WEBVTT

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Hi, everyone. Welcome to the ultimate session of the day. This session is going to be unique

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for several reasons. The first is that the format is different, so we're going to have

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two lightning talks. First of all, Max is going to start with a 10 minute lightning talk,

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and then to be a 5-ion here, we're going to follow that with a 10 minute lightning talk.

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Then we're going to have a 10 minute Q&A. If you think of questions during either or

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both of the lightning talks, please write them down and share them during the Q&A. Without further

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do, I'll pass over to Max.

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Yeah, just a soundtrack. Okay, sounds good. Yeah, my name is Max. I'm a CEO and co-founder of Open Energy

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Transition. My background is that I did a peach-teen energy system planning, and you

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like research. The research world, Open Source is the standard already. Everybody uses that.

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But yeah, when I looked just in the industry, on the industry side, Open Source was not

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a standard at all. In the energy planning world, so I'm like, I had the choice basically

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to either create something or be unemployed, because I wanted really Open Source, an Open

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Source job. Now, he still don't work on the code anymore. Like, I just bring funding,

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somehow in this space. Yeah, like I just tell you a little bit from our experiences on

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how we grew within two and a half years to now 50 people. We're helping, like the philanthropic

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world to better understand by free and open source of this really important. And we have

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never rising like 10 to 100s of million, actually, funding going into Open Source through

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our activities, and not just for our company, but for the whole ecosystem. And yeah,

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now I'm really happy to talk a little bit about some thoughts that I drafted two weeks

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ago about this topic. Okay, grid planning. Like, if you don't know it yet, it's actually

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grid planning, like we do that to figure out what's the optimal grid investments, which

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we should do, or how should we operate our grid infrastructure or energy system. It's

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actually a 1 billion per year software industry behind that. At the moment, you're like,

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mostly proprietary, but yeah, there's already, like I was just estimating the first number.

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It's growing. Like, we're getting there. And yeah, like the big, large effect is really

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with the software, we actually decide, you know, like thousands of billion investments

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a year into real hardware infrastructure. And so on. So it's really important to actually

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improve our planning tools to have maybe some impacts, like savings on the 1000,000 billion

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factor. And yeah, like we hope we're like with Open Source software, we can be actually much better

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more innovative and collaborative to actually have impact on the 1000s billions here.

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Yeah. Like, I just, like, status quo is also actually quite interesting. Like, most things

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are proprietary, as I mentioned, but there's also the new digital, so a Renete angle,

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getting more and more important. We don't want to depend on, let's say, Russian software

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to operate our grip, which, that's currently not the case. But partially, we depend on,

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like, American-owned solutions. And here, I think, the dependency on such a software angles is

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a little bit shaky since the recent months or years at least. Yeah, and digital sovereignty

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really helps to be independent on the open source of its useful, but in the energy planning sector,

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but it can make sure, like, a still room to improve and work on it. And we really need to make

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it mainstream to get adoption on another level. Both on actually the demand side, so we need

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more users, but we also need more supply companies, like service companies, helping you to

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adopt this of helping understanding what it is and so on. And yeah, for that, we need some kind of

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revolution or evolution within the first sector for energy or grid planning. Here, you see a graph

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talking about adoption on the Y-axis and on the X-axis, and you're like, the different type of users.

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I would say currently we have this red dots here, and where we have mostly early adopters

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working with us and others in the ecosystem to use fast software in action. Some examples,

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like, we personally work with the European energy regulator, with various grid operators across

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Europe and in other parts of the world. And then also many industry users are also

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depending on free and open source software, but we are not yet mainstream. We have a couple of

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magnitude, more potential users out there, and this is where we need to get. And one theory is,

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okay, once we have this large dependency on fast software, then we can also have this large money

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to finance developers to make things self-sufficient, like the Linux space.

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Good, so as I mentioned, we need money in general, money to fund people mostly, and here the

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funding source, I split it a little bit here, we have generally industry funding,

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it comes to adoption often, we have public funding and philanthropic support, and then also the

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research adoption and funding that comes from there. So the question is, okay, how can we get

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more private in public in philanthropic funding to catalyze this revolution? That's the question that

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we are really passing all the time. Like that's an answer that we try to figure out every day,

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and like I hope to get some inspiration on what are our thoughts and thoughts about that, and maybe

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you have to also have some ideas on how we can improve that. So point one is that from our experience,

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I think it was really important to spot the opportunity and know how to get first of adopted,

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spotting the opportunity, we like I said, okay, there was already a proprietary, like proprietary

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surface owning our old school grid planning industry, and people paying shit ton of money for that.

