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What's the Business Case for Microsoft and Open Source?

Friend of perl developers everywhere, Jeremy Zawodny, has an intriguing question: "If you had to explain to Microsoft why they should change their attitude toward Open Source, what would you say?" For more about this, read on... From Jeremy: "If you had to explain to Microsoft why they should change their attitude toward Open Source, what would you say? More to the point, how can Microsoft benefit from better supporting or even adopting Open Source in their business? (Replace IIS with Apache, for example.) Does it make sense for them? Are there ways that they can use Open Source as a competitive advantage without pissing off the Open Source community in the process? Which of their products would make sense on Open Source platforms? How can the Open Source community help Microsoft? Or is this a lost cause? IBM has made it work. Can Microsoft?

I ask these questions because I may have the chance to talk with folks at Microsoft about Open Source. And it only makes sense that I look to the community for input. So let's hear it. Flames won't help. Thoughtful answers and ideas very well could."

7 of 530 comments (clear)

  1. Security, for starters by Brento · · Score: 5, Insightful

    As a guy who has to support IIS in mission-critical apps, I'd have to say that it would give them a lot of credibility in the enterprise if they opened the source just for IIS, for starters. At least once a quarter, somebody in our organization asks why we're not using Apache yet, and with the IIS security problems that crop up all the time, it's getting harder to answer that question.

    I know what their answer is going to be, though. They don't want to open up IIS because it will expose all of the existing installations to attacks until patches are written. They'd rather keep it closed to protect the morons who don't apply patches than to open it up to fix the rest of the holes.

    --
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  2. Who cares? Either they're right or wrong... by Anonymous Coward · · Score: 5, Insightful

    It seems to me that Linux and open source are classic disruptive technologies. In this case the technology is not the OS itself (anyone here who can't name a dozen OS's in one breath?) but the GPL, the development model, and the worldwide linking of motivated developers into a slightly-cohesive competing co-operating group.

    The GPL has provided a framework whereby a self-sustaining body of software has come into being. The body of developers don't rely on traditional business models to sustain themselves.

    If Linux and open source become at all successful Microsoft is going to lose billions of dollars in revenue. Heck, they probably already are. I'm suprised they haven't sent the boys around to break RMS' and Linus Torvalds' kneecaps or roll over them with a bus.

    This is a 'company' or community MS can't fight using traditional business models. They can't lower their prices enough to beat free. Many of open source products are at least of equivalent quality to MS products.

    They've tried running attack PR campaigns, but to some extent attacking open source is as hard as attacking any other community spirited organisation, such as (for example) the Scouts or Guides, and all the bad press has so far rebounded on MS, it's a bit transparent after all. And how do you effectively attack people who are giving things away for free? It's like trying to claim that "Meals on Wheels" volunteers are evil because the food they deliver sometimes isn't absolutely perfect.

    As an aside, I was in the Science Museum in London a few years ago and I saw a gas-fire powered room fan. The idea was that when it got too hot in summer, you lit this gas-fired engine and it turned a fan to blow (now warmer) air around the room to cool you down. It was a last trump of the old monopoly gas companies trying to show their product was as versatile as the new-fangled electricity. It shows the lengths an old monopoly would go to, to try and preserve their old business model in the face of a disruptive technology.

    So, in a possibly vain attempt to get back on topic... I'll be interested to hear what you have to say. Because I feel only one of a few possibilities can actually happen. One is that open source limps along as a permanent embarrassing cousin to shrink wrap proprietary software. The other is that it more or less displaces shrink wrap commercial software.

    My money is on the latter, and for a simple reason. MS has sent many companies down the tube by the simple expedient of knowing that the other company will eventually make a mistake, and then they are dead. MS has made many mistakes too - but the synergy of owning the OS and some popular apps meant they've had the revenue to recover from them, whereas companies reliant on a single app only had to trip once and they were gone.

    Now the tables are turned. Open source isn't going away. If it can survive and get to where it has now, on an insignificant market share and difficult to use products, it isn't going away now it has growing market share and great things like KDE3 and Moz and GNOME and open office and so on that stand up against MS' core products.

    Now it's MS that has to avoid making mistakes.... In my view that classic mistake they are making is concentrating on their market share and revenue rather than the customers. Look at the PR and mindshare disaster that Licencing 6 has proven to be. Just goes to prove the old saying that once a monopoly finishes dealing with it's competitors, it starts beating up on its customers.

    MS contains some of the greatest developers in the world under one roof, probably THE greatest number of developers working for a single company. The problem is that so much of their work seems to be directed towards a 'scam' - keeping MS on top and killing other companies, rather than just turning out great products. It's proven a very effective strategy so far, the issue is can it survive against a community who isn't playing the same game?

    So what can you say to MS about open source in general? It'll either eat them or live alongside them. Either way, they lose. And it's as inevitable as what happened to the horse and cart when the automobile was invented, and nothing they do can really change how this game is going to play out economically. So they may as well ignore it and hope it'll go away.

