Category Archives: News

WSO2 Summer 2018 Release Fosters Innovation via New Microservices Integration Features

Summer is the time for road trips. And this year, all roads point to microservices becoming the software architecture of choice as enterprises seek greater agility, resiliency, reliability, performance and efficiency in delivering their apps and services.

Nowhere is that more striking than in the April 2018 “Global Microservices Trends” report by Dimensional Research, which found that 91% of senior development stakeholders surveyed are using or plan to use microservices. Dimensional Research conducted the independent research study on behalf of application performance management provider LightStep, and it revealed that 86% of respondents expect microservices to be the default approach within five years.

Today, we are supporting enterprises’ move to microservices architectures with the Summer 2018 Release of our WSO2 Agile Integration Platform. With the new release, development teams now have powerful capabilities for bringing robust microservices-based digital services to market rapidly to meet market demand.

WSO2 Advantage in Driving Microservices Innovation

By delivering WSO2 functionality on a cloud native, open source platform, we facilitate the agility and innovation that enterprises require to thrive in rapidly evolving markets driven by disruptive technologies and digital business models—while protecting against lock-in. Now with our Summer 2018 Release of the WSO2 Agile Integration Platform, we extend those advantages with platform-wide support for the development and deployment of highly distributed, lightweight microservices. These capabilities extend across our integrated API management, enterprise integration, analytics, and identity and access management (IAM) offerings.

Management of microservices APIs is addressed by WSO2 API Microgateway, which provides secure, low-latency access to microservices and eliminates the need for a central gateway by enabling enterprises to apply API management policies in a decentralized fashion.

Real-time microservices analytics are enabled by WSO2 Stream Processor, a lightweight runtime that can run in distributed deployments using Kafka and container-native environments, such as Kubernetes. With the Summer 2018 Release, it adds support for message tracing across microservices using the OpenTracing standard for better insights into performance.

Microservices integration is optimized using the MicroESB in WSO2 Enterprise Integrator. Available with the Summer 2018 Release, the MicroESB is a lightweight mediation runtime that includes all core mediation capabilities. As a profile of WSO2 Enterprise Integrator, the MicroESB is based on the same features as the Integration profile and offers a significantly faster startup time, making it ideal for containers. In addition, the newest release of WSO2 Enterprise Integrator supports Eclipse Oxygen, the latest version of the Eclipse integrated development environment (IDE).

Secure microservices are provided by WSO2 Identity Server which now supports role-based access control (RBAC) and validation using the Java Web Token (JWT) standard that has been widely adopted for microservices.

Support Designed for Microservices Environments

The rise of microservices means that middleware capabilities increasingly are deployed as a dynamic collection of services or microservices, rather than as a set of servers easily counted in advance. At the same time, many customers want to benefit from access to the breadth of WSO2 platform capabilities for advanced integration, API management, identity management, and stream processing. To support these environments, we’ve also introduced the WSO2 Platform License for WSO2 Subscription, our commercial offering.

WSO2 Subscription features access to WSO2 Update for continuous delivery of bug fixes, security updates, and performance enhancements, along with WSO2 Support for 24×7 support. Now, with the WSO2 Platform License, customers can purchase a simple single subscription tiered to the number of CPUs allotted for WSO2 deployments. Within this allotment any of WSO2’s primary products can be deployed as needed to meet the scalability or functional demands of the day, making adoption of WSO2 in container-based environments simpler and more cost-effective.

The WSO2 Platform License for WSO2 Subscription is complemented by other service and support enhancements to maximize customers’ success using our technology:

  • The new Technical Account Manager (TAM) program provides a named technical support contact. This TAM acts as the first line of support, manages a priority support queue during working hours in a customer’s time zone, and can be embedded onsite. A TAM enables faster response and resolution times, maintains context across issues, and stays alert to address potential problems before they become support issues.
  • A new WSO2 Update Service “security-only” channel is available for customers who need to keep current with security features but are not ready in their lifecycle stage to make all updates. The security-only channel includes just security updates and selected bug fixes with clear dependencies from a security update.
  • Expanded WSO2 product installation experiences simplify the evaluation, deployment and integration with DevOps systems. Today, they include Docker images, native installers for popular operating systems, and an updated version of WSO2 Update Manager. Many options include pre-installed WSO2 Updates that make it easier to deploy bug fixes and security updates into development, test, and production environments. Additional installation offerings set to launch in Q3 2018 are Kubernetes, Cloud Foundry Tiles, and Amazon Web Services (AWS) Cloud Formation.

More organizations are turning to microservices to innovate a new generation of digital solutions that are powering businesses and economies around the world. WSO2 brings you the technology, expertise and services to ensure that the integration of those microservices is as agile as the development of those services, themselves.

Announcing the WSO2 Serverless Solution

Most enterprises today looking for serverless solutions have few options without cloud lock-in. Remember that public serverless offerings will capture a customer’s data, lock out external event streams, and likely limit developer language choice. This lock-in hinders application migration, multi-cloud scaling, and the use of private cloud resources. A more palatable solution ought to allow organizations to tap serverless for disaggregated architectures, and allow them to utilize both public and private cloud resources, event models, and programming paradigms.

In response, customers today are mostly forced to use public serverless offerings from AWS (Lambda), MSFT, GOOG, etc., with limitations placed on the supported programming languages for each. Users are further locked-in because of the need to use adjacent proprietary services like the cloud’s storage services. And if a company wants to use an alternative, they’ll require considerable investment to manage.

Enter the WSO2 serverless solution

Today we’re introducing the WSO2 Serverless Solution, a private function hosting environment based on Apache OpenWhisk and Kubernetes. And it’s immediately available, though on a limited-access basis.

To develop the solution, WSO2 has been working with Rodric Rabbah and Perry Cheng, co-founders of CASM LLC and co-creators of Apache OpenWhisk. They bring in-depth knowledge on custom deployments and backend optimizations to the overall solution, and both continue to be active members of the OpenWhisk community.

