Alex Fletcher’s post “Meeting the needs of the unpaid on the road to gaining customers” raises a very interesting point for enterprise users of open source applications: What is the right level of support for the OSS needed in my organization?Fletcher mentions this article on choosing commercial support to make the point that too often, support for open source is seen as an either/or option: free, as in do-it-yourself; or commercial, as in subscribe to our program and pay moderate to serious fees.But he thinks there’s lots of room in the middle for support organizations to help the “unpaid” — or low-paying — enterprise user. This is both a customer-development strategy and a new business opportunity. Citing “building internal competencies” as a key reason many organizations choose an enterprise open source solution in the first place, Fletcher suggests:
Oddly enough, the intersection between employing open source and building self-sufficient competency is where support providers should examine how they can evolve into a more relevant entity. Perhaps instead of attempting to become the sole source for upgrades, vulnerability assessment and/or migration, support providers should seek to offer a wider array of flexible support (and licensing) options for those who choose to go it alone?
How about it? Would a pay-as-you-go approach to open source support appeal to your organization? Has your firm already purchased a support contract? Or does paying for open source support run against the whole rationale for using open source? Post your responses and comments below.
This sales and marketing automation tool launched updated on-demand hosted and download-and-run open source versions this week. While ComputerWorld says the company came out of “stealth” mode this week (so how did they get to version 3?), it’s been operating since Q2 2007 and is currently in the EOS Directory candidate queue. The tool, which combines web metrics, lead generation and management capabilities for enterprise users, is targeting open source firms as early adopters. More info:
Today’s Wall Street Journal has a great story on HP’s efforts to shrink the size and cost of their IT infrastucture. “Taming Technology Sprawl” (subscription required) details some of the issues the tech giant faced trying to slim down a tech infrastructure swollen by multiple acquisitions and overlapping IT staffs.
“Since July 2005, the Palo Alto, Calif., firm has been in a project to cut the number of computer programs it uses by more than half, and reduce the number of its data centers — where large computers run programs that support H-P’s businesses — to six from 85.”
The cost is significant. “H-P spent $4.2 billion — about 5% of 2005 revenue — to maintain its IT systems” and aims to drop that to 2% of revenue and shed half of the 19,000 person staff.A key problem? Too many software programs.
“Abour eight months after launching the overhaul in mid-2005, H-P’s new Chief Information Officer Randy Mott unexpectedly hit a hurdle. According to a February 2006 survey, H-P employees depended on about 6,000 computer programs — nearly double what Mr. Mott had expected. By then, he was months into the project and had allocated money and staff based on earlier assumptions. “I was blindsided,” says Mr. Mott, who formerly worked at Dell Inc. and Wal-Mart Stores Inc.”
The story goes on to describe other issues, including how CIO Mott had to battle VPs who were loath to give up their departmental computing resources. But I kept thinking about how difficult it is to really keep track of what software programs are in use within an organization, and how many of those might be open-source or otherwise untraceable through conventional license tracking. Then I spotted a mention of Matt Asay’s News.com blog item on the story behind HP’s FOSSology open-source tools. Asay quotes HP’s Christine Marino, VP of Linux and open source, on the creation of an open source tool for open source governance.
Free and open-source software is everywhere. It’s not just Linux (not that Linux is just one thing, anyway). At HP we’ve been using free and open-source software throughout our company for years as a consumer and contributor of free and open-source software.Many years ago we realized that we needed some processes around our adoption of open source. We were very clear that we wanted to take advantage of FOSS (free and open-source software) but also that we needed to manage our use of it. Our processes have grown and evolved over the years, and we’ve written software to assist with these processes.About 18 months ago during our open-source customer councils we talked about the tools that we had built internally and there was almost a rush to the doors, with our customers clamoring for these kinds of tools to help them manage their open-source adoption. So, really, it was our customers asking for our assistance in managing their open-source software that was the impetus for our open-sourcing our framework today.
Martino goes on to say that HP considered creating a proprietary product but chose to stay with open source tools because “there’s no one-size-fits-all approach to FOSS governance.” She does not mention CIO Mott, but I can well believe FOSS tracking tools got a big boost internally when the IT cost reduction project arrived.All of this makes me wonder if there are open source tools for managing both FOSS and proprietary software governance? Does open source have a role to play in IT mangement of both types? Post your comments on this issue below.
