOUSE AND
CUSTOM DEVELOPMENT
Time
Project Start
System Delivered
User and external developer participates from the start
©Nokia 2009

15. Faster, Better, and Cheaper
Free/Open Source Software Development (F/OSSD) often entails shorter development times that can produce higher quality systems, and incur lower costs than may be realized through developing systems according Software Engineering (SE) techniques. [...]
Internet time and F/OSSD projects also tend to produce incremental software releases at a much faster rate, even to the point of releasing unstable but operational daily system builds. This denotes not only a reduction in product release cycle times compared to Software Engineering practice, but also a significantly restructured life cycle process and process cycle time reduction.
Walt Scacchi from Institute for Software Research University of California, Irvine
©Nokia 2009

16. Development models
First utilising Open Source is not as big change as some engineers and business people believe.
Open Source development might look like in-house customer driven development, where users and developers are identified, working together from project start
But you might introduce users and co-developer outside of your company, participating in the project. That's new, and a challenge for many.
©Nokia 2009

17. New practices and tools
Also learning some new development practices
Online repository (git, gitorious, subversion etc.)
Open lists and IRC channels (where your developers actively participates)
Online bugtracking
Wiki with project description and sharing for howto's guidelines, requirement etc. This in addition to a product page
Be humble
©Nokia 2009

18. Expectations Don't expect immaterially success
It will be a considerable learning experience, especially in the beginning. Don't give up
Seek out new business partners
In several cases, business costumes and municipalities finance open source project together
Better to relay on a professional organisation, then volunteers who might get other interests which grabs their attention.
Do-ocracy can be a strong allay: They who does something decides. Please be humble regarding external contributors.
By using do-ocracy, your engineers may include what paying customers want, which has to come first. Some in the community might reject that. Then they're not in for do-ocracy ...
Be humble and competitive
Do-ocracy explained:
©Nokia 2009

19. Today Qt includes
Webkit – a community originated WebRuntime component which Apple hosts. Integrated in Qt. Used on Nokia phones. Used by Apple and Google.
Phonon – is Qt Multimedia API, co-developed with KDE developers
This list is just a couple of samples
Our list of using FLOSS components in Nokia is long and comprehensive. Qt Development Frameworks is just one such example – enabling you to reach out to hundred of millions of new devices faster, better and cheaper
©Nokia 2009

20. Relation between skills learned in Free Software an a professional career
FLOSS developer community is for most participants a place to “learn and develop new skills”
This skills are not just technical, they are often better learned than in formal courses, and lead to jobs
Rishab Aiyer Ghosh
Licensed under: Creative Commons cc-nd-nc
Source:
©Nokia 2009

21. Business models: Voluntary – Dual License - Support Debian KDE Apache
Mainly one license:
GPL Qt
MySQL
Two licenses:
GPL and
commercial
Qt (with LGPL)
RedHat
Zimbra (MS Exchange competitor)
Mainly two licenses:
GPL & LGPL
©Nokia 2009