The Value of an Open Source Model

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Duration: 2:25
Source: Stanford ECorner
Author: Ashwin Navin, BitTorrent - Ping Li, Accel
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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From an investment perspective, we’ve invested quite a bit in open sourced models. J Boss and Zen Source are two recent ones, and a slope of others. And I think open source is not a model for every business, so don't every go start of with open source businesses. But I think there are certain dynamics about open source that are really effective. One is in terms of building a community of developers early on to kind of get this thing going and evangelize in this case, Bram had his kind of community built around him to go ahead and add to the product. But overtime that's actually not where most of the value is, because you're building the technology yourselves. Frankly the open sourced community never contributes nearly as much as the actual developer, the originator of the open source. The real value of open source as we've seen is distribution. You get free distribution, whether it's Linux, you don't need a sales guy, people just download that. J Boss, you don't need a sales guy, people just download J Boss at server. So it's the bill you have, distribution without a sales force. And the sales force is what cost a lot of money, right? So, what Bit Torrent was able to do is get massive distribution, 150 million peers. In to my earlier comment, you're not a peer-to-peer network unless you have a lot of peers. So for us, the open source of actually was a really an efficient way of getting the distribution problem solved. How are you going to convince everyone to download your clients, unless you kind of do an open source time model? And that's kind of what we thought was particularly powerful. From a monetization perspective, where there are all great open source companies, you have to do something other than the core protocol in this case in order to monetize. And as what was mentioned, there were a lot of propriety extensions that we built on top, that you have to basically participate or pay for in order to get that value. But the good news is once you already ha...
Language: English
Category: Business
Tags: Ashwin Navin, Ping Li, BitTorrentAccel
Country: United States


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