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[ # ] Open Source and Profit
July 8th, 2013 under Corporate, Devel, Digital Rights, OSS, rengolin, World

I have written extensively about free, open source software as a way of life, and now reading back my own articles of the past 7 years, I realize that I was wrong on some of the ideas, or in the state of the open source culture within business and around companies.

I’ll make a bold statement to start, trying to get you interested in reading past the introduction, and I hope to give you enough arguments to prove I’m right. Feel free to disagree on the comments section.

The future of business and profit, in years to come, can only come if surrounded by free thoughts.

By free thoughts I mean free/open source software, open hardware, open standards, free knowledge (both free as in beer and as in speech), etc.

Past Ideas

I began my quest to understand the open source business model back in 2006, when I wrote that open source was not just software, but also speech. Having open source (free) software is not enough when the reasons why the software is free are not clear. The reason why this is so is that the synergy, that is greater than the sum of the individual parts, can only be achieved if people have the rights (and incentives) to reach out on every possible level, not just the source, or the hardware. I make that clear later on, in 2009, when I expose the problems of writing closed source software: there is no ecosystem in which to rely, so progress is limited and the end result is always less efficient, since the costs to make it as efficient are too great and would drive the prices of the software too high up to be profitable.

In 2008 I saw both sides of the story, pro and against Richard Stallman, on the views of the legitimacy of propriety control, being it via copyright licenses or proprietary software. I may have come a long way, but I was never against his idea of the perfect society, Richard Stallman’s utopia, or as some friends put it: The Star Trek Universe. The main difference between me and Stallman is that he believes we should fight to the last man to protect ourselves from the evil corporations towards software abuse, while I still believe that it’s impossible for them to sustain this empire for too long. His utopia will come, whether they like it or not.

Finally, in 2011 I wrote about how copying (and even stealing) is the only business model that makes sense (Microsoft, Apple, Oracle etc are all thieves, in that sense) and the number of patent disputes and copyright infringement should serve to prove me right. Last year I think I had finally hit the epiphany, when I discussed all these ideas with a friend and came to the conclusion that I don’t want to live in a world where it’s not possible to copy, share, derive or distribute freely. Without the freedom to share, our hands will be tied to defend against oppression, and it might just be a coincidence, but in the last decade we’ve seen the biggest growth of both disproportionate propriety protection and disproportional governmental oppression that the free world has ever seen.

Can it be different?

Stallman’s argument is that we should fiercely protect ourselves against oppression, and I agree, but after being around business and free software for nearly 20 years, I so far failed to see a business model in which starting everything from scratch, in a secret lab, and releasing the product ready for consumption makes any sense. My view is that society does partake in an evolutionary process that is ubiquitous and compulsory, in which it strives to reduce the cost of the whole process, towards stability (even if local), as much as any other biological, chemical or physical system we know.

So, to prove my argument that an open society is not just desirable, but the only final solution, all I need to do is to show that this is the least energy state of the social system. Open source software, open hardware and all systems where sharing is at the core should be, then, the least costly business models, so to force virtually all companies in the world to follow suit, and create the Stallman’s utopia as a result of the natural stability, not a forced state.

This is crucial, because every forced state is non-natural by definition, and every non-natural state has to be maintained by using resources that could be used otherwise, to enhance the quality of the lives of the individuals of the system (being them human or not, let’s not block our point of view this early). To achieve balance on a social system we have to let things go awry for a while, so that the arguments against such a state are perfectly clear to everyone involved, and there remains no argument that the current state is non-optimal. If there isn’t discomfort, there isn’t the need for change. Without death, there is no life.

Profit

Of all the bad ideas us humans had on how to build a social system, capitalism is probably one of the worst, but it’s also one of the most stable, and that’s because it’s the closest to the jungle rule, survival of the fittest and all that. Regulations and governments never came to actually protect the people, but as to protect capitalism from itself, and continue increasing the profit of the profitable. Socialism and anarchy rely too much on forced states, in which individuals have to be devoid of selfishness, a state that doesn’t exist on the current form of human beings. So, while they’re the product of amazing analysis of the social structure, they still need heavy genetic changes in the constituents of the system to work properly, on a stable, least-energy state.

Having less angry people on the streets is more profitable for the government (less costs with security, more international trust in the local currency, more investments, etc), so panis et circenses will always be more profitable than any real change. However, with more educated societies, result from the increase in profits of the middle class, more real changes will have to be made by governments, even if wrapped in complete populist crap. One step at a time, the population will get more educated, and you’ll end up with more substance and less wrapping.

So, in the end, it’s all about profit. If not using open source/hardware means things will cost more, the tendency will be to use it. And the more everyone uses it, the less valuable will be the products that are not using it, because the ecosystem in which applications and devices are immersed in, becomes the biggest selling point of any product. Would you buy a Blackberry Application, or an Android Application? Today, the answer is close to 80% on the latter, and that’s only because they don’t use the former at all.

It’s not just more expensive to build Blackberry applications, because the system is less open, the tools less advanced, but also the profit margins are smaller, and the return on investment will never justify. This is why Nokia died with their own App store, Symbian was not free, and there was a better, free and open ecosystem already in place. The battle had already been lost, even before it started.

