The Business Value of Open Source Examined 192
jg21 writes "'Open source developers have the opportunity to influence technology that is being used by companies and do it on a global scale in a way that cannot occur with any other type of software,' contends Bill Claybrook, writing in the current issue of LinuxWorld. The article is a historical overview of the open source revolution, starting in the 80s with the GNU Project, BSD, and TCP/IP and then moving into the 90s with Red Hat, StarOffice, and coming right into the 21st century with the Ximian Desktop and Sun's Linux-based Sun Java Desktop System."
That's great and all... (Score:2, Interesting)
Re:That's great and all... (Score:2, Insightful)
Open source is built for fun mostly, not profit.
Re:That's great and all... (Score:2)
This may have been true in the past, but I think it's moving rapidly away from this.
Re:That's great and all... (Score:5, Interesting)
What I see as really funny is how often people complain about open source losing its soul because companies participate in open source to hurt their competitors. WTF? Open source development means you will have an organic self-governing network of developers which will include developers who have all manner of motivations.
This isn't about any one thing, people...
Funny, yesterday, I started a blog on this same topic (or one closely related). It is at http://ossne.blogspot.com
Let me tell you about my motivations for contributing open source software:
1) Fun of learning new technologies
2) Profit-- by minimizing the money my customers spend on software licenses, I can control more of their IT spending. First mover advantage comes into play here.
3) Hurting competitors: Microsoft, Siebel, Oracle etc. might make decent software, they are taking money I would rather get from my customers. So hurting them is good business.
4) Altruism. I actually think that freedom is a good thing. I think a world where open source software dominates would be better than one that doesn't.
So all these can co-exist.
One more note (Score:2)
Re:One more note (Score:2)
I think most execs find the former to be easier.
Re:That's great and all... (Score:5, Insightful)
Some people do programming projects because they enjoy them, not everyone requires payment. Just like some people participate in sports for enjoyment (though in this country that is declining), not everyone requires a 10 mil salary just to play sports.
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:3, Funny)
Re:That's great and all... (Score:3, Insightful)
I wish more people would think this way. Do what you love, and if you get paid for it, great! But those that are motivated by money alone usually reflect it in their work (i.e. Microsoft).
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
Only if you follow the licensing business model (Score:5, Insightful)
I think Google is a fantastic example. They use commoditized hardware and open source software. They built a better mousetrap in a world full of entrenched corporate behemoths.
The Next Big Thing will come from someone enterprising who can use the tools and open internet standards to create the next Google. You won't have to worry about selling licenses if that person is you.
Re:Only if you follow the licensing business model (Score:2, Insightful)
Re:Only if you follow the licensing business model (Score:2)
In your case perhaps a few licenses for operating systems and a few applications would be a few thousand dollars - quite a different story for google...
Re:Only if you follow the licensing business model (Score:2)
I love google as much as the next guy, and they use OSS, but to my knowledge they don't give code or patches back.
Re:That's great and all... (Score:5, Insightful)
Obviously, you probably still won't get the millions you could (emphasize COULD) get if you wrote it closed-source and patented it, but it's also much more likely to get wide distribution, and has a far greater chance of becoming the standard way of doing whatever it is it does, if it's open source and free.
Not that I'm advocating one choice over the other. What direction you decide to go depends entirely on your own situation, your tolerance for risk, and what you expect to gain from coding whatever project you're coding.
What about doing both? (Score:3, Interesting)
Narrow thinking is for narrow minds.
Companies cannot nmap for free. (Score:3, Interesting)
However, nmap can be purchased in a closed-source version that can be included into commercial products. This information can be found on their web page (insecure.org). I have not enquired as to pricing but the closed-source version of nmap probably costs about as much as
Re:That's great and all... (Score:5, Insightful)
The reality is that chances are you wont ever write something that influences technology on a global scale. Maybe you are doing amazing stuff, but then I have to ask why got got a first post on slashdot.
