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A Cynic Rips Open Source

Posted by ScuttleMonkey on Mon May 21, 2007 11:45 AM
from the everybodys-a-critic dept.
AlexGr writes to tell us that Howard Anderson chaired an interesting meeting the other day with senior executives from Cisco, Agilent Technologies and Novell. The discussion took a look at whether or not enterprise users really want open source. "Naturally, I disagreed -- partially because I am a naturally disagreeable person. Any idiot can make friends -- but can you make some really serious enemies? I disagreed, however, because allegiance to open source depends on who you are. Let me give you an example. If you are No. 1 or No. 2 in your industry, you hate open source. You make your money by selling proprietary solutions: Microsoft and Cisco. If you are No. 3 to No. 10, you look at open source as a way to get back to those serious RSEUs, because they are where you make money."
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  • A cynic might suggest that the people writing open source software are the ones who are making their daytime living working for a proprietary-solutions vendor and spend their nights tearing down the very house they live in. And that if open source replaced proprietary solutions, these people would not be able to make a daytime living that supports their night time hobby.
    The author's most important statement is in his second-to-last paragraph. And it's almost certainly wrong in most cases. After all, wouldn't an employer require their programmers to sign a noncompete clause which would inherently preclude them from participating in OSS projects that compete with their employer's products?
    • It's not a completely invalid point. I'm not working on an open source product that competes directly with my own day job, but I might be working on one that competes with your job, and you might be working on one that competes with my job. With two people, it's a coincidence, but with a wide open source community, it's probable. If you're talking about a movement that theoretically changes the distribution model of software as a whole, then everyone with a software job is theoretically affected.
      • Re: (Score:3, Interesting)

        I'm sure the change in the distribution model can be dealt with. CentOS doesn't seem to be driving RedHat out of business. Of course, there may be a rather uncomfortable adjustment period (kinda like the current state of the music and film industries). Perhaps that will a good time to step out of the work force for a bit and get a master's degree.
        • by Znork (31774) on Monday May 21 2007, @01:25PM (#19211289)
          "Of course, there may be a rather uncomfortable adjustment period"

          As free software tends to replace instances where duplication of effort is the norm rather than the exception, I'd say the adjustment period would be going from doing the same thing over and over and over again to writing actual new things.

          Instead of writing a new menu button on the word processor and changing the file format to be incompatible, getting paid, rinse, repeat ad nauseum, we might actually be writing better systems to accomplish other things.

          Somehow I think programmers in general could live with that. And, really, I have yet to experience any situation where the real need for programmers was less than the availability.
          • by CastrTroy (595695) on Monday May 21 2007, @02:27PM (#19212051) Homepage
            It's also said that 90% (maybe higher, I can't remember) of software is written for inhouse projects and would never see anything outside the corporate intranet. I think that there's more than enough work to keep everyone busy just doing all the custom stuff that everyone wants.
            • Re: (Score:3, Insightful)

              And if not, the market gets slimmer, and the people who aren't very good at it go off and find other jobs. And I'm still okay with it.
        • No need to go that far. Most programmers work for companies that do not sell software.

          If your employer sells pants then removing the cost of Operating systems Accounting software and Fabric CAD software (yes, I made that up) would lower your cost of operation without undermining your employer's business model at all.

          • Except you're not playing fair, here.

            Commercial Application FabricCAD = $2,000 per seat, for 10 users. $20,000. Yearly maintenance, say 20%. So $4k/year. 5 year costs: $40,000. IT Support Technician; including initial deployment, patching, and maintenance: 10% of admin time; say $50,000/annual, $80,000 w/ bennies. 10% of his time for FabriCAD: ($8,000*5)=$40,000. Total FabriCAM investment: $80,000 for 10 users over 5 years, or $1,600/user.

            Programmer to recreate all of the features of FabricCAD via Open Source: $75,000/yearly salary, plus bennies, perks: Say $100k for a round number. 5 year costs: $500,000.

            Sure, you can create OpenFabricCAD in say ... a year? Fair? Due Diligence, feature comparison, coding, revisions, testing, revise, test, revise, deploy, train, patch ... there, now you're at version 1. Expect MORE time if you're going to read/write proprietary data files to be compatible with suppliers and vendors.

