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Is Open-Source Software Wrecking Havoc on Software Industry?

Filed in archive Enterprise Software by steve on October 06, 2005

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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 antitrustlinks 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


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