Your outlook is valid, and open sourcing probably won't work for you. But it did work for Linus and Alan Cox and Andrew Tigwell (sp?) and a lot of other people. Linus in particular is worth a hell of a lot more now that he would be if he'd elected never to release his hard work as open source.
These are the highest profile examples, and of course there are shades of grey down to the little guy who never even submitted a bug report because he regard his time as too valuable to donate.
Re:That's great and all... (Score:2)
The point was the "Mortgage" is used by so many people as their reason (or excuse) why they never do something....
"I'd love to start my own business, but there the mortgage"
"I'd love to travel, but there's the mortgage"
"I hate my job and I'd love to leave, but there's the mortgage".
That, friends, is slavery.
I have no mortgage, I chose not too. I have share investments that subsidise the rent. I can jump jobs and even countries when I feel like i
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Re:That's great and all... (Score:5, Insightful)
So you write it, and it works, but you dont want to maintain it, and no one else in the company can, although they need it!
Release it as open source - the payback is that you get to use the program, well maintained and all, even after the developer has moved to higher places, be he engineer or student on day-release.
Re:That's great and all... (Score:2)
A bit shortsighted, methinks.
What happens when my competitors are forced into doing things my way because they are using software developed with my priorities in mind? There are lots of "minor" decisions that are made when software is initially developed, subliminal maybe, but various assumptions are made as to the existing context and the desired direction. The sum total
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Re:That's great and all... (Score:2)
Where the hell have you been, Rip Van Winkle? The focus on shipping hardware is what caused their record $5 billion single-year loss in 1992. The IBM of today is a profitable consultancy and services business.
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
And of course nobody is paid to create closed-source tools.
"And no open source software will ever implement the kind of proprietary business logic I implement."
That's what everybody thinks, "it can't happen to me". Wake up and smell the exit interview.
Re:That's great and all... (Score:5, Interesting)
(And it should be pointed out that quite a few people do make a living writing Open Source software, and if you can create something great you most certainly will be able to get someone to pay you to work on it.)
The point of the article is that OSS has greater leverage than closed-source. Not really new, but neat to see documented.
Re:That's great and all... (Score:3, Interesting)
Re:That's great and all... (Score:3, Funny)
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:5, Insightful)
And if you really want to, you can make money directly writing open source software as well. It isn't easy, and you have to be something of an entrepreneur. But it certainly can be done, and from what I can see, the people doing it are living thier dreams, and are being compensated quite well for it. If you don't want that sort of risk, than shrink wrapped software isn't really the place to be anyway. Trying to make it big creating the next killer app is just as hard, if not harder, than creating a career around OSS programing. If you want to change the world, it will be a risky no matter how go about it - that's just life. If you want a stable job, those are going to be in IT and they will only gain from open source software.
Re:That's great and all... (Score:3, Insightful)
What absolute bollocks. The only thing that seperates even a service based software house from it's competitors is time to implement and quality of implementation. If a company does well in the, say, taxation market because it has developed a suit of well tested libraries it can rapidly redeploy in various situations, it has a significan
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:2)
This is a big con by the open source community...they say, 'it's free as in speech, not free as in beer'...but read the GPL, in order to be free as in speech, you HAVE to be free as in beer.
Re:That's great and all... (Score:2)
idiotic is a bit harsh...I'm not allowed to express my opinions? Yes, it's my opinion that open source applications are slowly ruining this industry. I'm allowed to have it, I'm allowed to express it...and I can do so with or without documented proof to back it up. (and before you go on about how it's not very smart to express an opinion without proof etc...well, I'm not a robot
Re:That's great and all... (Score:2)
You have the right to believe that the OSS community would do a better job building XP, but you're going to have to present some evidence to convince me. It would probably take years for the OSS community just to read the code, let alone understand or improve it.
Re:That's great and all... (Score:2)
Actually, you are right - but for the wrong reason.
Certainly it would take a long time for the OSS community to read the bloated MS code; however, understanding it would not be as much of a time sink as the time spent choking back the bile that would come up from seeing the blecherous implementation.