  3. Re:Don't Fool Yourself by Iamthefallen · · Score: 5, Insightful

    What's needed is a change in the way MS developers think, with this I mean the people using Visual Studio etc to build solutions for the MS platform. If they start adapting Open Source more, then THEY will start pushing MS. With most MS platform developers being used to buying, and selling, their apps without source code and with a restrictive license, there's no demand on MS at the moment to go Open Source.

    However, it's not likely to happen as long as Open Source is pushed by zealots (*cough* RMS *cough) who have nothing to say about MS (or M$) apart from some rant about how they suck, preferably in 1337 5p34k.

    There are a lot of gains from sharing source and solutions, but, that culture just doesn't exist in the MS platform developers mind, thus there's little pressure on MS to even consider it as a policy.

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  4. Re:Don't Fool Yourself by Iamthefallen · · Score: 5, Insightful

    open source != free as in beer
    open source != free as in speech
    Open source means the source is open, yes, this means it might be used without permission. open source to me is sharing information, not giving away work for free. Allow people to view the sourcecode, but license and charge for the app.

    Mostly like any HTML page is today. Design theft occurs occasionally, but still there are plenty of people who pay web developers to build a site for them. If HTML code was compiled and unreadable, what would the web be today? Didn't most of us learn website coding by copying HTML/CSS/Script snippets from other pages? Has the webdesign industry died because of it?

    Problem is, we (as in MS developers) are used to HTML being open source, but anything else must be hidden or someone will steal it for sure!
    We need a change of culture and way of thinking is all.

    --
    Wax-Museum Fire Results In Hundreds Of New Danny DeVito Statues
  5. Nobody buys Access because it's a great database by abe+ferlman · · Score: 5, Insightful

    3. The Access back-end.
    As I said, nobody buys Access because it's a great database.


    Yeah, and they'll never improve that back end because it drives sales of SQL server. Let me make this perfectly clear: making Access a better product would cannibalize sales of SQL Server, so MS will never make it good

    Making good products is at odds with market segmentation. This is one of the fundamental benefits of free software- there is no market segmentation for code so the perfect never becomes the enemy of the good, as we see in the Access situation.

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  6. Microsoft should not change to open source. by fmaxwell · · Score: 5, Insightful

    It is not in Microsoft's interest to change to open source. They have a tremendously successful business model making them one of the richest companies in the world. They are the sole-source supplier for the most popular computer software in the world. There is no rational reason for them to switch to selling and/or supporting open-source software.

    Sure, we can all bitch about Microsoft products' security holes. We can gripe about performance and architectural issues. And many of those complaints are valid ones, but Microsoft is not in business to produces the most secure, high-performance, well-designed software in the world. Microsoft is in business to make money -- which they do very well.

    The only rational points to argue are:

    1. Microsoft's continued attacks on the open source movement are damaging their credibility and hurting their customers, many of whom want to integrate open source products into their Microsoft networks.

    2. Microsoft's data storage and transmission formats should be opened up to allow value-added third-party vendors to produce products that use and manipulate the data. All that leaving the formats closed accomplishes is a delay while third-parties reverse engineer them.

    3. Continued battles with the open source community are going to result in more public outcry for anti-trust action.

    4. Microsoft has a PR problem right now due to their insistence on software audits at cash-strapped school systems, security holes, the Justice Department case against them, etc. Extending an olive branch to the open source movement might help reduce that PR problem.

    Above all, remember that Microsoft is a for-profit business. They aren't going to get teary-eyed when you tell them about the comaraderie and inspiration that you feel when working on open-source products. They don't want to be part of some big, happy family. They want to rule the world.

  7. Software as a service by seldolivaw · · Score: 5, Insightful

    IBM has changed its business model: they no longer sell software products; they sell a "solution to a problem", which they use some of their own software products to solve. They provide a service, which is what their customers need, and it provides them with steady, subscription-style income that fosters a better and more honest relationship with their clients than the hit-and-run attitude developed by salespeople who only need to sell a product once. Plus, because it's clear from the outset that they're going to be selling a service, customers don't get pissed off (as they do with Microsoft) having to pay continuous fees. Make no mistake, both companies charge continuously: however, Microsoft charges for support (which gets people pissed off -- the product is supposed to work without help!) while IBM charges for the service (which includes support when things go wrong). It's the same thing, but with important psychological differences on both sides.

    Microsoft is already seeing the value of selling services rather than products (spurred by the success of subscription-based AOL) and is slowly moving to software-as-a-service. However, their legacy of selling expensive products is making software-as-a-service very unpopular with their customers, who see it only as a way of charging many times for a product they used to buy only once. By changing their model to being entirely service-based, they would be free to use open source wherever it happened to be better than their in-house solutions (e.g. Apache) without it costing them any revenue. They could then contribute to the open-source products they use just like everybody else does.