Highlights from late last week include:
My pick for the enterprise open source item of last week takes a little setup. On Thursday, Microsoft beat forecasts for fiscal 2008 Q@ results, reporting $16.37B in revenues against analyst consensus estimates of $15.95B — beating the estimate by $420M, or 2.6%.Let’s consider what that $420M estimate error mean in the open source world. For example, here are recent quarterly revenues from open source activities at three publicly-traded companies:Red Hat (RHT) $135M 11/30/07Novell (NOVL) $22M 10/31/07 Per CNet IBM (IBM) $135M 12/31/07 Estimated from InfoWorld’s “Has Open Source Sold Out?”That’s $392M of open source revenue from three major software vendors– still less that the analyst’s margin of error for Microsoft’s revenues in the same period. It’s a comparison that would give any financially-oriented software exec something to think about.We all know MSFT is huge — really huge. And open source revenues are still small — really small. That might seem intimidating to some, but to me, it means enterprise open source has a lot of room to grow without taking on Microsoft directly. That’s probably good news for everyone.
This week the already well known Heise Open Source meets Business Congress takes place in Nurnberg, Germany. Richard Seibt and his team once again put together an interesting and relevant group of speakers to discuss the importance and impact of Open Source in business. – And of course the poster children of open source – SugarCRM, Alfresco, eZpublish, Liferay, MySQL, RedHat/Jboss, as well as many less well known projects were there and presented their latest news and insights. Here’s a sample: Microsoft apparently “produces” 300 to 400 patents per workday currently and it takes approximately 4 million USD to fight one at court. Maybe we all should become lawyers. SugarCRM is now four years old, has already been downloaded 4 million plus times and successfully competes with the premier league of proprietary commercial CRM offerings. The Heise Open Source congress seems to be progressing nicely while many others open source events are struggling, maybe it’s the business and enterprise orientation that makes the difference. – With more than 650 delegates growth against the year before was almost 10%. Enterprise Open Source was in the center of the delegates’ interest and a large number of credible customer case studies showed again how well it works and how beneficial it is for the companies.
I’ve been thinking about Monday’s post on IBM’s “Open Collaboration Client Solution” and what it means to enterprise customers. And while I think it’s darn hard to figure out what IBM is actually offering from that release, it occurred to me that I may have been looking at the word “open” in the wrong way.”Open,” to an enterprise customer, has more to do with interoperability between existing and anticipated applications than with open source specifically. This “light dawns over Marblehead” realization came from seeing a reference to the Open Solutions Alliance (OSA) customer forum results. This survey of CIOs and business execs from over 100 firms confirms that interoperability between open source applications and also between open source and proprietary solutions is an overriding concern for firms considering open source implementations. To quote from the OSA announcement:
“These findings represent a clear opportunity for the OSA to out-MicrosoftMicrosoft by offering a fully interoperable suite of business tools,” said DominicSartorio, OSA president. “If we can help our members’ solutions work welltogether it makes it easier for our channel partners to sell open-source softwareand it will translate into more revenue for vendors and even more options forcustomers.”Interoperability is a challenge among both large and small organizations. Keyissues with small organizations include single sign-on and authorization, dataintegration and synchronization, UI and portal integration, and contentmanagement integration. In addition to these, larger enterprises also raisedbusiness process integration, production management, and legacy/proprietaryintegration as key issues.
OSA executive director Dominic Sartorio, in an interview with IT Business Edge, described the IT customer’s concern with interoperability this way:
“It made the difference between them buying a solution or not. If you have to do a lot of interoperability work on your own or hire contractors to do it, that adds to the cost of ownership profile of the product. … So this is real. There’s a lot of unmet opportunity out there because we haven’t collectively done a good enough job. “
Sartorio also described how customers said “the bigger proprietary vendors like Microsoft or Oracle” were better able to handle the interoperability challenge, but at a higher cost, vendor lock-in and reduced innovation. So maybe IBM – and other firms like Optaros– really do have an “open” opportunity here to straddle the gap between giant proprietary software companies and the much smaller open source application vendors. This helps explain Sun’s big bet with the MySQL acquisition and other recent deals. We’ll have to see just how open these big companies can be given their legacy of closed business practices and fierce competition from both sides of the issue.