(It is well known that Windows DLLS/API code has all kinds of hacks to make them work with other
Re:That's great and all... (Score:2)
It's the compatibility that is the major challenge of maintaining Windows. Anybody can "fix" XP if they're willing to forgo the #1 customer requirement. You might as well just as well rename Linux to Windows XP if compatability is not retained.
Re:That's great and all... (Score:2)
I hope you were being funny, but I fear that you were not.
Let's consider a fairly standard in-house development product: a data-driven expense reporting web application. We'll spec it to use a web-service that receives a csv, checks the columns, adds them, and routes to the submittor's manager for OK. It should also check against the back
Re:That's great and all... (Score:2)
Supplying the source for a login program does not imply supplying all your usernames and passwords.
Confidential information about the company shouldn't be hardcoded into the programming anyway, otherwise every salesman who files an expense report exposes your confidential information much more so than the programming itself.
Re:That's great and all... (Score:2)
Re:That's great and all... (Score:3, Interesting)
Err, yeah, all of the OSS programmers are homeless people that write code at public libraries and on peoples computers at net cafes while they are looking in the other direction.
I mean, even RMS, who inte
Re:That's great and all... (Score:2)
Yea good luck with that. Why don't you quit your job and start writing the next great big app. If you write it while working for somebody they are going to get all the money.
Once your product becomes popular hire lawyers so you can sue MS when they steal all your ideas and bundle it with windows.
Re:That's great and all... (Score:3, Insightful)
Just because it's OSS, you're not necessarily working for free...
My company pays me to improve the OSS tools we use for development, and I release my changes to the main project once they're done.
The argument I make for releasing the changes (none of them are license
Re:That's great and all... (Score:2)
Are you saying you want to get paid what you think your code is worth or its overall economic value to society?
What if your software automated a fleet of robots that did ALL of the work that our society wanted. These robots made our fast food, built our roads, and even repaired themselves and went out to search for more resources to keep our products coming. How much would you like to be paid then?
Its impossible for 1 person to write production quality software like that on th
Re:That's great and all... (Score:3, Insightful)
I disagree (Score:5, Interesting)
~D
Business model? (Score:4, Informative)
Red Hat, on the other hand, achieved amazingly high brand recognition with its Red Hat Linux distribution and developed a successful business model around high volume and support subscriptions along with professional services and training. In the book, Open Sources: Voices from the Open Source Revolution, Robert Young, one of the Red Hat founders, chronicles how he and others determined that Red Hat was in the commodity product business where brand recognition is extremely important. As a result, Red Hat developed a business model to exploit the commodity business.
If this [yahoo.com] is his idea of a "successful business model", then this guy needs to go back to school. The company has just *barely* started to show profits, and has virtually no profitable history to speak of and massive debt. I think it's about 5-10 years early to start calling Red Hat "successful".
Re:Business model? (Score:2)
Trends aren't everything, but look at the history. That is what the market does. It is always better to be on the way UP rather than the way DOWN.
Re:Business model? (Score:3, Insightful)
By whose standards are you judging success?
Are they unbelievably rich? No, and probably never will be. However, they've so far weathered the DotBomb era, are making money on something relatively new, can pay thier debts and still have the most recognisable commercial brand in OSS. They're also growing in size and sales. I'd say thy're a success so far, YMMV.
I agree that it will be 5 to 10 years before they "make it big" like Oracl
Re:Business model? (Score:3, Insightful)
The one thing that should NOT happen ... (Score:4, Insightful)
Re:The one thing that should NOT happen ... (Score:2, Insightful)
Yeah... quality... like this relatively well known OSS library that I am trying to use right now and have spent the last two days debugging. Absolutely full of memory and resource leaks. I don't have time to debug other folks' code. If it is available, it should work reasonably well at least. The types of bugs I'm seeing are bugs that folks who just started
Take it, package it, sell it, support it (Score:5, Interesting)
But plonk down 49 USD on a USB printer and click Print, and it prints!
