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.

Who writes white papers?

A social network diagram
Image via Wikipedia

There are four main types of commercial white papers:

  • Business benefits: Makes a business case for a certain technology or methodology.
  • Technical: Describes how a certain technology works.
  • Hybrid: Combines business benefits with technical details in a single document.
  • Policy: Makes a case for a certain political solution to a societal or economic challenge.
Name the best white paper you ever read? (comment that in the field)..
What categoy of white papers is the best?
Do you think white papers are too expensive or they give adequate ROI?
To be continued- including

  1. demographic and social network analysis of analysts and white paper sponsors to measure interaction effects.
  2. white papers segmented by type of software company
  3. proc freq analysis of the words frequency data viz in white papers written by same analysts for different companies on same topics.
  4. Race and ethnic analysis of influencers and analysts in Business Analysts and Business Intelligence. – Null hypothesis – it is not a white mans world, women, Hispanics and other minorities are adequately represented.
Why I am doing this?
I am writing a white paper on WHO writes a white paper? 
Sponsorships are invited- but academics and startups in analytics may be preferred.

What is a White Paper?

Christine and Jimmy Wales
Image via Wikipedia

As per Jimmy Wales and his merry band at Wiki (pedia not leaky-ah)- The emphasis is mine

What is the best white paper you have read in the past 15 years.

Categories are-

  • Business benefits: Makes a business case for a certain technology or methodology.
  • Technical: Describes how a certain technology works.
  • Hybrid: Combines business benefits with technical details in a single document.
  • Policy: Makes a case for a certain political solution to a societal or economic challenge.
——————————————————————————————————————————————————



white paper is an authoritative report or guide that helps solve a problem. White papers are used to educate readers and help people make decisions, and are often requested and used in politics, policy, business, and technical fields. In commercial use, the term has also come to refer to documents used by businesses as a marketing or sales tool. Policy makers frequently request white papers from universities or academic personnel to inform policy developments with expert opinions or relevant research.

Government white papers

In the Commonwealth of Nations, “white paper” is an informal name for a parliamentary paper enunciating government policy; in the United Kingdom these are mostly issued as “Command papers“. White papers are issued by the government and lay out policy, or proposed action, on a topic of current concern. Although a white paper may on occasion be a consultation as to the details of new legislation, it does signify a clear intention on the part of a government to pass new law. White Papers are a “…. tool of participatory democracy … not [an] unalterable policy commitment.[1] “White Papers have tried to perform the dual role of presenting firm government policies while at the same time inviting opinions upon them.” [2]

In Canada, a white paper “is considered to be a policy document, approved by Cabinet, tabled in the House of Commons and made available to the general public.”[3] A Canadian author notes that the “provision of policy information through the use of white and green papers can help to create an awareness of policy issues among parliamentarians and the public and to encourage an exchange of information and analysis. They can also serve as educational techniques”.[4]

“White Papers are used as a means of presenting government policy preferences prior to the introduction of legislation”; as such, the “publication of a White Paper serves to test the climate of public opinion regarding a controversial policy issue and enables the government to gauge its probable impact”.[5]

By contrast, green papers, which are issued much more frequently, are more open ended. These green papers, also known as consultation documents, may merely propose a strategy to be implemented in the details of other legislation or they may set out proposals on which the government wishes to obtain public views and opinion.

White papers published by the European Commission are documents containing proposals for European Union action in a specific area. They sometimes follow a green paper released to launch a public consultation process.

For examples see the following:

 Commercial white papers

Since the early 1990s, the term white paper has also come to refer to documents used by businesses and so-called think tanks as marketing or sales tools. White papers of this sort argue that the benefits of a particular technologyproduct or policy are superior for solving a specific problem.

These types of white papers are almost always marketing communications documents designed to promote a specific company’s or group’s solutions or products. As a marketing tool, these papers will highlight information favorable to the company authorizing or sponsoring the paper. Such white papers are often used to generate sales leads, establish thought leadership, make a business case, or to educate customers or voters.

There are four main types of commercial white papers:

  • Business benefits: Makes a business case for a certain technology or methodology.
  • Technical: Describes how a certain technology works.
  • Hybrid: Combines business benefits with technical details in a single document.
  • Policy: Makes a case for a certain political solution to a societal or economic challenge.

Resources

  • Stelzner, Michael (2007). Writing White Papers: How to capture readers and keep them engaged. Poway, California: WhitePaperSource Publishing. pp. 214. ISBN 9780977716937.
  • Bly, Robert W. (2006). The White Paper Marketing Handbook. Florence, Kentucky: South-Western Educational Publishing. pp. 256. ISBN 9780324300826.
  • Kantor, Jonathan (2009). Crafting White Paper 2.0: Designing Information for Today’s Time and Attention Challenged Business Reader. Denver,Colorado: Lulu Publishing. pp. 167.ISBN 9780557163243.

