Once More unto the Breach

The Microsoft SD Forum Open Source Event

Microsoft and the SD Forum jointly sponsored the Zero Day event this year before the Open Source Business Conference. The past two years this has been a Microsoft sponsored day for ISV partners developing businesses around open source. There was time dedicated in each event to presentations of the relevant Microsoft programs for ISVs, and Sam Ramji would kick off the day with a good Q&A session discussing Microsoft's positions, accomplishments, and announcements around open source software. This year the content was broader, with the afternoon's sessions being organized by the SD Forum. Participants that wanted to engage with Microsoft around their programs could talk with any of the program directors present.

This being the age of Twitter, people were encouraged so to do under the tag #msoss09, and there was some reasonable discussion throughout the day. I also posted a few photographs on Flickr.

www.flickr.com

Bryan Kirchner is now Director of Open Source Software at Microsoft. He acted as master of ceremonies and kicked things off in the morning with a brief discussion of his hopes to continue developing a mutual understanding and deepening relationships with the open source community at large.

Sam Ramji then took the stage. What followed was interesting. This year, with not much new or contentious before OSBC got underway, he chose to talk about the health of the Windows ecosystem in the context of the current economic crunch (reminding people that a staggering 96% of Microsoft revenue comes from partners, i.e. no direct account control). Microsoft is seeing CIO training budgets dropping to zero and many projects are deferred so there was a definite move to cost savings around virtualization and consolidation. (It's interesting that this is how the world started to move when the bubble burst seven years ago.) He also talked about the growth of Windows in the low cost server space and on netbooks. Sam was essentially conveying that the Windows platform is healthy and people should continue to consider it as a deployment platform for open source. He also discussed the new Web Application Gallery initiative at Microsoft as an attempt "to connect markets and forges" around open source so users can easily install and support PHP-based web applications. It's not that the Gallery is particularly an open source initiative, but rather that it supports the sharing of applications written in PHP.

Matt Aslett from the 451 Group took the stage next presenting his latest analysis from their report Open Source is Not a Business Model. Essentially, the 451 Group analysed 114 vendors using open source software within their businesses, against (i.) their choice of open source license, (ii.) their development model, (iii.) their own vendor licensing strategy, and (iv.) the actual revenue trigger. Matt's blog post covers a lot of the ground he presented, so I won't cover it here. I will be debating with him soon on other things to consider in the report. (An added perk for morning participants was a copy of the report.)

Next up was a panel on "Working together in an Open Source World in a New Economy" moderated by Cliff Reeves, who runs the Emerging Business Team at Microsoft which runs the BizSpark program. Panelists included:

• Clint Oram, VP Product Management, SugarCRM
• Erica Brescia, CEO, Bitrock
• Aaron Fulkerson, CEO, MindTouch
• Dan Merrits, VP Marketing, Eduify

It was a good discussion. SugarCRM and Mindtouch certainly saw the rise of downloads and leads as the economy failed and people became more interested in low cost open source based solutions. There was also interesting honest discussion from the participants on what it's like working with Microsoft as a partner, with concerns being expressed about the complexity of the programs at times, as well as praise for engineering support (FastCGI and PHP being the typical example cited).

After lunch we got to the more general open source part of the program organized by SD Forum. Larry Augustin kicked off the afternoon with his keynote on "The Future of Software: Why Open Source is the Safe Bet". [Larry has kindly allowed me to host his slides. Download SDForum-20090323-v4.pdf (493.5K).] Larry started the presentation with the idea that just like no one got fired for buying IBM in the past, at this juncture in history no one gets fired for buying open source software. He then went on to present the health of the open source based business world from the perspective of investment and adoption (with several case studies).

Next we had two brief mini-talks.

• Andrew Aitkin (Olliance Group) talked about his views on open source adoption differences between Europe, North America, and Japan.
• Sam Ramji returned to give a shortened version of his morning's presentation for those that just joined for the SD Forum part of the program.

The final two sessions of the day were panels. First we had "Is there still Open in Open Source" with Mike Fauscette (IDC) moderating, and Jack Repenning (CTO, CollabNet) and Adam Blum (Rhomobile). It was an interesting panel and very much a development process perspective. Discussion revolved around the idea that it's not about the source code, but about the openness of the development process, the social contract, the transparency, and building a community that wants to contribute.