The solution allows organizations to leverage their existing event sources and programming languages. Underlying the open source function platform, Apache OpenWhisk allows developers to plug existing event sources into the solution. It also allows developers to use their preferred programming language as a function runtime which will allow them to re-use most existing code, and allows users to define their own custom resource limits. These combine to provide greater overall agility to a serverless solution. And you’ll have freedom from cloud lock-in.

And the best part is that the WSO2 Serverless Solution is a private hosted platform managed by WSO2, so it ought to significantly reduce learning, set-up and maintenance overhead for DevOps teams.

A little more detail…

The serverless solution is fundamentally powered by Apache OpenWhisk and Kubernetes to allow IT orgs to provide a uniform, elastic, and secure platform for reactive, event-based, and batch workloads.

The Solution offers several unique capabilities:

  • Private function platform – powered by Apache OpenWhisk deployed on top of Kubernetes
  • Managed hosting environment – provided by WSO2, mapped to internal private resources and events, with customized elasticity.
  • Private, dedicated servers and operations – provides segregated tenancy
  • Support for any programming language – broader support than any single public cloud vendor
  • Leverage any existing event source – no matter where you deploy
  • Transparent computational elasticity – to support both short and long running computation
  • Guaranteed computational capacity – because it is a private function environment
  • Secure platform, plus service isolation, and encryption of data in motion
  • Local development environment – for developer teams
  • Dev tracing and operations of event-driven apps with logging, monitoring, and analytics

Why did we do this?

WSO2’s mission is to help digitally-driven organizations become integration-agile. And we do that with a platform of open-source Integration, API Management, Identity Management and related products. One core motive of ours (and of the overall open source model) is freedom from lock-in… So it stood to reason that if we wanted to simplify integration tasks, it would require simplifying deployment tasks too. So we developed this cloud-vendor-neutral deployment approach to complement our products.

Availability

As mentioned, the solution is immediately available on an early-access basis. Pricing is offered at a flat rate, on either a monthly or annual billing. For more information see the WSO2 Serverless Solution.

WSO2’s Growth Story and Why Open Source is the Only Way to Solve Your Integration Challenges

Last week, Ken Oestreich, WSO2’s VP Product Marketing, and I were at the AGC Growth Conference, where we discussed WSO2’s growth story. WSO2 continues to be relatively unknown in business development circles, and this was a wonderful opportunity to report on our traction and understand how the broader ecosystem views integration.

Here is that presentation in full.

WSO2 is the largest open source integration vendor by revenue and customers.

WSO2 is the largest open source integration vendor by revenue and customers. We are EBIT and cash flow positive, with subscription growth approaching 60%.

Integration turns out to be the hottest market even though it’s the uncoolest thing.

Integration is everywhere, and it’s $30 billion annually dominated by three types of integration. All three segments will have billion dollar growth in the next decade. While iPaaS gets significant market attention, it’s not sufficient for most kinds of integration. iPaaS is a metaphor for the line of business, which is departmental-driven, repeatable forms of integration. There are 150 competitors in this space and is prime for a shakeout. iPaaS vendors template-based approaches are not well suited to app integration as they cannot expand to reach the breadth and depth of integrations required—they only work in templated formats where the same integration can be repeatedly done, which is ideal for some types of SaaS to SaaS workflows.

In app integration, old vendors like Tibco, Software AG, and Oracle will suffer as the rotational movement to microservices and open source accelerates. In order to meet significant demand, software vendors are disaggregating their architecture in order to scale. The approaches to integration that service highly disaggregated architectures are shifting, and pure open source vendors have modern architectures to address this.

For the past 5 years, WSO2 has been engineering our approach to integration, with a focus on highly disaggregated architectures due to the rise of APIs and microservices.

WSO2 uniquely offers a suite of technologies because point solutions do not address the full integration problem.

Integration historically is the movement of data between two points, for which we do exceedingly well with our WSO2 Enterprise Integrator solution, but integrations complexity has increased because:

  1. every integration is an API—so WSO2 API Manager required,
  2. every integration must be governed—so federated WSO2 Identity Server required,
  3. data is moving from at rest to real time in-motion—so WSO2 Stream Processor required,
  4. as industries understand the power of becoming a digital native enterprise, vertical API solutions for compliance and regulation appear such as WSO2 for GDPR, WSO2 for Open Banking, and WSO2 for Telco.

If software is eating the world, then you can no longer be a software organization with also being an integration organization.

Our integration opportunity increases as 50 billion integratable endpoints grows to 1 trillion over the next decade. Everything will become an endpoint, and when those endpoints are exposed as APIs they will become programmable. Integration becomes a problem for all software integrations as its the discipline for resiliently communicating between these endpoints.

Integration is the unspoken challenge of the cloud, AI, data, and cyber security future.

If you follow Marc Andreesen’s hypothesis of software is eating the world, then you can no longer be a software organization without also becoming an integration org.

Closed source, open core, and iPaaS vendors do not have the community reach or contributions to address the full scope of integration problems.

The protocols, data formats, and APIs of endpoints change frequently. A centralized approach to integration, such as those offered by proprietary or open core vendors, are limited to the support they can provide by the resources they fund themselves. This is limiting and cannot address the full breadth of differences that must be addressed.

Community, collaboration, and shared experiences, such as what we provide with WSO2 open source, are the only way to integrate every type of endpoint that is coming.

WSO2 is one of the largest open source companies. We have received more than 1 million contributions that have lead to improvements in our open source integration runtimes and into connectors and adapters used to integrate the rest of the community.

WSO2 contributes to more than 100 open source projects, which reciprocate by contributing back, making WSO2 the 69th largest contributor to GitHub.

Integration is still waterfall, so we are investing into Ballerina to make integration agile.

