Presentation is loading. Please wait.

Presentation is loading. Please wait.

Digital Economy P1 - Software P. Bakowski

Similar presentations


Presentation on theme: "Digital Economy P1 - Software P. Bakowski"— Presentation transcript:

1 Digital Economy P1 - Software P. Bakowski

2 P. Bakowski 2 Digital systems analog hardware digital hardware digital firmware middleware software converters ADCDAC analog signals operating system

3 P. Bakowski 3 OS origins $ $ Multix Unix Linux MS-DOS VMS Win/NT Mac-OS Windows BeOS WinXP OS-X 1970 $0 ? Vista Vista 0.5 bln sold Win 7 Win

4 P. Bakowski 4 OS code value Unix Linux 2.6 kernel with graphic interface $1 billion to develop modern Linux distribution by conventional proprietary means person-years

5 P. Bakowski 5 Soft-ware development tools softwaresoftware Software: software development tools software development tools compilers, linkers and machine code generators IDEs compilers, linkers and machine code generators IDEs script languages (NetBeans, Eclipse,..) script languages (NetBeans, Eclipse,..) Java, Python, PHP, Perl,.. Java, Python, PHP, Perl,..

6 P. Bakowski 6 CAD tools – for everything ! manufacture

7 P. Bakowski 7 CAD tools – fields of use The Architecture, Engineering, and Construction (AEC) Industry: Architecture Architecture Architectural engineering Architectural engineering Interior Design Interior Design Interior Architecture Interior Architecture Building engineering Building engineering Civil Engineering and Infrastructure Civil Engineering and Infrastructure Construction Construction

8 P. Bakowski 8 CAD tools – fields of use Roads and Highways Roads and Highways Railroads and Tunnels Railroads and Tunnels Water Supply and Hydraulic Engineering Water Supply and Hydraulic Engineering Storm Drain, Wastewater and Sewer systems Storm Drain, Wastewater and Sewer systems Mapping and Surveying Mapping and Surveying (Chemical) Plant Design (Chemical) Plant Design Factory Layout Factory Layout Heating, Ventilation and air-conditioning (HVAC) Heating, Ventilation and air-conditioning (HVAC)

9 P. Bakowski 9 CAD tools – fields of use Mechanical (MCAD) Engineering: Automotive - vehicles Automotive - vehicles Aerospace Aerospace Consumer Goods Consumer Goods Machinery Machinery Ship Building Ship Building Bio-mechanical systems Bio-mechanical systems

10 P. Bakowski 10 CAD tools – fields of use Electronic Design Automation (EDA) : Electronic and Electrical (ECAD) Electronic and Electrical (ECAD) Digital circuit design Digital circuit design Electrical Engineering Electrical Engineering Power Engineering or Power Systems Engineering Power Engineering or Power Systems Engineering Power Systems CAD Power Systems CAD Power analytics Power analytics

11 P. Bakowski 11 CAD tools – fields of use Manufacturing process planning Manufacturing process planning Industrial Design Industrial Design Software applications Software applications Apparel and Textile CAD Apparel and Textile CAD Fashion Design Fashion Design Garden design Garden design Lighting Design Lighting Design

12 P. Bakowski 12 CAD Catia and Airbus 380 In 380 some 300 of the 500 km of wiring use aluminum instead of the conventional copper as the current conductor. In 380 some 300 of the 500 km of wiring use aluminum instead of the conventional copper as the current conductor. Thus, 20 percent of the conventional weight has been saved. Aluminum itself is 50 percent lighter than copper. Thus, 20 percent of the conventional weight has been saved. Aluminum itself is 50 percent lighter than copper. The A380 is the first aircraft to use the technology for small sections, under 5 sq mm. and for the connections. The A380 is the first aircraft to use the technology for small sections, under 5 sq mm. and for the connections. There are about 100,000 electrical links on the A380 compared with 60,000 on the A340. There are about 100,000 electrical links on the A380 compared with 60,000 on the A340. BUT ! BUT !

13 P. Bakowski 13 Catia - Dassault Catia CAD operators didn't know how to change the material properties from copper to aluminium, or that Catia is unable to distinguish?

