Anthony Bourdain

Note: This post is even more navel gazing/philosophical than usual with little OpenNMS content.

Between running The OpenNMS Group and keeping my farm from falling apart I don’t have much free time. It is extremely rare that I can take a vacation, eat out with friends or family, or see a performance (although OpenNMS has grown enough in the last couple of years that I do get to take the occasional vacation – wasn’t always the case).

So it was quite the treat when I got to go out for a nice dinner last night as well as to see a lecture by Anthony Bourdain. I really like food, both eating it and preparing it, and Anthony Bourdain is one of my favorite “celebrity” chefs.

I went with a couple of friends of mine who I met 25 years ago at Harvey Mudd College (the first of several schools that eventually kicked me out). They have hectic careers coupled with two children, so going out for an evening like this was rare for them as well. The only problem we had was trying to figure out how to schedule dinner, since a meal with them usually lasts about four hours. The show started at 7:30pm, so for our normal routine we would have had to start dinner around 3:00pm. We decided to compromise at meet at 5:30pm, when the restaurant opened.

For those who don’t know Anthony Bourdain, he came to fame several years ago with the publication of the book Kitchen Confidential. It was pretty much an exposé of the high end restaurant business in New York City. He wrote it mainly aimed at people who worked in that industry but it caught the attention of foodies like myself. The thing I loved about this book is that he wasn’t afraid to talk about iconic restaurants such as The Rainbow Room. He’s blunt, opinionated but quite often right, and when he’s not he tends to apologize.

In my deepest conceit I’d love to be known as the Anthony Bourdain of Open Source. He has strong views on food and its preparation, and he isn’t afraid to criticize institutions like The Food Network, his one-time employer which used to be much more aligned with his ideals but over time became more about entertainment and money (such as the Sandra Lee episode where she opened a bag of pre-cut vegetables, dumped some Ranch dressing on it and called it haute cuisine).

I feel the same way about open source. Back before Red Hat went public the open source community was focused on creating great, new software with a strong interest in keeping that software 100% free and open. Once organizations started to make money around open source software suddenly everyone wanted on the bandwagon, even if their business model was still staunchly based on closed, commercial software. Through marketing dollars it seems that “open source” has come to mean “open core“. For those companies trying to make billions of dollars on software quickly, I agree with Coté that the only way to do that in today’s market is with the hybrid model where much of the revenue comes from closed software licenses.

But I bristle when that is called open source. Furthermore, I think the window for even the open core model is quickly closing. True open source software gets better every day, and for successful projects they will continue to become viable alternatives to paid software. Thus paid software margins will continue to decrease, making them less profitable and less attractive as acquisition targets. For those commercial and open core companies they’ll have to write more software to keep up, but since their revenue model is based on closed licenses this will require even more money for programmers and result in even lower margins.

Anthony Bourdain is not a fashionista when it comes to food. He is not a locavore nor a vegetarian, and he even had the gall (gasp) to question whether or not the organic food movement was a good thing. In much the same way, while I am big on individual rights, I’m not a hippie, a tree hugger or a kumbaya free software for everyone bigot. I consider myself a hard core capitalist, and I don’t run a charity.

The commercial software industry has created a number of extremely wealthy people because for the first time something could be created that literally has an almost zero distribution cost. Even the tulip bulb bubble required something to be created each time, whereas bits are pretty much free. For some reason people have come to believe that this is the way things should be, and this was amplified even more by the Internet bubble where just an idea could result in millions of dollars.

The downside is that people have forgotten that it is possible to make money simply by helping customers and having fun doing it. To go back to my food analogy, one of the tastiest things I had on my last trip to Italy consisted of a slice of freshly baked bread topped with fresh tomatoes, basil and olive oil. High quality ingredients prepared in a simple and straightforward manner. No fancy “paradigm shifts” or “clouds” – just healthy nourishment.