Integration technology forces development teams to follow waterfall lifecycle practices. This doesn’t scale, so we are also investing in Ballerina—a cloud native programming language for integration—to give developers quick, agile development for integration. With Ballerina, every developer can integrate anything, with a learning curve in hours, unlike the months required for Java / Spring or JavaScript / Node.

Ballerina represents a unique, new, and improved approach from typical EI and iPaaS products. Their either agile or integration simple, but never both. A programming language and platform whose syntax is integration simple, but works with a developer’s favorite tool chain in an iterative flow creates true agility. This makes it impossible for developers to integrate at scale to adapt to changing requirements and deal with increasingly disaggregated architectures.

Open source is the best defense for mega-cloud and proprietary vendor lock-in.

Open source is the best defense for addressing lock-in that comes from data lock-in of clouds, API lock-in of mega-clouds, and vendor lock-in from proprietary licenses. Almost 90% of operators are focused on avoiding lock-in. Open source solutions offer a great way to provide try-before-you-buy and substitution options to those that adopt it. WSO2’s solutions also deploy in any environment, and we deliver WSO2 on any public, hybrid, and private cloud infrastructure.

Wherever you may be on your digital native journey, WSO2’s subscriptions include the practices, methodologies, & technologies to transform you from integration waterfall to integration agile.

Companies and governments engage us through our consulting and subscriptions that accelerate the evolution of any digital native initiative.

We have 450 enterprise customers reflecting the world’s best brands that already process more than 5 trillion transactions through us each year.

Open source is more efficient than closed-source—with growth, net retention, and NPS rates equal to MuleSoft, but higher profitability and employee efficiency.

We have a unique open source software business model that has fueled our growth. We release our code with an Apache license. However, we package and ship support patch binaries with a WSO2 license to those who maintain a subscription. This offers a balance between the best freedoms of open source and measurable added value.

And, wonderfully, our internal teams do not compromise productivity by perpetually wrestling with where the “for free/for pay” line must be drawn. It is expensive for an enterprise vendor to determine the best model of where for-fee options reside. Not only does the vendor have to develop a strategy, but they must communicate this to all their employees and then justify it to the open market. These costs are passed along to customers and require significantly higher forms of capital from investors. This line does not stay static, either. The nature of open source is that is erodes and impedes upon the areas where a vendor is selling their proprietary extensions. This means the “for free/for pay” line must be rethought. This is a continual process, and this is time where inefficiencies are introduced.

  1. Many companies take credit for open source, but only a few, like WSO2, have all their published software as open source, which allows any company to consume or use the software without first having a relationship with the vendor.
  2. WSO2’s open source software business model is innovative and unique because of the IP we have built around patch distribution and support engagement. This consequently encourages customers to get and maintain a long term subscription. Customers only maintain a subscription with us through the period where we provide immense value, forcing WSO2 to create business practices that embrace a customer’s needs more wholly.
  3. The proof of this is that WSO2’s net retention rates are identical to MuleSoft’s, which is an open core vendor, effectively only selling proprietary solutions, while having much higher profitability.

We take our offerings to market with a territory and inbound sales model that combines channel partners, resellers, distributors, and our customer success team.

We take our offerings to market with a sales model that combines channel partners, resellers, distributors, and our territory-based customer success teams to engage, win, expand, and satisfy every customer.

  • By swarming the customer throughout their lifecycle, we reduce the chance of churn and help derisk the customer’s initiative. This is why we can maintain a 40 Net Promoter Score (NPS).
  • We now have 550 people in Mountain View, Colombo, Manhattan, Sao Paolo, and London. We are opening offices in Australia, Mexico, and Europe this year.
  • The forces shifting the sector rotation from proprietary software to open source are strongest in emerging economies, which is why we shortly anticipate opening offices throughout eastern Europe, the middle east, Africa, LATAM, and APAC.

This is an impressive set of financials…

The market has rewarded us with 52% subscription growth, which has been accelerating, and also a dollar-based customer retention rate which is equal to MuleSoft’s, but with a community and business operating model that is more efficient letting us have EBITDA profitability and positive cash flow. If you are an investor, we will be a 58 this year on the rule of 40.

Our success has largely been organic, with a minimum of outbound marketing and a small sales channel. This is going to change as we step on the accelerator in the coming years.

Our growth story is not ours alone, we can work together with you to growth faster, together.

We communicate our growth story to our customers, employees, investors, partners and ecosystem to help us discover ways to have a bigger impact, and potentially grow faster. Our growth story is not ours alone to be had. We can work together with you to grow faster, together.

We are building relationships that more aggressively expand our territory and technology partnerships, while also building upon our strategic initiatives with Ballerina and connectors.

If you are interested in learning more about WSO2 or to potentially become a partner, you can reach me at tyler@wso2.com.

Announcing Our 2018 Spring Release Which Brings Platform-Wide Support for Fast-Tracking GDPR Compliance

The clock is ticking toward the May 2018 deadline to comply with the General Data Protection Regulation (GDPR), which harmonizes data privacy laws across Europe to protect all data belonging to EU citizens and residents. The regulation applies to organizations that operate within the EU as well as those that sell or market to the EU—essentially the rest of the world.

Some enterprises may only see the immediate burden of meeting GDPR’s requirements. However, savvy organizations understand that the technology platform they implement to comply with the regulation can set the stage for new digital business models that drive revenue and growth. To help these enterprises accelerate these efforts, WSO2 today debuted its Spring 2018 Release, featuring product developments designed to offer platform-wide support for GDPR.

The Spring 2018 Release is the first set of synchronized product updates being rolled out as part of WSO2’s new quarterly release of new and enhanced capabilities across the platform aimed at addressing the real-world business and technology demands enterprises face today.

Let’s take a closer look at the challenges and opportunities that GDPR brings, as well how WSO2’s product features and services empower organizations to fast-track their GDPR compliance and enable agile digital transformation initiatives.

