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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."

13 of 285 comments (clear)

  1. O'Reilly is right about the license thing. by saitoh · · Score: 5, Insightful

    The best/greatest standing part about open source isnt GNOME or KDE, or that we all have free speach software, its what we are DOING with that software. Amazon is built on perl, and look what it has accomplished.

    Later in the artical he comments on Debian, and how the creator and his company Progeny dont view linux as a product, but "a set of commodity software components he can put together for different purposes."

    What he's getting at is that if the OSS community wanted to push forward, you need an idea and then use linux as the tools for that idea, suhc as automated backup, or something snazy like amazon (where it is a tool, and not the product). Trying to market it as a free desktop platform (in which case linux is the product) just wont cut it. I've done projects for my university, and its worked before, and it will work again.

    Disclaimer: Do I beleive that linux cant be a product? No, I'm just saying that *ONE OF* (and not limited to) the best ways is to use it as a tool, not a product.

    --
    We don't need an "overrated" so much as we need a "you completely missed the parent's point, dumbass..."
    1. Re:O'Reilly is right about the license thing. by Delphix · · Score: 5, Insightful

      I think a good example of this is Mac OS X.

      Apple used FreeBSD as the platform on which to build the Mac OS X. However O'Reilly is right on in this case. Besides the modifications to the core kernal / toolset the Open Source community doesn't get much back.

      It's not so much a case of them not distributing, but they don't distribute anything that was originally open source other than the core OS. Aqua, Quartz, Carbon, the Classic Environment and all the great apps (iTunes, Safari, iMovie, iPhoto, iDVD, etc, etc) are all proprietary.

      So Apple gets the core of their OS devleoped for them by Open Source community. I'm not saying they don't give back, but they do get quite a bit out of the deal. And get to sell their software (&hardware) to boot.

      In the end I guess Open Source is just a two edge sword.

  2. 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.

  3. Open Source and Government Research by dreadlord76 · · Score: 5, Insightful

    I just finished attending a Molecular Biology Training class, and I couldn't help drawing parallels between Open Source and the public Research that is on-going, such as the Human Genome Project.

    Like open source software, public research labs publish the data they found, such as mouse or yeast genome, into the public domain (Humor me, I know that Open Source is not public domain, but it's darn close in terms of availability and cost). In addition, when a lab creates a new genomic library, they are supposed to make it available to anyone who asks. Sounds a lot like Open Source.

    However, privately funded research usually do not have such policy, and use patents, trade secrets, and Copyrights to protect the IP. This has some effect in slowly down advancement in science in many ways. Such research also lead to imporant, and profitable advances for the companies involved.

    But, due to limited public funding, not all worthwhile projects are funded in a timely fashion. A grant request to the NIH may take years before approved. A private company, seizing an oppertunity, may choose to invest and jump start a new field of research.

    It seems that both models can co exist, and maybe it's time to have a publicly funded, or even an industry funded, organization, the supports Open Source development. The group should focus on open standards, common tools and platforms, and anything else someone can make a good case for. Something that will advance our knowledge, and make life easier. Something that we all cooperate on, rather than having blackmails or mighty pissing contests.

    Maybe we should begin to treat Computer Science like Science, and really advance it methodically, rather than "My code is faster than your code..."

  4. Re:eBay's purchase of Oracle??? by g_arumilli · · Score: 5, Informative

    According to Yahoo! Finance, EBay has a market capitalization of $34.9 billion, while Oracle has one of $63.6 billion. So unless Larry Ellison has "pocket change" on the order of tens of billions of dollars, he doesn't have a shot in hell of purchasing EBay. While it may be a stretch to assume that EBay will some day grow large enough to purchase Oracle, it is kind of suprising how large EBay has grown.

  5. Re:There's another great example of commoditizatio by fiftyvolts · · Score: 5, Informative

    Bingo.

    Don't think that O'Reilly doesn't know this either. Check out how many books, articles, and so forth they have published since OS X came out. I had the privilege a few months ago to have a sit down with the current editor of the Apple books, and from the way he talked it seems that O'Reilly is nothing short of ecstatic about the OS.

    O'Reilly, IMHO, publishes by far the best books on the market. This is because they have excellent editors and scouts (for lack of a better word) to find very intelligent, very insightful people to write their books. I suggest people check out there dev sites more often; they are treasure troves of info

    The O'Reilly Network

    MacDevCenter.com

    OnDotNet.com

    OnJava.com

    OnLamp.com

    openp2p.com

    osdir.com

    Perl.com

    XML.com

  6. 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.