For some reason if you can’t have a billion dollars in revenue in five years Silicon Valley thinks you have no value. I would think in these economic times people would appreciate businesses that grow more organically. It’s all about the basics. For example, Dan Ariely had a post today quoting Gregory Clark, an economist at UC-Davis (ironically, the birthplace of Net-SNMP). He states:

The debate about the bank bailout, and the stimulus package, has all revolved around issues that are entirely at the level of Econ 1. What is the multiplier from government spending? Does government spending crowd out private spending? How quickly can you increase government spending? If you got a A in college in Econ 1 you are an expert in this debate: fully an equal of Summers and Geithner.

In much the same way, the vast majority of successful businesses are going to be based on the basics: make a good product that people want and sell it at a fair price while watching expenses. No magic and no marketing mumbo-jumbo. As straightforward as a nice bruschetta.

I want to end this rather rambling post to a reference to some recent research done by Ryan Howell at San Francisco State University. He discovered that, in the long run, experiences make people happier than possessions. I had a wonderful time last night, even though I usually feel guilty doing something that doesn’t involve either working on the business or working on the farm (and to the bozo in seat E 210 at the DPAC, turn off your fracking blackberry during the show – you ain’t that important). I’ll probably remember, fondly, that experience much more so than anything I’ve purchased in the last year.

Working on OpenNMS, if we measure wealth by positive experiences, makes me the richest man on the planet.

The Cost of Free (gratis)

The main reason I write this blog is to document our adventures with creating a profitable company around open source.

When it comes right down to it, there are two ways to increase profits: sell more or spend less. The spending less option is something that we have a bit more control over, so we always try to manage costs.

One way is to leverage a lot of free (gratis, as in “beer”) resources on the Internet. Instead of buying a fax machine and a separate phone line, we have always used the free eFax service.

I even felt that eFax was better than “normal” faxing since it shows up as an e-mail attachment. No matter where in the world I happen to be I can get it and it is easy to file as well.

We don’t receive that many faxes, but the ones we do get tend to be important things like purchase orders, so we need it to work.

It was just one such purchase order that failed to arrive yesterday when I realized that eFax, with absolutely no warning, had disconnected our number. Since we had the free version, there is no way to reach a human, and my e-mails seem to have gone to that great mail server in the sky.

Looking back through my records, it looks like we signed up for a free eFax number in January of 2004, so maybe they limit it to five years. In any case, I’m not sure why they didn’t try and contact us. It would seem that they offer the free version in order to promote their paid offerings, and had I been told that the free service was going away I might have been tempted.

Since we were so unceremoniously dumped, I asked Jeff to find another solution and he was able to get a similar service from our SIP provider.

As a services company, we work extremely hard to make our clients happy, and this illustrates why. I happily used eFax for five years, and all it took was one serious lapse in service for me swear them off forever. While it didn’t cost me anything for the service, it will cost me should I decide to reprint our business cards and it will cost me in time to correct the number on all of our other materials.

Despite that, if I had to do it over again I probably would. The only thing I would change is that I’d leave the number off our printed materials, then the cost would have been much, much less. I’ll leverage free (gratis) whenever it makes sense, but I definitely try to limit it to things that aren’t critical to my business. This is much different than the free (libre) software on which I base my business. Vendors are always changing the rules so I’ll stick with that “free” for everything that is critical to my business.

Monty Widenius Leaves Sun

I read on Matt Asay’s blog that Monty Widenius has left Sun. As usual, I disagreed with his interpretation of that information, but I found it ironic that it happened while I was in Milan as a guest of Sun Italia.

I see Sun as a company that is trying hard to understand open source. They have made some impressive moves in the area, from OpenSolaris and OpenJDK to the acquisition of MySQL. But while eager to change they are also, like many of us, trying to figure out how to support open source while staying in business.

Matt explains Monty’s departure as

Widenius’ ideals don’t translate well to a big software business

I see it as just the opposite. Open source spells the end of big software, if big software is defined as companies that make billions of dollars from selling software licenses. True open source projects exist outside of any one company or any one person. They have a life of their own and they continue to grow or they die. Those that grow tend to grow in directions that are the most useful, since the energy powering that growth are people with immediate problems to solve.

