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<title>Raking in the dough on Free and Open Source Software &#8212; Varnish version 7.5.0 documentation</title>
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  <section id="raking-in-the-dough-on-free-and-open-source-software">
<span id="phk-dough"></span><h1>Raking in the dough on Free and Open Source Software<a class="headerlink" href="#raking-in-the-dough-on-free-and-open-source-software" title="Link to this heading">¶</a></h1>
<p>I’m writing this on the third day after the “Heartbleed” bug in OpenSSL
devasted internet security, and while I have been very critical of the
OpenSSL source code since I first saw it, I have nothing but admiration
for the OpenSSL crew and their effort.</p>
<p>In particular considering what they’re paid for it.</p>
<p>Inspired by an article in <a class="reference external" href="http://online.wsj.com/news/articles/SB10001424052702303873604579491350251315132">Wall Street Journal</a> which tangentially
touches on the lack of funding for OpenSSL development, I have
decided to write up my own experiences with funding Open Source
Software development in some detail.</p>
<p>I’ve been in the software industry for 30 years now, and I have
made a living more or less directly from Open Source Software
for the most recent 15 years.</p>
<p>Sometimes the money came from helping a customer use Open Source
Software, some times I wrote the Open Source Software for their
needs and sometimes, as with the <a class="reference external" href="http://phk.freebsd.dk/VML">Varnish Moral License</a> I get
paid to develop and maintain Open Source Software for the greater
common good.</p>
<section id="freebsd-community-funding">
<h2>FreeBSD community funding<a class="headerlink" href="#freebsd-community-funding" title="Link to this heading">¶</a></h2>
<p>My first crowd-funding of Free and Open Source Software, was in
2004, where I <a class="reference external" href="https://people.freebsd.org/~phk/funding.html">solicited the FreeBSD community</a> for money, so that
I could devote three to six months of my time to the FreeBSD disk-I/O
subsystem.</p>
<p>At that time I had spent 10 years as one of the central and key
FreeBSD developers, so there were no question about my ability
or suitability for the task at hand.</p>
<p>But in 2004 crowd-funding was not yet “in”, and I had to figure
out how to do it myself.</p>
<p>My parents brought me up to think that finances is a private matter
but I concluded that the only way you could ask strangers to throw
money at you, would be to run an open book, where they could see
what happened to them, so I did open books.</p>
<p>My next dilemma was about my rate, again I had always perceived my
rate to be a private matter between me and my customers.</p>
<p>My rate is about half of what most people expect – because I wont
work for most people: I only work on things I really <em>care</em> about.</p>
<p>One of my worries therefore were that publishing my rate would
undercut friends and colleagues in the FreeBSD project who made a
living consulting.</p>
<p>But again, there were no way around it, so I published my rate but
made every attempt to distinguish it from a consulting rate, and
I never heard any complaints.</p>
<p>And so, having agonized over the exact text and sounded it off on a
couple of close friends in the FreeBSD project, I threw the proposal
out there – and wondered what would happen next.</p>
<p>I had a perfectly safe fall-back plan, you have to when you have
two kids and a mortgage to feed, but I really had no idea what would
happen.</p>
<p>Worst case, I’d cause the mother of all <a class="reference external" href="http://bikeshed.org/">bikesheds</a> get thrown out
of the FreeBSD project, and be denounced for my “ideological impurity”
with respect to Free and Open Source Software.</p>
<p>Best case, I expected to get maybe one or two months funded.</p>
<p>The FreeBSD community responded overwhelmingly, my company has never
sent as many invoices as it did in 2004, and my accountant nearly
blew a fuse.</p>
<p>And suddenly I found myself in a situation I had never even considered
how to handle:  How to stop people from sending me money.</p>
<p>I had simply set up a PayPal account, (more on that in a bit), and
at least at that time, there were no way to prevent people from
dropping money into it, no matter how much you wanted to stop them.</p>
