Why open source companies dont dance?

I have been pondering on this seemingly logical paradox for some time now-

1) Why are open source solutions considered technically better but not customer friendly.

2) Why do startups and app creators in social media or mobile get much more press coverage than

profitable startups in enterprise software.

3) How does tech journalism differ in covering open source projects in enterprise versus retail software.

4) What are the hidden rules of the game of enterprise software.

Some observations-

1) Open source companies often focus much more on technical community management and crowd sourcing code. Traditional software companies focus much more on managing the marketing community of customers and influencers. Accordingly the balance of power is skewed in favor of techies and R and D in open source companies, and in favor of marketing and analyst relations in traditional software companies.

Traditional companies also spend much more on hiring top notch press release/public relationship agencies, while open source companies are both financially and sometimes ideologically opposed to older methods of marketing software. The reverse of this is you are much more likely to see Videos and Tutorials by an open source company than a traditional company. You can compare the websites of ClouderaDataStax, Hadapt ,Appistry and Mapr and contrast that with Teradata or Oracle (which has a much bigger and much more different marketing strategy.

Social media for marketing is also more efficiently utilized by smaller companies (open source) while bigger companies continue to pay influential analysts for expensive white papers that help present the brand.

Lack of budgets is a major factor that limits access to influential marketing for open source companies particularly in enterprise software.

2 and 3) Retail software is priced at 2-100$ and sells by volume. Accordingly technology coverage of these software is based on volume.

Enterprise software is much more expensively priced and has much more discreet volume or sales points. Accordingly the technology coverage of enterprise software is more discreet, in terms of a white paper coming every quarter, a webinar every month and a press release every week. Retail software is covered non stop , but these journalists typically do not charge for “briefings”.

Journalists covering retail software generally earn money by ads or hosting conferences. So they have an interest in covering new stuff or interesting disruptive stuff. Journalists or analysts covering enterprise software generally earn money by white papers, webinars, attending than hosting conferences, writing books. They thus have a much stronger economic incentive to cover existing landscape and technologies than smaller startups.

4) What are the hidden rules of the game of enterprise software.

  • It is mostly a white man’s world. this can be proved by statistical demographic analysis
  • There is incestuous intermingling between influencers, marketers, and PR people. This can be proved by simple social network analysis of who talks to who and how much. A simple time series between sponsorship and analysts coverage also will prove this (I am working on quantifying this ).
  • There are much larger switching costs to enterprise software than retail software. This leads to legacy shoddy software getting much chances than would have been allowed in an efficient marketplace.
  • Enterprise software is a less efficient marketplace than retail software in all definitions of the term “efficient markets”
  • Cloud computing, and SaaS and Open source threatens to disrupt the jobs and careers of a large number of people. In the long term, they will create many more jobs, but in the short term, people used to comfortable living of enterprise software (making,selling,or writing) will actively and passively resist these changes to the  paradigms in the current software status quo.
  • Open source companies dont dance and dont play ball. They prefer to hire 4 more college grads than commission 2 more white papers.

and the following with slight changes from a comment I made on a fellow blog-

  • While the paradigm on how to create new software has evolved from primarily silo-driven R and D departments to a broader collaborative effort, the biggest drawback is software marketing has not evolved.
  • If you want your own version of the open source community editions to be more popular, some standardization is necessary for the corporate decision makers, and we need better marketing paradigms.
  • While code creation is crowdsourced, solution implementation cannot be crowdsourced. Customers want solutions to a problem not code.
  • Just as open source as a production and licensing paradigm threatens to disrupt enterprise software, it will lead to newer ways to marketing software given the hostility of existing status quo.

 

 

Why open source companies dont dance?

A social network diagram
Image via Wikipedia

I have been pondering on this seemingly logical paradox for some time now-

1) Why are open source solutions considered technically better but not customer friendly.

2) Why do startups and app creators in social media or mobile get much more press coverage than

profitable startups in enterprise software.

3) How does tech journalism differ in covering open source projects in enterprise versus retail software.

4) What are the hidden rules of the game of enterprise software.

Some observations-

1) Open source companies often focus much more on technical community management and crowd sourcing code. Traditional software companies focus much more on managing the marketing community of customers and influencers. Accordingly the balance of power is skewed in favor of techies and R and D in open source companies, and in favor of marketing and analyst relations in traditional software companies.

Traditional companies also spend much more on hiring top notch press release/public relationship agencies, while open source companies are both financially and sometimes ideologically opposed to older methods of marketing software. The reverse of this is you are much more likely to see Videos and Tutorials by an open source company than a traditional company. You can compare the websites of ClouderaDataStax, Hadapt ,Appistry and Mapr and contrast that with Teradata or Oracle (which has a much bigger and much more different marketing strategy.

