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Enterprise Software
by steve on October 6, 2005

Open-source software - written collectively and open freely to anyone who wants it - is wreaking mayhem on the $200 billion software industry. - *Source "Firms Make Open, Closed Cases For Powerful Software Programs" (Investors.com)"Every category is susceptible - from ERP (enterprise resource planning) to supply chain to document management to e-commerce," said John Roberts, CEO of SugarCRM.
By his (Marc Fluery - Head of JBOSS - Open Source - Java Based Middle tier) account, the 100-person software firm (JBOSS) is responsible for
- A 40% drop in shares of BEA Systems over the last two years
- Sparked at least one IBM (IBM) acquisition - Gluecode
- And it forced Sun Microsystems last spring to give away the software recipe to its Web application software.
Pundits see a confluence of trends why open source has taken the tech world by storm:
- Looking for ways to save money in the wake of the dot-com bust
- Microsoft's bruising antitrust trial sparked a cultural shift
- Open-source adoption has proved especially hardy in emerging markets such as Brazil, Russia, India and China.
Beyond Linux (original open source), a new wave of open-source software is gaining traction. More server makers are reselling open-source software in areas such as databases and middleware. Most run on Linux. Some run on Windows and Unix systems.
Another measure of open source's rise is the flow of investment money. Research firm VentureOne says open-source firms garnered $149 million in funding last year.
Prashanth RaiTag(s):Open+Source,JBOSS,Linux
Tags:
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“So, when we look at companies that are building their businesses based on an open source strategy, we ask the following: what’s the ecosystem that they’re trying to build? Will there be lots of people who will know (or want to know) how to work with the technology, are there vendors who can provide great support, and is there a path of innovation that will help the ecosystem grow?”
Business Integration Technology agrees that one needs to ’buy’ the ecosystem that supports the software. In order to help enterprises understand those ecosystems, we have identified six basic open source business models: the “Lite” version of a commercial product, enterprise vendors embrace of open source to show “I’m Open”, the spin-off of commercial “Legacy” products into open source, the dual strategy of free and supported “Parallel Universes,” the “Jump Start” opening of an un-launched commercial product, and true open source “Community” projects.
You may find our white paper on this topic interesting:
http://BusinessIntegrationTechnology.com/PDF/OpenSourceBusinessModels.
pdf