Open Source and Profit

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…

Declaration of Internet Freedom

We stand for a free and open Internet.

We support transparent and participatory processes for making Internet policy and the establishment of five basic principles:

  • Expression: Don’t censor the Internet.
  • Access: Promote universal access to fast and affordable networks.
  • Openness: Keep the Internet an open network where everyone is free to connect, communicate, write, read, watch, speak, listen, learn, create and innovate.
  • Innovation: Protect the freedom to innovate and create without permission. Don’t block new technologies, and don’t punish innovators for their users’ actions.
  • Privacy: Protect privacy and defend everyone’s ability to control how their data and devices are used.

Don’t get it? You should be more informed on the power of the internet and what governments around the world have been doing to it.

Good starting places are: Avaaz, Ars Technica, Electronic Frontier Foundation, End Software Patents, Piratpartiet and the excellent Case for Copyright Reform.

Source: http://www.internetdeclaration.org/freedom

Google knows what you searched last summer

Despise all the controversy, Google started his new Privacy Policy last Thursday and whether you like it or not, you are being watched.

Being realistic, this is not far from what they were already doing: Google already tracked your searches, what you are watching on Youtube or your emails.

But before March, 1st, Google Plus, Youtube, Gmail and almost 60 Google products, were in different databases. With this change, Google guys are giving themselves the right to put all those products in just one big place, put one and one and one together to build a better and more complete online behaviour of YOU. And use it to chase YOU with their ads.

And you can’t opt out. If you want to use any Google product you are under their privacy policy.

It should be nonsense for me to tell you to stop using Google products. Almost everything you do in the internet today, from searches and emails, to finding a street and comparing products’ prices, is somehow through a Google product or related to it.

But you can at least reduce the amount of information that Google will be able to collect from you.

You can, for instance, delete your Google history going to https://www.google.com/history/ and clicking the button “Remove all Web History”

You can also configure your advertising settings here:  https://www.google.com/settings/u/0/ads/preferences/

You can edit your settings or even opt out.

 

Another way to “confuse” Google is creating a different account for each Google service (if you can keep up with all usernames and passwords).

Or, when watching a video on Youtube or searching the Web, make sure you are not logged in to your Google account.

There is also the possibility to use browser plugins that work to protect your data, or even anonymous proxies.

But, the truth is, as soon as you type into your computer, click anything, visit at a page, talk through Skype, or even talk on a telephone, (mobile or fixed), those who want to, can spy on you.

At least now Google is coming clear and telling you that they are spying on you. It makes better sense to me than living in a fool’s paradise, where you still believe that you have control over your life.

Smart Grid Privacy

I have recently joined the IETF Smart Grid group to see what people were talking about it and to put away my fears on security and privacy. What I saw was a bunch of experts discussing the plethora of standards that could be applied (very important) but few people seemed too interested in the privacy issue.

If you see the IEEE page on Smart Grids, besides the smart generation / distribution / reception (very important) there is a paragraph on the interaction between the grid and the customers, being very careful not to mention invasive techniques to allow the grid to control customer’s appliances:

“Intelligent appliances capable of deciding when to consume power based on pre-set customer preferences.”

Here, they focus on letting the appliances decide what will be done to save power, not the grid or the provider. Later on, on the same paragraph:

“Early tests with smart grids have shown that consumers can save up to 25% on their energy usage by simply providing them with information on that usage and the tools to manage it.”

Again, enforcing that the providers will only “provide [the customer] with information”. In other words, the grid is smart up to the smart meter (that is controlled by the provider), where inside people’s houses, it’s the appliances that have to be smart. One pertinent comment from Hector Santos in the IETF group:

“Security (most privacy) issues, I believe, has been sedated over the years with the change in consumer mindset. Tomorrow (and to a large extent today) generation of consumers will not even give it a second thought. They will not even realize that it was once considered a social engineering taboo to conflict with user privacy issues.”

I hate to be pessimist, but there is a very important truth in this. Not only people are allowing systems to store their data for completely different reasons, but they don’t care if the owner of the system will distribute their information or not. I, myself, always paranoid, have signed contracts with providers knowing that they would use and sell my data to third parties. The British Telecom is one good example. He continues:

“Just look how social networking and the drive to share more, not less has changed the consumer mindset. Tomorrow engineers will be part of all this new mindset.”

There is no social engineering any more like it used to be. Who needs to steal your information when it’s already there, on your Facebook? People are sharing willingly, and a lot of them know what problems it may cause, but the benefit, for them, is greater. Moreover, millions bought music, games and films with DRM, allowing a company control what you do, see or listen. How many Kindles were bought? How many iPhones? People don’t care what’s going on if they have what they want.

That is the true meaning of sedated privacy concerns. It’s a very distorted way of selfishness, where you don’t care about yourself, as long as you are happy. If it makes no sense to you, don’t worry, it makes no sense to me too.

Recently, the Future of Privacy Forum published an excellent analysis (via Ars) on the smart grid privacy. Several concepts that are easy to understand how dangerous they can be, became commonplace to not think about it or even consider it a silly worry, given that no one cares anyway.

An evil use of a similar technology is the “Selectable Output Control“. Just like a Kindle, the media companies want to make sure you only watch what you pay for. It may seem fair, and even cheaper, as they allow “smart pricing”, like some smart-grid technologies.

But we all have seen what Amazon did to kindle users, of Apple did to its AppStore, taking down contents without warn, removing things you paid for from your device, allowing or disallowing you to run applications or contents on your device as if you hadn’t pay enough money to own the device and its contents.

In the end, “smart pricing” is like tax cut, they reduce tax A, but introduce taxes B, C and D, which double the amount of taxes you pay. Of course, you only knew about tax A and went happy about your life. All in all, nobody cares who or how much they pay, as long as they can get the newest fart app

Search the Web and send a girl to school

camfed.jpg

“Most of us wish we could give more, now we can. Everyclick is a really simple way to raise money for free, just by doing something you already do” said Polly Gowers CEO, co- founder and winner of the WEBA Ethical Entrepreneur of the year 2007. “As we see it, every search that is not raising money for charity is a search wasted.”

 Everyclick.com works just like any other search engine, but allows the users to choose the charity they would like to benefit from their searching. The revenue generated for charities comes from companies that advertise on the site. There is no sign up fee or hidden charge to the user or the charity, it’s free giving.

 Charities of all sizes are benefiting from this new fundraising service; they range from Cancer Research to small village schools. If 10% of the UK online population used Everyclick.com for their searches, an additional £172,000 would be raised for charity every day.

How to raise more money for Camfed using Everyclick:

About Everyclick Charity Challenge

The Everyclick Charity Challenge enables us to raise more money and have the chance to win a poster campaign on 1500 Clear Channel Outdoor sites that will be viewed an estimated 192 million times.

The challenge runs from 15th October 2008 to 1 March 2009 during which time we will have a range of innovative ways to raise money online.