            Let's say you spend 30% of your time per year maintaining and improving OpenFabricCAD - $33,000/year. Again, give 10% of the above admin for supporting your application.

            So in 5 years, OpenFabriCAD has cost the company ($100,000+($33,000*5)+($8,000*5))=$305,000 for 10 users for 5 years, OR - $6,100 per user. You've also got a product that very few people understand, and your userbase is a handful of people that use it.

            Where's the value proposition, again?
      • It's not a completely invalid point. I'm not working on an open source product that competes directly with my own day job, but I might be working on one that competes with your job, and you might be working on one that competes with my job. With two people, it's a coincidence, but with a wide open source community, it's probable.
        That's not a side effect of open source, that's a side effect of a free market. It's no different from both of us holding two different paying programming jobs in different fields, where my primary job competes with your secondary, and your primary job competes with my secondary.

        Likewise, in a large enough economy, this becomes probable.

        If you're talking about a movement that theoretically changes the distribution model of software as a whole, then everyone with a software job is theoretically affected.
        The movement started hundreds of years ago with the concept of the free market.
          • by cbreaker (561297) on Monday May 21 2007, @12:30PM (#19210473) Journal
            What do you term "exchange?" When I submit any GPL code, it allows everyone to use it. In trade, I get your GPL code.

            It's not a direct hand-to-cash deal but there IS a return on open source/free software. If you can't see that, this late in the game, then you MUST be brainwashed.

            ps. Nearly all "significant" OSS/GPL/Linux software is developed by paid programmers. If you're a programmer, you will have a job even if OSS becomes the #1. Besides, the vast majority of code written today is for in-house use, not for sale.
          • Re:Mod Parent Down (Score:5, Interesting)

            by AuMatar (183847) on Monday May 21 2007, @12:33PM (#19210513)
            Software itself violates the free market. For an item to have value, it must have utility and scarcity. As the marginal cost of production of a unit of software is damn near 0 (its fractions of a penny of electricity), software does not have scarcity. Thus it has no value. The rules of economics don't apply to it (or more correctly, an entirely new model needs to be created, but does not currently exist).
            • Re:Mod Parent Down (Score:4, Interesting)

              by dctoastman (995251) on Monday May 21 2007, @12:44PM (#19210699) Homepage
              It existed back in the day when programmers were paid for their time and the software they produced was the result of that effort.

              When people started selling software, instead of their services as developers of software, things got weird.
            • Re: (Score:3, Informative)

              As the marginal cost of production of a unit of software is damn near 0 (its fractions of a penny of electricity), software does not have scarcity. Thus it has no value.

              In neoclassical economics, where value is measured relative to supply, you may be correct. However, there are other definitions of value (which is part of why this thread branch has gone around in circles)

              However, if you go back to classical economics and then to Marx, you will find the concepts of use-value and exchange value. Software

            • Re:Mod Parent Down (Score:4, Informative)

              by 99BottlesOfBeerInMyF (813746) on Monday May 21 2007, @01:28PM (#19211345)

              Software itself violates the free market.

              No it doesn't. Artificially limiting the distribution of software via copyright, might, but software itself does not. Software development as a service (as open source business models use it) is classic capitalism. It is only capitalism as it applies to services (programming) as opposed to a commodity.

              Thus it has no value.

              Having a clean floor has no inherent value, but still capitalism accommodates the selling of cleaning services, just fine.

              • The marginal cost is how much it takes to create any additional product. After you've written the first copy of the software, there are no man-hours required to write the second copy.
              • look up "marginal" (Score:5, Informative)

                by Doctor Crumb (737936) on Monday May 21 2007, @01:09PM (#19211061) Homepage
                The GP stated that the _marginal_ cost is 0, not that the entire cost or even the amortized cost is zero. The marginal cost is the additional cost of producing one extra unit. Your development costs are the same whether you sell 1 license or 1000 licenses; therefore the additional cost of those extra 999 licenses is zero. Thus the GP is exactly right, and software itself breaks the current economic model.
                • Re: (Score:3, Insightful)

                  Well than, so do many other things that are currently part of our economy. Music, movies, even books have an almost $0 reproduction cost. What is the point of this. There's tons of things that have very little actual reproduction cost that have a high cost to produce the first one. Even things like CPUs, which have an extremely high development cost, have an actual very low per unit cost to reproduce. That is, once the chip is designed, and the fab is built, the materials to actually produce a chip are
              • Re:Mod Parent Down (Score:4, Informative)

                by HangingChad (677530) on Monday May 21 2007, @01:52PM (#19211647) Homepage

                I would disagree that the "marginal cost of production of a unit of software is damn near 0," when you take into account the man-hours required to create the software in the first place.

