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Sep
18
Posted by:
Joe Brinkman
9/18/2006 6:26 AM
Overview
It is no secret that Microsoft has helped get DotNetNuke where we are today. It is even mentioned in the first chapter of the Professional DotNetNuke Asp.Net Portals and Professional DotNetNuke 4 books. In his latest blog, Phil Haack asks "Should Microsoft Financially Support Open Source?". Phil's post is a follow up to the post at Dave's Tech Shop asking the same question.
Business Value
I believe that open source on the .Net platform must live and die by the same rules as on the LAMP and Java platform. Even though we are talking about Microsoft, I believe the same rules apply to any corporate entity which ultimately must answer to shareholders. Microsoft cannot and I think should not become a corporate sugar daddy running around and artificially prolonging longevity of a project simply because it is Open Source. Each project should succeed or fail based on the project's merits and the leadership skills of the development team. I do however believe that there is a time and a place for corporate support.
In his 2004 article, "Seven open source business strategies for competitive advantage", John Koenig maps out business strategies that have been successful in the open source world. In the discussion on The Patronage Strategy, John lays out the reasons he believes most companies become patrons of open source efforts. It is not for some altruistic reason, but because it makes business sense. Each corporate patron needs to determine if it is in their best interest, and then act accordingly. Sometimes, that will be in the form of technical assistance, in other cases it will be through direct financial support.
Ultimately, though, I think that finding a patron falls on the shoulders of the open source project's management team. Just like a company seeking investors, an open source project seeking patron needs to develop a strategy for getting the support it requires to succeed. Occasionally a company will step forward and offer to support a project without any prompting, however, an open source project relies on that to occur at their own peril. Early in the life of the project, the founders need to be thinking about how they will support the overhead costs associated with running the project. What will happen if the project grows rapidly? Does the project have relationships or a plan to build the relationships needed to sustain the project, even as the costs of maintaining the project increases?
I believe it is in Microsoft's best interests to identify a handful of open source projects to support, especially where those projects fill a void in the Microsoft product line, or where the project promotes the adoption of Microsoft products. However, I think the project bears even more responsibility to identify how they can benefit a potential corporate sponsor, and then actively pitch the idea to the corporation whose sponsorship is being sought. The project should care more about developing and growing this relationship than the corporate sponsor, since the project could well die without the support, while the corporation only looses one of many potential opportunities.
As I look back, I see the NDoc project, not as a major failing of Microsoft, but as a failing of the project team. If they wanted the project to succeed, then it was incumbent on them to identify the means to make that happen. If corporate sponsorship did not occur, then they should have sought other avenues of getting the financial support they needed. Yes, I think it was in Microsoft's interests for NDoc to succeed, but if the management team of the project did not see the importance of putting a support framework in place for their project, then they were probably doomed anyway, with or without Microsoft's support.
Finally, I want to address the issue of using the donation method for supporting a project. I have seen it tried by many different projects, but I have yet to find a single open source project of any substantial size where user donations were ever sufficient to fully support the project. I could be wrong, and such a project may indeed exist, but I have yet to find that mythical project.
Conclusion
In the end, if an open source project wants to succeed and get the financial or technical support it needs, then it is up to the project management team to take the project seriously enough to put a plan in place to get the needed support. They need to treat the project like any other business and determine how the project is going to survive given their current and future anticipated support needs.
Tags:
7 comment(s) so far...
Re: Should Microsoft Financially Support Open Source Projects?
So, If you could give DNN a report card. 1st how would you breakdown the grading. I mean what would be the 5 top areas of work that needed to be addressed to be fiscally sound. Last years report card and this years?
By pspeth on
9/18/2006 2:32 PM
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Re: Should Microsoft Financially Support Open Source Projects?
Well said! I'm posting a minor update to my post with a link to this one. The only thing I add is that Microsoft could be more active in leveraging the successful open source projects that help its bottom line.
By Haacked on
9/18/2006 2:32 PM
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Re: Should Microsoft Financially Support Open Source Projects?
I agree with Phil - well said! I think you stated the position more clearly and with more balance than I did. I was being a little sensational in order to make my point. But your article reflects the realities of running a successful open source project more accurately. I hope Jason Matusow and the other Microsoft folks read your article.
By DavesTechShop on
9/18/2006 7:50 PM
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Re: Should Microsoft Financially Support Open Source Projects?
"I have yet to find a single open source project of any substantial size where user donations were ever sufficient to fully support the project."
I can think of a few. How about Wikipedia? And, maybe DotNetNuke???
Perpetual Motion Interactive Systems Inc. seem to be coming up with plenty of revenue streams. I was reading Shaun's blog where it started to talk about his business direction, although it did not reveal much. Open source doesn't mean full disclosure. It's a private company.
But I doubt anyone on any significant scale is buying Windows Server and SQL Server just so they can run DNN. I don't have any stats to back this up, but I can't imagine that DNN is the reason people are using Microsoft products, or going to school to lean Microsoft.
At this point, I could care less that DNN is open source. I just want a bug free framework. I'll pay for it. Clients will pay for it. I'm a benefactor anyway.
By PortVista on
9/18/2006 7:47 PM
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Re: Should Microsoft Financially Support Open Source Projects?
PortVista - You are correct. For the first two years of their existence, WikiPedia was fully funded by Bomis.com. In 2002, when Bomis could no longer continue supporting the project, it shifted almost exclusively to a donation model, along with Grants and Sponsorship.
DotNetNuke however, never has generated any substantial revenue from donations. Almost all revenue has been provided through some sort of sponsorship, ad sales, or other fee based program that offers a product or service (eg. Even the lowest level of the benefactor's program receives a T-Shirt and acknowledgement in the form of an icon in the forums, and this alone is not enough, as most people sign up for the higher levels to get access to additional benefits).
The point of this is that most Open Source projects will not be able to sustain themselves off of donations and will be forced to find other revenue streams to survive.
By jbrinkman on
9/19/2006 5:03 AM
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Re: Should Microsoft Financially Support Open Source Projects?
If there is a national or world-wide organization of Hosting Providers, then that is who I would target first. It is in their direct interest to support and promote DNN. If DNN did not exist there would far fewer Hosting Providers and they would not be able to print money like they can now.
I think Microsoft will provide in-kind support but I don't see them providing financial support. Does anyone know if they have provided $ to other companies? They do have a long history of *purchasing* companies...And I hope PM will not sell out to Microsoft!!
Just my $0.02
By jyjohnson on
9/19/2006 9:01 AM
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Re: Should Microsoft Financially Support Open Source Projects?
I wrote a follow up article on this topic today. Here is the link: http://blog.davestechshop.net/archive/2006/09/19/MicrosoftHasGreaterResponsibility.aspx
By DavesTechShop on
9/19/2006 10:17 AM
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