Social media for marketing is also more efficiently utilized by smaller companies (open source) while bigger companies continue to pay influential analysts for expensive white papers that help present the brand.

Lack of budgets is a major factor that limits access to influential marketing for open source companies particularly in enterprise software.

2 and 3) Retail software is priced at 2-100$ and sells by volume. Accordingly technology coverage of these software is based on volume.

Enterprise software is much more expensively priced and has much more discreet volume or sales points. Accordingly the technology coverage of enterprise software is more discreet, in terms of a white paper coming every quarter, a webinar every month and a press release every week. Retail software is covered non stop , but these journalists typically do not charge for “briefings”.

Journalists covering retail software generally earn money by ads or hosting conferences. So they have an interest in covering new stuff or interesting disruptive stuff. Journalists or analysts covering enterprise software generally earn money by white papers, webinars, attending than hosting conferences, writing books. They thus have a much stronger economic incentive to cover existing landscape and technologies than smaller startups.

4) What are the hidden rules of the game of enterprise software.

  • It is mostly a white man’s world. this can be proved by statistical demographic analysis
  • There is incestuous intermingling between influencers, marketers, and PR people. This can be proved by simple social network analysis of who talks to who and how much. A simple time series between sponsorship and analysts coverage also will prove this (I am working on quantifying this ).
  • There are much larger switching costs to enterprise software than retail software. This leads to legacy shoddy software getting much chances than would have been allowed in an efficient marketplace.
  • Enterprise software is a less efficient marketplace than retail software in all definitions of the term “efficient markets”
  • Cloud computing, and SaaS and Open source threatens to disrupt the jobs and careers of a large number of people. In the long term, they will create many more jobs, but in the short term, people used to comfortable living of enterprise software (making,selling,or writing) will actively and passively resist these changes to the  paradigms in the current software status quo.
  • Open source companies dont dance and dont play ball. They prefer to hire 4 more college grads than commission 2 more white papers.

and the following with slight changes from a comment I made on a fellow blog-

  • While the paradigm on how to create new software has evolved from primarily silo-driven R and D departments to a broader collaborative effort, the biggest drawback is software marketing has not evolved.
  • If you want your own version of the open source community editions to be more popular, some standardization is necessary for the corporate decision makers, and we need better marketing paradigms.
  • While code creation is crowdsourced, solution implementation cannot be crowdsourced. Customers want solutions to a problem not code.
  • Just as open source as a production and licensing paradigm threatens to disrupt enterprise software, it will lead to newer ways to marketing software given the hostility of existing status quo.

Predictive Analytics World

Here is an announcement from Predictive Analytics World, the worlds largest vendor neutral conference dedicated to Predictive Analytics alone. Decisionstats has been a blog partner of PAWCON since inception. This is cool stuff!Predictive Analytics World New York October 2011

Video Testimonials: Reasons to Attend Predictive Analytics World Oct 2011, NY  

What’s Predictive Analytics World (PAW) all about and why should you go? See and hear experiences from those who have attended PAW. The video recorded at PAW San Francisco 2011 includes statements from Thomas Davenport, conference chair Eric Siegel, and other conference participants and VIPs.

 

Join your peers October 17-21, 2011 at the Hilton New York for Predictive Analytics World, the business event for predictive analytics professionals, managers and commercial practitioners, covering today’s commercial deployment of predictive analytics, across industries and across software vendors.

Register using the code REDC before June 15th and 10% of your registration proceeds will be donated to American Red Cross Midwest Tornado Relief Effort. Also, take advantage of Super Early Bird Pricing and realize $400 in savings.

Discover new content covering all the latest topics and advanced methods by participating in PAW’s workshops, case studies, and educational sessions.   View full agenda and topics online now.

PAW NYC agenda highlights include:

  • Keynotes from Tom Davenport, President’s Distinguished Professor, Babson College, Author, Competing on Analytics and Eric Siegel,  Conference Program Chair, Predictive Analytics World
  • Special plenary sessions from industry heavyweights, Usama Fayyad, Ph.D., CEO, Open Insights and John F. Elder, CEO and Founder, Elder Research
  • Full day workshops that cover the topics of Decisioning, Core Methods, Net Lift Modeling, Hands-On Intro, Hands-On R, Intro to Predictive Analytics and Intro to Business Analytics
  • Topics covering black box trading, churn modeling, crowdsourcing, demand forecasting, ensemble models, fraud detection, healthcare, insurance applications, law enforcement, litigation, market mix modeling, mobile analytics, online marketing, risk management, social data, supply chain management, targeting direct marketing, uplift modeling (net lift), and other innovative applications that benefit organizations in new and creative ways.
Thomas Davenport
Thomas Davenport
Author, Competing on Analytics
Eric Siegel, Ph.D
VIP from IBM Research (TBA)
Keynote on Jeopardy-Winning Watson and DeepQA
Eric Siegel, Ph.D
Eric Siegel, Ph.D
Program Chair, Predictive Analytics World
Usama Fayyad, Ph.D
Usama Fayyad, Ph.D
CEO, Open Insights
John F. Elder IV, Ph.D
John F. Elder IV, Ph.D
Chief Scientist, Elder Research, Inc.

