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Corporations Getting Into The Open Source Spirit

Anonymous writes "Some bastions of capitalism are getting into the open-source spirit -- not only using the software, but contributing code fixes and other mods, according to an article in today's Computerworld."

181 comments

  1. Getting the corporate word out by skillet-thief · · Score: 4, Insightful

    The most surprising thing in an article like this is the fact that it is getting written at all. It used to be that only MS would get this kind of rah-rah journalism, but the tide seems to be turning.

    Now, stuff like this seems to be showing up all the time. I wonder what single thing tripped off this new trend.

    --

    Congratulations! Now we are the Evil Empire

    1. Re:Getting the corporate word out by kentyman · · Score: 5, Insightful
      I wonder what single thing tripped off this new trend.

      What makes you think it was a single thing? In my opinion, it was a long time coming.

      --
      You know where you are? You're in the $PATH, baby. You're gonna get executed!
    2. Re:Getting the corporate word out by dtolton · · Score: 4, Interesting

      It's really nice to see an introductory article written on Open Source. Particularly one written in a positive light, and without reference to Geeks or Zealots.

      I wonder how long it will take the M$ team to start churning out response articles alleging that Open Source is destroying capitalism.

      --

      Doug Tolton

      "The destruction of a value which is, will not bring value to that which isn't." -John Galt
    3. Re:Getting the corporate word out by Xerithane · · Score: 5, Funny

      Particularly one written in a positive light, and without reference to Geeks or Zealots.

      Refreshing isn't it.

      I wonder how long it will take the M$ team to start churning out response articles alleging that Open Source is destroying capitalism.

      Good thing it didn't last long. Real journalism doesn't need to mention zealots. Slashdot does it well enough.

      --
      Dacels Jewelers can't be trusted.
    4. Re:Getting the corporate word out by jdray · · Score: 4, Interesting
      The most surprising thing in an article like this is the fact that it is getting written at all.

      Agreed. And it has been a long time coming. I work in the electric utility industry, and I've been trying to convince my management that embracing the open source model is the only thing we can do to make dramatic changes in our bottom line in these times. Unfortunately, they laid people off around here instead. Well, okay, that's a little unfair, but not too much.

      Our industry, as I suspect is the case with a lot of industries, is bursting with opportunities for community-built standards-based software. Instead, we'd rather pay vendors and consultants millions of dollars for niche market software that we don't understand. Bah!

      Sometimes it's hard to keep up the fight. It's a good thing I've got /. to keep my spirits high!

      JD

      --
      The Spoon
      Updated 6/28/2011
    5. Re:Getting the corporate word out by Anonymous Coward · · Score: 0

      So pointing out a historical trend is the mark of a zealot, now? In the past, Microsoft has countered positive articles about open source in exactly that fashion, usually within a week.

    6. Re:Getting the corporate word out by new-black-hand · · Score: 2, Interesting
      I wonder how long it will take the M$ team to start churning out response articles alleging that Open Source is destroying capitalism.

      Open Source helps capitalism. These companies that have implemented, and then contributed any changes back into the community have saved time and money. This saving from not re-inventing the wheel benefits employees (who can spend more time innovating), managers, shareholders etc. Microsoft have no argument against Open Source (in terms of the development model, rather than technical advantages (if any still exist)), see The Halloween Documents

    7. Re:Getting the corporate word out by Xerithane · · Score: 2, Insightful

      So pointing out a historical trend is the mark of a zealot, now? In the past, Microsoft has countered positive articles about open source in exactly that fashion, usually within a week.

      If you are going to respond, don't do it AC. It makes for a much meaningful conversation.

      Saying, "The historical trend of Microsoft is to counter positive articles about open source with their counter points and opinions, however misguided, usually happens within a week" is not the mark of a zealot. "I wonder how long it will take the M$ team to start churning out response articles alleging that Open Source is destroying capitalism" however is the mark. The classic dollar-sign substitution, and the outlandish "destroying capitalism" claim, which to date, Microsoft hasn't actually said.

      Yes, open source is in competition with Microsoft. Microsoft responds with it's press releases stating how it is better than open source. This is business, not a cheer leading squad. People who post dumbass comments about "Micro$oft" being evil and bad really need to graduate high school, drop the pom-poms, and start being constructive and real.

      --
      Dacels Jewelers can't be trusted.
    8. Re:Getting the corporate word out by djwavelength · · Score: 1

      I wonder what single thing tripped off this new trend

      There was this post by this guy on usenet about he was gonna write an OS that was like minix...

    9. Re:Getting the corporate word out by sohp · · Score: 1

      I dunno, but I'll bet Malcom Gladwell's book, The Tipping Point, might have some insights. "a book that presents a new way of understanding why change so often happens as quickly and as unexpectedly as it does."

    10. Re:Getting the corporate word out by runderwo · · Score: 0, Troll
      I realize that you may not be willing to look at this objectively, but:
      There are some juicy Bill Gates quotes in this article.

      You accuse others of rabid zealotry, but maybe you might want to sit back and consider the possibility that Microsoft really is using McCarthy-style propaganda and scare tactics, instead of competing in the marketplace. Sure, it's their right to do so, just as it's my right (and the collective right of the rest of their targets) to ridicule them for it.

    11. Re:Getting the corporate word out by machine+of+god · · Score: 2, Insightful

      hey, if there were no zealots, then the moderates would suck.

    12. Re:Getting the corporate word out by Anonymous Coward · · Score: 0

      You know, that was a good comment, the second half is pure troll though, why did you ruin a good comment by acting like a 10 year old with the m$ shit?

    13. Re:Getting the corporate word out by Xerithane · · Score: 2

      You accuse others of rabid zealotry, but maybe you might want to sit back and consider the possibility that Microsoft really is using McCarthy-style propaganda and scare tactics, instead of competing in the marketplace. Sure, it's their right to do so, just as it's my right (and the collective right of the rest of their targets) to ridicule them for it.

      I'm not disputing Microsoft's counter tactics, they are playing in a very tough game. The only thing that they really have going for them is that major corporations are not backing open source, which is changing. What I am saying is that writing things like "Micro$oft" is, at best, stupid. It really makes the person look like a high school cheerleader.

      --
      Dacels Jewelers can't be trusted.
    14. Re:Getting the corporate word out by 10am-bedtime · · Score: 1
      i'm sure high school cheerleaders (who apparently work very hard for the limited attention span budget of the high school population) would understand economic arguments about how "free" (no matter the sense) is a bitch to compete against. who knows, maybe it is the experienced who choose to deride usloth, in addition to the pom-pom wielders and gratuitous spewers, whose pseudo-jaded facade is of course easy to spot.

    15. Re:Getting the corporate word out by cmacb · · Score: 2, Interesting

      I would guess that the industry rags are no longer getting the bulk of their ad revenue from Microsoft or any of its competitors. Instead the ads are selling web services, routers, CRM applications, and other things in which Microsoft is not a player.

      These publications can aford to be brutally honest with everyone except their one or two largest advertisers and I bet Microsoft is no longer in that club.

      Anchordesk continues to say glowing things about Microsoft products though, and almost every issue comes with an ad from Redmond. Coincidence?

    16. Re:Getting the corporate word out by 4of12 · · Score: 1

      No question that this kind of piece represents a landmark in the progress of open source software.

      For me, the most significant landmark will be when the Linux kernel dev mailing list starts getting contributions from someone at microsoft.com.

      A few other things (involving pigs and snowballs) will probably transpire before that time comes, though, I'm sure.

      --
      "Provided by the management for your protection."
  2. Wow by stanmann · · Score: 5, Funny

    DARPA supports BSD, and now big business buying Open source. Either sanity is breaking out everywhere or the apocolypse is coming soon to a planet near you.

    --
    Food not Bombs is a nice platitude but it breaks down when you notice that the Bombees are usually well fed
    1. Re:Wow by rusty0101 · · Score: 1

      I think it will take a few more, and even more impressive, events, but perhaps we are looking at the end of the Crazy Years?

      -Rusty

      --
      You never know...
    2. Re:Wow by Anonymous Coward · · Score: 1, Funny

      Seriously folks, April Fools was a week ago.

    3. Re:Wow by matvei · · Score: 1

      The joke was fine but it was your sig that cracked me up, thanks for the laughs :-)

    4. Re:Wow by Anonymous Coward · · Score: 0
      PLANET X is coming! YAY!

      SARS was designed by the reptiloids to genetically modify the mehum swarm!

      Bush to send protestors to cocentration camps, start WWIV!

      Three more years to 2012!

  3. yea, but how? by matt4077 · · Score: 4, Interesting

    I run a moderately-sized software company.

    We use a lot of open source software, so I'm always looking for good ways to contribute to the oss-movement, but the consequences are too difficult to judge.

    We actually thought about making our source open for the benefit of non-profit organisations (it's a project-management software).
    Has anybody made any experience with something like this? We are talking about enterprise-level software here, not your average free-for-students-ide.

    1. Re:yea, but how? by MAXOMENOS · · Score: 1, Insightful
      You could try what Zimmerman did with PGP: license it for free for non-commercial and personal use, and offer a commercial version. It made PGP a de-facto standard until only very recently.

      The downside is, Zimmerman's employers didn't have much commercial success during the recession.

    2. Re:yea, but how? by Ogerman · · Score: 4, Interesting

      We actually thought about making our source open for the benefit of non-profit organisations (it's a project-management software). Has anybody made any experience with something like this? We are talking about enterprise-level software here..

      I think it depends on how much your revenue stream relies on this software. It also depends on how similar your software is to existing free solutions (there are dozens of OSS project management packages, for example..) I firmly believe that there is plenty of money in providing free software, but you can't just jump right into it blindly without first thinking about how you're actually going to make money. (assuming the software *itself* is currently a significant source of revenue.. if not, there's no excuse for it to be closed) In my experience, customers have two criteria when choosing software: 1.) a solution that works perfectly for their needs and 2.) software that is reliably supported in case something goes wrong or the sysadmin quits or whatever. Neither of those require proprietary licensing to find a market. It's all about TCO. If you don't charge money for licensing, you can afford to charge *more* for support / customization services as long as what you offer is still overall cheaper / better than your competitors' solutions.

      It is true that some potential customers will choose to free-ride on the software if it is openly licensed. However, those who do this also tend to be the ones with enough technical experience to contribute back.. to fix your bugs, offer valuable suggestions, or even add features that paying customers will then enjoy. And if not, there's no reason to feel like you must support them in any way. They're using the software as-is and if they need help, they must pay for a support contract.

      Choice of open source licenses is also important. Using the BSD license potentially helps your proprietary competitors and should be avoided. (it allows them to take your code, modify it, and then *sell* it as a different and closed-source product.) GPL and many others force modifications to be re-released to the community. So even if a competitor was to decide to base their business on software you originally developed, they can't claim any rights to modifications and improvements. All they can do is offer competing support services. In practice, this is unlikely because they will lack credibility, product image, and your own intimate knowledge of the code. There are, of course, other licensing choices. You can, for example, forbid forks of the code into new projects or require that the certain trademarks, product names, and credits remain intact. Technically, this makes the software less than free, but it's still better than closed source from a purist perspective.

      And remember, you can always experiment.. try opening up some software and see how it goes. Good luck! (:

    3. Re:yea, but how? by jaaron · · Score: 1

      We use a lot of open source software, so I'm always looking for good ways to contribute to the oss-movement, but the consequences are too difficult to judge.

      Perhaps you're looking in the wrong spot. I think the article is pointing out that if you use OSS, then contribute back to that project, not necessarily open source your own project.

      For example, where I work we do a lot of Java Enterprise Development. Most of it is in house stuff and it's closed source. But we use A LOT of open source projects, mostly from Apache (like the jakarta subprojects). Consquently, if we find bugs in the apache software, we return the fixes back to the community. If we happen to need a particular feature that isn't very specific to us, we consider adding back to the community in general. This doens't mean we open source our final product, it just means we work with the communities that have helped us.

      There's other ways of contributing -- like offering hosting, testing, documentation, etc. Running a (large) successful open source project takes a lot of work. Consider a donation of some sort to the developers. These are all ways a corporate entity can contribute back to the open source world without having to give away your own code (which I think is understandable).

      --
      Who said Freedom was Fair?
    4. Re:yea, but how? by new-black-hand · · Score: 3, Informative

      Carefully consider this, it could make or break your business if you do not proceed carefully.

      Take some time out to read:

      The Magic Cauldron
      Open Source: A Case for Business
      Zope: How we reached the decision
      Open Source as a Business Strategy

      There is a lot more information on the topic, feel free to email me if you need a hand with anything

    5. Re:yea, but how? by Anonymous Coward · · Score: 0

      "shiny liberal ass"

      Implying it's well-buffed? ;-)

      (it's a *joke* people!)

    6. Re:yea, but how? by plierhead · · Score: 1
      We actually thought about making our source open for the benefit of non-profit organisations (it's a project-management software). Has anybody made any experience with something like this? We are talking about enterprise-level software here.

      You can always find a bunch of open source zealots who will claim that any software should be open sourced. Typically they are not the people responsible for making payroll each month.

      I think determining the suitability of a given system for open source can be based on the ratio of configuration switches on the outside to genuine functionality on the inside. Call it the "fiddle factor".

