Open-source bonuses for the big guys

And open source companies have been looking for years for ways to actually solve this deficiency that they have which is how the heck do I make money giving free stuff away. Software As A Service seems to provide a way out of that or a solution to that but now we're actually seeing the inverse where you have Facebook, Google, Etc these cloud or SAS companies however you want to say it that are in turn open sourcing key parts of their technology and the question is why? I mean why does Google care? It's making gobs of money. Facebook is making a fair amount of money. What does what does open source give them that SAS doesn't?

That's a good question by the way Cultura assumed spelling is a commercial company we're not a 501C3 a lot of people look in open source and say this is just about you know giving away the love which it is. I don't think the first answer is there's no dissonance between doing good and doing well and if you do it right you can do it good and do it well. I think that a lot of the proprietor vendors are looking at open source not as a philosophy but as a distribution strategy and as a development strategy that enables them to achieve better what it is that they want to do inaudible.

But specifically for Google, Facebook etc they're not trying to get distribution out of it they've already got distribution what benefit do they get from.

Well if we look at Google, Facebook in a second we can talk about the rest inaudible etc. I think it's about A having 3rd party developers in the ecosystem that be able to take stuff that you do and in a better way integrate that into different things that they have. I think that the world is more towards a platform today than it is about discreet occurrences, or discreet services, or discreet products and boasts it's more about intertwine classes of service into 3rd party solutions. So the best way to lower down the break down the wall gardens and to let 3rd party developers integrate what it is you do is to completely open it up and that enables and trickles down your services to everywhere else. It is more so relevant in a place where you've established yourself as a known brand leader so nobody could really steal away the pie and become Google number 2, you're not afraid of that much and the second is you could give away the stick and charge for the knife if you may so the ability for people to integrate different things, let's say like Chrome being open source enables them eventually anyway to come back to Google for the advertising part.

Ok.

So you're not necessarily cannibalizing what it is that's driving the revenue at the same time they're getting more integration, more development, easier connection points into that

inaudible you make.

Alright so there are open sourcing compliments to drive value for the core is that? Kim so you have a hosted service?

Right.

And I'm not sure actually if open source plays any role in there but you've had enough experience around here would you concur with what Ron said or is there something something that he missed?

No I think it's absolutely right. Facebook just his week and Google both open source new components and services I think they're just basically making their platforms that much more valuable the more people that are building on them providing services the more rich the service gets. So I think that's exactly what they're doing and it's very intelligent.

==== Transcribed by Automatic Sync Technologies ====