Last up was the venture panel on "Where's the Money?" Mark Radcliffe (DLA Piper) moderated Robert Theis (Scale), Andrew Braccia (Accel), Tim Guleri (Sierra), and Peter Sonsini (NEA). Not surprising but the VCs want us to know they're still open for business, and they're interested in Software-as-a-Service and Cloud related technologies. Also not surprising we learned VCs will fund deals with a compelling solution to a customer problem, or a compelling way to monetize a solution. [This is why I generally don't have a lot of time for VC panels.] There was one point where Peter Sonsini (NEA) observed there needed to be a compelling way to monetize the community for an existing project (with which I violently disagree), but Andrew Braccia (Accel) supported the richer idea that rather than trying to monetize the community one should look at upstream value of a new solution based on the project.

All and all a worthwhile experience. We finished the day with the hosted reception!

OSBC Keynote Competition between Sun, Microsoft, and IBM — IBM Won

I continue to stand in awe of IBM's ability to market. Here's how the line-up of executive keynotes went down this morning at OSBC.

First up was Jonathon Schwarz, Sun CEO. Jonathon always gives good presentations, although he seemed a little brittle this morning. His messages this morning:

• It's all about the cloud.
• We are it.
• It's still about business.
• [Please] buy our hardware.

Microsoft stepped in with Robert Youngjohns, President of Microsoft North America. An excellent soft speaker that quickly established his historical geek credentials and breadth of technology interests beyond Microsoft tech. He apparently even worked at both Sun and IBM. His messages this morning:

• It's all about interoperability.
• We get it [finally].
• It's still about business.
• [Please] buy our software.

Robert Sutor, IBM VP of Open Source and Linux, then finished with a virtuoso performance. It was about collective action. His messages this morning:

• It's all about open source and open standards.
• Linux is an amazing mature flexible solution for the world's information processing problems. "It's not a hammer, but a collection of fine tools." Our involvement in the Linux community is ten years old.
• It's NOT about business. It's about solving hard problems. [A nice paraphrase of Drucker's the purpose of a company is not to make money.]
• We [collectively] have the tools to solve these problems. We [IBM] can help you.

I think the only time he actually mentioned IBM was when he said in passing that they had broken the petaflop barrier last year. It was masterful. It was designed to remind you that IBM has depth of technology experience, and the tools (people, hardware, software, knowledge) to help you with your information management problems. It was a conversation starter between the company and customers. It wasn't about selling technology but rather tailoring solutions — just tell us what you need.

It doesn't matter what you think about each company. Good executive keynotes are performance art delivering a marketing message. (Bad executive keynotes are product announcements to audiences that paid good money to learn something other than the latest thing they're going to be forced to buy.) While all three presenters today are consummate performers, one message was about solving problems, the other two about selling stuff.

Long after Sun's been cut up for parts the way DEC was, and long after Msft stops trading, IBM will still be humming along as a technology solutions company with a mixed-margin portfolio offering, terrifying as that might seem for some. Well done, Bob.

Third Annual Microsoft Open Source ISV Event at OSBC

Microsoft is sponsoring a zero day event for open source ISVs again this year, just before the Open Source Business Conference kicks off. These events are always interesting. Sam Ramji, Microsoft Sr. Director of Platform Strategy always hosts an excellent open discussion at the start of each day. While the world still hesitates over the use of "Microsoft" and "open source software" in any sentence, Sam continues to evolve the dialog. You may not agree with all Microsoft does or doesn't do, but the discussion is always worth it, and this event is a great way to interact with Sam directly.

The ISV team continues to work hard to help independent software vendors using open source software in their solutions to get the most out of a relationship with Microsoft. This year they are evolving the event's focus to include people from the Microsoft BizSpark program, which works to help new start-ups. I'll be moderating a panel in the afternoon focused on start-ups, with a number of technologists and VCs participating.