      Something that is complex to configure or make use of, but does not do all that much, has a high fiddle factor and is a good candidate for open source. The reasons being that a) anyone else can build it so theres not much margin in the software, and b) theres plenty of consulting money to be made fiddling with the switches.

      Classic examples include web servers, application servers and operating systems.

      On the other hand something that has a low "fiddle factor", ie its reasonably pre-packaged and not too complex to get going, but has a massive amount of underlying functionality, is a bad candidate for open source. The money needs to be made off the software itself.

      The classic server example of this is truely high-volume and availability database systems such as Oracle (plse spare me the rants about MySQL). Or on the desktop, packages such as Visio drawing which conceal hideous complexity beneath a nice UI.

      Then there is another category of stuff that could well be open source except that it is in a domain that geeks are utterly uninterested in or unknowledgable about, for example CRM systems, Healthcare systems, name virtually any fairly specialized area.

      It all depends on your software and market.

      --

      [x] auto-moderate all posts by this user as insightful

  4. This corporate angle... by Anonymous Coward · · Score: 5, Informative

    ...has spawned a whole magazine already. That does certainly suggest Linux is ready for prime time.

    1. Re:This corporate angle... by Anonymous Coward · · Score: 0
      there's also an article I've just noticed written by the contributing editor to that new magazine. Very useful insight into how to sell Open Source to management: he says the secret is to manage two little words: "Fear" and "Greed"

      How true is that!

  5. Security Risk? by BarryJacobsen · · Score: 3, Interesting
    We're now trying to set up [an online] repository of which state agencies are using open source and for what projects

    So you're going to create a database telling people exactly what software government agencies use and give them the code. Does anyone else see this as a security risk?
    1. Re:Security Risk? by Daniel_Staal · · Score: 4, Insightful

      No. An attacker can already find out, (It is not hard usually.) and this way people can directly contribute to those projects in use in their area.

      And they can also check to see if it would be making errors that would affect them. And fix them. This is an advantage.

      --
      'Sensible' is a curse word.
    2. Re:Security Risk? by rusty0101 · · Score: 4, Insightful

      So businesses and govornments are going to use software that anyone can see the source code for. Does anyone else see this as a security risk?

      Of course knowing exactly what software a government agency uses poses a potential security risk. At the same time this gives people who are monitoring security risks a list of the contacts that it makes a lot of sense to notify when a vulnerability in that code comes up.

      As a comparison point, when code red, nimda, and slammer came out, was there any kind of list of agencies or businesses that should be notified of that fact? I suspect that well over 90% of the agencies and businesses were made aware of the existence of the problem by their own systems responding unusually.

      -Rusty

      --
      You never know...
    3. Re:Security Risk? by Anonymous Coward · · Score: 0

      How's this a security risk? For most functions, government must be as transparent as possible.

    4. Re:Security Risk? by wfberg · · Score: 1
      So businesses and govornments are going to use software that anyone can see the source code for. Does anyone else see this as a security risk?

      Businesses and "govornments" are using hardware, electricity and even a sort of carbon-based lifeforms as employees we all know the exact specs of (well almost in the latter case). How is that for a security risk?

      If only government employees were closed source mutants that can't get infected with anthrax and run off of 431.8 Volts!

      --
      SCO employee? Check out the bounty
    5. Re:Security Risk? by timeOday · · Score: 1
      That's why I argue strongly for the status quo.


      Sure, it's a safe bet that your favorite govt. agency is currently using a Microsoft enterprise application to exchange email and calendaring information. But WHICH ONE! Ha! Which is why the so-called "email virus" remains a mythical notion.

  6. Not exactly news ... by jc42 · · Score: 5, Insightful

    Back in the 70's, IBM came out with their VM meta-OS. Its origins were in academia, not in IBM's shops, and in all the installations that I saw, it always came with full source. They actively encouraged customers to submit not just bug reports, but fixes, which were then sent out to other customers.

    In one place that I worked around 1980, there was a big IMB mainframe, and one day we brought in some Amdahl people to demo their unix that ran on VM. One question was whether source was available. Their answer was "The source isn't an option; you get it whether you want it or not." Within a couple of weeks, I'd made a small fix to the kernel's clock routine (needed because the turkeys who ran our VM had screwed up their clock in a way that Amdahl's people hadn't conceived of ;-). I emailed the fix to the Amdahl support people, they thanked me, and it was in their next set of patches.

    Closed source was to a great extent an invention of Microsoft. Before them, it was obvious to even the stupidest manager that it was a good idea to make source available to any programmers who could understand it. That way, you got bug fixes rather than bug reports.

    It's actually a bit strange that we now have management that doesn't understand this. What are they teaching them in business schools these days?

    --
    Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    1. Re:Not exactly news ... by rusty0101 · · Score: 2, Insightful

      The business schools that are being funded by Microsoft, or the business schools that are being funded by the Open Source community?

      --
      You never know...
    2. Re:Not exactly news ... by net_bh · · Score: 1
      I am not a Microsoft-lover, infact quite the opposite, but your assertion that Microsoft invented closed-source seems flawed.


      I think that credit would go to IBM, with their mainframe OSes, dont you think? IBM was selling many of those machines much before M$ came into the picture.

      --
      There is no patch for stupidity

      Visit my blog

    3. Re:Not exactly news ... by _Sprocket_ · · Score: 1


      I think that credit would go to IBM, with their mainframe OSes, dont you think? IBM was selling many of those machines much before M$ came into the picture.


      So are you disagreeing with the parent post's claims? First paragraph reads:

      Back in the 70's, IBM came out with their VM meta-OS. Its origins were in academia, not in IBM's shops, and in all the installations that I saw, it always came with full source. They actively encouraged customers to submit not just bug reports, but fixes, which were then sent out to other customers.

      Or do I misunderstand the reference to a "mainframe OS"?
    4. Re:Not exactly news ... by sheldon · · Score: 4, Insightful

      "Closed source was to a great extent an invention of Microsoft."

      Microsoft has created many inventions, but closed source is not one of them, neither are ridiculous licensing practices and so on and so forth.

      That being said, I'd like to understand how you're going to solve the problem of receiving payment for software? Pretend for a moment that we aren't living in the world of proprietary hardware like Sun, IBM, etc and you therefore don't receive revenues from such...

      I think the idea of Open Source, being that the source code is available with the product has great value.

      However people who create software still need to be paid for their work, and the only way to do that is to control dissemination of the software.

      The problem with most open source advocatacy is that they don't address the second issue.

    5. Re:Not exactly news ... by Rick.C · · Score: 5, Funny
      Some historical perspective:

      1964-ish - IBM introduces the 360 line. The competition is RCA/Spectra, Sperry/UNIVAC, and a GE monster that looks like a big brown art-Deco toaster and still uses vacuum tubes. The software is free as in beer/speech. IBM's software only runs on IBM hardware, so why not?

      1972-ish - IBM introduces the 370 line. The software is still free. The competition is non-existant.

      1975-ish - Amdahl introduces the 470 line. It uses IBM's free software with very little modification. IBM shrugs.

      1978-ish - Amdahl's market share steadily increases. They have no software development costs, so their prices are much lower than IBM's. IBM says, "Damn!"

      1980-ish - Hitachi and Fujitsu announce IBM compatable mainframes. IBM cries, "Not fair!"

      1981-ish - IBM's new OS is not free-as-in-beer. Many parts of it are OCO (object code only). Over the next 20 years, most of the OS disappears behind the OCO curtain. (There are no restrictions about reverse engineering, though, because most old systems people can read binaries like they are source, anyway.)

      1982-ish - As mainframes and their software become more expensive, universities opt for smaller computers that run Unix. AT&T makes Unix (and the source code) free to colleges and universities. "Open Systems" becomes the buzzword around IT circles. "Open Systems" is a secret code for "Unix".

      1990-ish - Microsoft announces Windows. Everyone shrugs. There is no source, but you can get a copy of the diskettes from just about anyone you know. ;-)

      1996-ish - An internal IBM group asks what can be done to stem the Unix tide. The answer: open up your source code. Nothing comes of this effort. 2000-ish - First Hitachi, then Amdahl/Fujitsu drop out of the IBM compatable mainframe market. IBM snickers.

      2001-ish - Microsoft gets serious about copy protection and authentication. An internal Microsoft memo asks, "Where's the source?"

      2002-ish - Microsoft gets serious about security. An internal Microsoft memo questions whether there is any source.

      Present - Universities still teach "Computer Science" which is heavy on theory. They need source code. They get source code with Unix/Linux. Students learn Unix/Linux. Students graduate and work for companies. The new graduates push for Unix/Linux because that's what they know. Companies continue to lean toward Unix/Linux. IBM says, "Damn!" Microsoft copyrights "Damn!" and says, "Damn!"

      --
      You were 80% angel, 10% demon. The rest was hard to explain. - Over The Rhine
      "Math in a song is good."-Linford
    6. Re:Not exactly news ... by runderwo · · Score: 3, Insightful
      That being said, I'd like to understand how you're going to solve the problem of receiving payment for software?
      You don't receive payment for the software. It's that simple. It becomes a commodity.

      How do you make money as a software company? Two ways. 1) Dual license GPL and sell a proprietary-friendly license. The GPL gets you the community, the proprietary-friendly license gets you the money. 2) Develop new features under contract. There are many ways to structure this, use your imagination. For example, customer wants a new database feature in MySQL. MySQL AB says "place a bid on it and we'll tell you if it's do-able or not". Customer says "$xx,xxx" and MySQL AB says yes or no based on that number and their development resources.

      No, you don't maintain control over when and where your software gets distributed. That's the tradeoff you make to receive community effort and goodwill in return, towards building a better product and giving customers what they want.

    7. Re:Not exactly news ... by Catiline · · Score: 1
      However people who create software still need to be paid for their work, and the only way to do that is to control dissemination of the software.
      You haven't read Eric S. Raymonds' essay "The Magic Cauldron", have you? He lists seven case studies in profitable open source with the names of companies that make money utilizing (or in his opinion could make more money moving to) a an open source method. I'll let you find his essay to read all seven--I'm presenting here just the two most compelling success stories.

      Firstly consider the RedHat "services" route: our software is free, but you pay for {automated updates|technical support|etc}. Red Hat is making money in this are-- and since they are a public company the facts are available to prove that point.

      Secondly consier the O'Reilly/IBM "accessories" route: we have a side business publishing free software (PERL, JFS) but that is mostly to garner good will in our primary business of selling {books|hardware|etc}. Here, too, we have undeniable proof of profitability.

      I generally don't adress profitability myself in my advocacy -- I refer people to (what I consider to be) the definitive research on the topic.
    8. Re:Not exactly news ... by machine+of+god · · Score: 1
      What are they teaching them in business schools these days?

      Maybe it's "don't give away the thing you sell"...

    9. Re:Not exactly news ... by ClosedSource · · Score: 1

      "Closed source was to a great extent an invention of Microsoft."

      Well, I guess when you add the phrase "to a great extent" just about anything could be true. The fact is that MS was not the first company to keep it's source code private and consequently did not invent closed source. Perhaps you work for the US patent office and therefore have no sense of prior art.

    10. Re:Not exactly news ... by schon · · Score: 1

      I'd like to understand how you're going to solve the problem of receiving payment for software?

      I'd like to understand you you're going to solve the problem of carpenters receiveing payment for building houses?

      Or of Archetects receiving payment for designing them?

      Or of doctors receiving payment for treating the sick?

      Hint: Software is really a service industry. Even Microsoft is beginning to catch on to this.

    11. Re:Not exactly news ... by net_bh · · Score: 1

      This is great stuff! This is what i was alluding to in my previous posts, though w/o this beautiful timeline.

      --
      There is no patch for stupidity

      Visit my blog

    12. Re:Not exactly news ... by solferino · · Score: 1

      There is a rather major difference between the situation you describe in the 70's and the situation now - in those days the source code was still controlled by the hardware manufacturer (IBM, Amdahl etc), and any patches you submitted became part of their 'intellectual property' (to use that corporate-mindset word).

      Now major software such as GNU/Linux, FreeBSD, Apache, Samba, MySQL etc are under licenses that effectively keep access to the codebase open and free from any ultimate control by one single entity, i.e. the 'hostage' situation has been defused.

    13. Re:Not exactly news ... by sheldon · · Score: 1

      "You haven't read Eric S. Raymonds' essay "The Magic Cauldron", have you?"

      Eric S. Raymond's way to profit is to be a loud mouth, get himself hooked up with a company about to do an IPO during the dot-com bubble, and get himself a bunch of free stock.

      He's yet to actually do anything successful with his life that created value.

      "I generally don't adress profitability myself in my advocacy -- I refer people to (what I consider to be) the definitive research on the topic."

      Which there is, of course, no definitive research.

      Simply put... I look at companies like Adobe, Symantec, Microsoft, Computer Associates, Compuware and so on and so forth and I see extremely successful companies following a particular model.

      The Open Source advocates keep pointing to me to small mom & pop shops, or companies whose Return On Equity is less than 1%.

      Wishful thinking isn't success.

    14. Re:Not exactly news ... by sheldon · · Score: 1

      "I'd like to understand you you're going to solve the problem of carpenters receiveing payment for building houses?"

      There doesn't seem to be a problem. Carpenters only work for people paying them, and very few people receive free houses.