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So me like ding ding ding, like it's a big opportunity to get frost in there. And yeah, but beyond that,

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beyond that, me like more, let's say money friendly aspects that frost can provide there, actually

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lot of other things that benefit the industry, like accessibility, the collaboration nature that

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is much easier with free and open source of and then also the innovation aspect. And like with

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the changing energy infrastructure, we really need much more and faster innovation. So that was important

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to realize, and then yeah, how can we get frost more adopted? What we currently facing is

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like industry, which doesn't like surface so much, and like they're generally very risk hours,

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which is good, you're like we need electricity 24-7 all the time, so of course there are

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risk hours, but most of those grid planners they never heard of open source of like some of them,

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like we enter rooms and they they don't know what's first of them, though they are paying

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like a billion for proprietary software. So just testing the market awareness and creating

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increasing confidence and so on, it's very, very important for our old school industry,

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and yeah, like the last points, a little bit unclear, but like we also need to focus on growing

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the frost ecosystems, so I'm not talking about a single project that we need to blow up with money,

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but we need really to fund the ecosystem race awareness around the ecosystem, and there's

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a few initiatives that really help here. What also, like what we realized is that there's a lot

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of noise within the funding world, and noise, like we have a lot of projects, there's so many

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open source projects around, but we need to actually figure out where should we prioritize,

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and what's key to measure ecosystem growth, high impact users, and benchmark the technical

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capability. This is what we did just recently with a benchmark platform that we developed,

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where we compared 200 different open source grid planning tools, and that really helped us

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to prioritize how should we invest in this ecosystem. And last but not least,

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yeah, almost okay, I have another slide after this. We need to actually work really, really hard

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on the success signals, and that also means you're training competitors, helping adoption for

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high impacts cases, like we need more earlier adopters, and until of the problem, and yeah,

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if you have any ideas around that, please reach out, and I'm done. Thank you.

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So, do you hear me? Perfect. When we continue with Patu, Fabian and myself, to bias,

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we are from SAP and want to share a bit about the perspective from how can open source funding

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work for an established software company, what are some of the challenges, and maybe inspire

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as well, other companies to do something similar. So, just to set the stage, who is SAP?

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It's probably some of you have heard about us. It's one of the largest provider of enterprise software,

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one of the largest software companies in Europe, and already 50 years old, and with quite a bunch

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of developers, so we have around 40,000 developers worldwide, and also a lot of different solutions

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and products we commercially sell. And what's in common for a lot of these solutions is where

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use a lot of different open source components, under the hood, be it for development, be it for

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actually running these, be it for infrastructure management. And these things are quite important,

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and also very relevant for us, where these are well maintained and in a great state.

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But, how do you can, how can you engage as a software company with open source projects?

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Probably quite obvious, the easiest way is, hey, you provide development contributions,

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you have development, developers which can provide them. And one thing we heard in earlier talks,

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as well, is open source projects are quite diverse, they are either driven from individual developers

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in their spare time or just a society project, they are well established projects and foundations,

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they are open source projects driven by commercial entities, and all of these have slightly different

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governance structures, slightly different engagement models. And development contributions are working

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quite seamless for all of these, so that's nice. But when we look at how can we financially

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support this project, it gets a bit more tricky. For foundation projects, for example,

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memberships is a common way to engage with them, you can become a member of the Linux foundation

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or of a Clips Foundation, and with your membership fees as well as support will work of the foundation.

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For company projects, a very common approach we have seen is that they offer either support or

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some even like special enterprise additions of their source project, and they have a nice legal

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department and purchasing department with whom you can interact and to contracts and then do stuff.

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The big question we had is that this cover, some of our other use cases and are also quite

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established already, but last year, or to be precise, even before that, but last year we started

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to focus on what about the last category. Independent projects which are quite small,

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there may be one developer or two developers are doing that in their spare time. We can help them

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or we can engage with development contributions and that's nice, but sometimes what really helps

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our project is that we just say, hey, maintainer, you're doing a great job and we appreciate

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your expert knowledge and it's probably not worth that we scale up somebody internally to get the

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same level, but it's rather easier to say, we give you some money to keep on doing what you are doing

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best. But the big question was when internally, hey, how can we, as a company, give money to such

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independent, maintainers and projects? And that's when what we sought out to try to figure out.