If I plug my USB 10/100 NIC into my laptop under RH 9, it kernel panics and dies.
If I want to use my Radeon AIW under Solaris x86, I'll be lucky to get it to even work in text mode.
The business model is to take the product and make it useful, just like a steel mill or lumber yard. Take raw material, make it accessible to the common man (consumer), who trades you the money value of his time for the product.
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How about set patronize=off? (Score:2)
I've trashed boxes rebooting them when XFree86 hung the console, because it wasn't stable on S3 Virge cards, and there was no such thing as ext3fs.
I've uttered prayers to both Andre Hedrick and Donald Becker.
I've recompiled kernels more times than I want to count.
So unless you mean "you" in the general sense, please don't paint "me" with such a broad brush. You may inadvertently expose YOUR (lack of)
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Re:How about set patronize=off? (Score:2)
You said you wanted it to "Just Work". From that statement, I don't think it's a great leap of faith to assume that you might have been new to Linux.
so you assumed that if he had more Linux experience, he would have known Linux does not "Just Work"?
Re:Take it, package it, sell it, support it (Score:2)
That has nothing to do with Microsoft or linux and everything to do with the maufacturer of the printer.
The manufacturer printer is just as capable of writing drivers for linux as they are for windows. They choose not to do that. If I bought a printer and it didn't work with my OS I would take the printer back and get another one but then that's me.
Other people will just whine on slashdot and blame it on the operating system.
Re:Take it, package it, sell it, support it (Score:2)
However, everything does come with a driver disk. Quality of the driver may be very iffy, but its there.
As to blaming Linux... not a trust issue at all. The manufacturers simply don't produce linux drivers [and there are notable exceptions].
So, if Linux doesn't have the driver, it doesn't work -- and the user has nothing except "Linux" to blame.
Ratboy
Re:Take it, package it, sell it, support it (Score:2)
Re:Take it, package it, sell it, support it (Score:2)
Everyone I've ever heard say "I want it to 'Just Work', and it doesn't undre Linux" has had a system that they "customized" into inoperability.
I have installed a countless amount of USB hardware on a great many Linux machines (running Mandrake, RedHat, SuSE, and even Gentoo), and the most work I ever had to do was install v
No business model required. (Score:5, Interesting)
Re:No business model required. (Score:3, Insightful)
Here is an examp
Where's the beef? (Score:5, Interesting)
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Re:Where's the beef? (Score:2)
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Re:Where's the beef? (Score:2)
Maybe these perspectives can meet somewhere in the middle and learn how to make things more efficient and better for everyone, including the customers, employees and business owners.
Most open source advocates were customers, employees or businesses owners once upon a time. But now they are scary...
Are they scary because they have long hair and a beard [stallman.org]? Or are they scary because its hard to find RedHat's Linux distribution [redhat.com]?
Sadly... (Score:4, Interesting)
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Poor examples of free software (Score:5, Interesting)
Ximian Desktop and Sun's Linux-based Sun Java Desktop System.
I can't say these projects come to mind when I mark progress in Free Software in the 2000's. The Ximian Desktop is arguably inferior to KDE, XFCE, and other substantial window managers, including my favorite WindowMaker. I still haven't seen Sun's Java Desktop. Come to think of it, I have never seen a usable Java Desktop program at all.
Here's my list of the seminal programs of the last three decades:
HURD is a seminal project? (Score:2, Funny)
By this standard Minix has gotta be the project of the century
Re:HURD is a seminal project? (Score:2)
HURD - the OS that has been in development for nearly 20 years
Said with tongue in cheek, to highlight the fact that not all high profile free software projects are successes. Fresco is another.
Re:Poor examples of free software (Score:3, Insightful)
It also has an insane range of features. It has keyboard macros, custom keymaps, four kinds of history search, application-specific tab completion, etc. If you don't like how backspace works, you can switch it to a bunch of different things.