      "Or of Archetects receiving payment for designing them?"

      Architects are very protective of their work. They will and have sued people for using their designs without payment.

      "Or of doctors receiving payment for treating the sick?"

      Again, not a problem.

      "Hint: Software is really a service industry. Even Microsoft is beginning to catch on to this."

      Microsoft has always realized that.

    15. Re:Not exactly news ... by dvdeug · · Score: 1

      However people who create software still need to be paid for their work, and the only way to do that is to control dissemination of the software.

      Bull. Lots of people get paid to write software which doesn't have controled dissemination. RedHat pays them, IBM pays them, SuSE pays them, Sun pays them, a bunch of companies pay them. How far it will extend, and in what ways, is a good question, but it's clear that selling shinkwrapped boxes and support is one solution, as is selling customizations to the customer's needs.

    16. Re:Not exactly news ... by Jason+Earl · · Score: 1

      It's somewhat funny that your list of software companies would miss software giants like IBM, HP, Sun, and Oracle, all of which are now actively selling Free Software based systems. HP and IBM have both tossed out the word "billion" when talking about Linux revenues.

      Besides which, for every Adobe or Symantec, there are hundreds of commercial software companies that have gone bankrupt. So pretending that commercial software is some sort of Yellow Brick Road to software fortune is more than a little misleading.

      The fact of the matter is that the only way to realistically compete with the entrenched commercial software vendors is to offer more than they do, at a lower price. Free Software is one method that appears to be working.

    17. Re:Not exactly news ... by zero_offset · · Score: 1
      No, you don't maintain control over when and where your software gets distributed. That's the tradeoff you make to receive community effort and goodwill in return

      And all you have to do is browse /. and sourceforge to get a pretty clear idea, respectively, of how little that "community and goodwill" is actually worth. Hint: It won't make up for giving away the product of your labor.

      OSS is great for hobbyist level projects (which can be very complete, very useful applications), but real world examples of significant, successful all-OSS software companies which sell an OSS product they created are few and far between (and I don't mean Yet Another Linux Distro Company) -- if they exist at all.

      --

      Slashdot quality declines as the number of hot grits posts decreases. - Provolt's Law, Apr-09-2005

    18. Re:Not exactly news ... by Catiline · · Score: 1
      HP and IBM have both tossed out the word "billion" when talking about Linux revenues.
      I'm not going to contest this statement, but I'd like to point out two things:
      1. The $billion figures most people are familiar with with IBM & such is their investment figures; I avoid mentioning such cases first in case the other person misunderstands what I am saying.
      2. IBM and (to a lesser extent) HP are hardware behemoths that can afford a large loss leader product. (Just look at Microsoft, where the OS and Applications divisions "prop up" everything else.) Again, to avoid misunderstandings I avoid the large scale cases where the other person might conclude the corporate strategy involves software as a loss leader.
      In my experience, if you want to "prove" to someone that Open Source/Free Software is profitable, you don't start with the gargantuan multinational businesses where economics work differently, but the small/medium sized ones.
    19. Re:Not exactly news ... by Jason+Earl · · Score: 1

      Money is money, it doesn't really matter who is making it. In fact, the article I was responding to derided the success of "Mom and Pop" software houses.

      The fact of the matter is that there are a lot of businesses that are making money from Free Software. Free Software allows smaller development houses to offer their customers custom software at a pre-packaged price. In many ways the real benchmark isn't who is making money, but who is saving money. There are many more businesses that are saving money by using Free Software. Merril Lynch is an example of a business that has been very vocal about the money it has saved.

      Now, it certainly is true that none of the Free Software developers are ever likely to have the ridiculous profit margins that Microsoft currently enjoys, but my guess is that Microsoft isn't going to be able to hang onto those profit margins forever. Linux is going to continue to gain ground, and the only way that the commercial software vendors are going to be able to fight Free Software effectively is to lower their profit margins. In the next couple of years software prices are likely to drop dramatically, whether you are talking about proprietary software or Free Software.

    20. Re:Not exactly news ... by runderwo · · Score: 1
      And all you have to do is browse /. and sourceforge to get a pretty clear idea, respectively, of how little that "community and goodwill" is actually worth. Hint: It won't make up for giving away the product of your labor.
      Many companies who live by the "give away the razor, sell the blades" model would disagree with you. In addition, people hacking on a piece of software because they love it and demanding no pay in return is all the more value added to the product at no cost to the company.

      As far as the service and support aspect being valuable: a source tarball is useless in and of itself. It requires time and effort to build a working, ready-to-rollout service from open source code.

      Your company can either pay people to do that as well as in-house verification that everything compiled correctly, and maintenance for upgrades and all that, or pay for a support contract which will probably be far less than the number of full-time employees you'd need to maintain a program that you obtained "free-as-in-beer". In addition, with a support contract you have (ostensibly) knowledgeable experts to consult at any time, where without one you are depending on your programmers and admins having all the knowledge they need to quickly and reliably fix any problem they might run across.

      The number of current successful companies is irrelevant to the question of whether free software can be capitalized upon or not. It's all about finding the right business model within a free software content that fits your particular product. So far, few have done so, but the numbers are growing, not declining.

    21. Re:Not exactly news ... by crexrocket · · Score: 1

      You said: "That being said, I'd like to understand how you're going to solve the problem of receiving payment for software?"

      It really depends on your company and how you make money. If you use software in your business, you owe it to yourself to determine how it is that you make money. If your software is not a revenue generator, you may very likely benefit from opening source.

      However, just because you actually do sell software doesn't mean that you can't benefit from open source. Of the software companies I've worked for, in at least two cases I can see that those things that secure the sale are services and support, not the software itself. If the main reason customers buy your software is because of your excellent support, you may have a case to open the source, even though you make money by selling the software that you are opening up.

      There's no single answer for all companies, and there will be cases where it doesn't make business sense to open source (at least not yet). But I maintain that any company who develops software, whether to sell or for internal use, owes it to themselves to understand open source and investigate whether contributing could, in fact, be of a mutual benefit. They might be surprised at the result.

    22. Re:Not exactly news ... by zero_offset · · Score: 1
      Last time I checked, a reloadable razor was often far more expensive than it cost to produce, usually has the razor attachment/release mechanism patented, and if you copied the design (the appearance) you'd find yourself in court pretty fast. They aren't giving away the razor by any stretch of the imagination. That example would be more like buying IBM's DB2 (a big-dollar razor) and then hiring IBM's consulting services (the blades) to help you implement it.

      Besides, the comment I replied to took the very common position that it's somehow a good idea for a software company -- meaning a company that comes up with an idea and produces the software -- to give away the product of it's labor -- the software it wrote. Pursuing that context, I merely pointed out that there are no good examples of this leading any business to noteworthy success.

      --

      Slashdot quality declines as the number of hot grits posts decreases. - Provolt's Law, Apr-09-2005

    23. Re:Not exactly news ... by sheldon · · Score: 1

      "HP and IBM have both tossed out the word "billion" when talking about Linux revenues. "

      HP and IBM are hardware companies. Most people I know of do not wish to go back to the days of being beholden to proprietary hardware. If you do, why don't you just go buy a Macintosh and leave us alone.

      "Besides which, for every Adobe or Symantec, there are hundreds of commercial software companies that have gone bankrupt."

      But for every Adobe and Symantec there are thousands of commercial software companies that are profitable that you've never heard of.

      "So pretending that commercial software is some sort of Yellow Brick Road to software fortune is more than a little misleading. "

      I never claimed it was. *YOU* however are claiming the way to fortunes using Open Source is easy... well that is, as long as you give up on the idea of making money and beholden yourself as a slave to someone elses profit lines. (hardware or tax dollars as it were)

      "The fact of the matter is that the only way to realistically compete with the entrenched commercial software vendors is to offer more than they do, at a lower price."

      Ahh, capitalism... isn't it wonderful?

      That's exactly how you compete, and the consumer benefits because they get a better product while spending less money!

      "Free Software is one method that appears to be working."

      Unfortunately Free Software offers less, for free. This is good enough for some people, but it's certainly not much of a driving force towards innovation. For the long term robustness and growth of our industry, Free Software is just a bad idea.

      I'm just tired of the bullshit.

      The proof is in the pudding, as it were... Enough with articles proclaiming the success of Linux is right around the corner. Bring me the meat. Show me that Open Source is an effective business model from which you can build a multi-billion dollar company and employ thousands of developers.

    24. Re:Not exactly news ... by Jason+Earl · · Score: 1

      HP and IBM are hardware companies. Most people I know of do not wish to go back to the days of being beholden to proprietary hardware. If you do, why don't you just go buy a Macintosh and leave us alone.

      What does it matter that HP and IBM are hardware companies if both support Linux? Migrating from one architecture to another is as easy as typing "make." I personally like being able to choose between Intel-based hardware, an IBM mainframe, or SGI's Altix and be able to drag my software along with me.

      I never claimed it was. *YOU* however are claiming the way to fortunes using Open Source is easy... well that is, as long as you give up on the idea of making money and beholden yourself as a slave to someone elses profit lines. (hardware or tax dollars as it were).

      I never said that making money from Free Software was easy. However, when commercial software companies can post profit margins of over 80% it is clear that there is a great deal of inefficiency in the current system. Giving away the source and charging for service and customization seems to be a fairly workable model (especially for smaller development shops).

      Unfortunately Free Software offers less, for free. This is good enough for some people, but it's certainly not much of a driving force towards innovation. For the long term robustness and growth of our industry, Free Software is just a bad idea.

      First of all, competition in the software world has hardly evern been about the best product. The winner has generally been the product that was "good enough" at the lowest price. In fact, this is basically how Microsoft has made their money.

      Second of all, there is plenty of Free Software that has been "innovative." Sure, Linux is currently slavishly copying features from the Windows and Mac desktops, but that has more to do with the fact that not too many years ago GNU/Linux's idea of a desktop application was Emacs than the fact that the commercial competition is particularly "innovative." Free Software also has the advantage is that anyone can build new software from existing Free Software pieces. If I have an innovative new use for Word, then I had better be working for Microsoft, or my idea is stillborn.

      Third of all, Free Software is a great idea for end users of software. You can customize it so that it works precisely how you want. You can contract support from a much wider range of support providers, and you can download and test software without obligation and without paying large fees. In short, Free Software puts the software user back in control.

      The proof is in the pudding, as it were... Enough with articles proclaiming the success of Linux is right around the corner. Bring me the meat. Show me that Open Source is an effective business model from which you can build a multi-billion dollar company and employ thousands of developers.

      Anyone who thinks that Linux and Free Software is going to disappear from the server scene anytime soon is simply not paying attention. The market has spoken, and Linux is definitely part of the software landscape going forward. Folks working on commercial software aren't too happy about how things are working out, but the folks working on Free Software seem pretty happy with their prospects.

      Bob Young of RedHat said it best. I don't have his exact quote handy, but basically he said that his goal was to take a business that was worth billions of dollars a year and turn it into a business worth hundreds of millions a year (with RedHat making a good chunk of that smaller pie). As someone who is primarily a consumer of software, that sounds like a pretty good deal. I don't particularly want to help fund big software companies if I can get software that is "good enough" at a lower price.

    25. Re:Not exactly news ... by runderwo · · Score: 1
      Last time I checked, a reloadable razor was often far more expensive than it cost to produce, usually has the razor attachment/release mechanism patented,
      Look, you're just being obtuse. You know precisely what I meant, in that the razor by itself is useful if you can manufacture your own blades in-house, but otherwise does you no good if you don't wish to do further business with the company. Some companies have the resources to make their own blades (support the razor), others would rather let someone else deal with it.
      I merely pointed out that there are no good examples of this leading any business to noteworthy success.
      Obviously, it depends how you define 'noteworthy'. I define noteworthy success in terms of the respect and admiration of the rest of the industry as well as their customers. Depending how starry-eyed you are, you could say Microsoft meets that criteria, but I don't. If you define 'noteworthy' in monetary terms only, then Red Hat and SuSE are examples of success, as both are turning a profit. Are they making as much as Microsoft? No. However, Microsoft had a 20-year head start on these guys. If they can sustain a profit and grow, then that's successful enough for me.
    26. Re:Not exactly news ... by sheldon · · Score: 1

      "However, when commercial software companies can post profit margins of over 80% it is clear that there is a great deal of inefficiency in the current system. "

      I am unaware of any commercial software company posting an 80% profit margin. Perhaps you could clarify this claim?

      "Giving away the source and charging for service and customization seems to be a fairly workable model (especially for smaller development shops). "

      Except it promotes crappy software, like what we currently see with Open Source. Software that is difficult to install, difficult to administer, difficult to use... thus encouraging support calls and customization contracting. This isn't in the best interests of consumers.

      All I'm asking for is software that doesn't suck, is that really too much to ask?

      "If I have an innovative new use for Word, then I had better be working for Microsoft, or my idea is stillborn. "

      Microsoft supports customization using Word through the Office Developer edition. Of those thousands of commercial companies I mentioned, many hundreds of them follow just this model.

      "In short, Free Software puts the software user back in control. "

      It puts geek users back in control, at the expense of software developers. That's the difference, and it's the point you can't seem to grasp.

      All I'm asking for is software that doesn't suck, is that really too much to ask?

