Open Source as a StrategicBusiness Enabler:A Case Study with SAP
Black Duck Software Webinar Series on ApplicationDevelopment
May 11, 2010
Speakers
Claus von RiegenProgram Director,
Technology Standards andOpen Source at SAP AG
Peter Vescuso
EVP Marketing, BusDevBlack Duck Software
Dr. Alexandra Cordes
Senior Legal Counsel,SAP Global Legal
Janaka BohrHead of Open Source Licensing,
SAP Global Licensing
Agenda
Market Trends
SAP Case StudyAdoption of Open Source SoftwareStrategyExecution, Governance, and AutomationSummary/Take Aways
Q&A
- Information Resources listed at the end
Note: all registered webinar attendees will receive a copy of the slides and alink to a recording of the webinar.
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 4
Open Source Software Is MainstreamSoftware development has changed
Internet, community development, open sourceComponentization & “search-driven development”Agile methods
Economics of OSS are compelling…especially now85% of enterprises use OSS; 45% use is mission-criticalLarge pool of proven, re-usable software
230,000 projects; 2M person-years/$400B of value
The vast majority of open source development is actually done bycorporations (75%)Practically every IT development team engages in some form of opensource development
But Fewer than 30% of IT organizations currently have an OSS governance policyin place. (Mark Driver, Gartner Group, April 2010)
From an enterprise IT perspective, how can you not use open sourcesoftware?
451 Group Survey on OSS Use (December 2009)
• 87% of companies say OSS meets or exceeds cost savings expectations
• 39% of OSS users ranked Flexibility as the primary benefit
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© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 5
The Abundance of Open Source
SugarCRM
MyS
QL
zlibPentaho
BIRT
Xerces
log4jAsterix
ACEGI
Hibernate
OpenSIP
Alfresco
OpenSSL
SpringOpenNMS
HipHop
Varn
ish
Android
SphinxFileZilla
Nagios
Subversion
JBOSS
Tomcat
OpenVista
Mumble
OpenHeX
FreeNA
S
BaculaWordpress
Ganglia
Virtual Dub
Jython
TweetC
raft
OpenEMR
FreeMedPatientOS
Hudson
Ant
Bioclipse
ANTLR
Free
BSD
Webkit
Archiva
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© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 6
It’s Become a Multi-Source World
YOUR COMPANY – TOOLS, PROCESSES
Your Software Application
Open SourceSoftware
InternallyDeveloped
Code
Outsourced CodeDevelopment
Commercial3rd-Party Code
Individuals
Universities
CorporateDevelopers
Code
Obligations
“Open source is a necessary component of all organizations' supply chainstrategies. It is essentially a way to manage cost and mitigate 3rd partydependencies.” Brian Prentice, Gartner Group
Cambridge
San Mateo
Walldorf
Bangalore
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© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 7
Benefits of Using Open Source Software
Acceleratetime to market
Use open source softwareto avoid reinventing thewheel
Increase innovationand productfunctionality
Use readily availablematerial to fill out thefeature list
Focus internal resourceson valuable new features
Controldevelopment costs
Re-use to lowerdevelopment and licensingcosts
Improve development andgroup productivity
Innovate more, code less
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© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 8
SAP Profile
ImplementFlexible Business
ProcessesSAP Business Suite
SAP Solutions for SMESAP NetWeaver
The SAP portfolio
Improves Business Insight
Drives Business Efficiency
Enables Flexibility & Innovation
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 9
SAP Customers
PROCESS 2.5 BILLIONUTILITY BILLS PER YEAR
PRODUCE 2.2 MIO TONS OFCHOCOLATE PER YEAR
MANAGE 50 MILLIONBANK ACCOUNTS
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 10
INNOVATION SAP Employees
Academic PartnersCustomers
Industry Partners
Research LabsDevelopment Labs
SAP Innovation Council
A Belief That Innovation Can Come FromAnywhere
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 11
SAP Partner
The Ecosystem CountsBuild vs. Buy vs. Partner
SAP
Open Source Project
SAP Customer
SAP product
Opensource
component
Embeddedthird-partysoftwareContribute
Integrate
SAP product
Embeddedthird-partysoftware
Redistribute
Partnercomponent
Complementarythird-party software
Customdevelopment
As an independent software vendor, SAP has a sophisticated approach to multi-sourcesoftware management
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 12
SAP software runs on platform of choice
1999 2000 2005 2005
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 13
SAP utilizes open source software
Between 2001 and 2006, the use ofopen source in SAP products was seenas a risk and, therefore, managed asan exception
In 2007, approvalswere delegated to theproduct units and opensource contributionswere motivated butrestricted to the EclipseFoundation
In 2008 and 2009, thefocus shifted towardopen source as aproductivity enabler– open sourcecontributionapprovals were alsodelegated to theproduct units
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 14
So, what has changed at SAP?