                You're partially correct. The cost to develop a piece of software is called the sunk cost. It's a good term, just what it sounds like. You sink money into development and it sinks out of sight. It's gone. The cost to duplicate and distribute the product after that is, essentially, 0.

                Not like a car. You have sunk cost in auto design as well, but the bulk of the cost is in the components. Cars have intrinsic value as any chop-shop can demonstrate. Software does not have intrinsic value. It can be duplicated for nothing.

                Many economists disagree, but my opinion getting away from an economy based on making things with value and relying on things with no intrinsic value is a really bad idea. An economic Pearl Harbor. Maybe we won't be around long enough for something really bad to happen, but if it ever does it could well be an unimaginable disaster.

                  • Re:Mod Parent Up (Score:5, Interesting)

                    by croddy (659025) on Monday May 21 2007, @03:08PM (#19212581)
                    Well, rather than "artificial scarcity", which applies well to DeBeers' diamonds, I think it would be more accurate to describe the proprietary software situation as "fictional scarcity". That is, it is a scarcity that only exists in the mind of the least attentive and most uncritical shareholder. Any bittorrent user can tell you that this alleged scarcity doesn't actually exist in reality.
              • by Plutonite (999141) on Monday May 21 2007, @02:02PM (#19211741)
                Moderators! Help! He's calling me an econo-sexual!! Is this not abuse?

                PS: we are straying from the point, and wading in the murky waters of the fascist nitpickers. And if you provoke me further, the only thing I shall sodomize will be YOU! Go away :)
    • IP-related stuff too -- a typical employment contract has the employer claiming rights to all work the employee does unless it's done without company resources and doesn't relate to company business.
    • by kebes (861706) on Monday May 21 2007, @12:01PM (#19210125) Journal
      That paragraph caught my eye, too. But the author knows what he's doing: he's a troll.

      After all, near the beginning of the article, he admits to being a troll:

      Naturally, I disagreed -- partially because I am a naturally disagreeable person. Any idiot can make friends -- but can you make some really serious enemies?
      I'm all for "playing devil's advocate" and having an intelligent debate where both sides are properly represented... but this guy basically admits that he just likes making people mad. So the way he ends his article is no surprise. In fact the whole article is filled with subtle (and not so subtle) jabs at both sides of the debate, such as:

      Open source is not a movement; it's a religion.
      Moreover, like any good troll, he creates arguments that are full of holes, thereby inviting angry "True Believers" to fight the good fight and tear his arguments apart. (And as a by-product he gets page views of course.)

      I'm fully in favor of a reasoned debate on any issue... but I'm not clear on exactly what new insights this guy's article brings to the debate.
  • maybe? (Score:5, Interesting)

    by User 956 (568564) on Monday May 21 2007, @11:47AM (#19209955) Homepage
    Let me give you an example. If you are No. 1 or No. 2 in your industry, you hate open source.

    What if your industry is open-source software?
    • Re:maybe? (Score:5, Interesting)

      by Daniel_Staal (609844) <DStaal@usa.net> on Monday May 21 2007, @11:55AM (#19210053)
      Better yet: What if your industry isn't computer-related. Computers then are just a tool to help you support your actual business. Open Source then means that you can rely on the software working in the future, for as long as you need it to (not just as long as the company who wrote it finds it profitable), and that you can switch computer support services whenever a better deal comes along. You don't care if it is closed or not: You just want it to work. Now and in the future.

      And Open Source is better for that.
    • This article is chock full of misconceptions. Cisco hates open source. (Wrong, just look at http://www.openfabrics.org/ [openfabrics.org]. They have developers contributing to linux kernel full time.) Open Source is a religion. BS. Open Source is a way of developing software. Open Source developers do it for a nightime hobby. Wrong again. Most linux developers I know do it for their day job.