      "The market has spoken, and Linux is definitely part of the software landscape going forward."

      Cool, no argument there. The MAcintosh is part of the computer landscape as well. Doesn't mean I want laws passed mandating we buy into it.

      "I don't have his exact quote handy, but basically he said that his goal was to take a business that was worth billions of dollars a year and turn it into a business worth hundreds of millions a year (with RedHat making a good chunk of that smaller pie)."

      Yes Bob Young has definately done a fine job of taking billions of dollars of investment capital and turning it into something worth mere millions.

      "As someone who is primarily a consumer of software, that sounds like a pretty good deal. I don't particularly want to help fund big software companies if I can get software that is "good enough" at a lower price."

      All I'm asking for is the free market to be allowed to work. That means no government laws mandating open source, no government funding of open source, and news based on actual results not speculation.

      In the end I just want software that doesn't suck. Is that really too much to ask for?

    27. Re:Not exactly news ... by Anonymous Coward · · Score: 0

      "Many companies who live by the "give away the razor, sell the blades" model would disagree with you."

      The model of giving away stuff for free and making it up in volume died with the dot com bubble.

    28. Re:Not exactly news ... by zero_offset · · Score: 1
      Obtuse? Bullshit. They make a profit on the razor, as well as the blades. It's different. That's a fact. It's only "obtuse" because it doesn't support your point like you had intended.

      I definte noteworthy as profitable. Your examples of RedHat and SuSE are NOT examples. The discussion is about companies which develop a piece of software, then Open Source it. Neither RH nor SuSE did this, they're leeching off the product of someone else's work.

      I appreciate that you're trying, but you haven't managed to refute the actual argument being presented. If you bust your ass and build an important piece of software, you are unlikely (I say guaranteed to not) recover your expenses and become successful by Open Sourcing the product of your labor. Again, as I said, this works fine and dandy for informal hobbyist style projects, but when it comes to business, you either play the services game and leech off somebody else's work, or you keep it closed in the hopes of making a real profit.

      Nobody ever got rich giving shit away, OSS included.

      --

      Slashdot quality declines as the number of hot grits posts decreases. - Provolt's Law, Apr-09-2005

    29. Re:Not exactly news ... by Jason+Earl · · Score: 2, Interesting

      I am unaware of any commercial software company posting an 80% profit margin. Perhaps you could clarify this claim?

      That's simple. Just take a quick look at Microsoft's public financial statements. They make absolutely ridiculous profits on both Windows and MS Office. Here's a link.

      Except it promotes crappy software, like what we currently see with Open Source. Software that is difficult to install, difficult to administer, difficult to use... thus encouraging support calls and customization contracting. This isn't in the best interests of consumers.

      Linux has actually got quite a bit of high quality software. The desktop software is still maturing, but there is plenty of high quality server software and development tools. Give the desktop a few more years and Free Software will be competitive there as well. You have to remember, in 1995 the only GUI application that Free Software had worthy of the name was Emacs. On the server side, on the other hand, I personally find Linux much easier to admin than Windows, and I come from a Windows background (that's an entirely different discussion).

      It puts geek users back in control, at the expense of software developers. That's the difference, and it's the point you can't seem to grasp.

      The point that you don't understand is that the the folks purchasing software don't care about commercial software developers anymore than they care about buggy-whip makers. If Free Software produces a product that is "good enough" at a lower price, then the market is going to be interested. Free Software is now part of the software ecosystem, and all signs point to it becoming a larger part of the ecosystem in the future.

      Yes Bob Young has definately done a fine job of taking billions of dollars of investment capital and turning it into something worth mere millions.

      Bob Young did an excellent job of selling RedHat as a commercial enterprise, and he was able to raise quite a bit of money in RedHat's IPO. I don't think that RHAT is worth anything near its present Price/Earnings ratio, but I do think that they are quite likely to be profitable in the long run. Not ridiculously profitable, but profitable nonetheless.

      All I'm asking for is the free market to be allowed to work. That means no government laws mandating open source, no government funding of open source, and news based on actual results not speculation.

      Government are somewhat different for two reasons. First of these is that left to themselves government employees tend to purchase $300 hammers (or a quadzillion Oracle licenses). Oversight of government purchases is a good thing, and making government employees cost justify their software purchases is a definite benefit for the taxpayer. This is true if the government employee is purchasing Oracle licenses, or paying for customizations to the Linux kernel. However, I think that this is likely to get worked out in the long run by companies like IBM and Sun that know how to sell software to the government. The fact of the matter is that quite a few of the larger software firms are some of the major catalysts for a push towards more Free Software.

      The second reason that governments are different is that governments can force people to use a particular piece of software. For example, if my county clerk wants all digital documents in WordPerfect format, then sending a Word document isn't going to be good enough. I think that it is in everyone's best interests to nudge our governments towards open formats. Open formats don't preclude commercial software, of course.

      In the end I just want software that doesn't suck. Is that really too much to ask for?

      I feel your pain. Free Software has a lot of shortcomings. At

    30. Re:Not exactly news ... by runderwo · · Score: 1

      Obtuse? Bullshit. They make a profit on the razor, as well as the blades. It's different. That's a fact. It's only "obtuse" because it doesn't support your point like you had intended.

      I seem to be making you angry. Let me try again with a few different examples that should not offend you. Inkjet printers are sold at a loss or given away through manufacturer rebates. The manufacturer still makes money because they control the distribution of replacement ink cartridges. The Xbox is (or has been) sold at a loss. The manufacturer makes money through the licensing of video games that are (ostensibly) required to make use of that box.

      I definte noteworthy as profitable. Your examples of RedHat and SuSE are NOT examples.

      This is utter nonsense. You define success by profit, and then reject examples of profitable companies as examples of success.

      The discussion is about companies which develop a piece of software, then Open Source it.

      Oh? I suppose you'd need to provide me with some examples where this strategy has failed, since I see nothing but success along this avenue. MySQL used to be a proprietary product and was subsequently opensourced. Sleepycat, the authors of Berkeley DB, maintain a commercial presence for their software which happens to be under a BSD license. Etc, etc, etc.

      I'm not going to sit here and search for examples all day because your attitude seems to be that if I can't guarantee a profit from open source, nobody should touch it. It's a business strategy like any other, and no profit can be guaranteed in any case.

      Neither RH nor SuSE did this, they're leeching off the product of someone else's work.

      I can't sit here all day and refute clear falsehoods, but here's a few examples from the aforementioned: RH employs kernel engineers, SuSE employs ALSA, Wine, and Openoffice guys. It is in their best interests to improve the existing products because then they have a better product (as a sum of software, support, and maintenance) to sell to their customers.

      Again, as I said, this works fine and dandy for informal hobbyist style projects

      Excuse me? Apache? PostgreSQL? XFree86? Perl? Linux? BIND? Debian? Mozilla? gcc and glibc? These are "hobbyist style" projects to you??? You should read the mailing lists sometime and realize just how much management and structure has to exist for these projects to survive. Products like Red Hat, with thousands of stockholders' and employees livelihood on the line, are certainly not "hobbyist style" in any sense.

      Just because these things aren't marketed as pure gold and sold in bite-size chunks doesn't imply that they are cheap hacks, any more than the fact that Microsoft spends billions on marketing implies that its products are top-notch quality.

      you either play the services game and leech off somebody else's work, or you keep it closed in the hopes of making a real profit.

      Sure, you keep it closed and hope for a profit. Just like you open your code and hope for a profit. See the similarity? There's no guarantee either way.

      Nobody ever got rich giving shit away, OSS included.

      Two problems with this statement. 1) Not everyone's goal is to "get rich". Some people have a goal of building a better society. Others have a goal of building good software. In both cases, frequently people form corporations to pursue those goals.

      Your argument that "nobody got rich from giving things away" is a tautology, because the richest people tend to be the ones that keep the tightest control over the production and distribution of their goods. If your goal is simply to be rich, then by all means your best option is to keep your code closed and hope people believe your marketing. However, being rich doesn't mean that you are influential or successful beyond pure financial benefit for yourself.

      Many of

    31. Re:Not exactly news ... by sheldon · · Score: 1

      "That's simple. Just take a quick look at Microsoft's public financial statements. They make absolutely ridiculous profits on both Windows and MS Office. Here's a link [yahoo.com]. "

      You better check your facts again...

      Microsoft had $30 billion in revenues, with about $10 billion in net profits. 30% is a pretty high profit margin, but it is nowhere near the 80% you claimed.

      "Give the desktop a few more years and Free Software will be competitive there as well."

      People have been saying this since 1992, the problem is the competitors are improving at an even more rapid rate.

      "On the server side, on the other hand, I personally find Linux much easier to admin than Windows, and I come from a Windows background (that's an entirely different discussion). "

      I disagree, and I come from a Unix background.

      "The point that you don't understand is that the the folks purchasing software don't care about commercial software developers anymore than they care about buggy-whip makers."

      The people buying the software? No. The people selling software? Well I can tell you this... Microsoft cares a lot more about it's developers than Redhat ever has.

      "If Free Software produces a product that is "good enough" at a lower price, then the market is going to be interested. Free Software is now part of the software ecosystem, and all signs point to it becoming a larger part of the ecosystem in the future. "

      What signs? The distorted articles you read here on slashbot? Linux growth has been stagnant since 1999, it's actually decreased over the last couple of years of this recession as companies have not been willing to take as great of risks.

      "Oversight of government purchases is a good thing, and making government employees cost justify their software purchases is a definite benefit for the taxpayer."

      I'm not talking cost justification, I'm talking mandated financing of open source development by way of government grants. The Redhat law which tried to outlaw commercial software in California for example.

      If Free Software were competitive, the free software advocates would not need to resort to these low tactics.

      "Unless you can convince thousands of Free Software developers to take up a different hobby you might as well get used to the idea of a world in which Free Software is an important part of the software ecosystem."

      Ok, you don't seem to be getting it.

      I don't care if developers want to spend their time writing software for free. I do this myself.

      What I do care about is people being coerced into giving away their software for free... trying to force the government into funding such development using tax dollars and so forth.

      Above all I really am opposed to the distorted commentaries you find on slashdot which try to claim Linux is more popular than it actually is.

      You need to get out more.

      "Merrill Lynch likes it so much they are touting how much money they are saving in a major periodical."

      See, there you go again. You realize that commercial vendors issue press releases as well. Doesn't mean I believe everything they say.

      Software is about technology, not religion.

    32. Re:Not exactly news ... by Jason+Earl · · Score: 1

      If you would have clicked on the link that I provided you would have noticed that the divisions that produce Windows and MS Office do indeed have profit margins of well over 80%. Microsoft server software generates a profit margin of about 43% and the rest of Microsoft's divisions lose money (a lot of money).

      If you would have read the actual article you would have noticed that it was about Merrill Lynch, a non-government entity, and how they are saving huge money with Free Software. Why exactly would they lie about this? It's one thing to disbelieve a commercial software developer (like Microsoft); they make promises all of the time that they can't keep. After all, they want you to buy their software. It's quite another to disbelieve a software customer. What would be Merrill Lynch's reason for lying?

      As for the rest, well, you can believe that Linux use isn't growing, if that is what makes you happy. While you are at it feel free to believe that the moon landings were elaborate fakes.

    33. Re:Not exactly news ... by sheldon · · Score: 1

      "If you would have clicked on the link that I provided you would have noticed that the divisions that produce Windows and MS Office do indeed have profit margins of well over 80%. "

      But your claim was companies with 80% profit margins. It is not at all unusual for certain divisions of companies to have high margins and other divisions to be taking losses. This is the nature of business.

      "Why exactly would they lie about this?"

      It's not that they lie, it's just that they don't tell the whole story. That's the nature of press releases.

      "As for the rest, well, you can believe that Linux use isn't growing, if that is what makes you happy. While you are at it feel free to believe that the moon landings were elaborate fakes."

      That's interesting.

      With the moon landings we have evidence, thus I can confirm the stories.

      With the Linux stories we have... well wishful thinking.

    34. Re:Not exactly news ... by Jason+Earl · · Score: 1
      What the heck are you talking about. There is plenty of evidence that Linux usage is increasing. Heck, ask Dell, HP, or IBM, they'll tell you. Businesses are definitely looking at Linux. Don't believe me, well perhaps you'll believe the March 15 issue of CIO. Take your time, there are quite a few articles that you probably should read.

      Now, I would certainly agree that Linux hasn't achieved Total World Domination. However, no one that's paying any attention at all to the server market can pretend that Linux isn't making a serious impact. You may not like that fact, but saying that it isn't so is just ridiculous.

    35. Re:Not exactly news ... by sheldon · · Score: 1

      "What the heck are you talking about. There is plenty of evidence that Linux usage is increasing."

      You know those IDC reports the Linux zealots were trumpeting back in 1999? The last several years they've shown declining growth.

      "However, no one that's paying any attention at all to the server market can pretend that Linux isn't making a serious impact. "

      10% market share is certainly nothing to sneeze at... but it's nowhere near widespread as you believe.

      "You may not like that fact, but saying that it isn't so is just ridiculous."

      I don't really care. What I don't like is people claiming things which are obviously not true for some weird political gain. All I ask is you back up your statements with facts, not anecdotal evidence and links to opinion articles.

