Translation Workflow The case for Open-Source Frank Bergmann,

Sourcing Options Overview  "Pure Make" (100% in-house)  "Make" with external consultants  "Make" with subcontracted functions  "Make", followed by spin-off  "Buy" from provider and customize in-house  "Buy" from provider, with financial investment in the provider  "Buy" from provider, but "nurture" provider with partnership and long-term contract  "Pure Buy" (100% external) ... "Pure Make" "Pure Buy" Source: ]project-open[, own elaboration, Covered by OSS

Typical ERP Lifecycle Phases Declining Phase Eval. Extending Value Implement Phase II Maintaining Value Implement Phase I Customi zation Evalu ation Product License & Maint Change Mgmt. Project Management Training Customi zation Training Customization Training License & Maintenance License & Maint Project Management Source: Own elaboration based on “ERP Life Cycle: From Birth to Death and Birth Again“ by Andy Klee, September 10, 2005 in Technologyevaluation.com OSS- Consult. or DIY No vendor lock-in. Buy consulting or DIY

OSS Business Model  Little Sales, just marketing & PR  Reuse of Software from other OSS- Projects  Sales is usually 50% of IT company costs...  Saves 50%- 80% of development costs  4x - 10x better value for Customers  50% (free software)  Still 2x - 5x value to be distributed

Open-Source "Dissonance"  Company Size: Usually smaller then closed-source  No "pushy" Sales Organization  New possibilitis for customer: May cause fear  Open-Source FUD: Incomprehension of Biz model, patents,...  Profile of the people in the OSS-Companies: Dominated by Techies

Project Self Diagnosis Intensive Consulting Train the Trainer Partnership & in-house development Intensive Consulting Train the Trainer DIY, in-house development Hire SysAdmin Train the Trainer DIY No help needed. 1-5 employees 5-50 employees >50 employees Business focus Some technology Strong technology Technology Sophistication Size

Project Self Diagnosis Intensive Consulting Train the Trainer Partnership & in-house development Intensive Consulting Train the Trainer DIY, in-house development Hire SysAdmin Train the Trainer DIY No help needed. 1-5 employees 5-50 employees >50 employees Business focus Some technology Strong technology Technology Sophistication Size Buy Make or Adapt

Project Self Diagnosis Intensive Consulting Train the Trainer Partnership & in-house development Intensive Consulting Train the Trainer DIY, in-house development Hire SysAdmin Train the Trainer DIY No help needed. 1-5 employees 5-50 employees >50 employees Business focus Some technology Strong technology Technology Sophistication Size OSS + Consulting OSS DIY OSS + Partners

OSS is Market Leader... Market Leaders  Web Browsers (Apache)  Content Management (Typo3)  Databases (MySQL)  Instant Messaging (Jabber)  Java Application Servers (Apache/JBoss)  All Internet Technology (Bind, Postfix,...) 2nd:  Server Operating Systems (Linux) Now coming:  SugarCRM ... (# Installed Systems)

End Frank Bergmann