Attending the Microsoft event provides a discount off your OSBC registration. I hope to see you there.
Registration Site for the 3rd Annual Microsoft Open Source ISV Event

The Microsoft versus TomTom Patent Debate is about the Mobile Internet not Linux

The Linux community is up in arms over Microsoft's filing a patent infringement suit against TomTom, the Dutch navigational unit manufacturer, determined to convey this as an opening move in the debate about what patents Linux does or doesn't infringe. This suit is very likely NOT about Linux. Let's look at the patents. From the complaint, Microsoft patents in the case (collectively, “the Microsoft patents-in-suit”):

• 6,175,789 (16 January, 2001) Vehicle computer system with open platform architecture
• 7,054,745 (30 May, 2006) Method and system for generating driving directions
• 6,704,032 (9 March, 2004) Methods and arrangements for interacting with controllable objects within a graphical user interface environment using various input mechanisms
• 7,117,286 (3 October, 2006) Portable computing device-integrated appliance
• 6,202,008 (13 March, 2001) Vehicle computer system with wireless internet connectivity
• 5,579,517 (26 November, 1996) Common name space for long and short filenames
• 5,758,352 (26 May, 1998) Common name space for long and short filenames
• 6,256,642 (3 July, 2001) Method and system for file system management using a flash-erasable, programmable, read-only memory

Also from the complaint, we have this statement (line 15):

6. Upon information and belief, Defendants are in the business of developing, manufacturing, and selling portable navigation computing devices and software for use on those devices, personal computers, PDAs, and smartphones (hereinafter known collectively as “Portable Navigation Devices and Software”).

This feels much more like positioning for location-based services and the coming mobile Internet war. Microsoft has been the "PC company" for a long time. It got there on the backs of a standardized PC "device". (In a Christensen economic world of a network of complements, Microsoft captured the innovation premium in the OS on commodity hardware.) That world is changing rapidly since Apple demonstrated what the mobile Internet can look like with the release of the iPhone. There has been a rush of delivering iPhone competitors to market since then. Nokia bought Navteq, then Symbian (the predominant mobile OS), to be released royalty free and as open source sometime in the future. Google released Google Maps with instructions to drive places, and then developed and released Android. There are considerably more handset devices on the planet than PCs [see note below]. This feels like a much bigger fight than the first shots in a Linux patent fight. This could have much bigger ramifications for Nokia (and the other handset manufacturers), Google, and Apple than Red Hat et al. These are the players that need to be naming themselves to this patent litigation suit.

Related commentary:

• Microsoft v. TomTom: Patent war, or no?, () Matt Asay's fine blog commentary
• Microsoft sues TomTom for alleged patent infringement, (25 February, 2009) by Ina Fried
• Has Microsoft's Patent War Against Linux Begun?, (25 February, 2009) Glyn Moody's commentary
• Beating the TomTom: Drums of War? (Not), (26 February, 2008) Andy Updegrove's excellent commentary
• Microsoft lawyer 'won't speculate' on Linux suits, (25 February, 2008) Ina Fried's CNET interview with Microsoft's Horatio Gutierrez, senior IP lawyer
• The Microsoft Press Release, (25 February, 2009)

Note: Communities Dominate Brands pointed out that there were 3.3 Billion mobile subscriptions in 2007 versus 900 Million PCs. Or to put this in better context:

Now as the phone handset makers like Nokia, Samsung, Motorola, SonyEricsson and LG ship over a billion phones annually (IDC, Jan 2007), we have a colossus of an industry of high tech pushing ever more powerful gadgets into our pockets. And yes, Nokia alone ships one million phones every day of the year, Saturdays, Sundays and Holidays included. For contrast note that the PC industry shipped 250 million new PCs in 2007, of which about 100 million are laptops (Computer Industry Almanac Jul 2007).

OSBR Article on Open Source and the Mobile Internet

The Open Source Business Resource is an academically sponsored body of work published each month out of Carleton University in Ottawa, Canada. I've an article in this month's issue. Regular readers will recognize a lot of themes they've read here or heard me discuss and present. The focus is on the coming mobile Internet and open source software. I would encourage people that want to comment to hold the discussion on the article's website.