If Microsoft had bee
Re:Poor examples of free software (Score:5, Funny)
2100 Nanotechnology software, Home genetic engineering software, HURD
2200 Warp engine controller software, HURD
2300 Mental telepathy software, HURD
And HURD will still be in development and "almost ready".
Just a few tidbits .... (Score:5, Informative)
The pioneers of open source were more interested in building software that helped them achieve both social and technical goals than in taking advantage of the business aspects of open source.
-- I hear this argument alot, I assume the social goals are reducing crime, homelessness, poverty, etc. What social goals can you achieve through an operating system? This goes for Microsoft as well. Seems a little overreaching.
The open source model offers the promise to help businesses thrive in an Internet-based economy provided there is an understanding of the economic, cultural, and political factors that comprise an effective open source strategy.
-- Does it offer the promise or deliver on it? Microsoft offers a lot of promises too!
Providing greater value to customers than competitors can is the key to building a successful business. A successful software business model requires a number of elements that are just as important for open source software as for proprietary software.
-- So open source operates under the laws of economics. I actually applaud this paragraph, shows some realism.
Standards: To promote collaboration.
-- I'm beginning to decry standards. With standards you wouldn't get the giraffe or the duck-billed platypus. OS should evolve.
External contributors are usually motivated by the prospect of working with software that solves important problems for them and others, by the possibility of future gain via the provision of related service and products, by the opportunity to increase their own personal knowledge, or by the satisfaction of building a good reputation among their peers.
-- so we are motivated by intellectual pursuits, money, learning, and ego.
Open source promotes standards and interoperability to the degree that we have not seen in the past.
-- I think I could argue either way on this one.
This usually leads to competition for resources and talent with each software development group acting as a separate company. Open source re-unites development efforts because people throughout a company have access to code.
-- So at RedHat they don't compete for internal resources -- there are no politics? -- and people have access to DEVELOPMENT code. I think you underestimate the power of the dark side. People are people.
This creates high efficiencies in the development of software products and reduces time-to-market.
-- Again, money is a good motivator. Early you said OS operates under the law of economics. Why wouldn't a PS (proprietary sofware) company?
Open source, when it works well, can produce high value, high quality, low cost, portable, and no vendor lock-in software that can be exploited by a number of business models.
--What happens when it works badly? Can it turn out the same garbage I get from MS?
As a result, Red Hat developed a business model to exploit the commodity business.
--Probably the single greatest sentence to be uttered in any article anywhere on the topic of technology. So much could be said about that...
This allows customers to continue to scale their infrastructure at a lower cost than before, and in some cases at a lower cost than they were predicting six or even three months ago. The business value provided by open source translates into savings for the customer.
Developers receive value from open source, but it is more personal value than business value.
--Are we talking Indian programmers or US programmers?
Open source developers have the opportunity to influence technology that is being used by companies and do it on a global scale in a way that cannot occur with any other type of software.
--So the guy who came up with Internet Explorer doesn't influence technology?
Re:Just a few tidbits .... (Score:3, Insightful)
How about making computing available to as many people as possible even the poor. I guess that's not a good enough goal for you. There is an entire world for whom a $100.00 for an operating system is a half years salary.
"Does it offer the promise or deliver on it?"
Time will tell. So far it seems to deliver i
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Re:Just a few tidbits .... (Score:2, Interesting)
ASCII is evolving into unicode. SGML has spawned HTML and XML. Open standards do not imply stagnation of standards, they imply equal access to standards, whatever they may be.
Thus allowing software to freely evolve, because standards aren't equivilent to animals, they are equivilent to the basic rules of genetic coding. DNA.
Thus we have vi/emacs/pico/OpenOffice Writer/Kword/etc
Whi
OSS is a viable strategy against Microsoft (Score:2, Interesting)
MS has a monopoly. The other companies don't. If MS doesn't have to worry about its monopoly (and doesn't have to spend money and time protecting it), it can raid the other companies' turf. That's what has been going on for several years.
