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O'Reilly on the Commoditization of Software

Iorek writes "International Data Group/Sverige has a great interview with Tim O'Reilly, CEO of O'Reilly & Associates Inc. From predictions of eBay's purchase of Oracle to discussions of the failings of open source licenses, O'Reilly's certainly not reserved. I couldn't help but be reminded of the rise of this site and slashcode."

4 of 285 comments (clear)

  1. There's another great example of commoditization: by Exitthree · · Score: 5, Interesting

    ...Apple. Look at what Apple did with OS X. Apple took an Open Source OS and pinned it up with a proprietary front-end. The system benefits from all of the Open Source advancements in hardware control, while at the same time, the user has all the benefits of a modern, easy-to-use interface.

    Perhaps the article should have pointed out that the commoditization of Open Source largely involves the things the user never sees. What hasn't evolved yet is a fundamentally easy-to-use Open Source GUI for the whole slew of commodity parts in the back-end.

    Other companies have taken a similar path with commodity software, Red Hat for instance. However, their business plan involves capitalization on commodity products, not in the interface department, but rather in the support department. In theory, these two branches aren't that far separated. Interface and support both help the user accomplish the same thing, that is, getting work done on the computer.

    I think we're nearing the turning point where we decide there aren't that many tasks we haven't managed to code on the computer. In comparison, we have a much larger area to cross in making things easier for the user. It would make perfect sense, business-wise, to assume that the area that is most open for development is the area that is most profitable. Therefore, I imagine this is the next area that software, internet, and computer manufacturers will flourish.

  2. Bucky Fuller predicted this in a way. by mikeophile · · Score: 5, Interesting
    That a certain percentage of the population be given machine lathes with the condition that they have to produce at least one additional lathe to give with the same condition to someone who didn't have one yet.

    Very soon, everyone would have lathes. The market for lathes would be nil. The new market would be for what you could produce with your lathe. Even that market would wane, since anything that was produced for market could be quickly copied by others.

    I think eventually, the market would shift again. Now, the lathe owners would create new proprietary tools that would be used to produce goods and services.

    It seems the IT industry is going through those evolutions now.

    The PC is our lathe, and the software is the first tier of production from these lathes.

    When a new application comes out, such as the browser, it's just a question of time before the concept is copied to the point of market saturation.

    Open Source is the recognition of this inevitability, and is providing the templates for this first tier.

    Now, the challenge is to take these tools and make our own, custom applications and profit from them.

    Amazon and Ebay have done this for themselves, but are wisely cooperating with individuals who are making new tools to profit with them.

    If Bucky was right, the wealth that can be created by such cooperation has no limits.

  3. IBM sells Linux? by solprovider · · Score: 5, Interesting

    Yes, IBM claims to be selling Linux solutions, and I am certain they are responsible for many installations of Linux. Also see their PDF of software available for Linux.

    But IBM has not ported a critical piece of their own software to Linux clients.

    GOOD
    Clients for DB2 seem to have been ported to Linux.

    Tivoli clients have been ported to RedHat and SuSE.

    Rational seems to have been ported only for RedHat. It also works for SuSE if you are running IBM hardware. (Is this a marketing ploy or because of technical difficulties?)

    WebSphere has a developer client for Linux. I first thought it was not available, then I found this mention of it. But I could not find it in the Buy Now area.

    BAD
    Lotus does not have Linux clients. IBM recommends running the client under WINE, but this is not acceptable for Fortune 500 companies with tens of thousands of desktops.

    This is the killer. DB2, Rational, and WebSphere are used by developers. Tivoli is used by administrators. Every employee needs to use the mail client and information resources and collaboration abilities of the Lotus Notes client. Without a Linux version of the Lotus Notes client, many companies cannot migrate to Linux desktops. Also, Lotus Notes is the only commercial software with significant marketshare to compete with MsOutlook .

    So, yes, IBM is pushing Linux for servers. But they control one of the major blocks for the Linux desktop in the corporate world, and they are letting us down.

    --
    I spend my life entertaining my brain.
  4. No, he is wrong about the license thing by musicmaster · · Score: 5, Interesting

    Linux is just Linux and Perl is just Perl. They are just two nice little pieces of software that Amazon is using. Sure, they are making a lot from what they have built on top of that. But that is their right. Wasn't opensource about freedom? I think we should be glad if Amazon reports a Linux bug if they find one.

    O'Reilly is right that data collections like Yahoo maps, E-bay and Amazon are the future. However, he is wrong about the answer. We will have to collect our own data. And just as with the software it may take some legal experimenting before we find the right formula.

    There will be some setbacks like CDDB, but we can overcome that.

    Also I am not very worried about the fact that the first implementations of such collections are commercial. The power of the opensource/opencontent is not in being first. It is in being with many and in being volunteers who provide things for free. We are a herd: slow to react, but impossible to resist.

    Let me just do some guesswork how the answers might look like:
    - Amazon: for the book evaluations we might have some open alternative that gets supported by a lot of smaller vendors. Just as with Netscape one vendor (maybe Borders) might pay the bills and let the others have a free ride just to get access to a wider public.
    - Yahoo maps: at some point all software about maps will be standardized. At that point it might very well happen that the real providers of the data in the maps - mainly government agencies - take over.
    - E-bay. E-bay doesn't have a real data collection. It is just the place where everyone goes, just as Slashdot is the place where everyone goes when they want a certain type of discussion. But this is a rather delicate position. It is just as with pubs or search websites: for years one is the most popular and then at once there is a shift.