    36. Re:Not exactly news ... by Jason+Earl · · Score: 1

      Linux has had several years of declining growth? Where did you get those numbers? Every number I have seen shows that Linux has grown dramatically since 1999. Growth rates might be declining, but that's just part of the numbers game. Going from zero Linux installations to one Linux installation is infinite growth. It's all downhill from there.

      If you clicked on my link that I provided you learned that last year Linux server sales were up 90% from the year before.

    37. Re:Not exactly news ... by zero_offset · · Score: 1
      You're still ignoring the basic point. I was looking for an example of a company which developed a piece of software itself, then open sourced it, and managed to not sink into oblivion. I might be wrong -- it's why I asked for examples. I'm not aware of any. The successful or at least stable open source oriented software companies I'm aware of came along after the fact to build upon the product of someone else's open sourced labors.

      You do make a good point about the difference between open source and free software, though. It's a common mistake and an easy trap to fall into. Understand that I'm not opposed to either idea -- I just don't think it is a sound business practice (strictly in terms of applying it to a product you have created yourself), and I'm not aware of any significant success stories.

      Profit may not be everyone's measure of success, but in this world it's clearly a standard of success in business.

      --

      Slashdot quality declines as the number of hot grits posts decreases. - Provolt's Law, Apr-09-2005

  7. Re:Digital Image? by BarryJacobsen · · Score: 3, Funny

    Actually, I thought it was a geeky Vin Diesel.

  8. Clause... by st0rmcold · · Score: 1, Funny


    Surely they missed the "no sex" clause in the EULA to join the linux community, how else would it be possible?

    --
    Posting useless rant since 2003.
    1. Re:Clause... by Anonymous Coward · · Score: 0

      I disagree.. fat chicks gotta get laid, too, you know.

    2. Re:Clause... by Anonymous Coward · · Score: 0

      Err, a large number of us are married.

    3. Re:Clause... by Anonymous Coward · · Score: 0

      It's not new that gay marriages are legal in North America.

  9. Goodwill as an asset? by Fritz+Benwalla · · Score: 5, Insightful

    This got me wondering.

    Bug fixes and other contributions to open source software are in and of themselves valuable, but creating them will always be an expense to companies. With the exception of major enhancements or improvements very few will be marketable, or generate any other revenue stream for the company.

    "Goodwill" however, is a recognized asset for companies. An asset that can be appraised, and entered on the balance sheet raising the company's value.

    I wonder whether the open source movement could benefit from this aspect of contribution to the community, encouraging companies to create a verifyable and appraisable track record of contributions, and supporting their efforts to create genuine bankable value based on goodwill.

    Just a thought.

    ------

    --

    Believe me, I'm as surprised by my comment as you are.
    1. Re:Goodwill as an asset? by derF024 · · Score: 4, Interesting

      Bug fixes and other contributions to open source software are in and of themselves valuable, but creating them will always be an expense to companies.

      actually, the article talks about exactly this.

      What's the payoff? It makes for better software. "If we find a bug or a problem, we're interested in fixing that problem. We're also interested in not fixing it again in the next version," explains Robert M. Lefkowitz, director of open-source strategy at Merrill Lynch & Co. in New York.

      contributing to open source projects ends up costing these companies less, because they don't need to maintain an internal version of the software.

    2. Re:Goodwill as an asset? by Otter · · Score: 1
      I think you may be taking "goodwill" too literally. It doesn't mean "people think warm thoughts towards you" as much as it does brand names and things like that, that are worth money but intangible.

      Maybe scoring brownie points with some open-source developers would constitute genuinely valuable goodwill, but it would have to be justified on a case by case basis.

    3. Re:Goodwill as an asset? by Beatbyte · · Score: 3, Interesting

      goodwill creates a REPEAT customerbase.

      I would tend to trust and appreciate a company more that has spent its money to better the world of OSS and the world of computing with the interest in making a better product for everyone and not just its customers...

    4. Re:Goodwill as an asset? by aposch · · Score: 0

      Most people I know don't like Caldera (SCO) these days. So do I. But everytime I boot Linux I see that parts of it are contributed by Caldera. So, thanks to their former engagement they get advertising for free. Isn't this a (partly) return of investment?

  10. In related news by Rooked_One · · Score: 5, Funny

    the value of a MCSE drops another 20 G's a year.

    1. Re:In related news by ralphus · · Score: 1
      I was going to say, "The value can drop 20g's and not be a negative integer?" and then I smiled and remembered the difference between intrinsic and market value.

      I wish intrinsic and market value were always the same.

      --
      Revolutions are never about freedom or justice. They're about who's going to be top dog. -- Kilgore Trout
    2. Re:In related news by gid13 · · Score: 1

      It had 20 G's to drop? ;)

  11. What's so revolutionary about this? by gorbachev · · Score: 5, Insightful

    I've been working with a lot of vendors on projects, IBM, BEA, ATG, TIBCO, etc.

    You always find bugs in the products you use. Most of the time you have to develop a fix yourself, because the vendor's release schedule will not enable you to wait for the official fix. It's just good vendor relations to send the fix to the vendor.

    I did that exactly for the same reason Merrill Lynch does that, to get better software.

    Proletariat of the world, unite to kill bugs

    --
    In Soviet Russia, I ruled you
  12. Microsoft is dying by Anonymous Coward · · Score: 0

    Anyone out there want to co-opt the BSD is dying into "Microsoft is Dying"??

    Thanks.

  13. willful ignorance? by Anonymous Coward · · Score: 3, Insightful
    whether those who really think it is, or those that make parody of them I think there is a sad number of people who really believe that OpenSource and free software are contrary to the free market and capitalism. I won't go into a lesson on why but suffice to say that "free" as in beer is a price, "free" as in choice is also a price and one that the free market will give if you ensure that it is indeed a free market (eliminate authoritarian mandaded monopolies and other artificial restrictions). Basically nothing is totally free. You are free to choose whatever software you want. You then give up certain features or interoperability abilities but that is something you factor in. Same goes with price, sometimes you really do get what you pay for.

    Perhaps the problem with this particular form of ignorance is that many really care nothing about freedom and choice and thus promoting the things that provide them. Instead they are the vandals that break just to break. Yes comrade, let us take up arms and uhh... why are we doing this? *BANG* Never question mindless violence my comrade, who is next with these "questions?"

    Please take the politics and personal agendas out of everything you do, especially software. Many are tired of seeing everything laced with your crap.

  14. The Architecture of Participation by GerardM · · Score: 4, Informative

    Tim O'Reilly had an interesting discussion with Adam Turoff on why Open Source communities do work so well.

    http://www.oreillynet.com/pub/wlg/3017

    Thanks,
    Gerard

    1. Re:The Architecture of Participation by Corporate+Gadfly · · Score: 1

      Its a very interesting discussion, however, could you be a little bit nicer next time (and don't make us work harder than we really have to -- lazy by nature, aren't we?) and make it into a link.

      --
      Corporate Gadfly
      Jonathan Archer: the most beaten up Enterprise captain in Star Trek history
  15. Re:so..? by Anonymous Coward · · Score: 0

    'Bastions of capitalism' also need tax write-offs...

  16. Holy freaking crap! by qwijibrumm · · Score: 4, Interesting

    You're trying to tell me that buisnessmen, with their buisness management degrees, in charge of big buisnesses, finally are figuring out the buisness model that is the opensource concept.

    Seriously I'm acctually shocked to see this in the press presented in such a clear and logical manner. Usually when the press refers to any Free/Opensource project they place a little blurb about how anyone can make contributions to the code. Almost never do they drop names of companies/governments who do. I guess this just goes to show after a while people can unlearn the proprietary method of software development.

    Phase 2- get them to realise the idea of Free Software. Let them know it should be their right to change, develop, and distribute code.

    --
    I wish there was some there was some way that I could be outside playing basketball, in the rain, and not get wet.
    1. Re:Holy freaking crap! by perky · · Score: 2, Interesting

      Which "business model that is the open source concept"? ML make money out of investment banking, not from writing software. The fact that they are contributing their fixes probably has more to do with an enlightened mangler who realised that their developers were submitting their patches anyway, so they ought to have an official policy on the matter. This is just good sense, so that ML don't release things that the various groups mentioned in the article would rather stay closed. It in no way represents a business model, and does not directly generate a cent of revenue for the firm.

      --
      "The new wave is not value-added; it's garbage-subtracted" - Esther Dyson, Dec 1994
    2. Re:Holy freaking crap! by luzrek · · Score: 1
      You forgot step three - profit! Oh wait...

      On the other hand, you do have a step 2.

      --

      Galium Arsenide is the material of the future, and always will be.

  17. Motivated Self Interest by defaulthtm · · Score: 5, Interesting

    The most interesting part of this is the reason Merril Lynch gave as to why they posted patches back. They wanted to have a seat at the development table and did not want to have to maintain a fork of the product forever. Certainly not a RMS view of OSS, but one that makes more sense (and dollars) in the long run.

    --
    K
    1. Re:Motivated Self Interest by iabervon · · Score: 1

      The RMS view of Free Software is in opposition to the idea that users use unmodified software only in ways the vendor expects. Users are going to want to do things somewhat differently, and software isn't very useful unless the providers support this. It's clearly beneficial for the users if the providers get the feedback.

      This is really a very RMS-like reason for OSS; it gives the users the ability to use the software effectively, and there is a relatively small role for pure developers compared to that of empowered users who make the changes they need and contribute them. These changes are possible because the source is available and appropriately licensed, and the changes are generated in the normal course of doing business, not as a project with the goal of contributing to the software.

    2. Re:Motivated Self Interest by jonadab · · Score: 3, Interesting

      > The most interesting part of this is the reason Merril Lynch gave
      > as to why they posted patches back. They wanted to have a seat at
      > the development table and did not want to have to maintain a fork
      > of the product forever. Certainly not a RMS view of OSS, but one
      > that makes more sense (and dollars) in the long run.

      RMS, notwitstanding the undebatably significant contributions he
      has made, is full of bologna in regard to this issue. Here's why...

      It's called bitrot, and it's been a known phenomenon for a long time,
      but the speed at which some OSS projects develop (the big ones, e.g.,
      the Linux kernel and Mozilla) makes it a major issue. Keeping just
      a small handful of patches for an active project current (even as
      many as three or four patches in some cases) could just about be a
      full-time job. So you Don't Do That. You create them one at a time
      and get them committed to CVS, and once they're in (and don't break
      the tree) they become to a large extent Somebody Else's Problem.
      Everybody else who was working on their own patches now has to fix
      their patches to work with *your* stuff, because *your* stuff is
      in the tree. Your workload drops off, and you move on to the next
      thing you want to get done. Think of it as a race: two people are
      working on patches that touch the same code. Whoever commits first
      doesn't have to deal with the other guy's changes. They guy who
      gets his stuff in second has to merge the changes. More, the guy
      who gets his stuff in tenth has to merge nine sets of changes, and
      the guy who never commits his stuff has to spend the rest of his
      career merging changes until he gives up in dispair and declares
      that the company must standardise on one version of the software
      for the rest of time. In the long run, the price of not committing
      your changes is that you either never get upgrades, or you have to
      give up your changes.

      Now, this assumes that you make changes in the first place. People
      who are content to use the software in its out-of-the-box state
      derive less benefit from open source (though they still get the
      improvements other people make, they don't get to put in their
      own stuff for their own special needs). But if it's worth your
      time to fix up the software to meet your needs better, then it's
      worth contributing it back.

      So, as I said, RMS is full of it. We don't need the GPL to get
      people to contribute back their changes. If the software is of
      sufficient usefulness that a lot of people are using it and
      making improvements for their own use, bitrot will punish anyone
      who doesn't contribute their changes back. The license lets us
      also sic lawyers on them, but that's not necessary; if they have
      enough resources to maintain a fork, they'll find a way to do
      that anyway, or cruft up something from scratch. Most outfits
      can't afford to maintain a fork of an active project.

      Now, a small and relatively static project is another matter,
      but I would argue that if it's not important to enough people
      to attract very many improvements, then it doesn't matter very
      much whether it's open or not.

      The GPL has had some positive effects, but these can mainly be
      measured in terms of the confidence that its terms give to people
      who otherwise might have been afraid that their code will be
      taken over and made proprietary by some third party. In practice,
      this won't happen to an active project. When Apple based their
      OS on existing components, they kept the open components open,
      even though some of those components are licensed under a BSD
      license which does not require it. Why? Those components are
      actively developed, and Apple doesn't feel like spending ten or
      fifteen full-time developers maintaining a bunch of forks. Duh.
      (Yes, they also like having goodwill, but that additional
      motivation is icing on the cake.) If your code is something
      sufficiently useful to creat

      --
      Cut that out, or I will ship you to Norilsk in a box.
    3. Re:Motivated Self Interest by 10am-bedtime · · Score: 1
      in other words:

      user: programmer in training

      programmer: user w/ skillz and write privs

      that's all there is to it, in the long run.

    4. Re:Motivated Self Interest by jcast · · Score: 1

      I should note this is only really true at the corporate level. Most people probably don't have the abstract thinking skills to become even basic code monkeys (i.e., you have to be able to figure out where the patch goes).