The Immediate GDPR Challenge

GDPR requires that organizations conducting business in the EU adopt internal policies and implement measures that meet, in particular, the principles of data protection by design and data protection by default. What this essentially means is that enterprises need to ensure all personal data collection, processing, storage and destruction measures are designed to secure privacy. It doesn’t just end there. Organizations must also be able to demonstrate proof of consent and allow individuals to review the status of their consent and opt out if they choose to do so.

The immediate challenge for enterprises is finding a solution to help tune their identity and access management (IAM) and ensure secure API management quickly so that they can address the new requirements of GDPR. These include customer data privacy, a self-care portal to enable customer rights defined by GDPR, and full-scale consent lifecycle management. The solution also must support secure identity provisioning across systems in a GDPR-compliant manner.

The Long-Term Benefit

While meeting their near-term GDPR requirements, organizations have the potential to look beyond compliance and leverage the strong data protection fostered by GDPR to support their digital transformation efforts aimed innovating new services and building brand loyalty with customers. To make this move, organizations need a cohesive platform that has the capabilities to make businesses programmable through APIs, program the business using integration systems, maintain solid identity and security practices, and increase agility through the adoption of open source and cloud systems.

The WSO2 Advantage for Capitalizing on GDPR

WSO2 has the expertise to be your trusted technology partner, not just to make sure you clear the GDPR hurdle, but also to ensure your organization has the ability to leverage the wider benefits brought by this regulation. With the Spring 2018 Release of the WSO2 platform, you have a digital transformation solution that capitalizes on the data protection measures of GDPR to accelerate your business growth via a digital innovation platform.

Using the WSO2 platform, you can capitalize on the technology trusted by globally recognized brands across a range of industries—including eBay, Experian, Verifone, BNY Mellon, West Interactive, Motorola, Transport for London, and StubHub—to:

  • Comply with the GDPR regulations quickly via platform-wide support that helps you to ensure all personal data collection, processing, storage, and destruction messages are designed to secure privacy.
  • Look beyond compliance and enhance digital transformation with a cloud-native, open source platform composed of the key technology enablers required for the agility and innovation you need to maximize your competitiveness.

Technology Enablers for GDPR and Digital Transformation

Within the WSO2 platform, key technology enablers for meeting GDPR regulatory requirements and setting the stage for digital transformation include:

  • Identity and access management in the Spring 2018 Release is delivered via a solution that supports secure identity provisioning across systems in a GDPR-compliant manner. Consent management and privacy toolkit in WSO2 Identity Server enable enterprise data controllers to accelerate their organization’s GDPR compliance. It also introduces personal information export capabilities and support for encrypting OpenID Connect identity tokens. Together, these new features address the different aspects of individual rights defined in GDPR, such as the “right to be forgotten” and the “right to personal data portability” among others, in order to ensure the protection of personal information.
  • Secure API management in the Spring 2018 Release addresses the new requirements of GDPR, such as customer data privacy, a self-care portal to enable the customer rights defined by GDPR, and full-scale consent lifecycle management. These capabilities can now be deployed via a hybrid cloud solution that provides organizations a local gateway rather than a cloud API gateway. This enables users to have the best of both worlds and ensures all API calls happen locally, thus increasing security and minimizing latency. Moreover, it’s easy to maintain as users; just supply their cloud credentials, and it pulls configuration and changes from the cloud.
  • Integration capabilities in the Spring 2018 Release provide the ability to seamlessly connect and manage multiple identities across legacy systems, SaaS applications, services, and APIs. This enables organizations to support even the most demanding integration requirements across services. Key capabilities include the required tools to connect to a wide variety of protocols and security mechanisms as well as streamline integration APIs in a secure manner.
  • Streaming analytics capabilities empower organizations to derive meaningful insights with available data. The Spring 2018 version of the product includes functionality to support GDPR compliance, such as the ability to anonymize both login user information and any data stored in databases.
  • A customized open banking solution, first launched for the financial industry in August 2017, provides the functionality to comply with both GDPR and the European Union’s second Payment Services Directive (PSD2). It also empowers companies to go beyond traditional banking by offering third-party services and innovating new digital offerings.

In addition to the enabling technologies delivered through the WSO2 platform, WSO2 is offering a series of seven webinars to help organizations accelerate their GDPR compliance.

Now is the time to start complying with GDPR—and lay the groundwork for the new digital business models it will enable. WSO2 brings you the technology, expertise and services to get up and running quickly and cost-effectively, along with the agility to capitalize on digital transformation opportunities as they emerge.

New Free Trial Subscriptions, WSO2 Update 2.0, and More

Today we introduce an enhanced WSO2 Subscription offering.

As always, our products are open source, including all enterprise features, under the Apache 2.0 license. Our WSO2 Subscription services represent an additional package of enterprise-grade services and support to help you get the most value out of the product. The subscription represents a relationship to assist you throughout your project, from design and architecture guidance, support and teaming during your development and deployment milestones, ongoing update services to reduce the risks of downtime or security breach, and managing your deployment in the cloud.

Hundreds of customers have become loyal subscribers. With today’s improvements, new and existing subscribers have even more benefits, including a new WSO2 Free Trial Subscription, new versions of WSO2 Update and WSO2 Update Manager, new distribution mechanisms for updates, and a dramatic increase in our support lifetime.

We are confident WSO2 Subscription services will help those evaluating WSO2 products as well, so we are providing a no-obligation preview of the full breadth of WSO2 Subscription benefits with the WSO2 Free Trial Subscription. This includes all the benefits of a WSO2 Subscription, including:

  • WSO2 Update services – access to all updates for all versions of products (this is improved from offering only updates on the latest version) and a license to use the updates in any environment (this is improved from precluding use in production environments).
  • Early access to security updates and bulletins – Subscribers get advance notice of possible vulnerabilities to provide ample time to install security updates prior to public announcement of the vulnerability.
  • WSO2 Support services – each free trial is eligible for a support account, which includes 5 hours of query support as well as incident support on pre-production or production environments according to our SLA.
  • Access to new distributions (such as Docker images) for WSO2 products with pre-installed updates.
  • Access to an assigned WSO2 account management team with business, technical, and support owners to help you evaluate the products and build a proof of concept.

