The Poster Child of Open Source Business
Agenda
• The 3 W’s for MySQL - What? When? Why?
• Business Model – 2nd generation OSS
• Market Scenario
– Customer Acceptance
– Industry acceptance & alliance
• Competitor Analysis
• SWOT Analysis
• The Strategic options for MySQL beyond 2004
Why
What
When
What is MySQL?
Open Source RDBMS
●
Linux, Windows, MacOS, Solaris, HP-UX, IBM AIX
Supported applications built on the LAMP stack
●
Linux, Apache, Perl, Python
MySQL runs on more than 20 platforms
Offers a comprehensive range of certified software, support, training and
consulting
Timeline
●
Started in 1994-95
95-96 ●
1st version release in 1996
97 ●
1st commercial license sold
99-’00 ●
●
Tutorial book published
Incorporation as MySQL AB, Sweden
01-02 Recruited VP, CEO, CFO
●
●
Launch US headquarter & German subsidiary
●
Spread out to France
03 ●
Rebrand SAP-DB to MaxDB
●
MySQL AB launches MySQL Cluster – The First Open Source
04 Database Clustering Solution
•↓TCO by 90%
Why MySQL? •Extend Product Line
•Enter New Markets
•SLA Commitments
•Standard Based
•Flexibility & Scalability
•Easy Accessibility
•On Demand Service
•Cost saving on upfront Engineerin
investment
g CIO
DBA Why?
•Develop, Deploy &
•Focus on Core Product Manage High Volume
Competency Managers Apps
•Platform Independence •Manage Multiple Servers
•Easy Reporting & Analysis •24X7 Support
•↓COGS •Customizable
Agenda
• The 3 W’s for MySQL - What? When? Why?
• Business Model – 2nd generation OSS
• Market Scenario
– Customer Acceptance
– Industry acceptance & alliance
• Competitor Analysis
• SWOT Analysis
• The Strategic options for MySQL beyond 2004
Business Model
Virtual
Organization
Development
Cycle
Service
Support
Sales &
Marketing
Revenue Model
• Delivery cost: Distribution via CD/downloads
• Post sale services: Pay for Quick Service
• Version Authentication: Vendors advice in
which version to pick
• Certification and training for users and
vendors
Business Model
Virtual
Organization
Development
Cycle
Service
Support
Sales &
Marketing
Development Cycle
•Coded by employees
•Dual Licensing Model
•Debugging
•Quick Response
•Cost Saving
•Community Members
•IBM Employees
Business Model
Virtual
Organization
Development
Cycle
Service
Support
Sales &
Marketing
Sales & Marketing
• Viral marketing
• Press Coverage
• Low Cost Sales & Distribution Channel
– Download from website
– Telesales Service
• Managing Key Accounts
• Direct Sales Force
• ↓Customer Acquisition Cost
– Focus on conversion of free User to paid users
– Try and Buy
Business Model
Virtual
Organization
Development
Cycle
Service
Support
Sales &
Marketing
Support & Services
• Support & Add-ons from developer
community
• Information published on MySQL
• No Manuals = No Strain on resources
Business Model
Virtual
Organization
Development
Cycle
Service
Support
Sales &
Marketing
Virtual Organization
120 employees in 17 countries connected
●
Email
●
OSS
●
IP phones
●
IRC
Recruitment
●
From community
Business Model
Virtual
Organization
Development
Cycle
Service
Support
Sales &
Marketing
Challenges
• Complexities in work culture for expansion
– Communicating with employees as business
expanded
– Managing employees scattered across vast virtual
network
• Acceptance of MySQL-SAP alliance by
Community
Agenda
• The 3 W’s for MySQL - What? When? Why?
• Business Model – 2nd generation OSS
• Market Scenario
– Customer Acceptance
– Industry acceptance & alliance
• Competitor Analysis
• SWOT Analysis
• The Strategic options for MySQL beyond 2004
Customer Acceptance
2001
1996
Received awards and
Launch of MySQL
recognitions
1000 downloads
35000-40000
within 4 months
downloads per day
2003
H
a
d
5
0
0
0
p
a
y
i
n
g
c
u
s
t
o
m
e
r
s
D
i
d
1
0
m
il
li
o
n
E
u
r
o
s
Serving Segments
Web Application
Developers
Startup websites
Int
ern
et
–
ena
ble
d
co
mp
ani
es
like
Go
ogl
e,
Yah
oo!
,
Am
azo
n
and
Tra
vel
ocit
y
part
with
ket of
ling
nym
share
vell, Sun
for
Industry Acceptance
12 building
OSS
million
database
Linux
ervers)
M
S
Q
o
n
o
c
s
A
D
B
o
M
x
Q
Presence in Stack
Presence in Stack
Agenda
• The 3 W’s for MySQL - What? When? Why?
• Business Model – 2nd generation OSS
• Market Scenario
– Customer Acceptance
– Industry acceptance & alliance
• Competitor Analysis
• SWOT Analysis
• The Strategic options for MySQL beyond 2004
Competitor Analysis
Compete from
Non-
Consumption
Oracle
SQL Server
PostgreSQL
Sleepycat
Agenda
• The 3 W’s for MySQL - What? When? Why?
• Business Model – 2nd generation OSS
• Market Scenario
– Customer Acceptance
– Industry acceptance & alliance
• Competitor Analysis
• SWOT Analysis
• The Strategic options for MySQL beyond 2004
Culture
S
•High Performance-Price Ratio
•Entry Barrier via Dual Licensing
Model
•Lack of functionality for Large
Enterprise W
•Lack of vendor support &
•OSS Model relationship
•Compatibility & Flexibility •Not suitable for mission critical &
•Easy to Install and Use enterprise apps
•Popularity among low end market
•Rapid Support System
•Huge Testing Base
SWOT
T O
•Growth of SaaS & On-Demand
•Reaction of Big Giants services market
•Diluted Brand Image •High profit & long term market of
•Easy to Imitate Large Organizations
Agenda
• The 3 W’s for MySQL - What? When? Why?
• Business Model – 2nd generation OSS
• Market Scenario
– Customer Acceptance
– Industry acceptance & alliance
• Competitor Analysis
• SWOT Analysis
• The Strategic options for MySQL beyond 2004
The Strategic options for MySQL beyond 2004
• To form more alliances in future as it did with SAP to
provide high end solutions
• After collaborating with SAP, their business improved a
lot and they should keep strategies to identify more of
such companies
• Should have a dedicated customer service team for
intense relation with their customers
• It should also target all the segments of DBMS in order
to increase their business
The Strategic options for MySQL beyond
2004
• Should focus in making strategy to generate more
revenues without hindering the basic service which it
provides
• Focus on product service
• Should also focus in creating product for
sophisticated user
Building Way Forward
Large
Organizations
SME
Developers
&
Startups
Sun
MySQL
Oracle
Thank You