      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
    5. Re:Motivated Self Interest by iabervon · · Score: 1

      Anyone who uses software has something to contribute, which may be code or may be documentation or tutorials; in fact, everyone uses some programs to which they don't have anything other than usage notes to contribute (consider the ratio of users of GNU ls who don't write patches to those who do. But people tend to come up with interesting ways of invoking ls, which they could share).

      For really non-technical users, any program with a interactive configuration mechanism generates configurations which could be clever or useful, and could be shared with others beneficially. I've certainly seen a non-technical user muddle through configuring Eudora for a particular network setup, and then tell co-workers how to do it.

    6. Re:Motivated Self Interest by jcast · · Score: 1

      This is all true, and all in all a wonderful point. But, it doesn't add up to ``user: programmer in training'', which is the argument I was responding to.

      --
      There are reasons why democracy does not work nearly as well as capitalism.
      -- David D. Friedman
  18. This was already done a while ago by accident, by Anonymous Coward · · Score: 2, Interesting

    by slashbot sawilson. Here is the text.

    Microsoft is dieing. No trolling intended here

    Seriously. How can you stop a compeditor that doesn't have bills to pay, or debt? I mean, I was worried back in the day. I was sure they'd come up with some way of simply taking advantage of strong political ties to make Linux essentially illegal. That doesn't even matter anymore. Money is getting invested. Huge companies are in. I used to flat out laugh at the "world domination" types on here because it just sounded so silly. My argument was always, who cares about the rest of the world. How can they stop something free? It's turning out to be their achilles heel. Microsoft can't buy Linux out. Microsoft is moving too slowly to make something that can compete on cost. They've spent a fortune on trying to market their way out of this inevitable approaching death, and people just don't buy it anymore. I'm not saying that Microsoft will fade into the distance. That's just not realistic. But they will have to give up the childish name calling and get onboard at some point. The sooner they realize they need to give up the server market and embrace Linux as much as they can, the less money they'll bleed down the road. If they don't, they'll lose the server market within a short time, then they'll slowly lose the desktop market. It's all right there in black and white. It's what I see. I can't be the only one. Imagine all the PHB's reading articles going "wow, that geeky guy telling me about Linux years ago was right. We need Linux now". I don't even feel silly saying that. I would have a year ago. Scott McNeilly in a Penguin suit speaks volumes. It's only a matter of time now.

    1. Re:This was already done a while ago by accident, by RLiegh · · Score: 2, Funny
      Scott McNeilly in a Penguin suit speaks volumes.

      Only until the LSD wore off.
    2. Re:This was already done a while ago by accident, by luzrek · · Score: 2, Insightful
      OSS is double-deadly to MS. Not only does GNU/Linux and OpenOffice erode their userbase (and ability to enforce bizare closed file formats), but it also strengthens itself as more people use it. As more corporations switch to OSS solutions, more money and time is spent developing it, and the better it gets. On top of the growth of people who are developing OSS alternatives to their products, the OSS developers are ussually specialists in their particular fields, so the OSS software ussually does a better job of fulfilling needs.

      At the same time OSS is a double-benefit for a corporation which incorporates it. Not only do they not have to spend the money on the very high fees MS charges, but the money they do spend is directly on training and development of their local staff (instead of it being shipped off to Redmond, where it may or may not be used to develop a product which the corporation in question may use). This will help keep staff loyal because they will feel apprciated, and gaurantees that development is being done on applications that the corporation actually uses.

      --

      Galium Arsenide is the material of the future, and always will be.

  19. Not really. by mckwant · · Score: 3, Insightful

    You're misinterpreting goodwill, which, IIRC, is defined as the difference between the book value of a company's assets and the price paid for it in an acquisition. It's often interpreted (at least by me) as a function of the value of the brand associated with the acquired company.

    i.e. Amazon's actual assets are probably miniscule compared to its stock price, but the value of the marketable name is substantial.

    Also note that you'd have to be able to associate a value for the contribution in question, which, since the code is released to the world for free, is pretty close to nil. As such, it's a stone cold expense.

    Unless, of course, you're trying to build positive karma within the OSS community, which is certianly possible, but probably shouldn't show up on a balance sheet.

    --
    ceci n'est pas un sig.
    1. Re:Not really. by Uber+Banker · · Score: 0

      I agree somewhat...

      > You're misinterpreting goodwill, which, IIRC, is defined as the difference between the book value of a company's assets and the price paid for it in an acquisition.

      (Book value) - (Price Paid) = (Intangable assets).

      Yes, intangalbe assets do include brands, but also include discounted future expected returns and sentiment (goodwill), which can be positive.

      Take your example of Amazon... amazon has a great brand, but it has that brand because the name (the brand) is associated with quality (amoungst other things), or:

      Brand Value = f (goodwill, exposure(advertising), ...)

      As you say, a balance sheet may be at book value (could include marked-to-market investments in some cases where book value is hard to determine or non-existent) for a 'fair' value of its physical assets, but this will not be accurate because of misc intangibles...

      Sorry, i seem to have gone too off-topic:

      yes, this is great, i wish i could pursuade my bank to do the same, but they seem to be of the opinion open source is a security risk (expressed some posts above), and i'm not talking just making their contributions opensource, i mean running anything open source - they consider running LINUX a security risk!

      Personally i think their attitude is one of a staid department, indeed they are 'old school' - no young blood, the department does not attract geeks and does not want to, because it'll out them out of a job. Intangible logic...

  20. Bastions of capitalism.... by Anonymous Coward · · Score: 0, Troll

    What kind of jackassed comment is that? There is NOTHING anti-capitalist about using free/open software...if anything, it might be MORE capitalist. If it is a COMPETITIVE ADVANTAGE, it's great for a capitalist corporation to employ. Take it from someone who considers themselves largely capitalist....WE FUCKING LIKE FREE/OPEN SOFTWARE. Know why? It's free....if I have to draw pictures to explain why a capitalist likes that......ugh.

    Sounds like a liberal socialist-wannabe. Sure...make it sound like the big evil corporations have become 'enlightened' enough to see things your way. (Just make sure it isn't the other way around, oh enlightened one.) They aren't stupid...they want to make money. When free software is good enough, it'll get adopted...I promise. Guess what? It's getting good enough these days...it's been really getting there for the last few years now. Shockingly enough, it's being adopted...good...now go pat yourself on the back. Whatever.

  21. Editors? by veldmon · · Score: 5, Insightful
    Some bastions of capitalism are getting into the open-source spirit

    What is this supposed to mean? Open source is more compatible with communism? That sounds like a subtle insult to me.

    There is absolutely nothing spectacular about corporations dealing with open source software.

    1. Re:Editors? by Kjella · · Score: 1

      Some bastions of capitalism are getting into the open-source spirit

      What is this supposed to mean? Open source is more compatible with communism? That sounds like a subtle insult to me.


      First off, you assume anything not capitalist must be communist. Anyway, the very foundation of capitalism is that you price goods and services to maximize their value. Anything with no price tag, much hence be worthless. So GPL'd code doesn't really compute in a purely capitalist world, because noone would write it to begin with.

      And while we're on the subject of communism, the fundamental idea was that you should give according to ability, and recieve according to need. Nevermind how flawed the ideology is as a way of government, it fairly accurately describes the OSS movement.

      You contribute according to your programming skills, and recieve whatever software you may need, even if you have no programming skill. The reason it works is that there is no problem to support infinite demand, making not only as many copies of OSS software as anyone could possibly need, but true infinite so that hoarding it can not make it scarce. While in the physical world you always have limited supply and unlimited demand, leading to the inevitable struggle over their distribution.

      What a communist state would need to work, is the replicator from Star Trek. If it could simply produce more out of nothing, creating copies upon copies of whatever you wish, all could work out very well indeed. The OSS movement has their equivalent sitting right in front of them.

      Kjella

      --
      Live today, because you never know what tomorrow brings
    2. Re:Editors? by Anonymous Coward · · Score: 0

      Open source is more compatible with communism?

      Are you saying it is not? If it were more compatible with capitalism more capitalist companies would have picked it up years ago. Open Source is not a new thing. It has been around for over a decade and is only now becoming popular. This is because of the lethargic nature of the capitalist system. It is blinded by money, and that greed is the driving force towards proprietary monopolistic systems. If it weren't for our current economic situation it might have taken another year or two before Open Source gained market dominance.

      Don't think for a second that GNU software will not take over almost every major market within the next few years. It is inevitable and has always been, because of economics.

      It is unfortunate that we live in a capitalist system. A system where your choices are based on money, meaning that you really have very few choices (unless you're rich). But at least the laws of economics still apply. Corruption can prosper so long as it is profitable. GNU/Linux is pure, and always profitable.

    3. Re:Editors? by runderwo · · Score: 1
      What is this supposed to mean? Open source is more compatible with communism? That sounds like a subtle insult to me.
      Well, it's been frequently insinuated in the past here on Slashdot even (check sheldon's posts, for instance), by Microsoft, and by various pundits and members of the media.

      I think the quoted sentence was more of a "Hey, look here you closed-minded fools. Nyah!" way to open the story than an actual surprise to anyone. :)

  22. More evidence of the 'growing wave of Open Source" by kevinbedell · · Score: 4, Informative

    I recently posted a short article on this subject on SYS-CON's SYS-CON's Linux Business and Technology (the publishers of Java Developer's Journal). I think an even better article on Corporate open source adoption is the one in the March 15th issue of CIO magazine.

  23. Looks like a snowball by revividus · · Score: 4, Insightful

    ...that just keeps gaining momentum. Linux/open source gets some press, some "hip" factor, PHBs start to look at the hip new thing (I can just hear some manager asking his newly minted MSCE, "Say, what would it take to switch to this Linux thing I read about in businessweek?"), the more the PHBs look at it, the more press it gets...

    It's cool, but at the same time, a lot of the people writing about it clearly don't understand it -- the mutilated description of the GPL in the recent Businessweek article bears witness to that. Then at the same time (in that article, and elsewhere) there's the continued use of phrases like "a ragtag band of software geeks", which I don't consider pejorative or anything, but it begins to get a little old.

    I think this will be a Good Thing. As long as the "trend" lasts long enough for people to figure out how to use it(Linux, etc); if they just abandon it the first time they're prompted to fsck their filesystem, it could stop rolling. But hopefully by that time the this-could-be-more-user-friendly-dept. will have worked some more magic...

  24. free markets at work by g4dget · · Score: 4, Insightful
    Yes, this makes a lot of sense. Contrary to the picture critics of open source try to paint, that it is some kind of communist conspiracy undermining good ol' American entrepreneurship, the success of open source and free software is actually simply free markets at work.

    Companies like Microsoft are greatly overcharging for their products, perhaps not for the initial sale, but for the upgrades and on-going development. Or do you really think that the incremental improvements in your Office XP upgrade are really worth several hundred dollars to you compared to the version of Office you already paid for? And why would you want to pay for improvements that often are largely based on user feedback anyway, rather than representing actual R&D work by the software company?

    Those are market inefficiencies with the commercial software model that open source software corrects. Sure, the open source model isn't perfect either, in that not everybody who benefits pays exactly for what they are getting, but it seems to all average out statistically well enough for open source software to be competitive.

    1. Re:free markets at work by Anonymous Coward · · Score: 0

      If there are no capitalist conspiracies then explain Winmodems or the lack of hardware support for Linux.

      It has to be technically superior to its competition in almost every way and has a consistently growing market share before capitalists would even think about supporting it. Something that is given away for free, in their eyes, has no value.

  25. Corporate Image.. by Bush_man10 · · Score: 3, Insightful

    One thing I notice is that participating with the Open Source community changes the way I look at corporations. It's another benifit I was surprised that wasn't mentioned in the article. Some people, myself included, see corporations in a much better light when I notice they are contribuiting to Linux development or any open source project.

    --
    "I believe in everything in moderation. Including moderation." -Dean DeLeo, Stone Temple Pilots
  26. Kathleen Fent, next time log in. by Anonymous Coward · · Score: 0

    We all know it was you who made that post.

  27. Re:What? by Anonymous Coward · · Score: 0

    What?!! Flamebait!...I never...I mean, I masturbate, but never flamebait.

    Perhaps you meant this for someone else. Don't be hating just cause your skillz cannot pay said billz.

    Perhaps what is needed here is a big old helping of http://goatse.cx

    That should cure what ails you..

    If not, http://tubgirl.com certainly will.

    Losers.

  28. Even Microsoft is getting in the spirit by aflat362 · · Score: 0, Redundant

    For those of you who haven't already heard: Microsoft's Linux distro

    --

    Conserve Oil, Recycle, Boycott Walmart

  29. Re:Open source software starting to become usable. by Anonymous Coward · · Score: 0

    I still need PivotTable/PivotChart (like in Excel 2000) support from OO 1.0 Calc before I can switch. :(

  30. A Common Bias in the Submission by Anonymous Coward · · Score: 3, Insightful

    Some bastions of capitalism...


    This casual reference by the Submitter can be used to illustrate a fundamental bias within the community of Open Source users. (I'd argue that most Open Source contributors wouldn't take this view.)

    How is it that Open Source and Capitalism are commonly viewed as being diametrically opposed?