A free trial lasts initially for 15 days and applies to all WSO2 products. We would be happy to work with you to get the most out of the trial period and to upgrade the trial into a commercial subscription. WSO2 Free Trial Subscriptions are available instantly online.

WSO2 Update 2.0

Associated with supporting the free trial we have made some significant changes to WSO2 Update. As always, bug fixes are published into the latest open source branch and are available for open source users who upgrade to the next product release.

WSO2 Update 2.0 is an integral part of our WSO2 Subscription commercial service, making bug fixes immediately available for easy drop-in deployment into any supported previous version. To get updates you must be a subscriber – which includes all of our free trial subscribers.

Here’s how WSO2 Update 2.0 compares with 1.0:

  • A “subscription” to WSO2 Update services was previously separate from a WSO2 Subscription. Now your WSO2 Update subscription is simply part of your WSO2 Subscription and can be managed as such. Pre-commercial users maintain access to updates through the new WSO2 Free Trial Subscription program.
  • All subscribers including free trial users now have access to ALL available updates for their subscribed products, including updates applicable to previous releases and security updates not yet released publicly.
  • Updates obtained under a free trial can be used in development, pre-production, and now, production environments, during the trial period.
  • The WSO2 Update End User License Agreement (EULA) 2.0 encodes the above terms and applies for free trials and new subscriptions. There will be no change to license terms for existing subscribers with agreements specifically referencing the WSO2 Update EULA 1.0.

With this release, there will be a broader set of ways to take advantage of WSO2 Updates.

  • Many of our products now have downloaders, which include an option to log into your WSO2 Subscription and install all available updates with one click.
  • WSO2 Update Manager (WUM) 2.0 downloads products and manages updates, and now supports free trial users.
  • Subscribers can quickly get images with all updates pre-installed, for Docker, Docker Compose, and Vagrant. We expect to regularly expand both the breadth of these distribution options and the products they are available for over time.
  • We can manage the deployment of updates for you, with our WSO2 Cloud and WSO2 Managed Cloud services.

How does this affect you?

If you are a WSO2 Subscriber, there will be little change – take advantage of the new options for downloading products and updates. Upgrade to WUM 2.0 to so that access to updates will continue uninterrupted. If you are interested in evaluating a broader set of WSO2 products, let us know and we’ll extend your team a WSO2 Free Trial Subscription for those additional products.

If you are not yet a WSO2 Subscriber, your current access to WSO2 Updates will end. To continue it, please apply for a WSO2 Free Trial Subscription and let us help you towards the adoption of WSO2 products and a WSO2 Subscription.

Have questions or more ideas for benefits that you’d like to see incorporated into your subscription? Let me know at jonathan@wso2.com.

WSO2 Announces 10-year Long-term Support for All Current Products

WSO2 products serve as a workhorse processing billions of transactions every day around the world. Our customers rely on WSO2 for many mission-critical apps, backed by our WSO2 Subscription services to proactively provide security and bug fix updates, and to stand by 24×7 to resolve any issues that arise.

Our standard support lifetime policy for products has been 3 years, reflecting our best practice advice to maintain a regular upgrade cycle. However, with the breadth of customer scenarios WSO2 is now deployed in, we have had demand for long-term support (LTS) releases beyond the 3-year window.

We are pleased to announce that all current and subsequent WSO2 product releases are designated as LTS releases with a 10-year support lifetime. Our 10-year LTS commitment assures you that WSO2 is committed to your long-term success regardless of your maintenance schedule.

Your WSO2 Subscription now ensures that, for 10 years:

  • Bugs identified in any version of the product will be addressed through a back-port and delivery of a WSO2 Update into each affected LTS release.
  • Vigilance is maintained through monitoring of dependent projects for possible vulnerabilities. This monitoring includes collecting industry-wide security bulletins, soliciting potential vulnerability reports from the community and academia, and automated code analysis tools. Confirmed vulnerabilities are addressed through early notification and delivery of a WSO2 Update to Subscribers for each affected LTS release.
  • Maintaining our full test and regression capabilities and labs for each LTS release to ensure a prompt response, reproduction, and resolution of any issue reported through our 24×7 support services.

Of course, your WSO2 Subscription covers regular upgrades to newer versions of WSO2 products, and we still recommend regularly scheduled upgrades to take advantage of new features, higher performance, and improved ease of use, and to avoid accruing long-term technical debt.

The introduction of the 10-year LTS is one of a set of improvements we are making to increase the breadth of value customers find in their WSO2 Subscription.

WSO2’s New Approach To Performance Reviews

This morning, WSO2 rolled out a new approach to performance reviews for our employees.

Since software is a creative business, the performance review process for a software company must be a system that furthers the creative careers of the professionals employed by us.

WSO2’s leadership has 250 years of enterprise software experience. We’ve worked at numerous software companies, both large and small, including Oracle, Dell, Quest, IBM, venture capital software startups, and system integration providers. We’ve experienced performance appraisals of many different varieties, but they all emphasize numerical ratings and normalization of individuals into a bell curve. This is fundamentally wrong and a fast way to weaken the creative intelligence that is essential to making a software company great.

We believe our approach better aligns the interests of our employees with the company’s objectives.

Performance Ratings Sabotage Productivity

For the past five years, WSO2 has gone through significant growth. With this growth came an expansion of the employee ranks, and we are now striving to be close to 560 employees by the end of 2018. At one point, WSO2 hired more than 150 people in a single year.

To compensate for this growth-and being engineers-we developed systems to more fairly rate people across the company, especially two people who are performing the same function reporting into different leaders in different departments. Bonuses were tied to the rating achieved. The rating was a numerical rating on a 100-point scale with a unification process to ensure fairness. This was done quarterly. It was fair and balanced.

