International Open Source Investment Opportunities

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International Open Source Investment Opportunities
Shane Wall Vice President General Manager Chan
nel Software Operations
Intel Corporation
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Agenda

• Open Source Opportunities
• Business Model
• Intel and OSS

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Open Source Adoption Lifecycle
We are here
-late 90s .com boom bust Linux OSVs Oracle/I
SVs adopt
-early 00s IBM, HP Linux/Apache MSS Linux Serv
ers
Embedded
-late 00s Applications Desktop
-and beyond
-80s to mid 90s Academia Hobbyists ISPs
-mid 00s Databases 50 Servers Desktops?
Open source has crossed the chasm and is now
being widely adopted
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Server Industry Growth Projections
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Linux Client Operating EnvironmentsShipments
Installed Base By Super-Region
Shipments
2002
2007
CAGR 02 07
17.1
5000
(k units)
(k units)
4000
33.9
3000
35.5
2000
47.8
1000
0
North
Western
APAC
ROW
America
Europe
Source IDC interview Oct 20, 2003
Source IDC interview Oct 20, 2003
Asia Pacific Govt policy plays key role Inc
rease in SMBs drive Linux adoption
China, Korea, Australia, India, Taiwan 85 of
Linux COE forecast Rest of the World Govts p
lay key roles Educational institutions lead way

North America 72 of IT firms (1B) plan to u
se more OSS 2 of NA IT Mgrs likely to adopt Li
nux on DT this year Western Europe Govts
adopt open source to cut cost stimulate
local SW development free competition
Control of infrastructure as competitive
advantage
Sources Forrester, Gartner, IDC
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Business Model
Direct Revenue
Total End User Spending
Vendor Revenue
OEM
Indirect Vendor Revenue
Single-Tier Resale
Indirect End-User Revenue
Vendor Revenue
End-user revenue
Multi-tier Distribution
New License, Maintenance, Service and Solution
for Hire
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Legal

• Working within Free Open Source Software
  (FOSS) like Linux has important legal
  ramifications
  
• Often, lack of legal backup (e.g., warranty or
  indemnity) for FOSS received from a 3rd party
  
• FOSS licenses (e.g., GPL LGPL) have mandatory
  IP disclosure and licensing obligations
  
• IP-rich companies need to evaluate the impact to
  their IP portfolio in using these licenses
  
• Care must be taken to ensure FOSS licenses dont
  contaminate code not intended to be open
  sourced
  
• Tribal knowledge about implications of working
  with FOSS not always in line with advice from
  Legal
  
• Lack of concrete or consistent rules or positions
  on many important legal issues
  
• Business needs to work with Legal to assess risks
  and develop practices to mitigate unacceptable
  risks

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Intel and Open Source
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Linux Expertise in Oregon

• Center for OSDL - Founded in 2000 and supported
  by a global consortium of IT industry leaders
  
• Focus of IBM Linux team
• Intel Linux expertise and organization

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Back Up
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Intel Capital OSS Investments
Investments to accelerate server ecosystem on IA
04 Investments Zend JBoss
Middleware
Prod. Tools
SERVER STACK
OS
Time
INTEL CAPITAL INVESTMENTS
Emerging ecosystems Investment opportunities
Client Productivity stack, consumer stack, etc.
Handheld
Software-as-a-service
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Intel Strategy

• Multiple Architectures
• Open source takes full advantage of Intel
  Architectures individually and cross platform

Advanced Technologies and Platforms
Open source quickly enables the software
ecosystem to fully utilize Intel technology
features
Our Commitment Contributing and supporting the op
en source community

Worldwide Presence Open source a growing require
ment from Intel
customers worldwide
Growth through Innovation The Platform of Choice