The Arrival of the Mobile Internet Thanks to the Economics of Open Source Software
Walli, S. 2009 Jan 5. The Arrival of the Mobile Internet Thanks to the Economics of Open Source Software. Open Source Business Resource [Online] 0:0. Available: http://www.osbr.ca/ojs/index.php/osbr/article/view/818/790

A Standards Primer

Photo by Dauvit Alexander

I have recently had several long discussions about the motivations and machinations that surround the development of technology interoperability standards. Over the past few years, I've also captured a lot of ideas and experience on the blog. I pulled it all together into one place in the following paper, "Understanding Technology Standardization Efforts" (PDF 86.2K).

For the record, I was a long term participant in the POSIX and UNIX standardization efforts. I was a working group participant, balloted many pieces of the standards and their amendments, and participated in the management of the standards effort at the IEEE as both an inaugural member of the Project Management Committee and a voting member of the Sponsor Executive Committee. I was an international participant at ISO, as document editor, and participated on behalf of three different national body delegations (Canada, U.S., UK) over a number of years. I began my participation in 1989 as a customer (working for EDS with GM and the U.S. government as their primary POSIX-interested customers), but quickly ended up as a vendor, working for MKS developing a conforming POSIX.2 implementation that formed the basis of implementations from IBM, DEC, HP, UNISYS and Sun. In 1995, I put my money where my mouth was on the importance of applications portability, standards and the coming juggernaut of NT and co-founded Softway Systems, implementing the POSIX and UNIX standards on NT to enable UNIX applications to be directly migrated to the platform. A large amount of free and open source software was incorporated into the product. Softway Systems was acquired by Microsoft in 1999, and I worked there for five years. Over the years I've been in regular contact with people standardizing C#/CLI, the Linux Standards Base, and ODF.

Several friends and colleagues from the standards world have reviewed the paper and provided excellent comments. The paper is much better for it. All mistakes obviously remain my own.

Microsoft Office 2007 and Open XML: Lies, Damned Lies, and Statistics

Last week Joe Wilcox (Microsoft Watch) observed that Microsoft Office 2007 apparently doesn't conform to the Open XML standard (ISO/IEC 29500) that Microsoft has rammed through the system. Alex Brown has the full test here. No surprise. I've argued for the past year that the product must have diverged from the standard under construction. It's a normal thing in the standards world as Joe and Alex observe. They each challenge Microsoft to declare itself with respect to the standard and the future of the product.

But here's the problem: Microsoft already has declared itself. Last August Microsoft commissioned a study from IDC on the adoption of document standards. The "study" names Office Open XML as the obvious favourite. "Among the XML-based document standards, Office Open XML seems to be creating the most traction in the market." In the PR push leading up to the September 2007 votes on ISO/IEC 29500, Microsoft was already equating the standard with Microsoft Office 2007. That's what the sales field will be telling customers, with graphs culled from the "report". [srw — If you really want to read the report, follow the link from Mary Jo Foley's editorial. I still refuse to give the paid report link cred, small as it may be.]

Here's more writing on the ISO adoption and next steps:
Microsoft Claims Success with ISO and Open XML Standard

Follow-up on Brad Smith Open Source Business Conference (OSBC) Keynote

It was indeed an interesting keynote. It was not as I had feared it would be. Brad Smith did an excellent job of engaging the audience, explaining the Microsoft position, and encouraging discussion. Smith focused a lot on the diversity in the market of business and licensing models, not claiming a financial high ground (which is a first), and emphasizing shared values (pride of creation of software and what we have collectively accomplished).

The panellists did a fine job, and the audience was also engaged. (It only felt like Smith was filibustering a little in the end, burning the clock, but then he'd had a long time in front of the audience at that point being on the receiving end of the Q&A.) The mini-survey off the previous blog post did correctly predict where most of the discussion was going to be on patents and Linux.