But we found that numerical performance reviews will ultimately sabotage productivity. In a numerical system, there is usually a bonus leap or compensation jump for those that rate above a certain threshold, in our case 60 and 80. In any system with a high degree of refinement, there will be people that are on the bubble of a numerical threshold. These numerical ratings were the composition of sub-ratings across a wide range of behavioral criteria that were weight averaged into a total score, so minute interpretations of sub-ratings could have big implications to perceived compensation.

When a performance review threshold is numerical, human nature causes everyone to analyze elements to gamify their score.

This opens the door to culture-sapping. Individuals on the bubble between one rating and another will formulate arguments to their benefit. People compare their ratings among one another with subjectivity (while ratings are intended to be private, reality demonstrates that everything is shared through the grapevine). The team leaders who are responsible for ensuring fairness subjectively applied the criteria to their team. Senior executives responsible for 100s of people will strive to develop systems to help measure and unify the ratings leading to a subconscious sense of bureaucracy and big brotherness.

After a couple quarters, savvy employees will learn the nuances of a numerical system and search for ways to gamify it to their advantage. People will change their operating point of view to obtain stronger ratings, even if these actions were not the most constructive to their own or the company’s interests.

We do a quarterly employee survey that asks a variety of questions about culture. Fundamentally, the most important question around whether people would recommend WSO2 as a place to work declined over a couple quarters from a world class rating to something that was in decline.

We felt that we were seeing the early signs of performance gamification that can be caused by numerical performance ratings.

Even though we only introduced the 100 point rating system last year, it was time for a change.

Creative People Need Creative Performance Reviews

Everyone in a software company is a creative individual.

This is not only our software engineers, but also our marketing professionals, lawyers, account managers, solution architects, accountants, and admin staff. Creativity trumps any skill set because the entire business of software is one where problems must be encountered and solutions proposed. Everyone within the company is a problem solver. And every time we release a new piece of software, we must rethink how our business must improve to better embrace that software for our customers. In essence, our company is in a constant state of improvement, and we can only address the problems that we encounter if everyone recognizes that they are on a journey of problem solving. During this journey, the nature, size, and complexity of the problems we must solve constantly shift. Your seniority, experience, and role within the company gives you opportunity to work on increasingly harder problems, making everyone’s journey, my own included, fulfilling and rewarding.

Creative individuals are on a career journey. It is the culmination of software experiences that define a career and create new opportunities for advancement. In exchange for committing to spending time to help the company or their team achieve their goals, the individual is rewarded with experiences that contribute to their career and a reciprocal commitment by the company to provide new, more challenging experiences.

An employment arrangement between a software company and its employees is a shared commitment to participate in and create new experiences that reward one another.

Why then do most companies provide a performance evaluation that attempts to quantify and sometimes monetize skills or tactical results instead of discussing the broader issues tailored to how each individual is on a creative journey?

The WSO2 Performance Evaluation

The performance evaluation is intended to facilitate a career conversation between an individual and the company. We also use the results of the performance evaluation to determine an individuals participation in the company bonus pool.

We want to know three things:

  1. How have you demonstrated your commitment to the company’s mission?
  2. How have you demonstrated your commitment to your team’s objectives?
  3. How have you demonstrated a commitment to your career and self?

Each individual is asked quarterly to self evaluate themselves by answering these three questions. These answers are then melded with a similar assessment from a Team Leader to enable and facilitate a discussion about each individuals software journey.

If each individual is true to themselves and make contributions that play to where they are at on their software journey, then they will have numerous examples of how they have and continue to demonstrate their commitment. The discussion with their Team Leader is then a focus on how to amplify their experiences and help each person better achieve results for themselves, their team, or the company.

We have three resulting ratings:

  1. Exceptional. You are demonstrating a commitment and everyone around you agrees.
  2. Successful. You are demonstrating commitment, but not everyone is aware.
  3. Needs Improvement. You are not demonstrating commitment, and perhaps this job or career is not yet your cup of tea.

Everyone who receives an Exceptional or Successful rating receives a prorata portion of the company’s bonus.

We are excited for and would love it if everyone in the company receives the bonus. There is no concept of unification. We would rather our employees and Team Leaders invest their time in aiding everyone to improve the experiences they have on their software journey.

While rare, and since we have a big commitment to continually hiring entry level talent, some people are not able to demonstrate the commitment to self or the corporate mission. In these situations, we place people on a performance plan and have an open dialogue about their reasons for being in the software industry. More often than nought, people leave WSO2 under these circumstances to pursue new careers having gained an increased awareness of their personal desires.

Demonstrating Commitment

Every creative individual demonstrates their commitment in different ways.

Demonstrating commitment is a reflection of:

  1. Are you engaged and excited by the work that you do?
  2. Are you striving to make the people, products, and systems that you work with better?
  3. Is your attention to detail improving along with identifying ways you, your team, or the company can better itself?
  4. Are you contributing to industry peer group in work groups, standards bodies, open source projects, conferences, networking, and career advancement bodies?

This broad definition of commitment allows each person a wide range of freedom to define how they are contributing to the company and furthering their software career journey.

This definition also allows Team Leaders to have an open dialogue to identify people who are not a great fit for the type of software that we build and sell at WSO2. When an individual’s self assessment is filled with contributions and commitments in areas that fall too far outside the core of our corporate direction, it becomes easy to discuss and relate.

The CEO Self-Assessment

As CEO, I am not above or beyond self-assessment against these ideals.

I have day-to-day responsibilities:

  1. Setting strategy and direction
  2. Modeling and setting the company’s culture, values, and behavior
  3. Building and leading the senior executive team and board of directors
  4. Allocating capital to the company’s priorities

But beyond these items, I demonstrate my commitment in other ways.