    Two Points:

    Companies that utilize Open Source in order to more rapidly or cheaply deliver whatever service or product they sell on the market will win out in a competition against peers that develop a product with purely in-house tools. This is because an enormous expenditure of resources would be required to exceed the quality and speed of an active open source community project. --Doing away with that cost will help a company to cut prices below what a competitor can sustain.-- A fine strategy therefore, would be for a Company to promote those Open Source groups with whom they share a common interest. If a company depends on computing power to achieve success, it could benefit from helping the Mosix group deliver exceptional clustering software, for instance.

    Open Source uses a reward system that is very similar to Capitalism. The strength of capitalism is in the nearly 1:1 ratio of talent to reward, as well as the constant feedback-loop the market presents to new products. Open Source rewards contributors with status; the best programmers are richly compensated in this regard. In many ways status is better than money. (Arguably, a primary attribute of money is the proxy action it has on status.) Additionally, Open Source has it's own feedback-loop in that a single programmer searching for available status, has an incentive to review other people's code in the hopes of improving it. This action multiplied thousands of times over the life of a project is an efficient and dependable machine for improvement.

    The "bastion of capitalism" fits very nicely with Open Source, which is why Linux is winning the war in IT departments all over the world. The Open Source yin-and-yang of Status and Peer-Review is a close approximation of Capitalism's Money and Markets.

    As a contributor, I can tell you that just as Companies need things to cost less, Programmers need things to make better. Open Source and Capitalism are becoming the best buds, and only an Open Source parasite or a Corporate nobody would fail to see the natural symbioses of the two.
  31. Bastions of capitalism... by megazoid81 · · Score: 2, Insightful
    Some bastions of capitalism are getting into the open-source spirit -- not only using the software, but contributing code fixes and other mods, according to an article in today's Computerworld.

    Anyone who has used the code licensed under 'viral' (read GPL) open-source licenses cannot close their source code. If they can't close it and it is useful to them, they might as well distribute it and contribute to the open-source movement. By posting a story like this, and putting it in such a newsworthy fashion as indicated above seems to imply that open-source is the domain of pinko-Commie bastards, into which bastions of capitalism are finally entering. Don't forget, capitalism and open-source are independent concepts. Business models of software companies can be plotted on a two-dimensional plane with 'code freedom' and 'price' as the two axes.

    1. Re:Bastions of capitalism... by Dan+Ost · · Score: 4, Informative

      Anyone who has used the code licensed under
      'viral' (read GPL) open-source licenses cannot
      close their source code.


      This is blatantly false. The GPL only requires
      you to GPL your code if you distribute it. This
      means that company X is allowed to take GPL'd
      code, modify it for their own use and use it
      internally for as long as they like without
      ever releasing their changes to their competitors.

      While it's true that they can't sell their
      software without GPLing it, 99.9% of software
      written isn't written to be sold as a product,
      it's written to meet internal needs of an
      organization. That's what "in-house" development
      is.

      --

      *sigh* back to work...
    2. Re:Bastions of capitalism... by leviramsey · · Score: 1

      The GPL doesn't necessarily require you to release modifications; it only requires such release if you distribute modified binaries.

  32. Doesn't this seem totally obvious. by Dr_Marvin_Monroe · · Score: 2, Informative

    After I read ESR's C&B, this seemed totally obvious to me...not on a philisophical basis, but on a business basis.

    The fact that companies are finding it in their "mutual best interest" to contribute code changes and whatnot to OSS should come as no suprise to anyone, they all stand to gain without having to invest huge sums against the "barrier to entry" that MS has created.

    MS and closed source companies are the ONLY one's who benefit by NOT to distributing changes/making public.....for all others, it follows the rules set out in "Magic Cauldron" chapter....do a few hours work to fix a bug for yourself and pass that on to all others!......In the end, you can have everything you want for just a few hours of work. Unlike typical "products", sharing software has NO cost to the giver and does not remove ANY functionality from the giver....AND increases the value of the product through widespread adoption.

    OSS is a superior business model, UNLESS you are MS.

    What goes around, comes around.....

    1. Re:Doesn't this seem totally obvious. by GlassHeart · · Score: 2, Insightful
      OSS is a superior business model, UNLESS you are MS.

      That's really oversimplified. There are many applications that don't lend well to open source development.

      For example, much of the value of Apple computers is in OS X and the core iApps. If Apple opened the sources to the iApps, Microsoft can bundle the same iApps with Windows. So why "switch"? On the other hand, Windows is not likely to "steal" the Darwin kernel (and if they really wanted to they can get BSD themselves), so it's not a problem for Apple to open source it.

      NVidia maintains its market position by superior hardware and drivers. Giving away the sources to the drivers aids the competition.

      Pro Tools Free is a good example of a powerful and artificially limited software, given away for free. Giving it away for free lets a lot of people learn to use it, which is great. Opening its sources would make it trivial to bypass any such artificial limitations (in this case, number of editing tracks, IIRC), hurting the more expensive actual product that you're supposed to buy after outgrowing the freebie. Like Apple, Digidesign really wants to sell you hardware, so opening the sources can make it easier to run Pro Tools Free with somebody else's hardware.

      Would you like to propose alternative business models for these companies?

    2. Re:Doesn't this seem totally obvious. by Dr_Marvin_Monroe · · Score: 1

      Sure I would....I'll address it company by company...

      In Apple's case, they make money off both hardware and software. By opening their platform to all comers, they might end up with some shaggy stuff, but they would be further along for it. They could have the benifit of outside testing and also collect the additions to their stuff. Who's to say exactly what other developers might turn the core iApps into?...I suspect that they would only be good for Apple. What's the problem if MS appropriated some of Apple's functionality?...How are you directly taking food out of Apple's mouth?

      Second example: NVidia.....their propriatary stuff should be on silicon...yeah, I know that putting stuff in drivers allows you to do last minute changes, but it's really in NVidia's best interest to publish a spec. (or stick to an open spec/api). Yes, this might lead to other hardware knockoffs using the same api's, but if that's not where your functionality is, who cares?....You see, by pushing the propriatary stuff to the card, it will force all card manufacturers to support the open spec....no hiding behind drivers. The open drivers should only be wrappers for handing all the graphics info to the card....let the co-processor take care of the mess. This has two benefits that I see right away for NVidia, first is reduced support costs...MS would be forced (by the marketplace) to finish drivers to the open spec. level. If there's a problem with the drivers, it's MS's problem, let them handle it. Second is almost instant troubleshooting / testing of new products...they either live up to the spec., or fail...no two ways about it..

      Third example: Pro Tools Free.....yes, opening the source would make it trivial to hack past the limitation.....perhaps Pro Tools should consider operating as a "Service" company. They could act as moderator/maintainer/developer much like the folks at Codeweavers. While they would make less money off "licenses" they could make that back in customization and modification. Who would be in a better postition to provide support other than the original developers?...Again, other people do get to see their "homework", but as written, will prob. spend more time trying to decipher it than it helps....it doesn't pay to follow somebody else's tail-lights. Service is really where it's at.

      I'll say that one again, because it all boils down to this...."Service is really where it's at"...perhaps lower profit margin, but with good service, customers will come back. Treat them like criminals and they will turn on you. Take away their rights and they will plot against you.

      I've seen WAY too many "lock-in" type licenses now...and it's left me feeling VERY hostile. As far as Linux rabble goes...I'm ready to burn the cathedral down....

  33. Alot of this is free advertisement by Billly+Gates · · Score: 4, Interesting

    IBM was shunned for many years by both the Unix and opensource communities.

    However they are now looked upon as the good guys and their bussiness skyrocketed as a result. IBM is what most hackers have on their minds if their employer needs support and consulting for huge projects. They are not free or cheap but you get what you pay for.

    I use to live in NewYork and the NYLUG is one of the best in the country. IBM for years has been generious in donating their rooms for the meetings and group gatherings. Alot of the locals in the meetings have consulting contracts with IBM as a result.

    The more they help free software advocates the more advertising they get as well as improved software they can sell for their clients. We all win.

    I believe JBoss is also an advertisement for a consulting firm who produces it. There bussiness has taken off thanks to free advertising from their product.

    Opensource does work well in getting your name out. Alot of PHB do not trust salesmen because they do not know if their products are any good. With opensource software they can test them out.

  34. Capitalism.. by Ogerman · · Score: 2, Interesting

    "Some bastions of capitalism are getting into the open-source spirit"

    This really isn't unexpected seeing as how Open-Source itself is a natural bastion of democracy and capitalism.. unlike certain very socialist-style "intellectual property" regimes of broad government-issued monopoly powers.

    Software development and support should be a service! (:

  35. Re:so..? by Anonymous Coward · · Score: 0

    Are taxes so onerous that those making the most feel they need protection from fulfilling their obligations to society?
    pfah!

  36. Marx? by Anonymous Coward · · Score: 0, Redundant

    Some bastions of capitalism are getting into the open-source spirit

    Won't that destroy our vision of a Marxist, socialist revolution with OSS at the spearhead? No sir, capitalists using OSS is NOT a good thing.

  37. Lively Linux by Anonymous Coward · · Score: 0

    A unique- and better yet, free - Linux resource is LinuxGram, you never know what Maureen O'Gara's going to say, pretty outrageous stuff. And there's a new Linux publication to watch out for, due in Q2, looks very promising.

  38. IBM might have done the same by net_bh · · Score: 1
    All I am saying is that I dont think that IBM continued sharing the source code for too long.

    The reason IBM has held onto it's mainframe business is similar to how Microsoft has held on to its PC software business: closed source, proprietary formats

    And yes, they have differents OSes that can run on the mainframe, the latest that I know of being VM and OS/390.

    --
    There is no patch for stupidity

    Visit my blog

    1. Re:IBM might have done the same by Anonymous Coward · · Score: 0
      All I am saying is that I dont think that IBM continued sharing the source code for too long.


      Perhaps not after Microsoft invented closed source, eh?

      (And yes, the quotation is out there, Bill Gates was the first man to go on record saying people shouldn't "steal" software (by copying/sharing it, as was the custom in the home-brew computer scene at that moment in time)).

  39. Uselessness of comparing Capitalism & Open Sou by NaugaHunter · · Score: 3, Interesting

    The main crux of this comparison, as far as I can tell, should be made in reference to other aspects of business. Consider a manufacturing plant of some kind. In this plant they have equipment that they built, equipment they bought on contract and have serviced, and equipment that they bought but maintain themselves. The equipment they build or maintain is directly related to their business, and the operators/engineers are sufficiently trained and experienced to cover the majority of their needs. Over the years they have filled each equipment need they've had with the solution that was best at the time, and presumably address their solutions over time when difficulties or cost concerns come up.

    This is roughly analogous to in-house software, proprietary software, and open source software. A company is free to pick and choose which solutions work best to remain in business. The main difference is very few companies naturally have Software Engineers/Designers/What Have You in the course of their normal business developments. Whereas a small manufacturing company is likely to have been founded by people making the product by hand, rarely are office environments founded by programmers (Exception: software companies which by this analogy are manufacturers of software and would fit with them).

    The important thing to remember is that software isn't the only third party products these offices, or even manufacturers, use. There aren't many advocates for Open Source Copiers, or Open Source Pens, or Open Source Coffee Makers, all calling for GPL'd blueprints. The significant difference with software is that the only real resources required are the source code (or blue prints) and the person capable of understanding and modifying them. Virtually everything else would require a parts supply chain which, if not part of the main business, usually isn't an economical path to follow.

    In conclusion, the cost of maintaining anything utilized by an organization that isn't directly related to the organization should be compared with the costs of outside solutions, whether talking about software or coffee makers, and whether talking about businesses, governments, or even your own house.

    --
    R: That voice. Where have I heard that voice before? B: In about 365 other episodes. But I don't know who it is either.
  40. Re:More evidence of the 'growing wave of Open Sour by gid13 · · Score: 1

    "SYS-CON's SYS-CON's Linux Business and Technology [sys-con.com]" Wait, slow down... WHERE did you post it? ;)

  41. Re:More evidence of the 'growing wave of Open Sour by kevinbedell · · Score: 1

    http://www.sys-con.com/Linux/articlenews.cfm?id=66 3 Feel free to comment/agree/flame it here... Kevin

  42. Mod up by Anonymous Coward · · Score: 0

    Mod parent up. I wish I had mod points today...

  43. Open yes, but free of charge ? by master_p · · Score: 2, Insightful

    I still don't understand how a software-only company can make a decent profit if its main software products are free of charge. I understand the advantages of open software (better documentation for development/bug fixing), but if I have a small software company, how am I gonna benefit from the products that I (don't) sell ? how the bills are gonna paid, how the developers are gonna paid ?

    Please don't see this as a troll, but there is a limit to what should be free of charge and what should not. Don't forget that the economic benefit is one of the strongest motives for research. And if I have a revolutionary idea, why shouldn't I get something for it ?

    1. Re:Open yes, but free of charge ? by Fulcrum+of+Evil · · Score: 1

      I still don't understand how a software-only company can make a decent profit if its main software products are free of charge.

      Support and consultation, which is where most of the money is anyways. Also keep in mind that most software is written in-house for private use. This is a prime example where collaboration can help reduce costs and improve quality.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    2. Re:Open yes, but free of charge ? by TheRealSlimShady · · Score: 1
      Support and consultation, which is where most of the money is anyways. Also keep in mind that most software is written in-house for private use

      Which totally ignores the fact that the parent wasn't writing software for in house use...