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How do you give money to individuals as a company? And that sounds rather easy, but it actually

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starts or starts getting quite complicated because a normal scenario would be, okay, we have a

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contracting department and say, hey, here's our standard supplier contract, it's just a couple

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hundred pages, give it to your legal department, they can review it and then be done it, that

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that probably doesn't work for a single in the past, maintainer. So what we ended up doing is we

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found an intermediary, we looked both at GitHub sponsors as a platform or open collective,

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which can handle all various legal annoyances for the projects itself, but as well for us

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to ensure that we have a single counterparty in that sense. We ended up using GitHub sponsors,

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because the advantage is that GitHub sponsors can as well root money to open collectives. So you

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kind of get both, but only have one platform and it's another thing we then just had to ensure

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is that, hey, we don't give money to people who are employed by SAP because Kitking,

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but of is just having a small pilot project with like one or two projects where we could

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experience the whole process and get started. But now we have a process on how we can give money

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to maintainers and projects, but how do we actually select projects and maintainers and for that,

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I'm handing over to Fabian. Yeah, so we noticed two main challenges in this regard.

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First of all, there are thousands of possible open source components that SAP uses on

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in their products and which of those products or projects do we want to give our money to.

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And the other challenge is in the future you might have different funding goals to the funding

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goals you have at the moment. For one funding round, we might prioritize improving our supply

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chain security while on the next funding round, you may just have the goal of giving back

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to the open source of their community and that results in completely different lists of perfect

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fitting open source projects for this funding round. So what we ended up doing is we chose

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an approach that based on two different methods. First of all, an internal voting, but the idea

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was that developers at SAP can nominate project to get funding and as long as another team says,

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okay, we use this product as well and we find it good as well. They get entered into this internal

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voting where every developer SAP has who has verified open source contribution to any project

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outside of SAP can cast the vote and say, okay, hey, this product is really cool. I support that

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you give money to it. And our expectation was that this would have a high probability of identifying

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crucial projects to some products and also identifying projects that are really well known and

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yeah maybe passion projects of some people. So what came out of this is for example, Nick

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so as is one of the projects that we are funding with this and yeah it's very well known and so

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that this fits our idea. But this advantage is maybe you're probably if you're going to

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do a voting which is based on my majority, you're going to get very well known projects or not

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the less known project that only one or two teams use but it's very important to them. So

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but we kind of found an exception to this rule because mold was also submitted by the person

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in the front row here. It's a lot less known project than I would say than Nick so as is yeah.

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But the second approach we chose was more we wanted to give every project a chance and we

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wanted to do this data driven way where we can see actually the why this would be a good

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candidate for open source funding. So the way we chose this is the energy is here that we don't

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necessarily have an inherent bias towards the well known project for example one of the project

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that got funding because of this is Seabrock Crossing which is a barcode processing library

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which is used in surprisingly many products for SAP and is probably something that nobody would

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have submitted as a funding candidate but yeah it's really nice that these projects also

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get a chance and it really is not a perfect science there's some menu filtering that's needed so

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you have to check the same things as you do have to check when the funding you have to check

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there's no SAP employees somewhere in there and there's no all things that to be as mentioned earlier

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yeah just the metrics are based on our internal usage the project activity

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security score we used to open SSF security score card and I also tried to add the truck

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ambassador to see how many on how many maintainers project might depend on yeah so this is

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it from all the presentation I hope you have a few questions for Q and A now yeah

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Q and A now

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for the first the first pitch regarding the energy data okay so you mentioned the

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comparison between proper the software and software you know and free software for market

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communication and I guess right all the framework but what I miss was the value proposition so

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what what is the value of you know if you go to a company you bring that message what what is the

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killer argument that you will use why free software is better than the properties of the right so in

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as light you had innovation no the time of value and of course it's faster we know that

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and of course I can add the cost because obviously that's free and the other is productivity

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but have you identified or are you willing to identify now imagine you are in front of a big you

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know a big guy of a one of the big energy companies that you want to convince him or have to go

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for a free software so which argument will you use you know compared to companies who have spent

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billions in standardized with a particular you know especially so complex energy market as past

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through the last ten years of standardizations and both on the messages as well as the framework