As such they will continue to put pressure on commercial software by providing, for free, the features that are most needed by the most people.

I was asked during our seminar today how we maintain the quality of OpenNMS code. I talked about test driven development and pair programming, along with our annual Dev-Jam where the key people in the community gather to learn, regroup and focus. This allows us to insure that each release of OpenNMS is better than the last.

Matt states one reason that Widenius left was “that the MySQL 5.1 release wasn’t ready for public consumption”. On thinking about this I decided I needed to add one more reason to use open source to my growing list. Open source does not have any artificial deadlines for releasing code. While we have a schedule and a roadmap for OpenNMS, we’ll release the next version only when it is ready.

In my mind Monty is a role model and I wish him all the best.

Congress FAIL

Well, it didn’t last. Today Congress passed a measure to delay the digital television cutover until June. The revised bill allows television stations to switch over any time during that period, and this change was enough to get it passed in the House.

Call me paranoid, but who does this benefit? The sponsors of the bill are all crying that it’s the poor people and elderly that aren’t ready for the switch, but since the new bill allows stations to switch early I’m assuming most will (since at this late date they were probably ready to do so). Chances are if you were going to lose TV on the 17th you’re still gonna lose it.

However, those companies who want to start utilizing the freed bandwidth will have to wait four more months. Or, in the case of some, they will have four more months to get ready without existing competition.

So I ask again, who does this benefit?

Another Reason to Use Open Source

Even though OpenNMS is a open source project, we do sometimes receive support from commercial vendors. For example, when we do demonstrations where Internet access isn’t available, we often use Gambit’s Mimic software to simulate a network. In exchange for temporary licenses we place a link to their website in the footer of the OpenNMS wiki.

Back in 2007, Johan Edstrom, one of our OGP members, really liked the IntelliJ IDEA IDE. While most of our developers use Eclipse, he was just more comfortable with the IDE from JetBrains and since they offered free licenses for people who work on open source projects, he wrote to them and asked for one. Here’s the response he got:

We are pleased to support the Open Source community and we look forward to seeing your project’s progress. If we can be of any additional service, please don’t hesitate to ask.

Also, while it’s not required, we would be very appreciative if you would add an IntelliJ IDEA banner to your project’s site in support of IntelliJ IDEA.

[snip]

This is absolutely not required. This is a no-strings-attached license, but we would be very grateful for any help leading people to info about IntelliJ IDEA!

Again… welcome!

Best regards,

Ilia Dumov
Product Manager
JetBrains, Inc

So I went ahead and added the banner to our site and all was right with the world.

The license was good for one year, and so in 2008 he renewed, again with no problem. But this year he received quite a different response:

Hi Johan,

We can’t give you free license because it will be used on your paid support services engagements. You can buy commercial licenses if you want.

All the best,

Victoria Dumova
OS Support Program Manager
JetBrains, Inc

I never tire of pointing out that the OpenNMS Project is independent from the commercial services company, The OpenNMS Group. Johan is not an employee of the commercial business, so he doesn’t perform “paid support services engagements”. In fact, his involvement in the project has not changed in the last two years but for some reason he didn’t qualify for a free license this time. Furthermore, since 100% of OpenNMS is free and open software, what would it matter? The IDE is used to help develop code, and all of that work gets released back to the community.

I must wonder what types of projects qualify as open source for JetBrains. Only those that make no money whatsoever? I can see the next e-mail: “Sorry, your license will be used to get donations on Sourceforge so you have to buy one.”

My point here is not to bash JetBrains. To complain about not getting a free license is like complaining that the bisque in a free soup kitchen is a bit salty. But it does illustrate the dangers of commercial software.

In two years we went from “This is a no-strings-attached license” to “You can buy commercial licenses”. The rules changed. Luckily for us we can probably get Johan to use Eclipse now, but what if we depended on IDEA? We’d be screwed.

With open source software the power lies in the user, not the provider. With commercial and open core software companies the revenue model is to sell licenses, and thus to maximize profit these companies are motivated to increase license revenue. This may mean selling to you licenses at a discount to get you using the product, only to change the rules a couple of years down the road.

