With the backdrop of Web3, Open Source will prevail.
Earlier this week, I was discussing the effects that the move towards Web3 would have on Open Source communities with NearForm’s founder, Cian O’Maidin.
As we transition into the Web3 era, Open Source will play a leading role. The very nature of a decentralised web infrastructure provides an arena for Open Source projects to thrive and for online-first communities to embrace the Open Source proposition, with projects underpinned by collaboration and efficiency.
With Web3 opening the door even wider to community ownership, developers will be better primed than ever to reap the benefits of Open Source in the rollout of innovative projects. Fundamental to Web3 and Open Source is their shared building block nature, empowering developers to build solutions that dive straight into catering to end-user needs. The ability to provide the right end-user with the right solution is critical to delivering success. With the backdrop of Web3 fuelling the accelerated rise of Open Source, a widespread move by enterprise towards co-investing in open source product development or even adopting outcome-driven compensation is likely to follow suit, which leads me to my final prediction.
Enterprises move towards becoming venture capitalists in the world of product development.
Let me clarify what I mean by this statement: in 2022, I see enterprises taking a page out of the venture investment world’s book. VCs invest in companies and management teams, often in their early stage, using equity to align long-term incentives. Typically, the management team and employees of the company make below-market, in-year compensation with the “upside” being the value of the equity upon an IPO or acquisition.
In 2022, I see software product engineering firms beginning to work with enterprise clients similarly. Clients (the VC in this analogy) will seek to identify partners with strong management teams and a history of building and launching products that deliver market success.
Product design and engineering firms like NearForm will act as the startup, taking below-market fees to build the product and share in the performance once launched. This could come in the form of shared revenue or other outcome-driven compensation.
For enterprises willing to explore this approach, seeking out a partner with a delivery model that is product-centric and has the market evaluation, strategy, design, and development expertise to bring a successful product to market is critical to success.
A New Kind of Partnership
At NearForm, we offer a new kind of partnership combining product development and capability building to accelerate digital delivery for our clients.
We provide our clients with not only game-changing digital products, but also with the processes and skills needed to maintain the efficiencies brought on by digitalisation, developing new digital capabilities, upskilling teams, and driving continuous innovation.
To learn more about our work, visit our Client page.