Why open source? Why not open source?
Past:Open Source is a risk
Present: Open Sourceprovides business benefits
Do notcontribute back
Contribute toensure innovation
Do not go open source Go open source toprotect investments
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 15
Open Source at SAPUsing technologies that have become a standard
Example: Eclipse integrateddevelopment environment (IDE)
“SAP NetWeaver support for commonstandards and Open Source is veryimportant to Siemens because it helpsto protect investments, reduce costs,and increase flexibility for bothourselves and our customers. Forexample, due to SAP's usage oftechnologies like Eclipse as well asSAP’s support for SOA standards, usersof the Siemens Energy ManagementSuite can reuse their existing JavaEE, SOA, and Eclipse skills.”
Jens NeuhausSolution Architect
Source: javathreads.de
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 16
Open Source at SAPUsage requires contributions to make everything work
Example: HudsonSAP uses Hudson, but applied various patches and extensionsNew Hudson versions are being released – at least once a weekSAP’s integration efforts were about three person days for each new version
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 17
Open Source at SAPOpen sourcing can help to create new standards
Example: Eclipse Memory AnalyzerEnabled collaboration between SAP and IBM on a level playing fieldBroad distribution, visibility and adoption via Eclipse Galileo releaseJapanese version by communityQuality assurance feedbackvery early onMore testersHigher code quality
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 18
A Strategy Is Meaningless If You Can’tExecute It
Execution
StrategyJustify a decision not to use open source if a mature and well-adopted open source technology existsContribute bug fixes and generic modifications and enhancements to retain efficiency and supportabilityConsider initiating an open source project for proprietary, but generic and non-differentiating, technologyto protect investments
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 19
Governance Processes
IssueUnknowncorporate risk
No / unknown /unenforced governance
I use open sourceregardless.
Balanced and efficientgovernance
I am happy.
No issue
Only a balanced approach can utilize opportunities that come with open source and keepunintentional risk away from the company at the same time
Strong governance,inefficiently implemented
I have waited far toolong for approval.
IssueMissedopportunity
IssueDecreasedflexibility
I have stopped usingopen source.