If you are a decision maker in your company, I think you owe it to your employer and your shareholders to question any commercial software purchase. Are you willing to base your operations on software that may double in price without warning? Maybe the vendor will go out of business, leaving the code in limbo, and what will you do then?

Transitioning to open source is not easy. Although the software is free, there is a cost in time, perhaps consulting services and in getting your staff up to speed on the product. But in the long run the cost is worth it, if just to lose the reliance on outside vendors who, as this situation demonstrates, can be very fickle.

How Much is that Project in the Window?

It’s snowing here today. For many who live in cold climates you are probably saying “big deal” but it is rare to have snow where I live and this is the most significant snowfall we’ve had in four years. By the end of the day we could have up to six inches (15 cm).


Sortova Farm in the snow

Since it happens so rarely we don’t have the equipment to clear the roads quickly so everything pretty much shuts down. At the OpenNMS Group we’re used to working from home several days a week so it will be business as usual, but I did cancel two meetings today and it frees me up to watch the coronation at noon.

It also allowed me some time to browse through my news feeds, and I came across an interesting post by the 451 Group.

I like the 451 Group, mainly because they realize that OpenNMS exists (grin). In addition, they seem to have a good understanding of the open source marketplace.

Today Matthew Aslett wrote that Intalio has raised funds to acquire 8 to 10 open source companies in the next year. It was interesting to me for a number of reasons. Most open source business models that I’m aware of have being acquired as the exit strategy, but many of them take the VC route to get there. Most VCs are looking at a big payout, say north of US$100 million, but the number of companies that can spend US$100 million on an acquisition is small. However, the number of companies that can spend, say, US$10 million, is much larger, so it would seem that the safer way to get acquired would be to either bootstrap the company (like we did) or get a small amount of angel funding to get started and to keep the company small and focused. Plus the model of acquiring smaller companies worked well for JBoss.

Another reason I found this post interesting was Intalio’s list of requirements for a possible target:

Small (25 employees is a maximum, less than 10 is preferred, mainly engineers)

The OpenNMS Group has six employees, and half of those were added in the last 18 months. We are all technical – there are no full time sales or marketing people.

Open Source or ready to go the COSMO way

Duh. We’re free and open to a fault.

Exceptional technology that took many person-years to develop

OpenNMS has been around since 1999. A tremendous amount of work has gone in to building it, both from the commercial side as well as the community side.

Architecture compatible with the one built for Intalio|BPP

From what I can tell, OpenNMS would be a good fit. We’re written in Java utilizing a lot of the new enterprise technologies such as Spring and Hibernate.

Support for industry standards (J2EE, WS-*, etc.)

Got that. The newest OpenNMS code adds REST-style interfaces, we support most industry standards (SNMP/WMI/TL1/HTTP), and there is always lots of XML.

Active user base (the larger, the better)

With 50,000 unique visitors to http://www.opennms.org and 5000 downloads each month I think we can check that off.

Committed customer base (the larger, the better, but small is OK too)

We’ve had over 100 customers in 18 countries, with over 50 current support customers, and our first commercial support customer (from December 2001) is still a client.

Committed employee base (location irrelevant, we’re in 13 locations already)

I’ve never worked with a better group of people. I think “committed” is too weak a word to describe their dedication to both the company and the project. While most of us are near RTP in North Carolina, Jeff is in Atlanta, so the fact that location is not important is a plus.

Profitable or break-even

Yup, got that. Since our business model is “spend less than you earn” we’ve been profitable since our first day in business.

Little or no debt

Heh, since we’re bootstrapped the opportunities for debt have been pretty limited (banks are a little wary of loaning money to companies with no liquid assets). So while that has caused us to grow more slowly than I would like, the company remains closely held and well positioned to ride out the current economy.

So it looks like we’re a pretty good fit, which gives me a little more confidence that what we are doing is the right thing (remember, I’m making most of this up as I go along so any reassurance is nice).

