I spent the last week in Japan. The goal was two-fold: meet with the Drupal community to understand how we can grow Drupal in Japan, and evaluate the business opportunity to incorporate an Acquia subsidiary in Japan (we already offer Acquia Cloud in Japan using Amazon's Tokyo data center).
I presented at two Drupal meetups in Japan; spent the week meeting with members of the Drupal community, Drupal agencies, large system integrators (IBM, Accenture, Hitachi, Fujitsu, Ci&T and SIOS) and the Japanese government. In between meetings, I enjoyed the amazing food that Japan has to offer.
The community in Japan is healthy; there are some noteworthy Japanese Drupal sites and there are passionate leaders that organize meetups and conferences. The Japanese Drupal community is bigger than the Chinese Drupal community but compared to North America and Europe, the Japanese Drupal community is relatively small; the largest Drupal agency I met with employs 20 developers.
The large system integrators, with the exception of Ci&T, have not done any Drupal projects in Japan. We're way behind our competitors like Sitecore, Adobe Experience Manager and SDL in this regard. All of them enabled the large system integrators to sell and use their products. It was great to meet with all the system integrators to make them aware of Drupal, and the potential it could have to their business. It's clear the large system integrators could benefit from an Open Source platform that allows them to move faster and integrate with more systems.
The biggest challenge is the lack of Japanese documentation; both marketing materials as well as developer documentation. Most of the Japanese do not have much confidence in their English speaking ability and struggle to use Drupal or to participate on drupal.org. My recommendation for the Japanese Drupal community is to organize regular translation sprints. Translating one or more of the best-selling English Drupal books to Japanese could also be a game-changer for the community.
Another problem has been the historic challenges with drupal.jp. The anonymous owner of the domain drupal.jp claims that drupal.jp is the official Drupal site in Japan (it's not officially approved) and runs it without much regard or consultation with the broader Japanese Drupal community. I promised the Japanese community to help fix this.
I returned from my trip feeling that the Japanese market offers a great opportunity for Drupal. Japan is the world's third-largest economy, after the United States and China. With continued leadership, Drupal could be huge in Japan. I’d love that, as I would like to go back and visit Japan again.
I just spent the past week in China, and I thought I'd share a few reflections on the state of Drupal in China.
First, let me set the stage. There are 1.35 billion people living in China; that is almost 20 percent of the world's population. Based on current trends, China's economy will overtake the US within the next few years. At that point, the US economy will no longer be the largest economy in the world. China's rapid urbanization is what has led to the country's impressive economic growth over the past couple of decades and it doesn't look like it is going to stop anytime soon. To put that in perspective: China currently produces and uses 60 percent of the world's cement.
In terms of Drupal, the first thing I learned is that "Drupal" sounds like "the pig is running" ("Zhu Pao") in Chinese. Contrary to a pig's rather negative reputation in the West, many Chinese developers find that cute. A pig is a more honorable sign in Chinese astrology and culture. Phew!
In terms of adoption, it feels like the Drupal community in China is about 8 to 10 years behind compared to North America or Europe. That isn't a surprise, as Open Source software is a more recent phenomenon in China than it is in North America or Europe.
Specifically, there are about 5 Drupal companies in Shanghai (population of 21 million people), 3 Drupal companies in Beijing (population of 23 million people) and 5 Drupal companies in Hong Kong (population of 7 million people). The largest Drupal companies in China have about 5 Drupal developers on staff. Four of the 5 Shanghai companies are subsidiaries from European Drupal companies. The exception is Ci&T, which has 40 Drupal developers in China. Ci&T is a global systems integrator with several thousand employees worldwide, so unlike the other companies I met, they are not a pure Drupal play. Another point of reference is that the largest Drupal event in China attracted 200 to 300 attendees.
Given that China has 4 times the population of the US, or 2 times the population of Europe, what are we missing? In talking to different people, it appears the biggest barrier to adoption is language. The problem is that Chinese Drupal documentation is limited; translation efforts exist but are slow. The little documentation that is translated is often outdated and spread out over different websites. Less than 20 percent of the Chinese Drupal developers have an account on Drupal.org, simply because they are not fluent enough in the English language. Most Drupal developers hang out on QQ, an instant messaging tool comparable to Skype or IRC. I saw QQ channels dedicated to Drupal with a couple thousand of Drupal developers.
There is no prominent Chinese content management system; most people appear to be building their websites from scratch. This gap could provide a big opportunity for Drupal. China's urbanization equals growth -- and lots of it. Like the rest of the economy, Drupal and Open Source could be catching up fast, and it might not take long before some of the world's biggest Drupal projects are delivered from China.
Supporting Drupal's global growth is important so I'd love to improve Drupal's translation efforts and make Drupal more inclusive and more diverse. Drupal 8's improved multilingual capabilities should help a lot, but we also have to improve the tools and processes on Drupal.org to help the community maintain multi-lingual documentation. Discussing this with both the Drupal Association and different members of our community, it's clear that we have a lot of good ideas on what we could do but lack both the funding and resources to make it happen faster.
Last weekend I had the opportunity to visit the Great Wall of China, the world's longest wall at 8,850 kilometers (5,500 miles). The Great Wall runs mostly through the mountains to take advantage of natural obstacles. As a result, it was quite the hike to get there but once on the Great Wall, the scenery was beyond sensational. It runs like a relentless serpentine over the horizon, evoking the image of a giant dragon.