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 20
People & Education
Open Source PolicyThe corporation‘s overall approach towards open source software and its management
OrganizationOpen Source Office / Service CenterOpen Source experts in Legal / IP / Licensing departmentsOpen Source experts in Product Units
Education, DocumentationOpen Source Governance Process
Why and under which constraints to use open sourceWhy and under which constraints to contribute to open sourceHow to evaluate benefits and risksWho supports and who decides
TrainingsFor decision makersFor developersFor architects / product managersFor software assembly team
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 21
Automation Tools
Minimize delaysWorkflow-based approval
Avoid proliferationOne source of information
EvaluationUsage (internal, in products), contributions
Better cross-unit coordination
Reduce riskKnow what you use / redistributeand whereKnow your obligations
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 22
General Aspects Of Open Source Licenses ForSoftware Vendors
To make an educated business decision it is important to have a clear process in place thatalso considers the risk factors and obligations associated with a specific business case
“Free code” does not mean “free of obligations” – open source brings with it unique andcomplex license and business risks that can delay, and potentially prevent, productshipment if not properly managedBlack Duck Software
open source is provided without any warranties, liabilities or supportthere are no quality requirements towards open source supplierscompliance with the open source license conditions may be hard or impossiblelicense may contain the obligation to publish source code of own developmentslicense may require to distribute the open source and modifications royalty-freeopen source supplier has no risk mitigation strategy in place
In general,
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 23
Use Means Commitment
Product quality and reliabilityMulti-year product support obligationCompliance with global and local laws and policiesIndemnification
Customers expect compliance, consistency, and continuity
A. Build skill set + engage in open source projectB. Consider third-party support services
SAPCustomer
Inbound
Outbound
Redistribute
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 24
SoftwareFit with functional and non-functional requirementsFit with product architecture / product strategy
LicenseFreedoms / constraints and obligations
CommunityContributorsUsersService providers
Usage ScenarioWhere-used listType of integration (embedded, linked, etc.)Modification / enhancement / contribution requirementsSoftware distribution channel
Community
License
Dimensions of Open Source Governance
Software
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 25
SAP Open Source Governance Process
General LicenseEvaluation
Open sourcerequest form
ArchitectureCheck
Legal &IPEvaluation
ApplicantBriefing
ManagementApproval
Warranties /liabilitiesSupport offeringsGeneral licensegrantExport restrictions
Modifications
Does the licenseallow formodifications?What terms apply tomodifications?
SpecialRequirements
Required text fordocumentationCopyright noticesDistribution pre-requisites in general
IP Evaluation
Product’scharacteristicsContribution policyCompaniessupporting and usingthe open sourceproduct
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 26
Types Of Open Source Licenses
Apache 2.0, MIT, BSD Mozilla License, CPL, EPL GNU GPL, LGPL
No limiting terms;requirement to includecopyright or license inthe distribution
Broad license grant to OS code (e.g. right to modify, distribute w/o restrictions)
Requiring all software inwhich the OS or parts ofthe OS is embedded tobe released under theOS license
Modification to OS codelicensed under a non-viral license; requiringaccess to source code ofmodifications
No restrictive orspecial requirements(e.g. shipment of sourcecode)
Source code to bedelivered under thelicense (sometimesroyalty-free)
Source code to bedelivered under thelicense (royalty-free)
License Grant
Special Terms
Source CodeAccess
Examples
Type Permissive Recursive Viral
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 27
Key Take-Aways
SAP has a sophisticated approach toward open sourceFrom “Why open source?” to “Why not open source?”Contributions to open source projects support business goals
Business benefits and risks need to be understoodGovernance processesPeople & education
Scalability requires automation toolsProcess efficiencyTransparencyRisk reduction
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 28
Further Information
Open Source on SAP Developer Networkhttps://www.sdn.sap.com/irj/sdn/opensource-integration
SAP at EclipseCon 2010http://eclipsecon.org/
SAP at OSBC 2010http://www.eiseverywhere.com/file_uploads/58442859b8d3ce96dfaf0c9ad5463cad_Claus_von_Riegen_3_17_3pm_Presidio.pdf
451 Group blog on SAP and open sourcehttp://blogs.the451group.com/opensource/2010/02/11/sap-as-a-case-study-for-open-source-engagement/
Black Duck: Introduction to Open Source Licenseswww.blackducksoftware.com/files/legal-webinar-series-archived.html
Black Duck: The Enterprise IT Guide To Open SourceSoftware Managementwww.blackducksoftware.com/files/legal-webinar-series-archived.html
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 29
Questions
Thank You!
Questions & Answers
© SAP AG 2010. All rights reserved. / J. Bohr, A. Cordes, C. v. Riegen / Black Duck Software Webinar on SAP & Open Source / Page 30
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