Since snow gives me time to reflect a bit, I’ve been thinking about what kind of company I’d be willing to allow to acquire us. They’d have to be doing cool things and provide a great work environment. They’d also have to have a serious interest in investing in the OpenNMS project itself, versus just buying it for the name or to get us out of the way. Their business would have to fit in with our mission statement of “Help Customers – Have Fun – Make Money”.

In exchange they would get the best bunch of guys on the planet. Seriously, each day these guys amaze me. They’d get a solid customer base and a mature, profitable product line.

One problem would be that they’d also get me. I’ve often wondered about my role should we ever be acquired. When I search Monster for “loud-mouthed, opinionated, free and open source bigot” I get no hits [Update: heh, actually I get eight]. My job at OpenNMS has always been to hire people smarter than me, which I’ve succeeded at beyond my wildest dreams, so next to them I start to lose my relevance.

I think the role I’d be best suited for would be Community Evangelist, or Vice President of Openness. I hate the term “community manager” because it seems to refer to the open source community as a resource to be manipulated, versus something to be nurtured and grown. Would Community Gardener work? God knows I’ve got the fertilizer (grin). I’d love to see if I could get as excited, and thus get others excited, in projects that compliment OpenNMS as I do with OpenNMS itself.

Fun thoughts for a cold day.

FUD from SAS

My friend Phil dropped me a note today about an article in the New York Times (registration required) about the R project. R is a language designed for data analysis, and it’s open source. It appears to compete against SAS, once of the most ubiquitous enterprise software packages out there, especially within academic institutions.

Now the SAS Institute is a local company (many years ago I did an OpenView installation for them) and it is one of the world’s largest privately held software companies, if not the largest. It consistantly ranks toward the top of the best places to work in the country.

But the somewhat isolated environment that SAS thrives in is now being challenged by open source. Of course, SAS is taking the old school approach of spreading Fear, Uncertainty and Doubt. Commenting on R:

“I think it addresses a niche market for high-end data analysts that want free, readily available code,” said Anne H. Milley, director of technology product marketing at SAS. She adds, “We have customers who build engines for aircraft. I am happy they are not using freeware when I get on a jet.”

This is a common battle cry of the commercial software industry that no quality software can be created unless you pay for it (and of course, commercial software has always made flying much safer).

The fact that she’s willing to throw that out says to me that R is scaring SAS far more than they care to admit.

The CentOS Test

In many of my last few posts I’ve talked about the meaning of the term “open source”. While it may seem like splitting hairs for many, I hope it can be made simpler by applying what I am calling “The CentOS Test”

The Community ENTerprise Operating System (CentOS) project takes Red Hat Enterprise Linux (RHEL), removes all of the trademarked images, etc., and recompiles the code into a separate set of binaries which it then distributes.

For all practical software purposes, there is little difference between CentOS and RHEL.

When thinking about a purchase of the paid or “enterprise” version of something labeled open source software, ask yourself “does it pass the CentOS test?” Examine the license to see if it would be possible for you to take the source code, compile it and distribute it. If you can, I claim it is likely the software is truly open. If not, then you are looking at commercial software, with all of its limitations.

The test explicitly covers the first three criteria of the Open Source Definition. If you can’t redistribute it, access and compile the source code, and create derived works, it ain’t open.

Skinner Boxed Lunch

One of the things I like about living where I do is the high density of amazing people. Part of that is due to the proximity of universities like UNC, Duke and NCSU. Silicon Valley likes to brag about its atmosphere, but I think parts of the Triangle could give them a run for their money.

Yesterday, living here allowed me to have lunch with Dan Ariely. Dan is the author of “Predictably Irrational” which is a book of which I’ve become quite fond (if you haven’t bought it already, order it using this link since I’ll get some Amazon kickback, yo). He is the James B. Duke Professor of Behavioral Economics at Duke, and since that was one of the schools I got kicked out of it was nice to visit the old neighborhood.


Me and Dan at Parizade

I studied economics in college, and while I liked the logic behind it, it assumes that people react rationally. Dan was the first person I came across that actually studied how people reliably act irrationally when faced with certain decisions.