14 P. Bakowski 14 Scientific software Scientific software is used to build and analyze complex mathematical models of different objects including Scientific software is used to build and analyze complex mathematical models of different objects including solid state mechanics, solid state mechanics, micro-biology, genetics, micro-biology, genetics, drug modeling, drug modeling, wave propagations, wave propagations, and many others and many others

15 P. Bakowski 15 Scientific software - Mathematica Long recognized as the world's most powerful mathematical software system, Mathematica has steadily grown in breadth and depth to become today an unparalleled platform for all forms of computation. Long recognized as the world's most powerful mathematical software system, Mathematica has steadily grown in breadth and depth to become today an unparalleled platform for all forms of computation. With thousands of original algorithms and a tightly unified overall design, Mathematica spans projects of all sizes—from simple calculator operations and educational demonstrations to large-scale systems deployment and maximum- power supercomputing. With thousands of original algorithms and a tightly unified overall design, Mathematica spans projects of all sizes—from simple calculator operations and educational demonstrations to large-scale systems deployment and maximum- power supercomputing.

16 P. Bakowski 16 Free scientific software Many scientific tools and packages are freeware – for example Nevron 3DChart for ActiveX is a charting tool using the OpenGL 3D engine Many scientific tools and packages are freeware – for example Nevron 3DChart for ActiveX is a charting tool using the OpenGL 3D engine

17 P. Bakowski 17 Business software data-base middleware applications

18 P. Bakowski 18 Business software: OpenERP OpenERP is an ERP/CRM system available under the GNU General Public License. A a complete ERP and CRM system A a complete ERP and CRM system It has separate client and server components. It has separate client and server components. XML-RPC interfaces are available. XML-RPC interfaces are available. Among the OpenERP features are management accounting, financial accounting, inventory management, sales and purchase management, tasks automation, Human Resource Management, marketing campaigns, help desk, and point of sale. Among the OpenERP features are management accounting, financial accounting, inventory management, sales and purchase management, tasks automation, Human Resource Management, marketing campaigns, help desk, and point of sale.

19 P. Bakowski 19 Software revenues (2008) Global software revenue $190.7 billion $176.3 billion 2007, software revenue share total revenue software revenue growth

20 P. Bakowski 20 Open source Software development is undergoing a major change from a fully closed software to open source software Software development is undergoing a major change from a fully closed software to open source software The amount of open source code and projects is growing at an exponential rate expanding into new domains and applications. The amount of open source code and projects is growing at an exponential rate expanding into new domains and applications. volume : number of lines time

21 P. Bakowski 21 What is source software ? Source code Source code Executable code Executable code compilation Most people have never seen the source code !

22 P. Bakowski 22 Software economy (editors) Software economy Software economy => software development & edition => software development & edition

23 P. Bakowski 23 Software economy Software economy Software economy => software development & edition => software development & edition => to invest – programmers work => to invest – programmers work => to sell : return on investment (huge or null) => to sell : return on investment (huge or null) return on investment = (revenue – investment)/investment Example: investment: (1) $10000, (2) $10000, revenue: (1) $11000, (2) $21000

24 P. Bakowski 24 Free software versus open source Free software foundation: Free software foundation: Free to execute the program Free to execute the program Free to access the source code of the program Free to access the source code of the program Free to redistribute the copies Free to redistribute the copies Free to improve the code Free to improve the code The Free Software Foundation (FSF) is a non-profit corporation founded by Richard Stallman on 4 October 1985 to support the free software movement, a copyleft-based movement which aims to promote the universal freedom to distribute and modify computer software.

25 P. Bakowski 25 Free software versus open source Open source initiative: Open source initiative: Free distribution of source code Free distribution of source code Modifications and improvements allowed Modifications and improvements allowed Non-discrimination of persons, applications Non-discrimination of persons, applications Distribution of license with the program Distribution of license with the program The Open Source Initiative (OSI) is an organization dedicated to promoting open source software. The organization was founded in February 1998, by Bruce Perens and Eric S. Raymond, prompted by Netscape Communications Corporation publishing the source code for its Netscape Communicator product. In August 1998 the organization added a board of directors.