Become an invaluable resource to your organization by discovering new processes and tactics that your peers are using to optimize with the best methods that leverage data – bringing their business results to the next level.

New Financial Services Track — You Asked and We Delivered

October’s event will include a new conference track of sessions dedicated to the Financial Services industry. This track will feature something for users of all levels, whether you’re deploying your first initiative or learning new ways to position analytics within your organization.


Text analytics. The new conference Text Analytics World,
co-located with PAW NYC, complements PAW’s agenda
with reasonable cross-registration options.

Take advantage of Super Early Bird Pricing and realize
$400 in savings before June 15, 2011.

Note:  Each additional attendee from the same company registered at the same time receives an extra $200 off the Conference Pass.

Register Now!


eMetrics New York

Follow Us on Twitter Be a Fan on Facebook LinkedIn Group Live Twitter Feed
Follow Like Join Live

Register Now!



All Analytics Conferences: 

Predictive Analytics World for Government – Sept 12-13 in DC
Predictive Analytics World NYC – Oct 17-21
Text Analytics World NYC – Oct 19-20
Predictive Analytics World San Francisco – March 2012
Predictive Analytics World Videos – Available on-demand

Produced by: 

Predictionimpact
RisingMedia

 

Here comes Cassandra!

What is Cassandra? Why is this relevant to analytics?

It is the next generation Database that you want your analytics software to be compatible with. Also it is quite easy to learn. Did I mention that if you say “I know how to Hadoop/Big Data” on your resume, you just raised your market price by an extra 30 K$. I mean there is a big demand for analysts and statisticians who can think/slice data from a business perspective AND write that HADOOP/Big Data code.

How do I learn more?

http://www.datastax.com/events/cassandrasf2011

Whats in it for you?

Well, I shifted my poetry to https://poemsforkush.wordpress.com/

On Decisionstats.com This is what I love to write about! I find it cool.

——————————————————–

Cassandra SF 2011- Monday, July 11

Free Pass Datastax Cassandra SF

It’s been almost a year since the first Apache Cassandra Summit in San Francisco. Once again we’ve reserved the beautiful Mission Bay Conference Center. Because the Cassandra community has grown so much in the last year, we’re taking the entire venue. This year’s event will not only include Cassandra, but also Brisk, Apache Hadoop, and more.

What’s in-store for this year’s conference?

We have two rooms set aside for presentations.This year we also have multiple rooms set aside for Birds of a Feather talks, committer meetups, and other small discussions.

We’ve sent out surveys to all the attendees of last year’s conference, as well as a few hundred other members of the community. Below are some of the topics people have requested so far.

If you have topics you’d like to see covered, or you would like to submit a presentation, send a note to lynnbender@datastax.com.

What else?

We’ll be providing lunch as well as continuous beverage service — so that you won’t have to take your mind outside the information windtunnel.

We’ll also be hosting a post event party. Details coming shortly.

For more information…

Submissions and suggestions: If you wish to propose a talk or presentation, or have a suggestion on a topic you’d like to see covered, send a note to Lynn Bender at lynnbender@datastax.com

Sponsorship opportunities: Contact Michael Weir at DataStax: mweir@datastax.com

Apache Cassandra, Cassandra, Apache Hadoop, Hadoop, and Apache are either registered trademarks or trademarks of the Apache Software Foundation in the United States and/or other countries, and are used with permission as of 2011. The Apache Software Foundation has no affiliation with and does not endorse, or review the materials provided at this event, which is managed by DataStax.

https://cassandra.apache.org/

Welcome to Apache Cassandra

The Apache Cassandra Project develops a highly scalable second-generation distributed database, bringing together Dynamo’s fully distributed design and Bigtable’s ColumnFamily-based data model.

Cassandra was open sourced by Facebook in 2008, and is now developed by Apache committers and contributors from many companies.

