Black Duck Software and North Bridge Venture Partners announce the results of the sixth annual Future of Open Source Survey. Conducted in partnership with The 451 Group, the 2012 survey reveals that open source software (OSS) is leading innovation in major technology segments including mobile, cloud and big data, as well as creating innovative business models such as Open SaaS. The quality of open source, and the ability to continuously improve, is now one of the top reasons for its adoption.

1. 2012
THE
FUTURE
OF
OPEN SOURCE
The Open Source Leadership
Panel at OSBC
May 21, 2012

2. 2
THE LEADERSHIP PANEL
Tim Yeaton Tom Erickson Michael Skok Ryan Garner Gil Yehuda
CEO CEO General Partner VP, Dir.-to-Consumer Dir. of Open Source
@black_duck_sw @tom_eric @mjskok Services and Open Standards
@ryanTgarner @gyehuda
FUTURE OF OPEN SOURCE 2012

3. 3
AGENDA
Markets
Community
Investment & Innovation
FUTURE OF OPEN SOURCE 2012

4. 4
OPEN SOURCE COLLABORATORS
FUTURE OF OPEN SOURCE 2012

5. 5
SURVEY RESPONSES
FUTURE OF OPEN SOURCE 2012

6. 6
SURVEY RESPONDENTS
Vendors Non-Vendors
FUTURE OF OPEN SOURCE 2012

7. 7
SURVEY RESPONDENTS’ TITLES
Architect/Engineer
Software
VP/Director
Engineer/Developer
Systems
IT
President/GM IT
CEO/Founder/ Management/IT
Co- Staff
Marketing/
Founder/Principal Advertising, PR
Educator
Line of Business Sales/Business
CIO/CTO/ Manager
Development Professional
CSO/COO/ Services
(Lawyer/Investor)
CFO/CMO Analyst
Director
Non-IT
VP/
FUTURE OF OPEN SOURCE 2012

8. 8
AGENDA
Markets
Community
Innovation & Investment
FUTURE OF OPEN SOURCE 2012

9. 9
OSS DEPLOYED IN YOUR ORGANIZATION
Open Source deployment is reaching a
tipping point
Open source deployment Open source will make up
has reached >75% 51%–75% of deployment
FUTURE OF OPEN SOURCE 2012

10. 10
VENDORS VS. NON-VENDOR COMPANIES
OSS DEPLOYMENT IN 5 YEARS
50%
45%
40%
% of Responses
30% 31% 30%
29%
Vendor
23% Non Vendor
20%
18%
14%
10%
10%
0%
Over 75% 51%-75% 26%-50% Up to 25%
OSS as a % of Deployed Code
FUTURE OF OPEN SOURCE 2012

11. 11
WHAT % OF SOFTWARE PURCHASES WILL BE OSS
IN 5 YEARS?
3%
increase
50% or more on OSS
FUTURE OF OPEN SOURCE 2012

12. 12
OPEN SOURCE TRENDS DRIVING INNOVATION
Adoption of open source into Enterprise adoption of
non-technical segments open source
42% 40%
Enterprise adoption of OSS is rated most important
by companies with >1,000 employees
FUTURE OF OPEN SOURCE 2012

13. 13
WHAT MAKES OSS ATTRACTIVE?
2009 2010 2011 2012
Freedom from
Lower costs Lower costs
VENDOR lock-in Freedom from
VENDOR lock-in
Freedom from
Superior security Lower costs
VENDOR lock-in
Freedom from Rapid pace of
Flexibility
VENDOR lock-in innovation
Lower costs
Quality
FUTURE OF OPEN SOURCE 2012

14. 14
TOP BARRIERS TO OPEN SOURCE SELECTION
48%
35%
47%
FUTURE OF OPEN SOURCE 2012

15. 15
INDUSTRIES MOST IMPACTED BY OSS IN 2012
44%
Data
23%
Health/Medical/Life
12%
Financial Services
Management Sciences
FUTURE OF OPEN SOURCE 2012

16. 16
CHARACTERISTICS THAT MAKE INDUSTRIES
LIKEY TO BE IMPACTED BY OSS
51% 50% 46%
Software development
Profit margins/ability Technology is an essential strategic
to invest in IT centric process
FUTURE OF OPEN SOURCE 2012

