Magnolia Booth at Gilbane Boston Conference 2008

InitMarketing helped Magnolia launch the new Magnolia On Air at Gilbane Boston Conference 2008. Magnolia On Air is a content management solution for the broadcast media built on top of Magnolia Enterprise Edition.

Magnolia booth at Gilbane Boston Conference 2008

Boris Kraft, CTO Magnolia, talking to a conference participant in front of the Magnolia booth.

I am also here in Boston, enjoying the conference and meeting lots of people from the OSS CMS space.

Seminar on Open Source Marketing in Istanbul

Next week, Thursday, I will present in Istanbul, Turkey on “Does Open Source Software Needs Marketing? Why and How”.

Here’s further information from the invitation letter:

We would like to see you among us for the Open Source Marketing seminar
jointly organized by TUBITAK UEKAE and IBM-Bilgi Center for Advanced Studies,
to take place on November 27th at 13:00 in Istanbul Bilgi University
Dolapdere Campus.

The seminar will be delivered by Sandro Groganz, the founder of and consultant
for the open source marketing firm InitMarketing. Detailed info regarding the
seminar is provided below.

Date: November 27, 2008 Thursday
Time: 13:00
Plave: Istanbul Bilgi University Dolapdere Campus

Thank you in advance.
Best regards
Pardus Project // TÜBİTAK UEKAE

Does Open Source Software Needs Marketing? Why and How

The market share of Open Source software will double within the next four
years. More and more new companies provide Open Source products right from
the start and established players release their source code under an OSS
license.

These days, everyone knows that Open Source is a viable business model – but
how does one successfully market an Open Source product? A download link
alone will not suffice. It rather needs a strategy combinin traditional
marketing with community relations and social media marketing.

This presentation will showcase examples from the Open Source domain and
provide hands-on advice about how to unfold a vital Open Source ecosystem
where geeks and customers alike contribute to value creation.

Looking forward to seeing you there! Thanks to Erkan Tekman of Pardus fame for organizing it.

Video Interview with Andrew Rodaway, Director of Marketing, Canonical

I very much enjoyed the video interview conducted with Andrew Rodaway, Director of Marketing, Canonical at OSiM.

In that interview, Andrew says:

“A lot of money will come into the open-source movement over the next few years and that drives the marketing agenda.”

He is certainly very right, because at InitMarketing, we experience steady and growing demand for our Open Source marketing services. Although the global economy isn’t in good shape, our customers invest in marketing their Open Source products more than ever.

It really seems that Open Source is doing good in a time of recession and every marketing dollar invested by Open Source vendors in a time where proprietary vendors struggle during an economic downturn is wisely spent because it gets them ahead of proprietary competition.

Watch the interview with Andrew Rodaway about marketing Canonical and Ubuntu at InitMarketing.tv.

Video Interview with Stormy Peters, Executive Director, GNOME Foundation

I just published a video interview with Stormy which I recorded at OSiM in Berlin.

Stormy is Executive Director, GNOME Foundation, since July 2008. Working with the Board of Directors, Advisory Board, and the GNOME Foundation members, she helps strengthening the Foundation by attracting new industry members and community contributors.

In this interview she talks about reaching consensus on marketing-related decisions with a community-driven project such as GNOME, how she plans to position GNOME, how to attract more donators, and more.

Find the interview Stormy Peters about Marketing GNOME at InitMarketing.tv.

Interview with Boris Kraft, CTO Magnolia

A video interview with Boris Kraft, CTO Magnolia, the Simple Open Source Content Management System, just got published on InitMarketing.tv. Boris discusses various aspects of marketing Magnolia.

Here’s an excerpt of the part I find most interesting:

Question: You’re building up the Magnolia office in New York. Is there a difference you realized between how to market your open source product in Europe compared to the US?

