Re: Open Source Developer Exchange (Economics)

Julius:
 
I assume that you're not proposing this as an "investable" business
model.  That is, one that could attract VC money.  While it seems like a
good way to leverage disparate Open Source resources (people and
software), it's not an inherently scaleable model.  As such, you'd have
a hard time finding a VC to invest in it.  
 
That said, it appears to be a good model for helping OSS engineers
collaborate toward joint solutions for an end customer, with a few
caveats:
 
1.  Government contracts often (always?) require high-level
certification.  To supply the US government, anyway, you need background
checks on those who will be contributing code, and strict quality
control measures.  I think it would be hard to implement this in your
model.  (Frankly, I think it would just be cost-prohibitive.)
 
2.  Corporate customers want someone that they can shoot if things go
wrong.  They want hard-core support (24X7), and some assurance that
you're going to be around 5 years from now.  Since it's OSS, there's
little question that the code itself will still be around, so maybe you
avoid this problem.  But I don't think so.  In my experience, enterprise
customers want to feel comfortable that the entity on the other side of
the table is an established player.
 
I think you'd actually be better served taking an OFbiz (Open for
Business) model, and focusing on SMEs until you establish
yourselves....But that's just my $.02.
 
Regardless of the above, you've put together an interesting model, and
one that I suspect would be successful in creating and delivering code. 
Maybe the next step is to build the results of each project into an SDK,
such that the work done could be more readily deployed for subsequent
projects...?
 
Matt
 
___________________
Matt Asay
Open Source Review Board &
Strategic Relations, Developer Services
801.861.4568 (Direct Office)
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Novell, Inc., the leading provider of information solutions
http://www.novell.com 

>>> "Julius Steyn" <[email protected]> 4/28/2003 8:21:31 AM >>>

Hallo gentlemen,

You may recall my debut under the above subject heading on this mailing
list
during late March. Again thank you for the constructive feedback
received
from members of the list. I have since collated all the findings of
several
months' research and joined forces with other members on this mailing
list.
Our focus was simple:

"How to leverage the advantages, culture and experience of Open Source
and
to integrate these with the demands of business customers to such a
degree
that Open Source can become a better provider of business critical
software - with lasting benefits to both developers and business
customers"

We developed an Operating Model and business strategy based on the
feedback,
research and challenges discussed in the summary essay that followed.
Many
existing and past business models were investigated each have their
own
unique characteristics, benefits and advantages. Some of the 13
business
models that we investigated included; Sourceforge, SourceXchange,
Collabnet,
Elance, sologig, rent-a-coder, experts exchange, free agent,
asynchrony,
etc. Although we are confident about our strategies and the proposed
business model we are at a stage that we respectfully seek your advice
and
input. I have summarised the basics of the Operating Model at the
location
below and will provide a detail strategy and business solution during
the
latter part of this week, your feedback is critical to finalise some of
the
key aspects of the business solution.
http://www.devcity.org/opsmodel/ 
I look forward to your constructive response, criticism, comments and
discussion about some/all of the initiatives mentioned in the above
essay.

With kind regards
Julius Steyn