      Thanks for posting a very poor article.
      • by MillionthMonkey (240664) on Monday May 21 2007, @02:29PM (#19212079)
        I used to work at one of these companies (not Cisco or Novell- you figure it out) and know this for a fact: their opinion of enterprise software is worthless. Especially at the management/executive level where they make the incompetent IT decisions they don't have to live with. I probably shouldn't say this during trading hours, but they have a site-wide license for Rational ClearCase at that place. So they should just shut the hell up.

        Dealing with ClearCase is a major part of everyone's job there. It was forced on everybody with a top-down executive decision- all version control is handled with ClearCase since they paid for the license. (The "benefit" is that a team in the bioinformatics division can have access to a repository maintained by, say, the oil exploration division.) Everyone who has to use ClearCase hates it. The processes are weird and the tools that you're forced to use are buggy. I've heard people cite ClearCase as a good reason to look for another job. The guy in the next cube had three weeks of work destroyed by a ClearCase update one morning. He smashed his keyboard into 101 pieces on the floor.

        There are tiny version-control rebellions all the time- small teams set up little secret CVS repositories here and there- just known to a few guys who then have to keep them a secret from management. Once the top brass inevitably finds out about them, the phagocytosis begins: the team has to stop whatever it's doing and help migrate their entire CVS repository into ClearCase. This was always an abnormally large, painful undertaking for some reason. It was a real tragedy every time it happened- really demoralizing for everyone, even the people in the next row of cubicles just rubbernecking another version control disaster.

        A cynic might suggest that the people writing open source software are the ones who are making their daytime living working for a proprietary-solutions vendor and spend their nights tearing down the very house they live in. And that if open source replaced proprietary solutions, these people would not be able to make a daytime living that supports their night time hobby.

        A cynic would be right.
        A cynic might suggest that the people breathing in oxygen are the ones who are exhaling carbon dioxide and destroying the very atmosphere they're breathing. And that if carbon dioxide completely replaced oxygen, these people would not be able to inhale the oxygen that turns into the carbon dioxide they exhale. A cynic would be right. /snark
    • Re:maybe? (Score:4, Insightful)

      by schon (31600) on Monday May 21 2007, @01:05PM (#19211013) Homepage

      If you are No. 1 or No. 2 in your industry, you hate open source.
      I think if he checked his facts, he might discover that the world's largest computer hardware company [ibm.com] absolutely *loves* open source.
  • ...and now the seasoned veterans of sarcasm and IT acrimony at ./ will rip him back! Enjoy the rest of the thread!
    :)
  • From TFA:

    Open source is not a movement; it's a religion. It is a set of principles and practices that let everyone share nonexistent or semi-existent intellectual property.

    Nonexistent intellectual property? Semi-existent intellectual property? WTF?

    Any article about whether enterprise users really want to use Open Source software that starts of like this isn't worth reading any further. The guy isn't a cynic. He's someone with an axe to grind.

    • Whether my FC5, FC6, Xubuntu, openSuSE and Gentoo installations, my Apache webservers, or any of the approx. 80,000 packages on my 7 machines are "nonexistent" or "semiexistent"... whichever they are, they're chugging along pretty well.
    • Any article about whether enterprise users really want to use Open Source software that starts of like this isn't worth reading any further. The guy isn't a cynic. He's someone with an axe to grind.

      You missed an even bigger point. The guy's objection applies (if to anything) to Free Software, not Open Source Software, between which there is an entire universe's worth of difference.

      Anyone who cannot separate these two concepts in their head is clearly unqualified to hold forth on either subject.

      • This guy had a deadline to fill up a few column inches, and said the first 6 or 7 incoherent things that came to mind ("open source reminds me of communism/religion/Woodstock/whatever"). This is the worst article I've seen linked from /. in a long time.
  • by xxxJonBoyxxx (565205) on Monday May 21 2007, @11:51AM (#19209997)
    Enterprise (end) users don't care one way or the other about open source. All they want is something that is:
      1) Reliable
      2) Doesn't (ever?) change its user interface (in part, because they "develop" screenshot-based training materials too)
      3) Etc.

    It's only the enterprise I.T. technicians ("administrators") that care one way or the other, and then (in most cases because they're spending other people's money) because budget, deployment or licensing disputes are making their job more challenging that they feel it should be.