Key points for me:

• "I appreciate that respect for intellectual property is I believe a shared value across our industry." Smith made this statement midway through the panellist Q&A. This to my knowledge is the first public statement by a Microsoft executive that did not label the free and open source community as IP hostile. It is a significant public statement.
• Bottomley and Updegrove did actually catch Smith out in the Q&A. I wouldn't have thought it possible, considering Smith's background as a lawyer and public spokesperson for Microsoft. Smith claims Microsoft wants its property respected, and that patent licensing is not about the relatively small revenue. He was neatly and visibly cornered at one point (to audience chuckles) because the Linux community is willing to respect Microsoft's property and actively work on a solution that avoids it.
• Based on statements made in Sam Ramji's presentation the previous day, and in Brad's keynote and the answers to questions, Microsoft is trying to find solutions to the patent problems. This does not simply mean giving up the property from a Microsoft perspective, as enabling as this might be for the community at large. Smith is all too familiar with other large vendors chasing Microsoft for patent licensing revenues (and he used the Sun US$900M licensing settlement as an example on stage) to be able to understand why Microsoft should just roll over on the patents they allege Linux infringes. For Microsoft it seems it's difficult to take a step that does not appear to be reciprocal in nature.
• There was an interesting discussion about Cathedrals and Bazaars at one point. Smith (Microsoft) is very comfortable having discussions about Cathedrals having licensing discussions with other Cathedrals. But that analogy (historical, relevant, and useful as it has been) also limits their thinking. They seem to only think in terms of Microsoft as a cathedral that can license to other cathedrals. They believe they've enabled the Bazaar in recent licensing statements. It seems they are still trying to understand the actual ecosystem and have been perhaps using the wrong analogy as a lens. Maybe it's time to evolve the Cathedral and the Bazaar.

At one point Smith observed that what the world wants to see is deeds not words — but that words also matter because it sets the bar against which they will be judged. There was lots of interesting things said and debated over the 90 minutes. Smith has set a high very public bar against which Microsoft will be judged. I'm hoping IT Conversations gets this recording up soon so everyone can hear what was said. [My recording is noisy and missing the first few minutes.] Congratulations to Brad Smith, and the panellists (O'Grady, Updegrove, Bottomley, Shuttleworth) for an excellent session, and of course to Matt Asay for pulling it together.

Other commentary:

• Stephen O'Grady commentary
• Matt Asay's direct commentary
• Matt's other commentary

Microsoft Claims Success with ISO and Open XML Standard

Copyright © 2007 by Kordite

"Another key factor is the fact that people recognize the broad use of Open XML in the market as seen by the hundreds of independent implementations of Ecma 376." [Jason Matusow, Microsoft Director of Standards]

Think of the confusion if we only partially implemented the HTML standard. Okay — bad example. What if we only partially implemented a railroad standard? The track gauge would be correct, but the rail width was incorrect, or there was only one rail? Or maybe the track stopped before reaching its destination. Microsoft continues to maintain the Rovian perspective that a standard with "support" (their language is improving to "implementations") rather than complete conformance is good news for the industry. In this particular case it even ignores the very conformance statement in their own standard. It's only good news for Microsoft. It means lots of people are encouraged to do partial things around documents produced by Microsoft Office 2008. The economics is in the vendor's favour, not the consumer's. It defeats the actual purpose of de jure standardization. [In the industry, we call it a vendor specification regardless of standards body imprimatur.]

We now enter the next phase of the dance. Customers will discover they don't get the benefits that they thought they bought. A customer of note [likely government] or a consortia will put together a conformance certification program around the standards in the space. Brands and certifications will be the rule of the day. Microsoft will discover it needs to actually ensure their own products adhere [formally] to the standards they produced. The Microsoft Office team will discover conformance testing to a specification is (i.) hard work, (ii.) different than normal product testing, and (iii) that their product is drifting off the very standard they launched. (The .NET runtime team learned this a few years ago and I'm betting there are still conformance bugs logged against the product as "won't fix".) Implementation conformance will become important.

"You keep using that word. I do not think it means what you think it means." — Inigo Montoya, in the Princess Bride

Other writing I've done in this space:

• Office Open XML Conformance (A Lesson in Claiming Standards Conformance) [31 August 2007]
• Conformance and Certification: The ODF Standard and Microsoft's Office Open XML Specification [7 January 2007]

Brad Smith Keynotes the Open Source Business Conference (OSBC)

[Updated (1-Apr-2008 21:37): I posted follow-up commentary in a separate post.

[Updated (12-Mar-2008 13:20): My apologies — Matt Asay points out that there will be a 30 minute slot for questions from the audience after the panel has had 30 minutes. I would still encourage we begin the tuning and discussion early: What would YOU ask Brad Smith at OSBC?]