If a press release can be believed, IBM is chasing the business desktop productivity market again. Not with hardware, but with something called the “Open Collaboration Client Solution.” Kicking off IBM’s Lotusphere conference in Orlando this week, the announcement suggests the lords of big iron have their eyes on your PC again, only in a nicer, more open way. The release begins:
“IBM (NYSE: IBM) today announced that it will offer an integrated Open Collaboration Client Solution with support for Ubuntu, a Linux-based operating system from Canonical Ltd. that is especially popular for desktops, laptops and thin clients.Showing strong momentum around its IBM Lotus Notes 8 and IBM Lotus Symphony-based Open Collaboration Client Solution, IBM also announced a new agreement working with Red Hat targeting small and medium-sized enterprises, and momentum in the Open Collaboration Client Solution powered by SUSE Linux Enterprise from Novell that was announced in August 2007.”
Later in the release comes this zinger:
“IBM’s Open Collaboration Client Solution is … personal computing software that is based on open standards, providing businesses with a cost-effective and security-rich alternative to Microsoft desktops.”
Ouch! Those of us who remember those simple green character-mode command-line days (and the great keyboards that came with them — where are they now?) might be excused for uttering a snicker or two at the thought of IBM attacking Microsoft for being closed and proprietary. But times change, and as noted in Friday’s post, IBM has adopted open source underpinnings for many of its key products. Two additional thoughts:
- Just how open is the “Open Collaboration Client Solution?” The release only mentions open source once, referring to the “open source Eclipse Rich Client Platform” on which Lotus Expeditor is based, Expeditor being the application framework for this solution, as near as I can tell from the release. “Open standards” is used three times, without referring to any specific standard, tool or application. Not counting these four uses, the word “open” appears 22 more times in the release. The Open Collaboration Client Solution components list begins with IBM Lotus Notes. The last time I checked Notes was not an especially open or even standards-based application. The point here is that simply throwing the word “open” at prospective customers does not an open solution make. It would be a shame if the old IBM tradition of marketing FUD suddenly took on a new “open” look.
- The other comment is that in Friday’s post, I gave credit to IBM for knowing how to market open source. And they do — just not in this press release, which was a model of marketing obfustication. I guess I’ll have to wait to download the whole OCCS to see what it really can do. And that will probably happen when IBM decides to bring back those great keyboards in the name of open standards. Don’t hold your breath.
It’s what one might call a bit of headline serendipity. On the list of this week’s open source-related headlines, such as:
We also got this item:
Well, it would appear that Sun, Red Hat and IBM have figured that out, right? To be fair, the MD item is focused on marketing open source applications to consumers as part of a low-cost PC purchase — in other words, as an alternative to Windows. But I think it’s interesting to consider how enterprise open source solution vendors have dealt with this issue.Clearly, the IBMs, Red Hats, Suns, Alfrescos, SugarCRMs, EnterpriseDBs and a great many more firms involved in open source have spent heavily to promote their offerings to a business audience. One part of their message — like that of open source for consumers — is that open source has a lower cost of ownership: not free, but less. But the other part of the enterprise vendor message is that open source works better and can meet customer needs faster and more completely. Getting that speed and customization requires that a customer spend something to achieve those results — just less than might be spent with a closed, proprietary solution.It’s not easy to get consumers to adopt open source — just ask Linus Torvalds. Seems to me developers of consumer open source applications are not helping their users to spread the word. The marketing challenge for consumer open source is not putting “Linux vs. Windows” tent cards on shelves in Staples or Sears, but drawing attention to open source usage. Would it be too tacky to have an embedded “Emailed by open source Linux” in the footers of emails sent by the applications installed in all those Wal-Mart PCs?What do you think? Is traditional marketing important to open source success? Can open source be marketed to consumers or only to business users? Post your comments below.
More than one person has moaned aloud at the thought of having to review — or worse yet, update — a Microsoft Project file. Sure, there are online and downloadable Project file viewers, and plenty of competitors in the project management application space. But most of them cost money, have limited features or are otherwise wonky in some way.Until now. Welcome Projity’s OpenProj 1.0, a full-featured cross-platform open source project management application that reads/writes MS-Project .mpp, Project 2003 .XML and Projity’s own .pod files. This is no trial version or crippleware, it’s the real thing, and it comes in Linux, Unix, Mac (PPC/X86) and, yes, Windows versions. As others point out, this could be a welcome addition to the OpenOffice suite of enterprise open source productivity applications.I have just started tinkering with OpenProj — the 1.0 version launched recently — and so far, I’m impressed. According to the OpenProj site, so are the top guns at places like Sourceforge, Ubuntu, Mandriva, Sabayon Linux and Novell.Right now it’s an EOS Directory candidate, but we’re looking to rate it and add it to the directory. If you’ve got comments about OpenProj, add them below. I’ll keep checking to see if SteveB from Redmond posts a thumbs-down comment. Then we’ll know for sure it’s the real thing!