  • So, in the first few paragraphs:

    Open source is not a movement; it's a religion... Remember the Communist Manifesto..."

    then

    The vendors were tripping over themselves swearing allegiance to the open source movement. It was like Republicans genuflecting at the graven image of Ronald Reagan.

    So, open source guys are Republican Communists?

    I don't think this guy's a cynic. I think he's a schizophrenic.
    • So, open source guys are Republican Communists?

      Not true of the open source movement, I would say, but its not that incoherent of an idea. While the rhetoric of Soviet Communists and American Republicans are very much opposed, the Republican Party, since neoconservatism became an important force within it (and even moreso as it reached its zenith in the present Bush Administration) has adopted quite a bit, tactically, of the Leninist model.

      Which probably shouldn't be a surprise given the Trotskyite origins o

  • ...and the lack of oxygen really affects them. The environment where I work is very Cisco-heavy, and fairly MS-heavy, and most people's grasp of what open source even *means* is tenuous at best. I do a lot of coding for the tools for our web-based reporting, and what *I* do is all-too-often called "open source". These people are too concerned with margins to learn about things like technology.
  • Is it just me, or is this guy throwing the baby out with the bathwater? While it's understandable that some of the fanaticism and philosophies associated with the OSS movement might turn him off, that shouldn't stand in the way of the fact that there is quite a bit of great OSS software*. Perhaps tellingly, much of that great software has no ties back to the GNU philosophies. Mozilla, Apache, BSD, etc. have become the underpinnings of the market without directly supporting Stallman's vision. Even Linus takes a cool approach to his ties with the GNU, speaking against decisions when he disagrees.

    The truth is that if this guy is as cynical as he's making himself out to be, then he's guilty of the very fanaticism that he's accusing the OSS community of. Because no OSS means no Firefox, no OpenOffice, no Apache, no PHP, etc. If he's really extreme about it, then he can forget about buying products from big names like Apple, Cisco, or Novell. Even Microsoft would be on his list for having dabbled in OSS!

    Will he really cut his nose off to spite his face, or will this cynic turn hypocrite?

    * Doubled up just to annoy the grammar nazis! :P
  • From TFA:

    A cynic might suggest that the people writing open source software are the ones who are making their daytime living working for a proprietary-solutions vendor and spend their nights tearing down the very house they live in. And that if open source replaced proprietary solutions, these people would not be able to make a daytime living that supports their night time hobby.

    A cynic would be right.

    A cynic obviously can't see that there are other business models other than "proprietary-solutions vendor."

    A cynic can't see that if open source replaced proprietary solutions, their daytime living would be their night time hobby.
  • by gelfling (6534) on Monday May 21 2007, @11:57AM (#19210079) Homepage Journal
    Since time immemorial the Yankee Group has made its money pretending to be smarter than everyone else in the room. They literally make up shit out of whole cloth in order to be the only guys with this 'new' idea whatever it is. The fact is that Yankee group gets paid by the largest customers and the largest vendors. Are they unbiased? Sort of, not really. They know full well who their own customers are. If not for the myth of self anointed 'expertise' not only would there be no closed source, there would be no market analysis consulting firms like Yankee.

    To their credit though they're at least not a PR arm of Microsoft like Gartner.
  • If you are No. 3 to No. 10, you look at open source as a way to get back to those serious RSEUs, because they are where you make money.

    WTF - is Jack Welsh* a contributor to SlashDot now?

    Anyway, if you're #3-10 in your industry, you're ranked there because of market share or total sales, not because of IT expenses or even profitability. Just cutting licensing costs may get you a pat on the back and a promotion, but in the infinitely more complex context of running a business and competing in the marketplac

  • He wanted to make enemies. Posting his poorly thought out article here is making his wish come true.
  • MS is a software shop they fear free software as it cuts into there margins. Cisco is mostly a hardware shop with enough software to glue things together. OSS is not going to replace core network routers anytime soon. The other side of the shop is support and there is no OSS that is even close. Granted smaller shops will use OSS products that work as well or better. I'll take OpenNMS over whats up gold or whatever Cisco works is coming bundled with for real time monitoring. But I still want CW for it'
  • by jc42 (318812) on Monday May 21 2007, @12:07PM (#19210201) Homepage Journal
    Time to once again introduce the old comparison with the auto industry. Every auto manufacturer automatically makes and sells full shop manuals for their vehicles. They accept this, and understand that if they didn't, they wouldn't sell many vehicles. Few customers would want to buy a car that can't be repaired by anyone but the manufacturer. Granted, they might not want a shop manual themselves, but they expect that their friendly local independent mechanic would be able to get one.