We're just a couple weeks away from this year's Open Source Business Conference (OSBC) in San Francisco. Brad Smith, general counsel for Microsoft, is the closing keynote on the first day. This speaking slot has previously been filled by the likes of Clayton Christensen, Geoffrey Moore, and Lawrence Lessig, and each of these gentlemen have given us deep talks that have forced one to think about open source in the world at large from an economics, business, and legal perspective. Mr. Smith has large shoes to fill, and this worries me.

You see Mr. Smith is a corporate executive, and most execs (with a few notable exceptions like Mårten Mickos) feel compelled to "pitch the company." Mr. Smith is a lawyer (and general counsel to boot) so language is his oeuvre. We've seen Brad Smith's pitches before now. Here's what I hope we don't see at OSBC:

• A rehash of last's months announcement about how "open" Microsoft is. It is indeed a historical moment for Microsoft, publishing protocol specifications that were previously secret and offering generous patent licensing terms regardless of their motivation. The non-commercial restriction on the open source patent covenant makes it a non-starter. It demonstrates either remarkable naïveté of how the open source world works, or it's a deliberate snub. Either way it's irrelevant and not appropriate for this audience.
• Yet another lecture on how important patents are, the need to get a return on your innovation investment, or that the open source community wants special IP rules. We value IP. We don't want special rules. We understand the patent system and as software business people we often choose different IP tools by the necessity of our size. We also see the likes of most other large vendors sophisticated use of their asset portfolios. Most of us think US$40B per year is a pretty good return on investment. We've all asked to be told which of your patent claims you think we're infringing, so we can fix it. Microsoft is either in the room playing well with the rest of us or it's not. But don't pretend to play. That's boring and transparent. (The wrong sort of transparent.)
• More declarations on patent licensing innovation with Novell, Xandros, et al. Those are business cross licenses. Really. Move on. You're being lapped by the likes of IBM, Sun, and Oracle with respect to business innovation and open source.

So let's turn it around. What GREAT things could Mr. Smith announce to demonstrate that the Microsoft executive team gets open source software and they actually want to engage? What property or asset could they liberally share into a collaborative development community (that includes businesses), instead of publishing yet more licenses or making positioning statements? In essence, what could they DO. How about:

• Announce the release of the Sharepoint software base as open source software. Let the world know you will be genuinely exploring the revenue streams of support/maintenance/network in the context of this line of business, while encouraging innovation on the platform, and encouraging a community engagement unlike others in the Microsoft world.
• If he wants to talk about patents, then back up the earlier CIFS/Samba announcements with unrestricted patent covenants to any patents required, and scope the covenant to implementing CIFS. This seems a reasonable way to encourage the community (including businesses) while clearly stating the conditions under which infringement will not be tolerated outside of CIFS implementations.

At the end of the keynote, questions have been limited to a distinguished panel consisting of Stephen O'Grady (Redmonk), James Bottomly (SteelEye CTO), Mark Shuttleworth (Ubuntu/Canonical), and Andy Updegrove (Gesmer Updegrove). I started to think about what I would want to ask and came up with the following:

Question: If you have the list of patents whose claims you believe are infringed by Linux, why won't you release it such that the community can deliver on its statement that they will fix the infringements?

Rationale: Regardless of how some people in the free and open source community feel about software patents, we all understand that it is the legal system we have in place. We all understand that changing that system is a different discussion. The community deeply respects intellectual property. The entire free and open source licensing space is based on strong IP law. People want to fix infringed claims. But we can't fix what you won't share.

Question: Why doesn't Microsoft share more software under open source licenses?

Rationale: Microsoft has a wealth of software assets that are not products. So take the discussion of "not a business model we can embrace" off the table. Microsoft has been "studying" open source and "learning" from open source for almost a decade. No one is suggesting the release of the Windows or Office software base. Why have so few small experiments been done?

But we live in the Internet age. I would love to hear what other ideas and questions people have. So here's a web site that will allow you to enter your questions and ideas, and vote on the others already in place: "What would YOU ask Brad Smith at OSBC?"

Thanks to Sandro Groganz for putting the survey site together so quickly once I asked.