Here are some of the open source-related headlines this week — so far:
EOS Directory sponsor Optaros has launched a completely re-designed site with lots of Web 2.0 capabilities to showcase their Next Generation Internet (NGI) expertise.
Jeff Potts at ecmarchitect.com also has some comments about the new Optaros site. As always, special thanks to Optaros for their support of the EOS Directory.
Talk about a provocative headline! But suddenly, recession talk is all the rage amid rising U.S. credit woes and sinking earnings in the financial sector – at least for now. And what about tech? Well, if IBM’s unexpectedly strong 24% increase in Q4 earnings is any indication, things may look especially good for open source.ZDNet’s Open Sources blog asks if IBM’s results are due to open source?
“Should this count as an open source win, a validation of the open source concept?I think it should. But there’s more to it than that.IBM long-ago unified its product lines under Linux and open source. Through projects like Eclipse it has learned how to share basic costs and add value for its customers.
Sounds to me like IBM has learned to leverage both the developer and customer communities for the benefit of all — including Big Blue. It’s worth noting that IBM’s results have a sizable foreign currency component, which means non-US customers made a significant contribution to the bottom line.On the other hand, ZDNet’s Hardware 2.0 blogger Adrian Kingsley-Hughes post — “Is open source recession-proof?” — offers a different take.
“Well, first off, I think that any business model that relies on volunteers could certainly see interest decline if times get tough. … The flip-side of this though is that being an active part of an open source project is a lot different to spending all day on YouTube or Flickr …”
One reader, Slashdot’s SatanicPuppy, responded this way:
“Far from being bad for OSS, recessions are GOOD for OSS. You lose your job, and freelance while looking for another one…What are you going to use? Companies have a need, and no budget to fill it with commercial software…What are they going to use? Sure, if you specialize in zillion dollar OSS deployments, you’ve got problems (problem #1: You’re mythical), but the true strength of OSS isn’t in giant deployments, but in filling in the gaps…When the gaps get bigger, there we are.”
Last week’s post on open source CEO forecasts for 2008 didn’t spend much time worrying about a recession. But what about you? How will an economic slowdown affect enterprise open source companies? Will they fare better, worse or the same as closed source firms? Post your comments below.
Product news and other items from the past week:
And while it’s not strictly-speaking enterprise open source, here’s a wonderful item from the Wall Street Journal’s BoomTown quip-tress Kara Swisher on the ongoing Microsoft-Yahoo merger rumors:
“Here’s what is going on and has long been going on: Microsoft continues to cast about for a viable Internet strategy, as it always does, and Yahoo is probably the numero-uno solution on its business development fix-it list.Why? Well, the software behemoth just can’t catch Google in the lucrative search-ad market no matter how hard it tries and how much money it spends.If it presumably put together it and No. 2 Yahoo, then presto chango, a real horse race.But that’s kind of like stitching together Bill Richardson and Dennis Kucinich and getting a potential front-runner for the Democratic presidential nomination.”
The headline “Open Source Code Contains Security Holes” on an InformationWeek article has grabbed a lot of attention. Two more blog posts on the topic:
And today there’s a followup blog post by “Security Holes” author Charles Babcock and a response from Paul Beach, a developer and administrator for one of the open source projects mentioned in Babcock’s original article:
Still missing is an answer to the key question: do open source applications have more security flaws than closed source? The Department of Homeland Security, sponsor of the open source testing, states the estimated error rate at one security flaw for every 1000 lines of code among tested open source software. How does this compare to closed source? Coverity’s announcement makes no mention of closed source error rates.Can someone cite some statistics showing a difference between the two types? Post your stats, sources and comments below.
The tech press and open source blogosphere shifted into overdrive today on the news that software security firm Coverity — at the behest of the U.S. Department of Homeland Security — had released the results of security tests on a number of popular open source applications. You can see some of news and comment here:
In the last item, I give Dana Blankenhorn credit for pointing out the obvious — identifying security flaws is a good thing — and open source projects may be more likely to get fixed quickly than their closed source counterparts. For an in-depth look at the whole issue of government-sponsored software security testing (it’s not just about open source), check out these articles from SDTimes:
So here’s a point to ponder and comment upon: do you worry more about security issues with open source software than you do with proprietary/closed source code? Post your thoughts below.