Download

Overview

  • ProvenCassandra is in use at DiggFacebook,TwitterRedditRackspaceCloudkick, Cisco, SimpleGeo, Ooyala, OpenX, and more companiesthat have large, active data sets. The largest production cluster has over 100 TB of data in over 150 machines.
  • Fault TolerantData is automatically replicated to multiple nodes for fault-tolerance. Replication across multiple data centers is supported. Failed nodes can be replaced with no downtime.
  • DecentralizedEvery node in the cluster is identical. There are no network bottlenecks. There are no single points of failure.
  • You’re in ControlChoose between synchronous or asynchronous replication for each update. Highly available asynchronus operations are optimized with features like Hinted Handoffand Read Repair.
  • Rich Data ModelAllows efficient use for many applications beyond simple key/value.
  • ElasticRead and write throughput both increase linearly as new machines are added, with no downtime or interruption to applications.
  • DurableCassandra is suitable for applications that can’t afford to lose data, even when an entire data center goes down.
  • Professionally SupportedCassandra support contracts and services are available from third partie

Predictive Analytics World

 

 

 

Here is an announcement from Predictive Analytics World, the worlds largest vendor neutral conference dedicated to Predictive Analytics alone. Decisionstats has been a blog partner of PAWCON since inception. This is cool stuff!Predictive Analytics World New York October 2011

Video Testimonials: Reasons to Attend Predictive Analytics World Oct 2011, NY 

What’s Predictive Analytics World (PAW) all about and why should you go? See and hear experiences from those who have attended PAW. The video recorded at PAW San Francisco 2011 includes statements from Thomas Davenport, conference chair Eric Siegel, and other conference participants and VIPs.

 

Join your peers October 17-21, 2011 at the Hilton New York for Predictive Analytics World, the business event for predictive analytics professionals, managers and commercial practitioners, covering today’s commercial deployment of predictive analytics, across industries and across software vendors.

Register using the code REDC before June 15th and 10% of your registration proceeds will be donated to American Red Cross Midwest Tornado Relief Effort. Also, take advantage of Super Early Bird Pricing and realize $400 in savings.

Discover new content covering all the latest topics and advanced methods by participating in PAW’s workshops, case studies, and educational sessions.   View full agenda and topics online now.

PAW NYC agenda highlights include:

  • Keynotes from Tom Davenport, President’s Distinguished Professor, Babson College, Author, Competing on Analytics and Eric Siegel,  Conference Program Chair, Predictive Analytics World
  • Special plenary sessions from industry heavyweights, Usama Fayyad, Ph.D., CEO, Open Insights and John F. Elder, CEO and Founder, Elder Research
  • Full day workshops that cover the topics of Decisioning, Core Methods, Net Lift Modeling, Hands-On Intro, Hands-On R, Intro to Predictive Analytics and Intro to Business Analytics
  • Topics covering black box trading, churn modeling, crowdsourcing, demand forecasting, ensemble models, fraud detection, healthcare, insurance applications, law enforcement, litigation, market mix modeling, mobile analytics, online marketing, risk management, social data, supply chain management, targeting direct marketing, uplift modeling (net lift), and other innovative applications that benefit organizations in new and creative ways.
Thomas Davenport
Thomas Davenport
Author, Competing on Analytics
Eric Siegel, Ph.D
VIP from IBM Research (TBA)
Keynote on Jeopardy-Winning Watson and DeepQA
Eric Siegel, Ph.D
Eric Siegel, Ph.D
Program Chair, Predictive Analytics World
Usama Fayyad, Ph.D
Usama Fayyad, Ph.D
CEO, Open Insights
John F. Elder IV, Ph.D
John F. Elder IV, Ph.D
Chief Scientist, Elder Research, Inc.

Become an invaluable resource to your organization by discovering new processes and tactics that your peers are using to optimize with the best methods that leverage data – bringing their business results to the next level.

New Financial Services Track — You Asked and We Delivered

October’s event will include a new conference track of sessions dedicated to the Financial Services industry. This track will feature something for users of all levels, whether you’re deploying your first initiative or learning new ways to position analytics within your organization.


Text analytics. The new conference Text Analytics World,
co-located with PAW NYC, complements PAW’s agenda
with reasonable cross-registration options.

Take advantage of Super Early Bird Pricing and realize
$400 in savings before June 15, 2011.

Note:  Each additional attendee from the same company registered at the same time receives an extra $200 off the Conference Pass.

Register Now!


eMetrics New York

Follow Us on Twitter Be a Fan on Facebook LinkedIn Group Live Twitter Feed
Follow Like Join Live

Register Now!



All Analytics Conferences:

Predictive Analytics World for Government – Sept 12-13 in DC
Predictive Analytics World NYC – Oct 17-21
Text Analytics World NYC – Oct 19-20
Predictive Analytics World San Francisco – March 2012
Predictive Analytics World Videos – Available on-demand

Produced by:

Predictionimpact
RisingMedia

Updated Blogging Policy for Decisionstats.com

Once Upon a Time in Mumbaai
Image via Wikipedia

I will be moving and transitioning all cultural,philosophical ,poetry, and political writing to separate blogs.

Decisionstats is for better TECHNICAL decisions by FASTER STATS (on technology).

  • for better political decisions (how to organize protests in Asia when the govt cuts off the internet) (separate culture blog),
  • better cultural decisions (which movie should we go to) (separate culture blog),
  • better poetry reading (seperate TUMBLR blog)

 

Thanks,

Ajay Ohri

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