<p>In the end I managed to yell loud enough and only got overfunded
a few percent, and I believe that my attempt to deflect the surplus
to the FreeBSD Foundation gave them a little boost that year.</p>
<p>So about PayPal:  The first thing they did was to shut my account,
and demand all kinds of papers to be faxed to them, including a
copy of my passport, despite the fact that Danish law was quite
clear on that being illegal.  Then, as now, their dispute resolution
process was less than user-friendly, and in the end it took an
appeal to a high-ranking officer in PayPal and quite a bit of time
to actually get the money people had donated.</p>
<p>I swore to myself that next time, if there ever came a next time,
PayPal would not be involved.  Besides, I found their fees quite
excessive.</p>
<p>In total I made EUR27K, and it kept my kids fed and my bank
happy for the six months I worked on it.</p>
<p>And work I did.</p>
<p>I’ve never had a harsher boss than those six months, and it surprised
me how much it stressed me, because I felt like I was working on a
stage, with the entire FreeBSD project in audience, wondering if I
were going to deliver the goods or not.</p>
<p>As a result, the 187 donors certainly got their moneys worth,
most of that half year I worked 80 hour weeks, which made me
decide not to continue, despite many donors indicating that they
were perfectly willing to fund several more months.</p>
</section>
<section id="varnish-community-funding">
<h2>Varnish community funding<a class="headerlink" href="#varnish-community-funding" title="Link to this heading">¶</a></h2>
<p>Five years later, having developed Varnish 1.0 for Norways “Verdens
Gang” newspaper, I decided to give community funding a go again.</p>
<p>Wiser from experience, I structured the <a class="reference external" href="http://phk.freebsd.dk/VML">Varnish Moral License</a>
to tackle the issues which had caused me grief the first time
around:</p>
<p>Contact first, then send money, not the other way around, and also
a focus on fewer larger sponsors, rather than people sending me
EUR10 or USD15 or even, in one case, the EUR1 which happened to
linger in his PayPal Account.</p>
<p>I ran even more open books this time, on the VML webpages you can
see how many hours and a one-line description of what I did in them,
for every single day I’ve been working under the VML since 2010.</p>
<p>I also decided to be honest with myself and my donors, one hour
of work was one hour of work – nobody would benefit from me
dying from stress.</p>
<p>In practice it doesn’t quite work like that, there are plenty of
thinking in the shower, emails and IRC answers at all hours of the
day and a lot of “just checking a detail” that happens off the
clock, because I like my job, and nothing could stop me anyway.</p>
<p>In each of 2010, 2011 and 2013 I worked around 950 hours work on
Varnish, funded by the community.</p>
<p>In 2012 I only worked 589 hours, because I was building a prototype
computer cluster to do adaptive optics real-time calculations for
the ESO <a class="reference external" href="http://www.eso.org/public/teles-instr/e-elt/">Extremely Large Telescope</a> (“ELT”) – There was no way I
could say no to that contract :-)</p>
<p>In 2014 I actually have hours available do even more Varnish work,
and I have done so in the ramp up to the 4.0.0 release, but despite
my not so subtle hints, the current outlook is still only for 800
hours to be funded, but I’m crossing my fingers that more sponsors
will appear now that V4 is released.  (Nudge, nudge, wink, wink,
he said knowingly! :-)</p>
</section>
<section id="why-free-and-open-source-costs-money">
<h2>Why Free and Open Source costs money<a class="headerlink" href="#why-free-and-open-source-costs-money" title="Link to this heading">¶</a></h2>
<p>Varnish is about 90.000 lines of code, the VML brings in about
EUR90K a year, and that means that Varnish has me working and
caring about issues big and small.</p>
<p>Not that I am satisfied with our level of effort, we should have
much better documentation, our wish-list of features is far too
long and we take too long to close tickets.</p>
<p>But I’m not going to complain, because the Heartbleed vulnerability
revealed that even though OpenSSL is about three to five times
larger in terms of code, the OpenSSL Foundation Inc. took in only
about EUR700K last year.</p>