Boris Kraft: I think there are many differences. The expectations are different in the US, there are all these images we have in our heads about how the US economy works, about how the consumers are, and a lot of that is actually true. It’s much more hype, marketing is very very important, and the whole process is very fast, so it’s much more hype than substance – that’s my experience so far. So, coming from an European country – like Magnolia International sitting in Switzerland – this is a part where we typically have a very thoughtful way of doing things. We like to produce quality, and it takes longer, this is very difficult for us to deal with: To have this “Swiss mind set” and come to the US and basically clash with the “US mind set”. I kind of have to be there and say “we are the best, we are the greatest, we have everything tomorrow” whereas here we would say “yes, well, actually we can do this, yes” – you know, it’s a very different perception…

You can watch the interview highlights (4:44), the full interview (12:38), or read the transcript of the full interview.

Video Interviews about Open Source Marketing on InitMarketing.tv

InitMarketing.tv - Open Source Marketing VideosInitMarketing.tv has just been launched! This is where InitMarketing will publish video interviews with key figures about marketing Open Source software. Currently, there are three interviews available:

  • Bruce Perens, co-founder of the Open Source Initiative
  • Florian Effenberger, Co-lead OpenOffice.org Marketing Project
  • Oliver Nachtrab, former Product Manager, SUSE, Open-Xchange

More interviews will be published regularly, such as with Andrew Rodaway (Director of Marketing, Canonical), Fabrizio Capobianco (CEO, Funambol), Shane Martin Coughlan (FTF Coordinator, Free Software Foundation Europe), Stormy Peters (Executive Director, Gnome Foundation), Boris Kraft (CTO, Magnolia), and more.

Thanks to all interviewees for great insights and also to Wirawan Harianto for his design work!

Watch the video interviews about Open Source marketing.

Open Source Marketing Workshop at OSBF

For all of you in the German-speaking regions of Europe, OSBF will offer various talks related to marketing Open Source software. As a founding member of OSBF’s Open Source Sales & Marketing Group, I’ll present a two hours introductory workshop about Open Source marketing and will be available for Q&A afterwards.

Yet, the dates are not set and we are still collecting feedback from OSBF members on the topics.

OSBF members will not pay for attending the presentations, non-members will be charged EUR150.

Marketing and Community- vs. Company-driven Open Source Ecosystems

Currently, customers at InitMarketing are solely companies who want us to support them in marketing their Open Source product. Yet, we do not work for community-driven Open Source projects which usually have an association or foundation as an organizing body.

The reason is quite simple: Associations or foundations which we have been in touch with lack money and business-focused decision-making processes. It seems to be much easier for companies to provide a sufficient marketing budget and to agree on a focused marketing strategy.

The cause mainly lies in how differently the two ecosystems are structured.

Company-driven Open Source Ecosystem

Company-driven Open Source Ecosystem

An Open Source company acts as the hub in its self-created ecosystem and can leverage all business advantages which stem from its superior knowledge of the product, copyright, etc.

Community-driven Open Source Ecosystem

Community-driven Open Source Ecosystem

Community-driven ecosystems lack a business hub. Usually the core of the community is focused on further developing the source code.

Pros and Cons: Company vs. Community

Company Community
Decision making Defined reporting structures and decision makers Meritocratic community, maybe with benevolent dictator
Motivation Business-oriented, want to make money Individuals who enjoy coding good software
Communication Partially confidential Highly transparent

Of course, this is an overly simplistic comparison table. I know, there are companies that are pure chaos compared with some well working communities. Also, companies might employ their best community members over time which makes it impossible to draw a clear line between community and company. And so on… Nevertheless, the above mentioned points allow to understand the impact of the fundamental differences between a company- and a community-driven ecosystem on marketing, which I’ll discuss next.

Impact on Marketing

Communities trying to reach broad consensus will have a hard time focusing their marketing activities e.g. to clearly position their OSS project, because this requires bold decisions to spend the available budget on a specific target audience only. The higher an OSS project is in the software stack, the more this becomes a problem due to the fact that they need to attract end users and pragmatic buyers.

