The Impact and Risk of HTML5

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@mikehostetler The Impact & Risk of

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@mikehostetler The Business of JavaScript

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@mikehostetler Let’s go on a journey together ...

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@mikehostetler HTML5 for the Business World What is HTML5? How do you leverage it? Economics 101: Open Source Edition Risks & Rewards

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@mikehostetler What is HTML5?

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@mikehostetler JavaScript HTML5 Speciﬁcation The HTML5 Technology Stack

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@mikehostetler The Internet HTML5 is how Human Beings interact with the Internet

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@mikehostetler Hardware is standardizing on HTML5

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@mikehostetler Web Technology Platforms all use HTML5

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@mikehostetler Wait a minute ... Isn’t this just the web as we’ve known it?

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@mikehostetler Yes and No HTML5 is the next version of HTML

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@mikehostetler Yes and No HTML5 is the next version of HTML and it’s replacing Adobe Flash ...

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@mikehostetler Yes and No HTML5 is the next version of HTML and it’s replacing Adobe Flash ... and it’s replacing Java Applets ...

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@mikehostetler Yes and No HTML5 is the next version of HTML and it’s replacing Adobe Flash ... and it’s replacing Java Applets ... and it’s fueling the mobile explosion ...

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@mikehostetler Yes and No HTML5 is the next version of HTML and it’s replacing Adobe Flash ... and it’s replacing Java Applets ... and it’s fueling the mobile explosion ... and it’s now invading the desktop ...

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@mikehostetler HTML5 Standardization plus the increased hardware footprint will make HTML5 and JavaScript the most popular software platform in the history of the world Where is this all going?

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@mikehostetler How do you leverage it?

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@mikehostetler General Distribution Pattern of HTML5 Software The Internet

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@mikehostetler HTML5 and JavaScript application code is distributed in an uncompiled form PROBLEM: thus, traditional methods of protecting intellectual property don’t apply

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@mikehostetler How does the market handle this?

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@mikehostetler To fully leverage the power of HTML5 applications ... ... you must learn to leverage Open Source

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@mikehostetler Can’t beat them? Join them! HTML5 erasing an entire market ... Embracing HTML5 made an old paradigm new again ...

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@mikehostetler Economics 101: Open Source Edition

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@mikehostetler Open Source as a Commodity? Commodity: A product where the buyer is unable to distinguish between products from different producers. Examples: Wheat, Corn, Steel, Gold, Electricity, Crude Oil

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@mikehostetler Commodity Market vs. Open Source Software Market A commodity is easily switched between vendors Software Vendors cannot be easily changed vs. Commodity Pricing follows Supply & Demand Software supply is inﬁnite, so pricing cannot follow Supply vs.

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@mikehostetler Conclusion: Open Source Software cannot be a Commodity!

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@mikehostetler So what kind of market is it? Costs Zero Direct Purchase Cost High In-direct Purchase Cost High Lifetime Operating Cost High Contingent Cost “The Website is Down” NASDAQ software bug SpaceX Flight Computer delays launch Strong Brand Preference My Linux Distro is “cooler” then yours Chrome vs. Firefox We’re a Microsoft shop Driven by Fear Inability to measure costs Trends towards perception of safety

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@mikehostetler The Open Source Software Market behaves similarly to the market for High-Risk Capital Goods

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@mikehostetler So where is the money?

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@mikehostetler Risks and Rewards

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@mikehostetler Where does the cost occur? 0% 50% 100% Direct In-Direct Operating R&D Locomotive HTML5 Application

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@mikehostetler $0 Direct Purchase Cost $??? In-Direct Purchase Cost * Training * Development $??? Operating Cost * Reliability * Device Eco- System changes? * Support $??? Ongoing R & D * Incredibly short technology life-cycles Costs of HTML5 based software as a High-Risk Capital Acquisition

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@mikehostetler Yay! $??? Ongoing R & D * Incredibly short technology life-cycles Costs of HTML5 based software as a High-Risk Capital Acquisition $??? Operating Cost * Reliability * Device Eco- System changes? * Support $0 Direct Purchase Cost $??? In-Direct Purchase Cost * Training * Development

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@mikehostetler Yay! Risk Risk Risk $??? Ongoing R & D * Incredibly short technology life-cycles Costs of HTML5 based software as a High-Risk Capital Acquisition $??? Operating Cost * Reliability * Device Eco- System changes? * Support $0 Direct Purchase Cost $??? In-Direct Purchase Cost * Training * Development

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@mikehostetler Your ability to understand, quantify and manage these costs and risks will directly impact the realized return on investment of any HTML5 Application project

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@mikehostetler Conclusion

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@mikehostetler Impact & Risk of HTML5 What is HTML5? How do you leverage it? Economics 101: Open Source Edition Risks & Rewards

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@mikehostetler What is HTML5? HTML5 is how Human Beings interact with the Internet How do you leverage it? Economics 101: Open Source Edition Risks & Rewards Impact & Risk of HTML5

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@mikehostetler What is HTML5? HTML5 is how Human Beings interact with the Internet How do you leverage it? To leverage HTML5, you must learn to leverage Open Source Economics 101: Open Source Edition Open Source Software markets behave similarly to High-Risk Capital Goods Risks & Rewards Impact & Risk of HTML5