  7. Microsoft understood this long ago. by LibertineR · · Score: 5, Insightful
    For at least the last 5 years, Microsoft has understood that nobody buys 'Windows or Office or Exchange'. Corporation buy Networking, Information Management and Messaging instead, and the winners are those who provide the TOOLS for these business missions better than the next guy.

    Linux vs Windows was never the proper battle, it was always a battle over what you DO with these things, and how you do them more effieciently than the other guy. Lots of companies NEED something like Exchange, so they by an Active Directory and Windows by default, and so on and so on.

    O'Reilly is dead on right. All this shit is just commodity for the applications built upon it that actually generate income. Superiority of one platform over another is a moot point. No one decides to buy a book at Amazon because of Linux, instead of Barnes and Noble because they run on IIS, so get over it.

    Windows against Linux is now like Goodyear versus Michelin. Who gives a shit? Only tire makers, not CAR makers. So, it is time to focus on building shit that rides on these things, instead of so much focus on the things themselves. No side has an advantage right now, but that could change overnight. Suppose Microsoft buys Amazon, or EBay buys Oracle? Same players, whole new battle, and all this crap over which OS is better doesnt mean a thing.

    What if Microsoft buys Macromedia; takes Flash and does interesting remoting stuff with Web Services tied only to .NET? What is the competing solution from IBM going to look like?

    I've got no answers, but I agree with O'Reilly that things are going to get very interesting over the next few years, and things are never going to be the same.

  8. Hmmm.... by Delphix · · Score: 5, Insightful

    Having read the article twice I'm not qutie sure I get O'Reilly's point.

    What he's saying is correct, but it's not exactly earthshattering in anyway. Amazon puts together some services that rock. They patent them. And then they sell the service to others. That just seems logical.

    How that ties into driving Open Source I'm not sure. If they're only devleoping proprietary things (services) on top of an open source backbone, they're not really driving Open Source devlopment. Just because I compile my program with gcc or use a perl script doesn't mean I'm driving open source development in anyway. They're just using it as the foundation to build on.

    Open Source is by definition controlled by anyone who wants it to be. Maybe I'm missing something here, but it seems like he's just stating the obvious and it has little to do with Open Source.

  9. to expand on one point you made by mindstrm · · Score: 5, Insightful

    regarding an open source gui...

    (agree with everything you said, btw)

    As a long time hardcore technical guy, and let me back that up by saying I'm a unix nut, I've been using linux heavily for 10 years now, solaris before that, and I get right into the guts.. I like assembly, circuit boards, and whatnot. I like a command prompt and I don't like microsoft.... anyway....
    as a hardcore technical guy, open source liker, and a recent convert to OS-X... the comment about a gui got me thinking.

    I like open source. I like open everything. I don't like being told what to do with my computer. Yet, I LOVE OSX, and I recognize that the one strength MacOS really has is that apple controls the desktop. It's not that you can't skin it, ,or change it's behavior.. but, in general, it's built to behave a certain way, and you can go around to macs everywhere, and the machine behave the way you expect them to. The developer knows what the user expects, and doesn't have to account for a dozen different ways to interface with things. More importantly, he has somewhre to start.. look how many windows applications have varied interfaces. To really understand this, in case anyone is doubting it, just sit down with a fresh mac and mac user for a few hours and learn how to install software, work with files, etc... you'll get it.

    So.. we want an open source gui. Here's the thing... the only reason the mac has the "world class gui" feel to it is BECAUSE of a certain lack of openness.. we're talking about a benevolent dictator here. Apple developers know what to expect on the desktop, know how the mac user expects it to behave... and that's the main attraction. If you don't want that, you might as well go use linux.

    Yes, we can do stuff in linux that OSX can't do. Yes, open is good, no argument here...I'm just tossing out the thought that, when it comes to providing a rock solid user experience, for a general purpose computer... a lack of choice is sometimes what's needed.. to get people thinking and doing the same thing.
    You can sit someone down and show them windows -vs- mac.. and invariably, the mac people get more done, and are more comfortable with their gui.. and it's not because one is more customizable, or more flexible.. in fact it's the opposite.

  10. Re:There's another great example of commoditizatio by cant_get_a_good_nick · · Score: 5, Insightful

    ...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.

    The FreeBSD folks get some benefit as well. Besides having another big company using their code, testing it (and supplying patches) they kind of avoid the tug of war that part of Linux is going through - the whole "is it for geeks or the masses?" The coders who are good at one tend not to be as good in the other. So the FreeBSD coders can concentrate on the lower level bits, and have the Apple folks worry about getting the real fancy GUI on top of it.

  11. 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.
  12. 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.