Open Source companies see a constant need to raise visibility through marketing to achieve better lead generation. Quite contrary, some core developers in communities might have strong prejudices against marketing and especially public relations (of course, the same can happen within a company, but the business prerogative will prevail). Additionally,  Then again, communities are quite good in spreading the word among peers.

Preparing a marketing budget is a serious issue for communities. They could collect it from system integrators who are part of the community, but they might want to invest the bulk of their marketing budget into pushing their own specific solutions and services. Nevertheless, if the main beneficiaries of an OSS project financially support general marketing efforts of the community, they will profit not only from shared development, but also from shared marketing costs.

Shared marketing is especially helpful if the OSS project is rather a platform or framework instead of an out-of-the-box solution. The danger is that community members tend to have varying views on an OSS platform. Different system integrators will use it to implement different custom solutions. The OSS project could potentially mean anything to anyone, which runs counter a sound positioning in the heads of potential new developers and customers.

In general, it is very important for OSS communities to educate themselves when it comes to marketing, which includes open discussions that result in clear decisions. While the OSS market continues to grow, so will competition. More Open Source communities will eventually take a closer look at how marketing can help them to distinguish themselves from the competition.

The Perspective of an Open Source Marketing Company

Seen from the perspective of InitMarketing, it is much easier for us to provide Open Source marketing services to companies.

The risk with communities is that discussions could take long and decisions could be delayed, which means that, potentially, InitMarketing would spend more time than we would get paid for. Additionally, OSS associations or foundations usually ask for a discount, which we are happy to provide, but which adds to the risk of not really being able to cover our costs and time investment.

There are benefits in working with OSS communities, most importantly that we could enjoy open discussions about marketing strategy, planning and implementation, because this allows anyone to see how well we do our job – or not 🙂 – and we can learn a lot from a miriad of ideas and feedback. Last but not least, InitMarketing could help communities make the jump towards more professional marketing without sacrificing the community and its spirit – a challenge we can’t wait to accept.

Quick Marketing Analysis of Interchange Open Source E-commerce Platform

While at LinuxTag 2008, I met with Jure Kodzoman of Interchange fame. Interchange is a well established Open Source e-commerce platform, existing for over 12 years, and very popular in the USA.

We sat down to discuss from a marketing perspective the Interchange website and a brochure they created for distribution at their LinuxTag booth.

Interchange website

These are the issues I identified and some changes I proposed to Jure (which would still need some more consideration before being implemented):

  1. The current domain name of the website (icdevgroup.org) is extremely hard to remember because it does not relate to the Interchange brand. The domain needs to be in sync with the project name, hence they should move the website to a domain that includes “interchange” in its name. It need not be a .com TLD, .org or .net suffice for a community-driven OSS project.
  2. Today’s tagline ” Powering web-based applications since 1995″ does not tell that Interchange is an e-commerce platform nor that it is Open Source. Better taglines would be “The most flexible Open Source E-commerce Platform” or “The first Open Source E-commerce Platform” or “The Open Source Platform Powering E-commerce world-wide since 1995”. It’s a great selling point that Interchange exists since 1995 and it might be a valid claim that they are – yet another potential tagline – “The first Open Source Alternative for E-commerce”.
  3. The Interchange website lacks a concise welcome blurb on the front page. This makes it very hard to visitors new to Interchange understand what it is about. A sample welcome blurb: “Interchange is powering e-commerce since 1995. Its proven and highly flexible open source platform provides the building blocks to assemble individual online shop solutions. Interchange can be easily configured to grow with your business.”
  4. It is better to communicate only one major news on the front page through a banner especially to guide new visitors. For example, don’t advertise LinuxTag in one banner plus a general banner plus a banner about the Interchange 5.6 release in the same space. Instead, highlight the 5.6 release in a banner, provide a link to a landing page and at that landing page, say: “Come to LinuxTag and get a hands-on demo”.