Today Apache is one of the most successful open-source tools, powering about two-thirds of the Web sites in the world. And because Apache can be downloaded for free anywhere in the world, people from Russia to South Africa to Vietnam use it to create Web sites. Those individuals who need or want added capabilities for their Web servers can buy products like WebSphere, which attach right on top of Apache.
At the time, selling a product built on top of an open-source program was a risky move on IBM's part. To its credit, IBM was confident in its ability to keep producing differentiated software applications on top of the Apache vanilla. This model has since been widely adopted, after everyone saw how it propelled IBM's Web server business to commercial leadership in that category of software, generating huge amounts of revenue.
As I will repeat often in this book: There is no future in vanilla for most companies in a flat world. A lot of vanilla making in software and other areas is going to shift to open-source communities. For most companies, the commercial future belongs to those who know how to make the richest chocolate sauce, the sweetest, lightest whipped cream, and the juiciest cherries to sit on top, or how to put them all together into a sundae. Jack Messman, chairman of the Novell software company, which has now become a big distributor of Linux, the open-source operating system, atop which Novell attaches gizmos to make it sing and dance just for your company, put it best: “Commercial software companies have to start operating further up the [software] stack to differentiate themselves. The open source community is basically focusing on infrastructure” (Financial Times, June 14, 2004).
The IBM deal was a real watershed. Big Blue was saying that it believed in the open-source model and that with the Apache Web server, this open-source community of engineers had created something that was not just useful and valuable but “best in its class.” That's why the open-source movement has become a powerful flattener, the effects of which we are just beginning to see. “It is incredibly empowering of individuals,” Brian Behlendorf said. “It doesn't matter where you come from or where you are-someone in India and South America can be just as effective using this software or contributing to it as someone in Silicon Valley.” The old model is winner take all: I wrote it, I own it-the standard software license model. “The only way to compete against that,” concluded Behlendorf, “is to all become winners.”
Behlendorf, for his part, is betting his career that more and more people and companies will want to take advantage of the new flat-world platform to do open-source innovation. In 2004, he started a new company called CollabNet to promote the use of open-sourcing as a tool to drive software innovation within companies. “Our premise is that software is not gold, it is lettuce-it is a perishable good,” explained Behlendorf. “If the software is not in a place where it is getting improved over time, it will rot.” What the open-source community has been doing, said Behlendorf, is globally coordinated distributed software development, where it is constantly freshening the lettuce so that it never goes rotten. Behlendorfs premise is that the open-source community developed a better method for creating and constantly updating software. CollabNet is a company created to bring the best open-source techniques to a closed community, i.e., a commercial software company.
“CollabNet is an arms dealer to the forces flattening the world,” said Behlendorf. “Our role in this world is to build the tools and infrastructure so that an individual -in India, China, or wherever-as a consultant, an employee, or just someone sitting at home can collaborate. We are giving them the toolkit for decentralized collaborative development. We are enabling bottom-up development, and not just in cyberspace... We have large corporations who are now interested in creating a bottom-up environment for writing software. The old top-down, silo software model is broken. That system said, 'I develop something and then I throw it over the wall to you. You find the bugs and then throw it back. I patch it and then sell a new version.' There is constant frustration with getting software that is buggy-maybe it will get fixed or maybe not. So we said, 'Wouldn't it be interesting if we could take the open-source benefits of speed of innovation and higher-quality software, and that feeling of partnership with all these stakeholders, and turn that into a business model for corporations to be more collaborative both within and without?'”
I like the way Irving Wladawsky-Berger, IBM's Cuban-born vice president for technical strategy and innovation, summed open-sourcing up: “This emerging era is characterized by the collaborative innovation of many people working in gifted communities, just as innovation in the industrial era was characterized by individual genius.”