26 P. Bakowski 26 What is license (copyleft) Copyleft describes the practice of using copyright law to remove restrictions on distributing copies and modified versions of a work for others and requiring that the same freedoms be preserved in modified versions Copyleft describes the practice of using copyright law to remove restrictions on distributing copies and modified versions of a work for others and requiring that the same freedoms be preserved in modified versions without copyleft weak copyleft strong copyleft original modified A AB A AB A AB Copyleft licenses viral copyright licenses

27 P. Bakowski 27 Copy is not reproduction In the Analog World: In the Analog World: =>copy is degraded version of the original (imitation) =>copy is degraded version of the original (imitation) In the Digital World: In the Digital World: =>copy is identical with the original =>copy is identical with the original production of original => reproduction production of original => copy marginal cost almost null

28 P. Bakowski 28 Copy – marginal cost (~null) Note that the marginal cost may change with volume, and so at each level of production, the marginal cost is the cost of the next unit produced. Note that the marginal cost may change with volume, and so at each level of production, the marginal cost is the cost of the next unit produced. MC copy price quantity re-production MC price quantity

29 P. Bakowski 29 Contribution & retribution Business model for free software Business model for free software => service model => service model => retribution => retribution contributionproduct market fun nothing ? “free” does not mean without value

30 P. Bakowski 30 Hacker - Merchant - Customer Three kinds of interest: Three kinds of interest: recognition, gratification,.. recognition, gratification,.. expectancy of gains,.. expectancy of gains,.. wish to save the money,.. wish to save the money,.. fun, hobby, gratification,.. work, effort, business, gain,.. acquisitions, expenses, savings,..

31 P. Bakowski 31 Open software « levels » Three kinds of open software: Three kinds of open software: business software - applications,.. business software - applications,.. middle-ware: components, platforms,.. operating systems operating systems operating systems middleware business software

32 P. Bakowski 32 Four business models service based model - indirect valorization service based model - indirect valorization added value - guarantee sales added value - guarantee sales double license – discrimination of users double license – discrimination of users cost sharing – need of leading company cost sharing – need of leading company

33 P. Bakowski 33 Free software chronology volunteer - fun volunteer - fun business - gain business - gain customer – savings customer – savings time 3 periods and three computer related professions: 3 periods and three computer related professions: Computer scientists and hackers Computer scientists and hackers Software editors business Software editors business Customer associations Customer associations

34 P. Bakowski 34 From computer funs to open software hackers - volunteers time free software with no market Internet acceleration open source merchants standard protocols, OS maturity

35 P. Bakowski 35 Open source software 3 The business and industry is going to adopt the open source software in the domain of infrastructure: network protocols and tools network protocols and tools operating systems operating systems development platforms development platforms office tools office tools Proprietary software is going to be open: Proprietary software is going to be open: Java (SUN) Java (SUN) Symbian (NOKIA) Symbian (NOKIA)....

36 P. Bakowski 36 From infrastructure to applications customer coalition time mutualization by demand open source merchants

37 P. Bakowski 37 From open source to applications 4 From the externalized business and industrial software and services => to the reintegration of the software The clients start to control and use the business software based on open source solutions/modules. From mutualization by supply to mutualization by demand they adapt/develop in- house solution from open source software

38 P. Bakowski 38 Mutualization by demand 5 Cooperative development of application/business oriented open source software. Customer designed software/components To mutualize: to organize or convert (a business enterprise) so that customers or employees own a majority of share

39 P. Bakowski 39 From utilization to development Small companies start to develop/integrate their own application software built on open platforms with available software components. Small companies start to develop/integrate their own application software built on open platforms with available software components. In this way they reintegrate the IT competence into the company resources In this way they reintegrate the IT competence into the company resources Customer is free to use/develop business software available for free. business source code use development

40 P. Bakowski 40 Projects: Debian - Ubuntu Ubuntu is based on Debian. Canonical is the business arm of Ubuntu Canonical is the business arm of Ubuntu Ubuntu is in a market termed by economists as a perfectly competitive market. Ubuntu is in a market termed by economists as a perfectly competitive market. The only way to make profit is to create an ecosystem of products and services around Ubuntu, which would complement the functions of the OS. The only way to make profit is to create an ecosystem of products and services around Ubuntu, which would complement the functions of the OS.

41 P. Bakowski 41 Projects: Debian - Ubuntu

42 P. Bakowski 42 Projects: MySQL AB Other sources of revenue of MySQL AB: consulting, training consulting, training certification for MySQL Server certification for MySQL Server MySQL AB provides a subscription-based product called MySQL Enterprise, resold by other companies such as Dell, HP, and Novell. January 2008: Sun Microsystems, Inc. announced its acquisition of MySQL AB, for approximately $1 billion January 2008: Sun Microsystems, Inc. announced its acquisition of MySQL AB, for approximately $1 billion April 2009: Oracle acquires Sun. The transaction is valued at approximately $7.4 billion. April 2009: Oracle acquires Sun. The transaction is valued at approximately $7.4 billion.