<p>And most of that EUR700K was for consulting and certification, not
for “free-range” development and maintenance of the OpenSSL source
code base so badly needs.</p>
<p>I really hope that the Heartbleed vulnerability helps bring home
the message to other communities, that Free and Open Source Software
does not materialize out of empty space, it is written by people.</p>
<p>People who love what we do, which is why I’m sitting here,
way past midnight on a Friday evening, writing this pamphlet.</p>
<p>But software <em>is</em> written by people, real people with kids, cars,
mortgages, leaky roofs, sick pets, infirm parents and all other
kinds of perfectly normal worries of an adult human being.</p>
<p>The best way to improve the quality of Free and Open Source Software,
is to make it possible for these people to spend time on it.</p>
<p>They need time to review submissions carefully, time to write and
run test-cases, time to respond and fix to bug-reports, time to
code and most of all, time to think about the code.</p>
<p>But it would not even be close to morally defensible to ask these
people to forego time to play with their kids, so that they instead
develop and maintain the software that drives other peoples companies.</p>
<p>The right way to go – the moral way to go – and by far the most
productive way to go, is to pay the developers so they can make
the software they love their living.</p>
</section>
<section id="how-to-fund-free-and-open-source-software">
<h2>How to fund Free and Open Source Software<a class="headerlink" href="#how-to-fund-free-and-open-source-software" title="Link to this heading">¶</a></h2>
<p>One way is to hire them, with the understanding that they spend
some company time on the software.</p>
<p>Experience has shown that these people almost invariably have highly
desirable brains which employers love to throw at all sorts of
interesting problems, which tends to erode the “donated” company
time.</p>
<p>But a lot of Free and Open Source Software has been, and still is
developed and  maintained this way, with or without written
agreements or even knowledge of this being the case.</p>
<p>Another way is for software projects to set up foundations to
collect money and hire developers.  This is a relatively complex
thing to do, and it will only be available for larger projects.</p>
<p>The Apache Foundation “adopts” smaller projects inside their field
of interest, and I believe that works OK, but I’m not sure if it
can easily be transplanted to different topics.</p>
<p>The final way is to simply throw money a the developers, the
way the FreeBSD and Varnish communities have done with me.</p>
<p>It is a far more flexible solution with respect to level of
engagement, national boundaries etc. etc, but in many ways it
demands more from both sides of the deal, in particular
with respect to paperwork, taxes and so on.</p>
</section>
<section id="conclusion">
<h2>Conclusion<a class="headerlink" href="#conclusion" title="Link to this heading">¶</a></h2>
<p>I am obviously biased, I derive a large fraction of my relatively
modest income from community funding, for which I am the Varnish
community deeply grateful.</p>
<p>But biased as I may be, I believe that the Varnish community and I
has shown that a tiny investment goes a long way in Free and Open
Source Software.</p>
<p>I hope to see that mutual benefit spread to other communities and
projects, not just to OpenSSL and not just because they found a
really bad bug the other day, but to any community around any piece
of software which does serious work for serious companies.</p>
<p>Thanks in advance,</p>
<p>Poul-Henning, 2014-04-11</p>
</section>
</section>

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<li><a class="reference internal" href="#">Raking in the dough on Free and Open Source Software</a><ul>
<li><a class="reference internal" href="#freebsd-community-funding">FreeBSD community funding</a></li>
<li><a class="reference internal" href="#varnish-community-funding">Varnish community funding</a></li>
<li><a class="reference internal" href="#why-free-and-open-source-costs-money">Why Free and Open Source costs money</a></li>
<li><a class="reference internal" href="#how-to-fund-free-and-open-source-software">How to fund Free and Open Source Software</a></li>
<li><a class="reference internal" href="#conclusion">Conclusion</a></li>
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