The Growth of Open Source Software in Organizations - Optaros

By prashanth, December 21, 2005 1:14 am

Optaros recently published a report titled "The Growth of Open Source Software in Organizations", This research report is based on survey data collected from an online poll distributed to more than 40,000 information technology and business professionals. You can access the full report here.

Result Summary: Open source software adoption and usage is on the climb in small to large organizations, and there is clear proof of its cost savings and overall value to IT.

  • A clear majority of U.S. companies and government institutions are turning to open source software instead of using commercial software packages. Some 87% of the 512 companies we surveyed are using open source software. Bigger companies are more likely to be open source users: all of the 156 companies with at least $50 million in annual revenue were using open source.
  • Companies and government institutions use open source for three primary reasons: to reduce IT costs, deliver systems faster, and make systems more secure.
  • Organizations are saving millions of dollars on IT by using open source software. In 2004, open source software saved large companies (with annual revenue of over $1 billion) an average of $3.3 million. Medium-sized companies (between $50 million and $1 billion in annual revenue) saved an average $1.1 million. Firms with revenues under $50 million saved an average $520,000. Asked to categorize all the benefits (cost savings and other) from open source, most companies said they were moderate or major. Some 70% of large firms are seeing moderate or major benefits from open source. Of the companies under $1 billion in revenue, 59% are seeing major benefits.
  • Despite proving the value of open source software, many companies face tall barriers in cutting costs through open source. Four barriers loom larger than any others: executives lacking knowledge about the benefits of open source and harboring fears about quality and support; legal and licensing issues; corporate cost allocation policies that don�t provide incentives to business functions to reduce the cost of commercial software and thus diminish their interest in open source alternatives; and the difficulty of procuring open source systems that will be supported after installation.

Prashanth RaiTag(s):Open+Source, Enterprise

One Response to “The Growth of Open Source Software in Organizations - Optaros”

  1. thanks for sharing…i also use open source software tools and scripts instead of purchasing the expensive ones.

Leave a Reply

Persephone Theme by Themocracy