Company Commitment

Given my unique historical experiences in product management and DevOps, I personally am taking PM responsibility for Ballerina’s package management registry technology lines. Much of the success of our Ballerina initiative is tied to collaboration among developers and we need a package management system designed that exploits our unique integration qualities of Ballerina married to the best attributes of what other package systems prior to us have created. My background with package managers and connection to other industry contacts offered me a chance to apply my experiences to this domain to the company’s benefit. Delegating this to another PM who was new to the package management discipline might have been a disservice to the company.

Team Commitment

For my executive leadership team, I am working to retain executive coaches that can interact with each member in private 1:1 sessions. These coaches have experience in high growth software startups or within publicly traded companies.

For my board team, I am working to improve involvement in strategic decisions and to deepen their access to business analytics. I would like WSO2’s board reporting to become real time and dynamic, so that management and the board can maintain a concise, unified, and current view of the business lowering the frequency of briefing meetings and allowing us to interact more frequently on high impact strategic matters.

Individual Commitment

I am a strong proponent of self-learning and industry networking.

To advance my understanding of technology, I am committed to obtaining committer status on at least one container or serverless related open source project. I continue to contribute lightly to Eclipse Che, a cloud IDE project, and I am working towards committer status rights on Ballerina. Obtaining committers status requires a focused contribution to the project itself, which requires hands-on study, learning, and skill acquisition that allows me to advance my broader understanding of technology.

To advance my understanding of the software industry, I am an avid daily reader of news, analysis, deals, and investments within the enterprise software segment. This is a 1–2 hour / day commitment to overview the day’s activities and proactively discuss with peer groups online (whether on Medium, HackerNews, or in private email groups). It is often these email discussions where insights and true learning develops.
Additionally, I commit to attend at least 1 industry networking event each quarter (outside the dozens of customer meetings, technology conferences, and meetups that we do as part of our day to day). I’m particularly excited about attending the Open Source Software Leadership Conference in a couple weeks.

Be Creative—Enjoy Your Career

We are excited to be releasing this improved performance review system at WSO2. We hope that it will allow creative people to operate creatively in an environment that maximizes their career enjoyment and productivity.
If you are thinking about a career in software, and want to be in an environment surrounded by talented, intelligent professionals passionate about working on large scale problems for open source and enterprise software, you should write me at tyler@wso2.com as we are growing and hiring.

WSO2: The 8th Largest OSS Company – 2017 Results and 2018 Plan

I joined WSO2 because of Open Source Software (OSS)’ potential.

Open source enables a transparent innovation and business model. Intellectual property published with an open source license can be consumed with freedoms not available with commercial licenses. Customers buy WSO2 subscriptions with clarity that our business goal is their successful deployment of open source to address their digital challenges.

Can IBM or Oracle say the same?

We align WSO2’s interests with customers by IP transparency through open source and the Apache-way.

In public markets, a company discloses business and financial information regularly to the public with disclosures to protect investor, facilitate capital formation, and to maintain fair, orderly and efficient markets. Additionally, our customers, by purchasing our subscriptions, are making a dependency upon us. Their awareness and confidence in our business and financial health is necessary to establish an equitable engagement.

To further the alignment we have with customers, WSO2 will now annually report key business and financial results.

We are pleased to share that WSO2 is financially sound.

WSO2 is comprised of two businesses: OSS subscriptions and professional services. Subscriptions are renewable and we use SaaS metrics for tracking KPIs in pro forma financials. The ARR and customer metrics reflect our subscription business and our EBITDA is for the company.

In 2017, we will exit our Annualized Recurring Revenue (ARR) between $24.5 – $25.5M, a growth of 52%, up from 46% growth the previous year. Our gross margin for the recurring business is 88% and will increase in coming years. In 2017, we will turn our first profit with $603K EBITDA and generate $2.7M cash from operations.

We acquired 150 new customers in 2017 and more than 80 new subscription customers. Our new customers start with professional services during their technology evaluation and either continue consuming WSO2 open source or transition to a WSO2 subscription for access to patches, security updates and incident support.

We use dollar-based net retention rate to measure our ability to retain customers and expand their use of our subscriptions. Historically, customers have expanded their use of our IP and subscriptions over time as they realize the benefits of speed and innovation that come with engaging WSO2.

To support growth, we began significantly hiring in support, sales and marketing in Q3 finishing the year with a 482 headcount.

2017, by all accounts, is a successful year for WSO2.

We attribute the results to:

  1. The passion and commitment of the employees and partners that put customer needs ahead of their own. We track our NPS at 25. We are striving for a 50 NPS, which is rare for enterprise software given the spectrum of customer needs.
  2. Product and intellectual property expansion to service cloud-native architectures, which are, along with microservices, dominating customers’ future deployment expectations. This advanced architecture lets us process 5 trillion transactions, 40 million identities, and 200,000 APIs across our customers. We estimate that 25% of our customers are cloud deployments across our public cloud or within megaclouds.
  3. The continued rotation within IT from proprietary to open source software. We have seen a dramatic rise in the number of organizations which have open source mandates, especially in emerging market territories, public sector, and system integrators.
  4. Maturity and continuity of operations. We have 69 employees with >5 years service and 23 with >10 years. More than 2/3 of employees with us five years ago are with us today. Our employee mix is 33:67 for female:male creating a vibrant culture of diversity. Also, other than myself, the WSO2 management team has not changed since 2013. This has allowed a long-term open source vision to nurture in equal measures across the company.

WSO2 is the 8th largest OSS company and largest integration OSS company. An OSS company derives more than 50% of its revenues from OSS support subscriptions. The top OSS companies are:

  1. RedHat
  2. Pivotal
  3. Mozilla
  4. Canonical
  5. Hortonworks
  6. Suse
  7. MongoDB
  8. WSO2

Acquia, MuleSoft, Cloudera, Alfresco, Actian, Sophos, Forgerock, and Datastax were not included due to their open core model and dependency upon proprietary licensing.

We expect the coming year to continue playing to our strengths. Trends tied to growth in programmable endpoints across devices, identities, apps, APIs, and data will increase. Integration is now central to digitization. Every program is an integration and every developer an integration specialist. This compounds the challenges to creating and governing integration endpoints that is the emphasis of our business.