17. 17
THE VIRTUOUS CYCLE – INNOVATION & OSS
OSS
Innovation
600,000+ OSS projects
100+ billion lines of code
10 million person-years of work
“
…we are living in a golden age of open source innovation, with many of the
most exciting computing ideas…being explored through [FOSS].
Glyn Moody, H-Online.com
(March 2012)
Source:
FUTURE OF OPEN SOURCE 2012

18. 18
REVENUE STRATEGIES THAT CREATE THE
MOST VALUE FOR OPEN SOURCE VENDORS
52%
41% 40%
SaaS
Support Service Supprt
Service Value-Added
Subcription Support Subscription
FUTURE OF OPEN SOURCE 2012

19. 19
AGENDA
Markets
Community
Innovation & Investment
FUTURE OF OPEN SOURCE 2012

20. 20
FACTORS INFLUENCING CHOICE OF OSS PROJECTS
OSS PROJECTS
Size of
community 19%
Availability of
commercial support 23%
Project maturity 43%
FUTURE OF OPEN SOURCE 2012

21. 21
FACTORS INFLUENCING CHOICE OF OSS PROJECTS
Non-Vendor
OSS PROJECTS
Size of
community 19% 20%
Availability of
commercial support 23% 21%
Project maturity 43% 46%
FUTURE OF OPEN SOURCE 2012

22. 22
INDUSTRY CASE STUDY: AUTOMOTIVE
What is Your Company’s Relationship to Using Open Source Software in Products?
The Study The Results:
We use it 59%
CONDUCTED BY:
We are evaluating use 35%  OSS has arrived
in automotive
software
We contribute to it 21%
development
Prof, Dr. Dirk Riehle
We do not use it 15%  Management
Head of the Open Source Institute and control of
University of Erlangen-Nuremberg
We have started one or OSS lags
more projects 9%
adoption
We are head of one or
more projects 6%
0% 20% 40% 60%
Source:
FUTURE OF OPEN SOURCE 2012

23. 23
HIRING: WHAT ASPECT OF OSS EXPERIENCE IS
MOST IMPORTANT?
Experience
with a variety Code
of projects contributions
35% 28%
FUTURE OF OPEN SOURCE 2012

24. 24
AGENDA
Markets
Community
Innovation & Investment
FUTURE OF OPEN SOURCE 2012

25. 25
SIGNIFICANT TECHNOLOGY INNOVATION FROM
NEW PROJECTS IN THE OSS COMMUNITY
Cloud 40%
Mobile Apps 19%
Mobile Enterprise 15%
FUTURE OF OPEN SOURCE 2012

26. 26
OPEN SOURCE DRIVES MOBILE INNOVATION
New Mobile OSS Projects Share of Projects*
 >18,000 cumulative
projects
 10,000 new in 2011
alone!
* Based on OSS projects that specify a mobile platform
 Android gaining momentum,
share > 70%
 iOS share declined, but number
of projects increased
Source:
FUTURE OF OPEN SOURCE 2012

27. 27
OSS INVESTMENTS BY THE NUMBERS
2011 $674.9m $10.1M $192.7M
49% 48.5% 63.3%
Dollars Deals Avg. Deal Seed,
Invested Completed Size Series A
2010 $452.8M 73 $6.8M $118.7M
1.4%
72
FUTURE OF OPEN SOURCE 2012

28. 28
HOT OSS COMPANIES
2010 2011 2012
FUTURE OF OPEN SOURCE 2012

29. 29
Quality Innovation
= Growth
FUTURE OF OPEN SOURCE 2012

30. 30
WITH GROWTH COMES…
Revenue
Enterprise
Adoption
Super-
Communities
FUTURE OF OPEN SOURCE 2012

31. 31
THANK YOU! OPEN SOURCE COLLABORATORS
FUTURE OF OPEN SOURCE 2012

32. 32
FIND OUT MORE
http://www.northbridge.com/software http://www.opensourcedelivers.com/
Contact:
Michael J. Skok: mjskok@northbridge.com
Tim Yeaton: tyeaton@blackducksoftware.com
FUTURE OF OPEN SOURCE 2012