But none of that was really due to moral standards, or Stallman’s bickering. It was only about profit. Microsoft dominated the desktop for a few years, long enough to make a stand and still be dominant after 15 years of irrelevance, but that was only because there was nothing better when they started, not by a long distance. However, when they tried to flood the server market, Linux was not only already relevant, but it was better, cheaper and freer. The LAMP stack was already good enough, and the ecosystem was so open, that it was impossible for anyone with a closed development cycle to even begin to compete on the same level.

Linux became so powerful that, when Apple re-defined the concept of smartphones with the iPhone (beating Nokia’s earlier attempts by light-years of quality), the Android system was created, evolved and dominated in less than a decade. The power to share made possible for Google, a non-device, non-mobile company, to completely outperform a hardware manufacturer in a matter of years. If Google had invented a new OS, not based on anything existent, or if they had closed the source, like Apple did with FreeBSD, they wouldn’t be able to compete, and Apple would still be dominant.

Do we need profit?

So, the question is: is this really necessary? Do we really depend on Google (specifically) to free us from the hands of tyrant companies? Not really. If it wasn’t Google, it’d be someone else. Apple, for a long time, was the odd guy in the room, and they have created an immense value for society: they gave us something to look for, they have educated the world on what we should strive for mobile devices. But once that’s done, the shareable ecosystem learns, evolves and dominate. That’s not because Google is less evil than Apple, but because Android is more profitable than iOS.

Profit here is not just the return on investment that you plan on having on a specific number of years, but adding to that, the potential that the evolving ecosystem will allow people to do when you’ve long lost the control over it. Shareable systems, including open hardware and software, allow people far down in the planing, manufacturing and distributing process to still have profit, regardless of what were your original intentions. One such case is Maddog’s Project Cauã.

By using inexpensive RaspberryPis, by fostering local development and production and by enabling the local community to use all that as a way of living, Maddog’s project is using the power of the open source initiative by completely unrelated people, to empower the people of a country that much needs empowering. That new class of people, from this and other projects, is what is educating the population of the world, and what is allowing the people to fight for their rights, and is the reason why so many civil uprisings are happening in Brazil, Turkey, Egypt.

Instability

All that creates instability, social unrest, whistle-blowing gone wrong (Assange, Snowden), and this is a good thing. We need more of it.

It’s only when people feel uncomfortable with how the governments treat them that they’ll get up their chairs and demand for a change. It’s only when people are educated that they realise that oppression is happening (since there is a force driving us away from the least-energy state, towards enriching the rich), and it’s only when these states are reached that real changes happen.

The more educated society is, the quicker people will rise to arms against oppression, and the closer we’ll be to Stallman’s utopia. So, whether governments and the billionaire minority likes or not, society will go towards stability, and that stability will migrate to local minima. People will rest, and oppression will grow in an oscillatory manner until unrest happens again, and will throw us into yet another minimum state.

Since we don’t want to stay in a local minima, we want to find the best solution not just a solution, having it close to perfect in the first attempt is not optimal, but whether we get it close in the first time or not, the oscillatory nature of social unrest will not change, and nature will always find a way to get us closer to the global minimum.

Conclusion

Is it possible to stay in this unstable state for too long? I don’t think so. But it’s not going to be a quick transition, nor is it going to be easy, nor we’ll get it on the first attempt.

But more importantly, reaching stability is not a matter of forcing us to move towards a better society, it’s a matter of how dynamic systems behave when there are clear energetic state functions. In physical and chemical systems, this is just energy, in biological systems this is the propagation ability, and in social systems, this is profit. As sad as it sounds…


Read the Comments

[ # 1711 ] Comment from Christopher Covington [July 9, 2013, 2:32 PM]

I thought you were making good points until you tried to portray the Raspberry Pi as a sharable and open system. It requires patent licenses to build, proprietary firmware to run, and proprietary documentation to learn about the processor.

[ # 1712 ] Comment from rengolin [July 9, 2013, 2:49 PM]

I agree with you that the RPi is not the best example of open system right now, there are others much better. However, it is a good example of the kind of progress I’m trying to portrait.

The RPi has many closed parts, while keeping others open, and in time, more and more systems will have more and more open parts, but that’s only possible because systems in the past had their parts closed.

The RPi folks chose to hide some, but not all stuff, and the decision was primarily on a commercial basis (theirs or their providers’), and once these ecosystems start opening up, it’d be next to impossible to close them down again. As soon as people start hacking, breaking and writing open source drivers and firmware, the original software will be phased out in favour of their open stack, and the next generation of hardware will have to be based on that new, open, stack.

The same argument can be done for Steam, on Linux. I hate DRM, but I think that their move into Linux is bringing the interests of big players to the platform, and once they’re settled, more DRM-free games will appear, and in due time, only the DRM-free games will survive, as we’re seeing with most music and book market.

I doubt Amazon sells DRM-free MP3 because Stallman convinced them to do so… It won’t be forced, and the primary driver will be profit.

Use the enemy’s weapon against them, is the point. ;)

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