An Introduction to Data Mining-online book

I was reading David Smith’s blog http://blog.revolutionanalytics.com/

where he mentioned this interview of Norman Nie, at TDWI

http://tdwi.org/Articles/2010/11/17/R-101.aspx?Page=2

where I saw this link (its great if you want to study Data Mining btw)

http://www.kdnuggets.com/education/usa-canada.html

and I c/liked the U Toronto link

http://chem-eng.utoronto.ca/~datamining/

Best of All- I really liked this online book created by Professor S. Sayad

Its succinct and beautiful and describes all of the Data Mining you want to read in one Map (actually 4 images painstakingly assembled with perfection)

The best thing is- in the original map- even the sub items are click-able for specifics like Pie Chart and Stacked Column chart are not in one simple drop down like Charts- but rather by nature of the kind of variables that lead to these charts. For doing that- you would need to go to the site itself- ( see http://chem-eng.utoronto.ca/~datamining/dmc/categorical_variables.htm

vs

http://chem-eng.utoronto.ca/~datamining/dmc/categorical_numerical.htm

Again- there is no mention of the data visualization software used to create the images but I think I can take a hint from the Software Page which says software used are-

Software

See it on your own-online book (c)Professor S. Sayad

Really good DIY tutorial

http://chem-eng.utoronto.ca/~datamining/dmc/data_mining_map.htm

A Poem on Demand

On Demand entertainment I need to hear
On Demand information of webcasts, white papers dear
On demand downloads of information I am told I really need
Sometimes it is tough to keep which is shallow what is deep

Is it really on demand or were you overwhelmed and manipulated by the supply
On Demand Supply and estimates of forecasts of influencer of the demand
Friendship is also on demand

But Loneliness is Free and Open Source
And so is Freedom

How many Fans, Followers, Likes can you get
Before your critical mass makes you Viral
Like a Video Bieber whose clothes are torn by crowds

Searching for your 900 seconds of On Demand fame
You want to be paid on demand but work only on a creative fancy
Your on demand laziness is too demanding now
Ceteras Paribus, On demand is too much to demand
and much too on always on 24 7

Give me a book a friend and some peace and quiet
Bet you things arent there on supply but always on demand
Or are they?

Q&A with David Smith, Revolution Analytics.

Here’s a group of questions and answers that David Smith of Revolution Analytics was kind enough to answer post the launch of the new R Package which integrates Hadoop and R-                         RevoScaleR

Ajay- How does RevoScaleR work from a technical viewpoint in terms of Hadoop integration?

David-The point isn’t that there’s a deep technical integration between Revolution R and Hadoop, rather that we see them as complementary (not competing) technologies. Hadoop is amazing at reliably (if slowly) processing huge volumes of distributed data; the RevoScaleR package complements Hadoop by providing statistical algorithms to analyze the data processed by Hadoop. The analogy I use is to compare a freight train with a race car: use Hadoop to slog through a distributed data set and use Map/Reduce to output an aggregated, rectangular data file; then use RevoScaleR to perform statistical analysis on the processed data (and use the speed of RevolScaleR to iterate through many model options to find the best one).

Ajay- How is it different from MapReduce and R Hipe– existing R Hadoop packages?
David- They’re complementary. In fact, we’ll be publishing a white paper soon by Saptarshi Guha, author of the Rhipe R/Hadoop integration, showing how he uses Hadoop to process vast volumes of packet-level VOIP data to identify call time/duration from the packets, and then do a regression on the table of calls using RevoScaleR. There’s a little more detail in this blog post: http://blog.revolutionanalytics.com/2010/08/announcing-big-data-for-revolution-r.html
Ajay- Is it going to be proprietary, free or licensable (open source)?
David- RevoScaleR is a proprietary package, available to paid subscribers (or free to academics) with Revolution R Enterprise. (If you haven’t seen it, you might be interested in this Q&A I did with Matt Shotwell: http://biostatmatt.com/archives/533 )
Ajay- Any existing client case studies for Terabyte level analysis using R.
David- The VOIP example above gets close, but most of the case studies we’ve seen in beta testing have been in the 10’s to 100’s of Gb range. We’ve tested RevoScaleR on larger data sets internally, but we’re eager to hear about real-life use cases in the terabyte range.
Ajay- How can I use RevoScaleR on my dual chip Win Intel laptop for say 5 gb of data.
David- One of the great things about RevoScaleR is that it’s designed to work on commodity hardware like a dual-core laptop. You won’t be constrained by the limited RAM available, and the parallel processing algorithms will make use of all cores available to speed up the analysis even further. There’s an example in this white paper (http://info.revolutionanalytics.com/bigdata.html) of doing linear regression on 13Gb of data on a simple dual-core laptop in less than 5 seconds.
AJ-Thanks to David Smith, for this fast response and wishing him, Saptarshi Guha Dr Norman Nie and the rest of guys at Revolution Analytics a congratulations for this new product launch.