Lunch lasted close to two hours, and I’d probably still be there now if he didn’t have a meeting (yeah, most of you who know how much I like to talk are thinking it wasn’t a real meeting, admit it) and the topics were pretty wide ranging.

One topic that stuck in my head concerned lotteries. People like lotteries and gambling in general, but I never understood that the games play to an innate attraction of animals to randomness. I’ve just always joked that lotteries are a tax on people who are bad at math.

B.F. Skinner did some work on the power of random rewards. When a pigeon was taught to press a lever to receive a food pellet they were much more likely to press it if the reward happened after some random interval than, say, consistently after five presses. In fact, even after the reward stopped the random reward subjects would end up pressing the lever for a long time afterward.

Think about it. Suppose I set up a game where you bought $1 tickets and after you bought five of them I gave you $5. You’d probably think, like most people would, that it was a stupid game and I wouldn’t sell any tickets. Yet the expected return on lotteries is so much worse, yet people play it every day.

Dan told me that the average American adult spends $4000/year on gambling (including the lottery). I haven’t been able to find a reference for that number but if it is true then there are a number of people out there spending large amounts, since my family probably spends less than $50 a year and that definitely brings the average down. I buy the occasional Powerball ticket for entertainment purposes (the daydreams I have about what I’d do with the money are worth the dollar I spend) but since the odds of winning the jackpot are 1 in 195 million I only play when the jackpot is greater than $195 million. I’m no dummy.

So here I was, eating a nice lunch and feeling superior, when Dan pointed out that the same thing can be applied to e-mail.

E-mail? But … I love e-mail … what could be wrong with e-mail?

As I write this it is all I can do to stifle the urge to switch over to my mail application. It just beeped at me. I have new mail. Could be a letter from and old friend. Could be spam. Might be a support ticket or possibly new OpenNMS business. Like Skinner’s pigeons (or Pavlov’s dogs) when the bell goes off I must go and investigate.

So I’m not all that superior to those people who play the lottery or spend their lives in Azeroth. I have an e-mail problem, and now I have to think about how it impacts my life and how to address it.

This was just one of the things Dan and I talked about. It was a great, e-mail free lunch.

Plus, he got me thinking out of the box.

Informal Fallacies

I’ve been kicked out of some of the best schools in the country, so I can’t say that my college career was in anyway stellar. But although it took me seven years to get my four year degree, I did manage to take away some important knowledge from the experience.

Part of that was an understanding of “Informal Fallacies of Logic“. When I was introduced to the Internet in 1984 on a VAX running Berkeley UNIX, it was first and foremost a text based experience. A lot of the action occurred on newsgroups, and thus I was exposed to the usual flamewars and hyperbole that one often finds there.

I knew of things like Godwin’s Law, but it wasn’t until I was introduced to informal fallacies that I had a way to formalize behavior that I saw on the Internet (and in “real” life as well). While Wikipedia as always has a definition, an “informal” fallacy is basically a statement that may be or seems to be true, but it is irrelevant or doesn’t support the argument being made.

What I didn’t realize is that, like the fnords, informal fallacies are everywhere. Once I had a method of formalizing them, they became much easier to see.

The reason I’ve been thinking about them today is that a gentleman named Dennis Byron has decided to take me to task for my post on The War for Open Source, first in the comments and then on his blog.

The point of the post was to state that the term “open source” has a certain meaning, defined by the OSI, and that the commercial software industry is trying to blur that meaning so that consumers won’t be able to tell the difference between truly open software and commercial software.

So, instead of attacking that argument, Mr. Byron decides to pull out some of my illustrative prose, find fault with it, and thus attempt to discredit me.

This is an informal fallacy known as a “Straw Man“. In a straw man fallacy, one “takes the original argument of his/her adversary and then offers a close imitation, or straw man, version of the original argument”. This argument, made of “straw” is much easier to defeat.

In the case of Mr. Byron, he attempts to find fault with my history of commercial software, which is funny since I never intended to write one.

And if anyone can tell me what the heck the “razor blades” are that the OpenNMS Group is selling, I’d love to know.