I learned that the Great Wall is actually a discontinuous network of walls built by various dynasties. The Chinese started building the Great Wall as early as the 7th century BC and kept building for over 2,000 years!
It is said that over one million people died building the Great Wall. Every step you take, you can't stop imagining how they built it and the many people who suffered. I was pretty much alone on the wall, so it was not hard to imagine the lonesome life of a Ming soldier up here, waiting for something to happen. The history, the scenery, the peacefulness -- it just made me speechless.
Society is undergoing tremendous change right now -- those of us who enjoy services like Uber and Kickstarter are experiencing it firsthand. The sharing and collaboration practices of the internet are extending to transportation (Uber), hotels (Airbnb), financing (Kickstarter, LendingClub), music services (Spotify) and even software development (Linux, Drupal). While the consumer "sharing economy" gives us a taste of what it's like to live in a world where we own less, perhaps there is an equally powerful message for the business community. Using collaboration, companies are dramatically reducing the production cost of their goods or services.
Welcome to the zero-marginal-cost economy, a way of doing business where ownership of a core process is surrendered to community collaboration. In economic terms, the cost of a product or a "good" can be divided into two parts. The first part is a "setup cost", which is the cost of assembling the team and tools needed to make the first unit. The second part is called the "marginal cost", or the cost of producing a single, additional unit.
For decades, competitive markets have focused on driving productivity up and marginal costs down, enabling businesses to reduce the price of their goods and services to compete against each other and win customers. A good example of this approach is Toyota, which completely reinvented how cars were made through lean manufacturing, changing the entire automotive industry. Japanese cars were produced much more quickly than their American counterparts, created via traditional assembly lines in Detroit, ultimately driving down the final cost for consumers and shrinking margins for companies like Ford. Software development methodologies like the lean startup methodology and Kanban are modeled after the Toyota production line and have made software development more efficient.
Today, the focus is changing. Within service industries like hospitality and transportation, new entrants are succeeding not by optimizing production, but by eliminating production cost altogether. Consider Uber versus traditional taxi companies. For a traditional taxi company to add another taxi to its fleet, a car and license need to be acquired at significant cost. Instead of shouldering that setup cost, Uber can add another taxi to its inventory at almost no cost by enabling people to share their existing cars, all coordinated via the internet. Airbnb does the same for renting properties vs. acquiring more physical space. The fact that both these companies have near zero-marginal-cost production is threatening longstanding business and regulatory models alike.
In the software industry, the low marginal cost of producing Open Source Software threatens to our equivalent of longstanding business models: proprietary software companies. Free Open Source Software essentially can undermine the way proprietary software companies make money -- by selling software licenses. By sharing the cost to develop software, organizations can increase their productivity, accelerate innovation and bring down their setup costs.
The open source ideology extends even further beyond software. Last month, Elon Musk open sourced the patents for Tesla. His main reason? Pushing the automotive industry to create more electric cars. If Elon Musk is an indicator for industries across the board, it's further proof that capitalism is starting to become more collaborative rather than centered around individual ownership.
Great businesses can be built by adding value on top of a low-marginal-cost community that is owned by many. For example, my company, Acquia, creates value on top of the open-source Drupal software by providing support and software-as-a-service tools. Similarly, Uber adds value by providing consumer-friendly, on-demand services beyond just increasing the supply of available cars on the road. In both cases, the companies' products grow stronger as their communities grow, even as the acceleration of those same communities brings down marginal costs. The power of the community vastly improves previously inefficient base process (such as waterfall software development or taxi regulations) and creates a forcing function for business to generate profit based on products and services that appeal directly to users.
Within the next decade, businesses will need to become much more open and collaborative to survive in an increasingly zero-marginal-cost economy. Those who develop proprietary software are finding it harder and harder to sustain "business as usual". The sharing economy and collaborative development will further streamline capitalism, and organizations that figure out how to master this dynamic will succeed. A community model can work in any number of industries -- we just have to challenge ourselves to as entrepreneurs to discover how.
(I originally wrote this blog post as a guest article for The Next Web. I'm cross-posting it to my blog.)
After spending the summer in Boston, I'm ready to fly across the world ... literally, as I'm leaving on a two week trip to China and Japan later this week. I'm very excited about it as I've never had the opportunity to see either of these countries.
I will arrive in Beijing on Saturday, September 6th, for the Young Global Leaders Annual Summit. A private path from where I'll be staying leads to a non-restored section of the epic Great Wall of China. Exploring this truly untouched piece of Chinese history still in its original landscape should be a special experience! Stay tuned for photos.
Following my time in Beijing, I'll transfer to Tianjin to attend Summer Davos. In addition to that, we're organizing a meetup with the local Drupal community - https://groups.drupal.org/node/434658. If you are in the area on September 10th, please stop by for a drink. I'd love to meet you and learn about the state of Drupal in China.
I'll end my two week trip in Tokyo, Japan. My time will be split between meeting the local Drupal community - https://groups.drupal.org/node/440198, understanding the adoption rate of Drupal in the Japanese market, and attending private meetings with digital agencies, Acquia partners and others to learn about the state of the web and digital in Japan.
Xièxiè and dōmo arigatō to those that have helped plan these events and gather the Drupal community for some fun evenings!
If you aren't able to make either Drupal meetup, feel free to leave your thoughts in the comments.