      Support and consultation aren't where most of the money is - support and consultation is hard. Check out this informative post from someone who should know (Larry Augustin). If support and consultation were easy to make money with, we wouldn't see people like Mandrake begging for money

    3. Re:Open yes, but free of charge ? by Anonymous Coward · · Score: 0

      >And if I have a revolutionary idea, why shouldn't I get something for it ?

      You got that wrong. It isn't automatic. Someone has to pay you for your revolutionary idea.

      Free software isn't a forced option. You can do whatever you want with your intellectual property, and I have the option of not paying you to use it.

      You can take your revolutionary idea, market it, package it and sell it. Whether you get something for it depends on the customers. In today's software market, good luck to you.

      Derek

    4. Re:Open yes, but free of charge ? by NullProg · · Score: 1

      We use open source applications to do our day-to-day run of the mill work (Linux, Mozilla, OpenOffice etc).

      My employer has no problems with us fixing a bug in a product we use everyday and resubmitting a patch back to the maintainer. We do this during lunch, after work, etc.

      Our core software business remains separate.

      The benefit is knowing that a peice of software you take advantage of will be correct in the next release (you don't have to maintain your own tree of fixes). There are probably several other advantages of OSS, but this is a separate topic for others who know more than me.

      Enjoy,

      --
      It's just the normal noises in here.
    5. Re:Open yes, but free of charge ? by GlassHeart · · Score: 1
      Support and consultation, which is where most of the money is anyways.

      This business model gives vendors a disincentive to make their software bug-free, easy-to-configure, or self-healing. You don't want to put a company in a position where doing a really good job can be suicidal. Aligned interests (good code in exchange for good money) can be a much better model in the long run.

    6. Re:Open yes, but free of charge ? by cfury · · Score: 2, Interesting

      >> Aligned interests (good code in exchange for good money) can be a much better model in the long run.

      Hogwash. I'm sorry, but good money almost *never* gives good software. I've read where something like 80% of software projects fail... fail to meet deadlines, fail to meet price schedules, and fail to meet user requirements.

      Personally, I have been witness to several software projects that were paid for with good dollars... Nothing good came from them.

      Also, I have seen almost every proprietary, closed, "packaged" product that my company has used fail miserably to deliver on patches, updates, support and functionality.

      On the other hand, more open, available tools tend to get the job done -- and if it doesn't, we have the source, and the *user community* to find out why and *fix* the problem.

      Granted, some companies may have a valid reason to close their product (ie, vertical markets...)
      But even these can benefit from OSS... Ever heard of the LGPL?

      Thanks,
      Chris

  44. Pre-packaged Profile? by _Sprocket_ · · Score: 0, Redundant


    So you're going to create a database telling people exactly what software government agencies use and give them the code. Does anyone else see this as a security risk?


    Sure - there is a potential for additional risk with such a listing. However, there is not as much risk as it may initially appear to present.

    First off - the list may not be accurate. Software solutions and version numbers change - often faster than these kinds of lists update. An attacker will have to assume the list offers merely a starting point and will have to verify the information on their own.

    On that point - an attacker will be able to profile the environment with or without the list. Even an attacker who wishes to avoid too much attention could easily scan a potential target and still blend in to the the background noise Government agencies deal with their public-facing networks daily.

    Of course, that assumes the attacker is even going to bother profiling the target. The vast majority of attacks against Government and Corporate resources seem to be crimes of convenience, as it were. The target is attacked merely because it is there and vulnerable. There is no actual interest in the target itself (beyond perhaps the available resources or address space). These attacks quickly follow wide-spread scans. Attackers may even simply run exploits blindly against systems and dispense entirely with any form of intelligence gathering.

    And so there you are. The current environment involves blind attacks, random attackers, and the occasional intelligent attacker who will go to their own measures to profile your environment. One should already take measures to protect one's environment against this sort of daily exposure.

    Publishing basic software packages being used in an attempt to leverage knowledge and experience from the community and other organizations does little to expand this exposure. And it may very well present a much higher benefit than what little additional attention it attracts.
  45. Ignorance, price, and agendas. by _Sprocket_ · · Score: 1


    You are free to choose whatever software you want. You then give up certain features or interoperability abilities but that is something you factor in. Same goes with price, sometimes you really do get what you pay for.


    Indeed. And sometimes you GAIN interoperability and features. Sometimes price is rather arbitrarily set according to "what the market will bare" rather than a barometer of quality. It pays to be an informed consumer and do one's own research rather than relying on someone's sales force. Welcome to the free market.



    Please take the politics and personal agendas out of everything you do, especially software. Many are tired of seeing everything laced with your crap.


    This is not reasonable. Everyone has and agenda. Any time more than one person is involved with something, politics come in to play.

    The Open Source and Free Software movements have very obvious (although slightly differing) agendas and politics. I suspect that this is the focus of the above comment. However, let us not forget that commercial software vendors also have their own agendas and politics - ultimately, selling their product. Sometimes this goal is realized by offering a better product. Sometimes the goal is realized by limiting users with various "lock-in" tactics.

    A smart consumer (be it private, business, or government) will be aware of these issues and use them as a guideline to match their own agendas and politics.
  46. The Model by qwijibrumm · · Score: 1

    The buisness model is that a big company is paying someone to develop a piece of Free/OpenSource Software even though it is not one they own. It is one they use and thus have a vested interest of it. This helps debunk the weak but widely popular argument that if all companies used and created Free/OpenSouce Software, the poor bluecollar programmers would be without a job. This is not true. Other companies who do not directly hire developers will fund the project if they find it useful i.e. DARPA funding OpenBSD.

    Perhaps buisness model was not the best phrase but the english language sucks and my vocabulary is not very.... good.

    --
    I wish there was some there was some way that I could be outside playing basketball, in the rain, and not get wet.
  47. Merrill Lynch by BrianB · · Score: 2, Informative

    There's a guy from ML on one of my projects who has submitted a wealth of code. kinda cool to see that this isn't an isolated thing but instead a culture within the company.

    Unfortunately their firewall still prevents him from direct CVS checkins so everything has to be funneled through other committers.

  48. Not this again by TrentC · · Score: 1

    However people who create software still need to be paid for their work, and the only way to do that is to control dissemination of the software.

    That's simply not true. There are other ways to make money off of software; it's just that restricting dissemination and use of the software has been the laziest route to do so.

    The development team typically has a thorough understanding of the software, and can offer customization and training for a price. There are always going to be people or organizations who will find value in paying someone for support of their software, either directly through support contracts or indirectly by training or certifying their in-house support personnel.

    Open-source projects have also served as unofficial resumes for programmers, who have gotten jobs doing some other software development and continue to contribute their free time. (Linus at Transmeta, anyone?)

    The people out in the field who contribute bug fixes and improvements in the course of their sysadmin duties are usually getting paid to support/administer those systems; each one who does is one less developer the core team has to pay for.

    Hardware manufacturers contribute to porting open-source projects to their platforms; that development work is "paid for" by increasing the functionality of the hardware, making it more likely people will purchase the hardware.

    All of these points have been made over and over ad nauseum; I can only assume you're clinging to your notion that "developers don't get paid if they give their software away" out of sheer stubbornness.

    The problem with most open source advocatacy is that they don't address the second issue.

    No, the problem is that you've made an arrogant assumption that restricting distribution is the only way to make money off of software, and won't listen to anyone who suggests otherwise.

    Jay (=

    1. Re:Not this again by sheldon · · Score: 1

      "That's simply not true. There are other ways to make money off of software; it's just that restricting dissemination and use of the software has been the laziest route to do so."

      I see... Perhaps you could go into detail?

      "The development team typically has a thorough understanding of the software, and can offer customization and training for a price."

      Which now creates an incentive to write shitty software which requires customization and training.

      This is not beneficial to the consumer.

      "Open-source projects have also served as unofficial resumes for programmers, who have gotten jobs doing some other software development and continue to contribute their free time."

      Not a sustainable model.

      "The people out in the field who contribute bug fixes and improvements in the course of their sysadmin duties are usually getting paid to support/administer those systems; each one who does is one less developer the core team has to pay for."

      This really isn't much different than closed source software. We troubleshoot and identify bugs all the time, if you want your issue solved you provide a good explanation of how to recreate it back to the development company.

      "Hardware manufacturers contribute to porting open-source projects to their platforms; that development work is "paid for" by increasing the functionality of the hardware, making it more likely people will purchase the hardware."

      Like I said... Let's pretend proprietary hardware doesn't exist.

      "All of these points have been made over and over ad nauseum"

      I know, which leads us to the next point...

      "No, the problem is that you've made an arrogant assumption that restricting distribution is the only way to make money off of software, and won't listen to anyone who suggests otherwise."

      No, the problem is that you've made an extremely arrogant assumption that what's best for you as a geek is best for the entire industry.

      And therein lies the problem.

  49. Capitalism?! by GabrielPM · · Score: 2, Insightful

    There's nothing wrong with capitalism. And anyways, open source makes A LOT of sense from a business point of view for MANY companies.
    It seems very ironic that people insist on putting down capitalism, the only system fostering the kind of freedoms required for such open exchange of ideas and freedom of association.

  50. Re:so..? by Anonymous Coward · · Score: 0

    What obligations, you leech?!?!

    They've already got a company making a product that's making your snivelling existance better...
    But that's not enough for you, is it?

    friggn useless eater...
    they provide a service,product,etc and you bitch that they're STILL not doing enough...

    we gotta burn these commies out once and for all

  51. you dumbass... by Anonymous Coward · · Score: 0

    we aren't talking about Macs

  52. indeed by Anonymous Coward · · Score: 0
    there are times that it is accurate to say that "open source" is less secure. However, when you are referring to real release value OSS then you will not find that as a problem. I question the decision making ability of a group that makes decisions they deem so important (the security of the banking systems, of which I agree wholeheartedly) yet seems unable to do the logical thing in such a situation of importance... research. Hypothetically, they could actually be less secure while sitting around debating the nature of the universe. I don't really factor in the initial investment to be that big a deal in companies with already large expendatures in IT software unless of course there is a volume issue. IOW, if they have a very large infrastructure then the licensing itself is not as much of an issue as is service and manpower for admin and maintenance. What is silly however is when you pay 50,000 per cpu for some software that is closed and yet you only get about 1 to 2 years of limited service. Seems the worst of both worlds here and many companies are realizing this, to include MS. Note that MS is not going to go quietly into the night down a path of less initial money if they can use FUD and name brand recognition to squeeze more dollars out of willfully ignorant executives and management.

    If your bank's talking heads really are interested in secure computing environments then they will then do an initial cost study between the initial and maintenance costs of various methods (including the current one) to provide the needed functionality. Only then after having an estimate can they work to see (or not see) a tangible price for hiring a consultant to actually do and report on a detailed study on how exactly secure the various solutions are. What will happen will be that they will have to then admit that "free" is a misnomer in both the initial and maintenance costs as well as the factor of "you get what you pay for." Why should a software company that gets paid up front costs for software and yet also charges for support then really care about the actual services rendered if they can keep the bait alive and active with yearly "upgrades"? It is a business model that only works when supported by fools. Business leaders that demand quality will not fall prey to such nonsense and only then will these incompetent (in technology but fantastic in marketing and litigation) behemoths turn to providing quality products and services... that is all I really care about, not any religious crusade by anyone.

  53. I heard rumors, but maybe provide a clue by Anonymous Coward · · Score: 0
    I've heard from several reliable sources in the financial software industry that big companies are currently planning their next generation platform on linux clusters. The clusters mentioned were on the scale of thousands of systems. If this is true, which is very likely because of the wealth of linux clusters in research and government facilities, it would mean the next wave of software will be targeted towards linux clusters. This could also explain why microsoft is changing their server road map to provide specialized servers. Sure microsoft has billions in the bank, but there are literally thousands of researchers using linux clusters for high end computing. this is one area microsoft will have a hard time. Even hardcore microsoft companies are seriously looking at linux, because again they are tired of the scalability issues with microsoft servers.

    windows pre-emptive threading model is not appropriate for hardcore server applications and microsoft centric companies are beginning to realize this. for those who say windows scales, setup Oracle 9i and SQL Server 2K on a single CPU box. then send 400 concurrent queries. I know from first hand experience SQL Server can't handle it on a single CPU system, but Oracle can.

  54. No surprise by Joey7F · · Score: 1

    Why is OSS seen as conflicting with Capitalism? Capitalism is about competition, and leveraging strengths to best advantage.

    This article should be posted whenever Communist and Linux comes up in the same sentence.

    Good software = good biz...

    --Joey

  55. Lazy by nature.. by GerardM · · Score: 1
    Well, when you post as text, you do not get automagic text generation. With HTML the tags I am used to are different from the ones I know;. For example

    is

    ..
    So I do not guess and use plain old text.
    Thanks,
    Gerard
  56. Welcome to Hard times by Anonymous Coward · · Score: 0

    ... all corporations are sniffing out ways to save money short term, the economic cycle is to blame here, not a sudden corporate embrace of open source.

    I am vindicated where I work. We have been using open source for years, even during the good times, and got the hell busted out of our balls for it. Now people call us for advice. Hopefully they will now see the light as their uptime increases, despite spending less money.

    l8,
    AC
    Very large financial company...