    So why would computer customers be stupid enough to buy computer systems whose inner workings are hidden and inaccessible to anyone not working for the manufacturer? This doesn't make any sense, and we should expect that eventually users will wise up, as they long ago did with vehicles.

    It's especially baffling that people are purchasing software that is so full of "exploits", and when a new bit of malware appears, users have to wait for the software's manufacturer to come out with a patch. You wouldn't tolerate this with other purchases, why would you accept it with software? Just as you expect your local mechanic to have repair information available, you should expect that your local software hackers would have access to the information to fix problems. That is, they should have access to your software's source.

    It's especially baffling that, if I want a failing gadget to be fixable, someone would call my attitude a "religion". If the term applies at all, it should be applied to the people who accept the idea that "there are mysteries" behind their purchases, and we mere mortals shouldn't be permitted access to the inner workings of the universe. That's what a "religion" is. The idea that things in our world should be open to examination by us isn't religion; it's rationality and science, which is the opposite of religion.

    Or, in the case of manufactured articles like cars or operating systems, it's just good engineering.

    • So why would computer customers be stupid enough to buy computer systems whose inner workings are hidden and inaccessible to anyone not working for the manufacturer? This doesn't make any sense, and we should expect that eventually users will wise up, as they long ago did with vehicles.

      There's still a ton of functionality undocumented and unavailable to owners/users, such as the ability to modify values stored in the vehicle's PCM. A great deal of tuning is available in software, but they still don't give that information out.

      For example, I have a Subaru with DFI (Distributor-Free Ignition). It's got a waste spark system with two coils, each of which serves two cylinders. And it has crank and cam sensors, and you never adjust the timing. Unfortunately, this also means that you can't adjust the timing without installing a complete engine management system.

      (There are exceptions to this rule, for example pre-1996 DOHC nissans tend to have a CONSULT port interface which is basically just a snazzy, externally-clocked serial port. You can bump timing up and down in 0.5 deg increments. But someone figured this out using a factory tuning tool...)

      The automotive industry has made it easier to fix cars by making them largely self-diagnosing (if you know what to look for, of course, they're not always correct and "MISFIRE IN BANK 1 CYLINDER 2" doesn't tell you what caused the problem) but they've made it much harder to customize them by moving the workings of the vehicle from the physical world, where they are exposed, to a black box.

      If anything should be Open Source, if not Free Software, it is the programs in automotive ECUs.

  • by lord_alan (1105191) on Monday May 21 2007, @12:17PM (#19210307)

    I first read this article on an Australian site (http://www.computerworld.com.au/index.php/id;8103 29453/ [computerworld.com.au]) last week and it has been syndicated and is doing the rounds. This guy, Howard whoever he is, clearly has done zero research and has no facts to back up his comments - especially the finale.

    At the end of last year the EU Commission released one of the most comprehensive reports on the impact, spread and use of Open Source, around the world. They found that, in actual fact, only around 10% of those who contribute to Open Source projects (the software engineers) are employed by proprietary vendors - the overwhelming majority are employed by the enterprises Howard so cynically believes are using FLOSS purely to beat down the cost of proprietary systems.

    You can download the entire report from the EU itself here: http://flossimpact.eu/ [flossimpact.eu]

    There are many other reports from major research organisations that are concluding similar things. Forrester research has recently found that over 50% of large enterprises are using FLOSS in mission critical applications and this is growing.

    A quick Google would lead Howard to many of these findings.

    Alan
    http://www.theopensourcerer.com/ [theopensourcerer.com]
  • Yankee Group (yawn) (Score:5, Informative)

    by Ricin (236107) on Monday May 21 2007, @12:49PM (#19210783)
    "He is also founder of The Yankee Group.."

    Surely you all remember miss Didio and her corperate horse whispering.