43 P. Bakowski 43 Android Alliance Android is a mobile operating system running on the Linux kernel. It was initially developed by Google and later the Open Handset Alliance. Based on Java language, controlling the device via Google-developed Java libraries. 5 November Open Handset Alliance: 48 hardware, software, and telecom companies Google released most of the Android code under the Apache License.

44 P. Bakowski 44 The growth of open source In 2006 the packaged open source applications generated $1.8 billion. In 2006 the packaged open source applications generated $1.8 billion. Total software packages generated $235 billion. Total software packages generated $235 billion. There are about active open source projects (2007). There are about active open source projects (2007). In 2010 the open source application will deviate about $19 billion from commercial applications In 2010 the open source application will deviate about $19 billion from commercial applications

45 P. Bakowski 45 The growth of open source number of code source lines added (in millions) Jan 93 Mar 97 Apr 01 May 05 Feb 08

46 P. Bakowski 46 The languages of open source Growth of monthly commits (number of lines)

47 P. Bakowski 47 Who profits from open source ? Software companies business plan: The customer pays for a specific software that aims at the specific needs (specific development) The customer pays for a specific software that aims at the specific needs (specific development) It gets the software built mainly from generic, standard components without specific development process It gets the software built mainly from generic, standard components without specific development process The development is replaced by the integration and interface building The development is replaced by the integration and interface building Who profits from open source ?

48 P. Bakowski 48 Future directions old model (confrontation): old model (confrontation): free software <> proprietary software free software <> proprietary software new model (confrontation): new model (confrontation): collaborative forges <> business cloud computing collaborative forges <> business cloud computing

49 P. Bakowski 49 Future directions pay-per-use basis or rent in-houseexternaldata full control database services applications own or cooperative software SaaS - cloud computing high control - low control

50 P. Bakowski 50 Open source « confiscation » Open source software: standards standards platforms platforms forges forges infrastructure cloud client

51 P. Bakowski 51 What is ERP Enterprise Resource Planning (ERP) is a software intended to manage all the information and functions of a business or company from shared data stores. Enterprise Resource Planning (ERP) is a software intended to manage all the information and functions of a business or company from shared data stores. An ERP system typically has modular hardware and software units and "services" that communicate on a local area network. An ERP system typically has modular hardware and software units and "services" that communicate on a local area network. The modular design allows a business to add or reconfigure modules while preserving data integrity in one shared database that may be centralized or distributed. The modular design allows a business to add or reconfigure modules while preserving data integrity in one shared database that may be centralized or distributed. modern ERP systems are cross-functional and enterprise-wide. modern ERP systems are cross-functional and enterprise-wide.

52 P. Bakowski 52 ERP vendors biggest market share: (MSD) software (2008) : $49.2B - total : $61.9B

53 P. Bakowski 53 What is OpenERP Open ERP is an ERP/CRM system. Open ERP is an ERP/CRM system. The software is claimed to be a complete ERP and CRM system. The software is claimed to be a complete ERP and CRM system. It has separate client and server components. It has separate client and server components. The software is open source and is released under the GNU General Public License. The software is open source and is released under the GNU General Public License.

54 P. Bakowski 54 SAP and Oracle challenger Fabien Pinckaers – ‘Bill Gates of Belgium’ challenges software giants (International Herald Tribune – November 1, 2009: company of 75 employees company of 75 employees revenue 2009 : €1.3 million, to €15 million in 2011 revenue 2009 : €1.3 million, to €15 million in 2011

55 P. Bakowski 55 SAP - Poland

56 P. Bakowski 56 Oracle - Poland

57 P. Bakowski 57 Microsoft (Dynamics) - Poland

58 P. Bakowski 58 Summary Software layers Software layers OS, CAD, scientific and ERP software OS, CAD, scientific and ERP software Software business models Software business models Future directions Future directions OpenERP OpenERP


Download ppt "Digital Economy P1 - Software P. Bakowski"

Similar presentations


Ads by Google