Too Many Points of Failure (at Theranos)

I just finished reading John Carreyrou’s book Bad Blood, which presents the story of the rise and fall of one-time Silicon Valley unicorn Theranos through his eyes as the journalist who broke the story. In case you missed it: Theranos was a healthcare company promising to sell a machine that could perform quickly and reliably a large number of blood tests needed by medical doctors to aid their patient care. The hitch: The technology never worked and Theranos managed to hide this from investors and the public for a long time.

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Why Open Source is Good for Your Economy

Today, at FOSSC 2019 in Muscat, Oman, I gave a talk about the benefits of sponsoring open source software development to about anyone who isn’t the software vendor whose product is getting replaced by that open source software. These are the slides. I will be repeating the same message at the German Forschungsgipfel in March. Also, here is a slideshare version:

Stock Options Case in Software Product Management Course at @UniFAU

Software product management by case is a college-level course that I created for teaching product management to computer science students. Using the case method, it helps students understand complex real-life situations in product management as well as the strategies and methods used to deal with them.

Some cases are not about product management, though. An example is our case about stock options. Using the IPO situation of one of the dotcom bubble darlings, Caldera Systems Inc, the case helps students understand employee incentive systems and stock options. We were fortunate enough this time to have Stefan Probst in class, who ran Caldera’s German subsidiary.

Stefan answered students’ questions after we finished the case analysis and shared war stories of the dotcom bubble days. Thank you, Stefan, for teaching us!

Shouldn’t a Public Government Stay Out of The Software Market? 4/4

This is the last of four questions posed to me by a journalist about open source and the public sector. The original question was: If a government develops open source software, it becomes a vendor of that software. Shouldn’t a public government stay out of such business?

A public government that develops or sponsors the development of open source software does not automatically become a vendor of that software. Development or sponsorship only means that public funds are converted into software under an open source license. I would not advocate that a public government start providing services to a market for that software. It should leave the provision of such services to for-profit companies! If the open source software is any good and meets user needs, such businesses will spring up soon and there will not be a need by any government to provide commercial services.

What a public government can and should do is to investigate unserved needs and sponsor the initial development of software to meet those needs. Making such initial development open source means that any company can now build a business on top of the software and compete for customers. Using an open source license is an effective way of acting in the public interest without unfairly benefitting any one particular company. Sometimes such initial investment is necessary to get over the investment hump that keeps companies from servicing the unmet needs.

Start over with the first question: Should the public sector use open source software?

Should the Public Sector Consider Open Source Only For New Purchases? 3/4

This is the third of four questions posed to me by a journalist about open source and the public sector.

The economists have an answer for this. At any point in time should you evaluate the total life-time value of the various alternatives at hand and then chose the one that has the best value.

When making this calculation for a switch from proprietary to open source software, the switching costs have to be added to the cost of using an open source solution. It may well be the case that the open source solution, in itself, is much better than the proprietary solution, but with the switching costs added, becomes less desirable. Then, the rational choice is to stay with the proprietary solution.

This of course is maddening to open source enthusiasts, because a superior open source solution suddenly loses out to an inferior proprietary solution, because of the existing lock-in. However, this is simply economics.

Thus, the full answer is: It depends. In some cases, existing proprietary software should be replaced with open source software, and in other cases it should not.

It should be noted that switching costs are one-time costs, while cost savings through open source software are recurring. Thus, for a proprietary solution to keep winning over an open source solution, it must be significantly better and/or the switching costs quite high.

Next up: Shouldn’t a public government stay out of the software market?

Why Did Munich Drop Linux and LibreOffice for Microsoft Windows and Office? 2/4

This is the second of four questions posed to me by a journalist about open source and the public sector.

I was not involved with the Munich decision at all, so I can only speculate and provide the usual reasons that have been reported about why such failures happen.

First of all, it is nothing unusual if a company or a public government switches products. The particular Linux and LibreOffice implementation in Munich is somehow taken as a representative of all of open source, which is wrong. Munich bought into a particular Linux and LibreOffice and particular companies servicing it and maybe this, taken as a product, did not work as well for them as Microsoft Windows + Office.

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Should The Public Sector Use Open Source Software? 1/4

I was asked several questions by a journalist about open source and the public sector. I’m answering them here in sequence. This is the first of four blog posts and the first question was: Should the public sector use open source software?

The public sector and public governments should use the software that lets them provide the desired services best, long-term. How much open source software this involves is secondary, in my opinion.

That said: Like any industry, the public sector already uses substantial amounts of open source software by way of open source components built into commercial proprietary product. Estimates of the percentage of open source code in commercial products and services go as high as 80-90% of the total code. Open source is everywhere, including in Microsoft Windows and Office.

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Amazon’s Announcement About Corretto and Java’s Future

Ever since Oracle got their hands on Java (by way of acquiring Sun Microsystems), it has worked hard on making money of it. As far as I can tell, it has been as unsuccessful at this as the prior owner, Sun. Compared to Sun, Oracle upped the ante by way of suing Google over Dalvik, making it harder to get JDK certification, etc. The main lever Oracle has is the ownership of the Java trademark.

Like many I assumed that Java is dying a slow death now, eventually to be replaced by the next successful initiative. Scala, Go, and others are attempts at that, though (not yet) successful ones.

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