Our 2018 operating plans include:

  1. Continue investing into Ballerina, and relaunch it with a developer GTM that focuses on solving integration problems for the next 20 years.
  2. Expand sales and marketing by opening offices in new territories, establish our first resellers and distributors, and growing our sales, marketing and channel organizations.
  3. Continue our investment in cloud-native architectures with the generational release of API Manager 3 and Enterprise Integrator 7 along with investing into cloud infrastructure installers.
  4. Invest into broadening the value of our subscriptions: launching a Technical Account Manager program, expanding our Long Term Support policies, bundling cloud-native operations tools within our subscriptions, broadening the scope of our managed cloud services, expand test grid coverage to incorporate ecosystem technologies, and exploring the inclusion of a security scanning service.
  5. Launch research initiatives into open source blockchain, AI, machine learning, and General Data Protection Regulation.
  6. Formalize the CTO office. Our co-founder, Paul Fremantle, will return full time as our CTO January 1st after completing his PhD in Computer Science. The CTO office will receive investment to formalize the production of our Corporate Reference Architecture, Corporate Reference Methodology, Global Technology Outlook, and Global Market Outlook.
  7. More than doubling our investments into marketing, enablement, and market education programs.
  8. Renewed focus on open source governance to better engage the community and their involvement in the evolution of our projects.
  9. Expanding our sales territories from 4 to 9 and separating our OEM ISV business.

We expect our ARR growth rate, EBITDA, and cash generation to increase in 2018. We’ll exit the year with approximately 560 employees.

All this means we can – and will – create a lot more open source that helps IT digitize assets.

We will be working to turn WSO2 into an IT-household brand, bringing our form of integration into every application and service you are building. If you are new to WSO2 or open source, 2018 will be a great year for you to learn more about how we can help you solve your digitization challenges. Get in touch with me directly: tyler@wso2.com.

Since this blog post includes future operating plans, predictions, estimates, and forecasts, this is a good time to point out that we have lawyers, and that our lawyers want you to know that this information represents our current judgment on what the future holds and it is subject to risks, uncertainties, and other nightmares. In other words, don’t be crazy by drawing conclusions that have undue reliance on this blog post and understand that we may revise anything.

A Big Hello to John Saylor, Our New General Manager – Global Channel Sales

We’re delighted to welcome John Saylor to our team as the General Manager – Global Channel Sales. John will take ownership of our partner strategy, as we look ahead to developing a closer alignment with our partner ecosystem and delivering great digital transformation experiences for customers. He’s a passionate advocate of partnering to deliver success for organizations: “More feet on the street provides a market presence and momentum that propels companies forward in the industries as an industry leader that creates market drag for each partner’s solutions – everyone wins,” says John. In building a partner network, John plans to amplify the velocity of partner onboarding of WSO2 solutions, keeping the WSO2 brand intact with a new logo “Powered by WSO2” in solutions that utilize the WSO2 embedded technology.

John comes from a very impressive, diverse, and interesting professional background spanning 36 years. This includes 23 years at Quest Software (acquired by Dell), 11 years at Hewlett-Packard, and 2 years at Western Digital. He later used his expertise to start his own company, working with several technology companies to develop their businesses.

And what does John find compelling about WSO2? Its impressive growth and of course, the people! He’s full of enthusiasm for WSO2: “My attraction was WSO2’s acceleration in the marketplace that’s helping customers adopt a 24/7 cost-effective digital transformation with APIs, events and streams, while also working with software vendors to embed technology quickly, addressing security, governance and identity as well as Open Banking. The brilliant people at WSO2 is one of the biggest assets!”

John’s other big passions include his family, the ocean, travel, live music and sporting events, car shows, and charity events. In fact, if you find yourself in Laguna Beach in California where John’s based, he’d love to show you the surfing, sunsets, music venues, and arts events in the city.

It’s great to have you in the team John!

You can reach out to John on LinkedIn and follow him on Twitter @JSaylorIII

10 11 12 – WSO2 Identity Server Keeping the Bad Guys Away Since 2007!

WSO2 Identity Server turns 10 today on the 11th day of the 12th month of this year! Over the years the team has grown, research and development efforts have evolved, we’ve procured some big-name customers and various team members have gone on to publish stellar books on identity and access management.

To commemorate this day we thought we’d pick a few cool things (from a long list) about WSO2 Identity Server:

  • WSO2 Identity Server manages more than 40 million identities across the world.
  • Fully open source, WSO2 Identity Server has thousands of FREE users.
  • Mobile Connect support from WSO2 Identity Server is available for more than 900 million users in India.
  • Our first customer, ELM, manages over 4 million user identities and we’re still a part of their digital journey.
  • (Let the name dropping begin) Some of our other customers include Verifone, West Corporation, Verizon, HP, Seagate, Nutanix, T-Systems, and many in the educational industry such as Brigham Young University, New York University and Australian Catholic University.
  • We offer over 40 connectors in our connector store so that you can integrate with any system and enhance your system capabilities.
  • Single sign-on (SSO) and identity federation are our forte. You can ask any of our customers! Here’s a link to the latest version of the WSO2 Identity Server.
  • We were the winner for “Identity as a service” in 2011 at the KuppingerCole European identity awards. We also helped one of our customers to bag an award at EIC 2015 for their Mobile Connect implementation.
  • Prabath Siriwardena, our director of security architectures, is not only a renowned figure in the IAM space, but also the author of Advanced API Security, Maven Essentials and more.
  • Concerned about GDPR or PSD2? Want to know how Customer IAM can help you with digital transformation? We have got your covered for 2018 and beyond!

Congratulations to our IAM team for their amazing feats over the years and special thanks to one of our starting members Ruchith, who has gone off to accomplish amazing things! You can read Prabath’s blog to get the full low down on how we started.