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okay so the question was what other arguments besides costs and fast innovation are there okay

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yeah I mean there's like you don't depend on a single vendor like yes actually we're like

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great planning like I'm not sure if you know that but like 70% of the market is owned by one company

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and like they got reasonably bought by a private equity firm and you know like if you know

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how private equity works like pump and dump kind of schemas are there sometimes so and then we

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had business behaviors happening we're like hey I'm sorry like you depend on the software now

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it took you want to use to integrate it unfortunately I have to cancel your contract like I'm

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the vendor unfortunately I have to cancel your contract but you're lucky I can sell it for you

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for twice the price and that kind of behavior we like like we see them sometimes happening

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because it's heavily like you're really bound to one software vendor and and people don't

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like this kind of business practices that we see here and there so the independence freedom

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to work with whoever is one important argument customization and I can customize for my needs as I

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want very important and yeah often it's also the collaboration aspect key like if we work

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with the European energy regulator they develop a solution with us but now suddenly all

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the member states they don't have to reinvent the wheel like they can just take this stuff adjusted

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a little bit for their own needs and and supply the European regulator with the right information

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so this kind of more like smoother collaboration is also one of the key arguments

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maybe I miss something but and I can whoever you talk with me like the stories a little bit

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different for sure thank you also another question for Max you mentioned something about

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providing training including two competitors when you're dealing with large enterprises and

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proprietary software transitioning staff who are used to working with that to something new

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that's part of what you provide as a service I guess question mark and second part is

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if they have issues afterwards I they start running this and then something goes breaks in the

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middle of the night do they call you and that's part of what they pay for yeah I mean we're like

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like the service companies right and like you can make service contracts to make sure that you

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offer 24-7 support which is needed in their cases and what I mean with training the

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competitors is that we need more people that are able to provide 24-7 support and being capable

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to develop on top and they're like we don't want to own this one single open source ecosystem

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but understood that part of that transition are you helping them move like when you kind of

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data that they have in the legacy system over yeah the contribution that's always needed

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I mean like transitioning like you did they are really locked in a heavy way sometimes to

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single software options here we can work a little bit on interoperability and they need a

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service and support to actually transition as well and yeah as I mentioned we shouldn't be the

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only company doing that like we're catalyzing that now we hope that a lot of other vendors are

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coming in and supporting here but you like you don't as a vendor you don't enter a support market

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if there's no real market there it needs to be big enough to be interesting for a lot of people

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and that's what we catalyzing like we starting this kind of revolutionary moment

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Hi question for SAP I'm building an open source task management product management tool

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and let's pretend that you want to have that what would I need to offer you in terms of

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supporting contract legal stuff I don't know so that you would buy it like

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from what you explained earlier I got that you mostly fund like libraries and it's mostly

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like spray and spray and most and more smaller things that don't have like a product that you can

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take to procurement and just buy it yeah so what we the our funding focused on are

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exactly be small components libraries which don't have a product because if you have a product

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and a company will nice or a nice spring from an enterprise perspective is that we actually

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have somebody from whom we can procure that to contract with and do these things with so that's

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feasible for let's say something where you have something like a hashikop word or a kathana

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or something like that who have a product and and sails department but if you have just a component

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which you maintain in your spare time like every couple days you probably don't want the

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hassle of like scaling that up but we really want to say hey cool stuff and really really like that

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and yeah so that's a bit special case if you want to scale it you probably need to have like

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a sales department and the contracting stuff yeah thanks

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and I think time is up or do we have for one more question one more okay hi I was wondering

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uh or I have two questions but I'll ask the first one um who and how did you convince I guess

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SAP to give money and maybe it's something we can do at our respective employers yeah so I mean

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the intrinsic motivation was there from the beginning and most people are we can follow the

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understanding hey this is infrastructure we are using and we probably have to pay something for that

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the question is how much uh and somebody needs to provide the budget for that we were quite lucky

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to get it kickstarted that we found somebody with an budget and we said well this sounds cool

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try that out we hear you have some budget and that's also what I can recommend what was

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really helpful don't aim for like 50 or 100 projects from the get go but target like one, two,

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three and then it's as well and let's say it's manageable amount where you potentially get an

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easier buy in that somebody says well this is worth trying out and it doesn't worth out it's not

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the bankrupt at land of the day and yeah okay do I have time for a little more no I don't think so

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so thank you for my free and enjoy the best of the show