Everyone says you get more with open source. So here you go — ten CEOs of open source companies offering their views on the enterprise open source outlook for the New Year. Sponsored by the Open Solutions Alliance (OSA), the CEOs of member companies responded to four questions about open source issues for 2008. Some sample prognostications:1. What will trigger increasing adoption of open source in the enterprise in 2008?
“There will be an increasing confluence between the open source and software as a service models. These are the two most powerful trends in software today, and while they’ve traditionally been seen as separate, parallel developments, they are rapidly combining to create the new business model for enterprise software. The combination is not just at the development level – BaaS companies adopting open source technologies to lower the cost of operations and R&D – but more importantly, on the distribution side.” — William A. Soward, CEO, Adaptive Planning
2. What is the biggest challenge for the open source software industry in 2008?
“More lawsuits will be brought against large corporations and technology companies in 2008 as open source advocates step up enforcement of the APL v2, v and other open source licenses.” — Doug Levin, CEO, Black Duck
“Figuring out business models that will produce viable, long term software companies rather than ‘flash in the pan’ ubiquity plays. Merely racing to see who can give the most away to a buyer who will take as much as the can get before paying money will not produce viable software companies.” — Javier Soltero, CEO, Hyperic
3. How big an effect will licensing have on open-source software in 2008?
“Open source licensing will continue to bother enterprise users but the dissemination of best implementation practices including license management will reduce this issue somewhat.” — Michael Grove, CEO, OpenIT Works
“We don’t see much impact here. Customers continue to get educated about the code they use and about open source licensing in general, so FUD will have less of a factor than in the past.” — Kim Polese, CEO, SpikeSource
4. What will be the biggest surprise in open source in 2008?
“During ’08, the pressures CIOs will face to drive greater business innovation with a fixed (or low growth) IT budget will conspire to challenge every possible traditional software license. The 80% of the IT budget used to maintain existing or legacy systems must become more productive in order to satisfy the business goal of improved innovation.” — Brian Gentile, CEO, JasperSoft
“The biggest surprise in 2008 will be to see Open Source players register three-digit growth rates!” — Bertrand Diard, CEO, Talend
Get the complete list of questions and responses from the Open Solutions Alliance (OSA) site. (PDF)
Quick roundup of open source items making news over the last week or so:
Looking into the crystal ball to forecast the future is difficult on many domains, but specifically also in the fast moving Open Source domain. We tried it anyway.
- Continuous consolidation is going to happen in the commercial software vendor scene. This will create room for successful open source vendors.
- Open Source adoption in the enterprise will continue, in the application infrastructure space the use of Open Source is already common sense, but more and more Open Source solutions will be viable candidates also for typical business solution domains. It has started with Business Intelligence and Enterprise Content Management, it will continue with Customer Relationship Management.
- Web 2.0 and Enterprise 2.0 will continue to be Open Source plays mainly and accelerate adoption of Open Source in the Enterprise even more.
- Open Source vendors will also consolidate, we will see the rise of new Open Source “Ueber” providers, similar to RedHat.
- More commercially available products will be based on Open Source software, this will boost the usage of Open Source components but also the related “assembly methodology”, as applied by Optaros, Alfresco and others.
- Commercial vendors will continue to increase the viability of their offerings by open-sourcing critical components and platforms.
- Open Source companies will continue to look for the holy grail of “how to make money with Open Source” and invent new creative license and subscription models.
- New open standards such as Open Social or Google Android will be the base of many new Open Source project and initiative.
So, to summarize, we don’t expect 2008 to be a year of revolutions but rather of numerous important evolutions.
Welcome to 2008! But before we look ahead, let’s consider this item from last year:Top 10 Websites in the U.S. — Monthly Averages
||Unique Audience (000)
||AOL Media Network
||Fox Interactive Netowrk (aka MySpace)
||Apple (includes iTunes)
Source: Nielsen Online, NetViewWhat struck me about this list was how crucial open source software was to the success of many of these sites — maybe even those two in third and fourth place that begin with “M”. Certainly there will be more open source in use during 2008 at firms and sites large and small. It should be a banner year.Here are a few more end-of-the-year items of interest: