Why Your Future Depends on Open Source

Discussion in 'NZ Computing' started by Have A Nice Cup of Tea, May 14, 2006.

  1. http://blogs.cio.com/node/292

    "" The enterprise software business is changing dramatically and
    tomorrow's industry will look very different to today's. The converging
    impacts of slowing growth, competitive pressures, and more demanding
    customers will cause a splintering of today's monolithic industry
    offerings -- and in a surprising turn of events, the software industry of
    the future will look much more like the open source software industry of
    today. ""


    I guess the software industry has become like a highway - in the sense
    that best to pull into the service station that you see coming up or else
    run the risk of running out of petrol before the next service station
    comes along miles down the road.


    Have A Nice Cup of Tea

    --
    1/ Migration to Linux only costs money once. Higher Windows TCO is forever.
    2/ "Shared source" is a poison pill. Open Source is freedom.
    3/ Only the Windows boxes get the worms.
     
    Have A Nice Cup of Tea, May 14, 2006
    #1
    1. Advertising

  2. T'was the Mon, 15 May 2006 07:24:18 +1200 when I remembered Have A
    Nice Cup of Tea <> saying something like this:

    >I guess the software industry has become like a highway - in the sense
    >that best to pull into the service station that you see coming up or else
    >run the risk of running out of petrol before the next service station
    >comes along miles down the road.


    I have no idea what you're trying to say there.

    But I did read the article. Was interesting. So software is being
    comodditised by open source software. This is true. I'm running free
    shopping cart software on my computer, powered by a free web server
    and a free sql server. I'm looking at installing CRM software, which
    is also free. These are things that in the past people have had to pay
    lots for, but are now available to everyone. I presume this trend will
    continue, where there's significant demand for a software resource,
    eventually there will be an open source replacement that does 80% of
    the task, at 20% of the cost.

    And so there's predictions that software will be free, but you'll be
    paying for support. So I'm predicting there will be increased demand
    for in-house IT support people within organizations over paying
    multiple software subscriptions to all the various pieces of software
    used throughout the organization.

    Shame about the reducing profits though, it makes the software
    industry not so attractive. I can still see the value in justifying
    price based on the value the product gives to the customer. The
    difference between what you could have sold the software for, versus
    what you were forced to sell the software for is lost profits. Will
    this affect innovation within software development houses as being
    profit-driven to develop new products doesn't work as well if an open
    source product could commoditie your market? Or will this force
    software development houses to innovate even more to out-innovate open
    source competition which traditionally lags behind closed source
    products in terms of features.

    Another question is, are open source products sufficiently customer
    focused enough to be successful? I mean the strength of using Office
    isn't just Office. It goes into ease of use, ease of updating, ease of
    support and downloading new features, templates, help files, etc...
    Look at all the support provided to IT professionals @
    http://technet.microsoft.com. All those webcasts, virtual labs, every
    single document that's available for free is paid for through people
    purchasing products like Windows Server. It's all focused on what the
    customer needs, because if the customer isn't being satisfied, it's
    more than easy enough to switch over to say open source offerings. But
    is there sufficient force within the open source community to focus on
    the total customer experience rather than just the product? From what
    I've seen, I'd say the answer is partially yes. There are forums where
    advice is given out freely to anyone asking for it. As long as the
    trend of people involved with the product returns to give something
    back to the community in terms of development or support, I could see
    the open source model of doing things continuing to be successful to
    the detriment of closed source products and profits within the
    software industry. I think I'm going to transition to knowledge
    management instead:)
    --
    Cheers,

    Waylon Kenning.
     
    Waylon Kenning, May 15, 2006
    #2
    1. Advertising

  3. Have A Nice Cup of Tea

    Nik Coughlin Guest

    Waylon Kenning wrote:
    > Shame about the reducing profits though, it makes the software
    > industry not so attractive. I can still see the value in justifying
    > price based on the value the product gives to the customer. The
    > difference between what you could have sold the software for, versus
    > what you were forced to sell the software for is lost profits. Will
    > this affect innovation within software development houses as being
    > profit-driven to develop new products doesn't work as well if an open
    > source product could commoditie your market? Or will this force
    > software development houses to innovate even more to out-innovate open
    > source competition which traditionally lags behind closed source
    > products in terms of features.


    A lot of software development isn't product-based anyway, it's bespoke
    systems within corporates and the like. I've done a lot of development and
    only one of those projects was a product as such. Even then we weren't
    selling the product, it was a hook to get people using a service.
     
    Nik Coughlin, May 15, 2006
    #3
  4. On Mon, 15 May 2006 11:10:25 +1200, Waylon Kenning wrote:

    > Another question is, are open source products sufficiently customer
    > focused enough to be successful? I mean the strength of using Office
    > isn't just Office. It goes into ease of use, ease of updating, ease of
    > support and downloading new features, templates, help files, etc...


    Translated:

    The strength of using M$ Office is the extremely way it can be used to
    install viruses, trogans, spyware, and all manner of malware simply by
    opening a document, or receiving an email.

    M$ Office is a product for morons cobbled together by a marketing company
    for the sole benefit of the marketing company itself.

    Remember - M$ does not have it's primary goal as providing software with
    safety, security, and reliablility.

    It's primary goal is to extort as much cash from people and other
    corporations for as little effort as possible, while at the same time
    ruthlessly attacking any other IT company that shows up as a perceived
    "threat".

    The fool is parted from his money, that trusts Micro$oft or its products.


    Have A Nice Cup of Tea

    --
    1/ Migration to Linux only costs money once. Higher Windows TCO is forever.
    2/ "Shared source" is a poison pill. Open Source is freedom.
    3/ Only the Windows boxes get the worms.
     
    Have A Nice Cup of Tea, May 15, 2006
    #4
  5. T'was the Mon, 15 May 2006 18:24:39 +1200 when I remembered Have A
    Nice Cup of Tea <> saying something like this:

    >The fool is parted from his money, that trusts Micro$oft or its products.


    Alas I'm the fool, I tried reasoning with you. I do continue in the
    hope that one day you'll rise to the level of intelligent debate.
    --
    Cheers,

    Waylon Kenning.
     
    Waylon Kenning, May 15, 2006
    #5
  6. Have A Nice Cup of Tea

    thingy Guest

    Waylon Kenning wrote:
    > T'was the Mon, 15 May 2006 07:24:18 +1200 when I remembered Have A
    > Nice Cup of Tea <> saying something like this:
    >
    >
    >>I guess the software industry has become like a highway - in the sense
    >>that best to pull into the service station that you see coming up or else
    >>run the risk of running out of petrol before the next service station
    >>comes along miles down the road.

    >
    >
    > I have no idea what you're trying to say there.
    >
    > But I did read the article. Was interesting. So software is being
    > comodditised by open source software. This is true.


    Yep, and commoditising means no big margins any more used to support top
    heavy company structures. What exactly justified Oracle's and MS's
    margins? a product you just had to have because it is a have to have.
    These days though the prices charged are getting seocnd looks, just like
    Unix I think these applications from mega corps will end up in smaller
    and smaller niche/boutique markets driven there by OSS and small agile
    and efficient companys.

    I'm running free
    > shopping cart software on my computer, powered by a free web server
    > and a free sql server. I'm looking at installing CRM software, which
    > is also free. These are things that in the past people have had to pay
    > lots for, but are now available to everyone. I presume this trend will
    > continue, where there's significant demand for a software resource,
    > eventually there will be an open source replacement that does 80% of
    > the task, at 20% of the cost.


    I believe so. I am coming across it all the time. Previous versions of
    software that need upgrading and wow! look at the price hikes and oh
    dear we have no budget.....hello GPL software.....

    > And so there's predictions that software will be free, but you'll be
    > paying for support.


    This is Sun's new model.

    So I'm predicting there will be increased demand
    > for in-house IT support people within organizations over paying
    > multiple software subscriptions to all the various pieces of software
    > used throughout the organization.