OSS puts MS's monopoly in jeopardy. It has to spend money and time to protect the monopoly.
Late to the party! (Score:4, Insightful)
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Re:Late to the party! (Score:2)
That isn't an example of free software or open source software.
I was thinking of things like TECO and DDT, developed at MIT in 1961 for the DEC PDP-1. And the original Emacs, which considerably predates GNU Emacs.
There are also many examples with early software for IBM computers. I
Re:Late to the party! (Score:2, Interesting)
Super-contributors provide the bulk of the value (Score:3, Insightful)
So here's my problem with Open Source from a business prospective. The same issue applies to a variety of industries, not just software, but open source software is a particularly good example.
I've heard claims that the best developers are as much as a thousand times more productive than the worse developers. Open Source might actually prove that contention; all of open source seems to be the contribution of a relatively small group of highly productive developers.
I also believe it because I've seen for myself the difficulty of scaling up a successful development organization. It's usually a case of diminishing returns as you add more staff.
This applies to any industries where a small group of highly skilled super-contributors can add a tremendous amount of value to a company.
So what is the long-term value of a company if the reality is that there is a relatively small group of super-contributors that actually add most of the value? What happens to the value of the company if that group leaves?
This is not an argument for close source. Unless you're an uber-profitable company that can afford to use nuisance tactics to protect your market share, some group of super-contributors will clone your success eventually even without violating your IP rights. Particularly given the relatively low capital requirements of a software start-up.
I've heard concerns that Google will suffer when many of its long-term super-contributors find themselves suddenly able to cash out and retire. How many dot-coms seem to have evaporated overnight shortly after their super-contributors were able to cash out?
So given that indentured servitude is still illegal in most developed countries. How do companies build long-term value of the form that venture capitalists and long-term shareholders are willing to invest in?
it's all young... (Score:3, Interesting)
That's still quite young for an industry. And there is yet to be realized any real industrialization of software development.
So what is going to happen when the level of abstraction in software development ease of doing, becomes at least a young adult? (currently its still a kid playing head games in marketing).
I think its only logical that an open base line of well established software will contine to grow. Even if it was only a matter of expiring copyrights and patents... thanks to FOSS I won't be dead and long gone when better things finally come, or at least I'll be able to experience better due an improved open base line..
A good indication of this is that MS is now being forced to improve their products due to linux competition, rather than playing non productive games.
So, its possible something will happen that changes everythings, say for example autocoding of a level that anyone who can use a calcuilator can program... leaving far more challenging innovation up to the real software engineers (rather tann the psuedo coders). In this event you have programming as a part of ones other duties...just like using a calculator...
The calculator didn't put scientist out of work, but only allowed them to even way cooler stuff...
"Open source" began in the 90s, not the 80s. (Score:2)
From the summary:
There is no reasonable interpretation of history that can make this claim about GNU true: GNU was started to pursue software freedom. The open source movement did not yet exist. When GNU began, the open source movement would not exist for over another decade.
I do not say this to flamebait or to raise suspicions of malevolence but to clarify and prevent people from bei
Re:"Open source" began in the 90s, not the 80s. (Score:2)
The open source movement did not yet exist.
Hogwash.
What caught on the '90s was open source licensing, because a license was needed to keep open source going. People were freely sharing source code long before that, because no significant commercial/proprietary value was generally recognized for software source. Once "intellectual property" became the name of the technology game, the open source world needed tools like the GPL.
Nothing has changed, except the lawyers got involved. In the end it looks lik
Re:"Open source" began in the 90s, not the 80s. (Score:2)
Sure, in fact RMS talks about this in his talk on the beginning of the free software community. But it wasn't anything to do with "open source" that recognized that this community of hackers who shared code was dying. During the time when hackers freely shared code (often not putting copyright notices on it at all), sharing was the norm. There was
Re:TCP/IP? (Score:3, Insightful)
Yes TCP/IP is everything to do with Open Source and by the way Open Standards.
Re:'Open source developers have the opportunity to (Score:2)