    Yep, or they wont pay and live with any issues. This might sound bad but
    in reality I deal with vendors products we have paid lots for and get
    crap support, so we could go GPL and pay nothing and get at worst crap
    support......

    > Shame about the reducing profits though, it makes the software
    > industry not so attractive.


    To programmers or suits? programmers will still be able to make a good
    living there just wont be the suits around making a good living off the
    customers and programmers backs.

    I can still see the value in justifying
    > price based on the value the product gives to the customer. The
    > difference between what you could have sold the software for, versus
    > what you were forced to sell the software for is lost profits.


    Lost profits or extortion? are customers really that dumb that they dont
    realise what is happening? dont you think they get pissed off at being
    ripped off?

    Will
    > this affect innovation within software development houses as being
    > profit-driven to develop new products doesn't work as well if an open
    > source product could commoditie your market? Or will this force
    > software development houses to innovate even more to out-innovate open
    > source competition


    I think if they could they would, trouble is I dont think they can.
    Again look at the latest feature in the new MS Office, do we need them?
    I dont I get by very well on oOo and that's $500 v a
    download....support? I'd have to pay someone to support either if I
    needed it.

    which traditionally lags behind closed source
    > products in terms of features.


    Sometimes but not always, do you think Apache lags IIS? BIND is behind?
    Sendmail a snail?

    ;]

    I just installed munin for monitoring my servers, BMC patrol might have
    more features but costs and arm and a leg and is just not needed.

    > Another question is, are open source products sufficiently customer
    > focused enough to be successful?


    Yes IMHO, lets not forget there could be 20 or 30 OSS solutions to a
    customer's problem out there, with research the customer picks the
    solution mostly closely aligned with what he wants.

    I mean the strength of using Office
    > isn't just Office. It goes into ease of use, ease of updating, ease of
    > support and downloading new features, templates, help files, etc...
    > Look at all the support provided to IT professionals @
    > http://technet.microsoft.com. All those webcasts, virtual labs, every
    > single document that's available for free is paid for through people
    > purchasing products like Windows Server.


    OSS also has lots of online documents, personally I have few issues
    finding enough documentation to do what I need to do.

    It's all focused on what the
    > customer needs, because if the customer isn't being satisfied, it's
    > more than easy enough to switch over to say open source offerings.


    yes and customers are.

    But
    > is there sufficient force within the open source community to focus on
    > the total customer experience rather than just the product? From what
    > I've seen, I'd say the answer is partially yes. There are forums where
    > advice is given out freely to anyone asking for it. As long as the
    > trend of people involved with the product returns to give something
    > back to the community in terms of development or support, I could see
    > the open source model of doing things continuing to be successful to
    > the detriment of closed source products and profits within the
    > software industry. I think I'm going to transition to knowledge
    > management instead:)


    Yep, always a good back stop....I think the moves are away from focusing
    on buying a package to making the business work, business wide. By this
    I mean no one these days buys a package and runs it and expects it to do
    everything they want it has to be modified to meet the need, this is
    where OSS can hold its own and win IMHO. The people who design these
    solutions and build them would seem to have very good job security, more
    so than the vendors of packages.

    regards

    Thing
     
    thingy, May 15, 2006
    #6
  7. On Mon, 15 May 2006 19:34:13 +1200, thingy wrote:

    > To programmers or suits? programmers will still be able to make a good
    > living there just wont be the suits around making a good living off the
    > customers and programmers backs.


    And that is a good thing, IMHO.

    Those suits would have to go somewhere else to do their leiching - like
    maybe a law firm... or an appliance store. ;o)


    Have A Nice Cup of Tea

    --
    1/ Migration to Linux only costs money once. Higher Windows TCO is forever.
    2/ "Shared source" is a poison pill. Open Source is freedom.
    3/ Only the Windows boxes get the worms.
     
    Have A Nice Cup of Tea, May 15, 2006
    #7
  8. On Mon, 15 May 2006 18:44:43 +1200, Waylon Kenning wrote:

    >>The fool is parted from his money, that trusts Micro$oft or its products.

    >
    > Alas I'm the fool, I tried reasoning with you.


    Seriously, good luck to you if you really do trust Microsoft - I think
    you'll need luck on your side if that's where you're at.


    Have A Nice Cup of Tea

    --
    1/ Migration to Linux only costs money once. Higher Windows TCO is forever.
    2/ "Shared source" is a poison pill. Open Source is freedom.
    3/ Only the Windows boxes get the worms.
     
    Have A Nice Cup of Tea, May 15, 2006
    #8
  9. Have A Nice Cup of Tea

    thingy Guest

    Have A Nice Cup of Tea wrote:
    > On Mon, 15 May 2006 19:34:13 +1200, thingy wrote:
    >
    >
    >>To programmers or suits? programmers will still be able to make a good
    >>living there just wont be the suits around making a good living off the
    >>customers and programmers backs.

    >
    >
    > And that is a good thing, IMHO.
    >
    > Those suits would have to go somewhere else to do their leiching - like
    > maybe a law firm... or an appliance store. ;o)
    >
    >
    > Have A Nice Cup of Tea
    >


    ah, explains the noel lemming quality staff.....and noel lemming's prices...

    regards

    thing
     
    thingy, May 15, 2006
    #9
  10. On Mon, 15 May 2006 20:27:54 +1200, thingy wrote:

    >> Those suits would have to go somewhere else to do their leiching - like
    >> maybe a law firm... or an appliance store. ;o)

    >
    > ah, explains the noel lemming quality staff.....and noel lemming's prices...


    <cackle>

    Yeah!


    Have A Nice Cup of Tea

    --
    1/ Migration to Linux only costs money once. Higher Windows TCO is forever.
    2/ "Shared source" is a poison pill. Open Source is freedom.
    3/ Only the Windows boxes get the worms.
     
    Have A Nice Cup of Tea, May 15, 2006
    #10
  11. T'was the Mon, 15 May 2006 19:34:13 +1200 when I remembered thingy
    <> saying something like this:

    >Yep, and commoditising means no big margins any more used to support top
    >heavy company structures. What exactly justified Oracle's and MS's
    >margins? a product you just had to have because it is a have to have.
    >These days though the prices charged are getting seocnd looks, just like
    >Unix I think these applications from mega corps will end up in smaller
    >and smaller niche/boutique markets driven there by OSS and small agile
    >and efficient companys.


    This I'm not too sure about. Small companies grow and become big
    companies, big companies buy smaller companies (I read Microsoft tried
    to buy Yahoo, but didn't get very far).

    As for justification for profits, was the past model based on the
    value delivered to the company purchasing the product over if the
    company didn't have the product? If so, then as OSS increases the
    baseline, this proportionately decreases the profit for a closed
    source developer.

    I guess really there's change in the industry. No surprise, this
    industry is famous for it.
    --
    Cheers,

    Waylon Kenning.
     
    Waylon Kenning, May 15, 2006
    #11
    1. Advertising

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. hdu
    Replies:
    3
    Views:
    4,174
  2. It all depends on whose ox is getting gored

    , Feb 6, 2004, in forum: Digital Photography
    Replies:
    16
    Views:
    1,119
  3. =?Utf-8?B?ZGFrb3RhMDI=?=

    Dual boot operating system depends on ntldr and ntdetect version??

    =?Utf-8?B?ZGFrb3RhMDI=?=, Feb 20, 2007, in forum: Windows 64bit
    Replies:
    16
    Views:
    1,159
    Bjorn Landemoo
    Feb 26, 2007
  4. Lawrence D'Oliveiro

    Open Source Innovation--Your Computer In Your Pocket

    Lawrence D'Oliveiro, Oct 28, 2005, in forum: NZ Computing
    Replies:
    0
    Views:
    383
    Lawrence D'Oliveiro
    Oct 28, 2005
  5. Lawrence D'Oliveiro

    Open Source: The Once And Future Dream

    Lawrence D'Oliveiro, Feb 21, 2010, in forum: NZ Computing
    Replies:
    1
    Views:
    353
    Lawrence D'Oliveiro
    Feb 22, 2010
Loading...

Share This Page