Looking Back at Open Source in 2005
bhmit1 writes "BusinessWeek is reporting on the open source progress in 2005. Their conclusion: "in 2005, the software movement finally gained traction in Corporate America and saw a new influx of VC cash." Has the shift in corporate america really occurred or are activities like the profitability of Red Hat signalling that the CEO's are still holding on to the old way of business?"
With open source software businesses will be able to save money. Needless to say these cost savings will be passed on to the consumer.
sudo mod me up
Has the shift in corporate america really occurred or are activities like the profitability of Red Hat signalling that the CEO's are still holding on to the old way of business?
Not until we have a half decent OSS office suite. Something lean, functional, and efficient. Other functional systems aren't available yet either--at my corporation, we have yet to find anything F/OSS that can come close to doing what MS Exchange does. Until then...
FP. And your post sizzzzzucckkzssssxxxx!!
http://22surf.org/
https://sourceforge.net/project/showfiles.php?grou p_id=113442&package_id=122947
22surf Summary:
22surfing is a sport. It's for individuals and businesses alike. It's about surfing along with natural laws like Moore's Law, Metcalfe's Law, and intellectual property law towards one's dreams as a creator, hacker, and entrepreneur. It's about riding technology's bleeding edge out to where artist-hackers, writers, movie directors, photographers, and musicians form their own media archives and markets, as Open Source Content Management Systems (CMS) surpass yesterday's proprietary solutions.
Digital rights management (DRM) is the holy grail of the internet. It is a multi-billion-dollar, ever-expanding market, and an apt solution will be invaluable to the livelihood of content creators, programmers, and media companies. The 22surf business plan for generating revenue with Open Source CMS and DRM has been Open Sourced in an effort to foster discussion and inspire fellow artist-hackers to build businesses. Rather than proposing another CMS, 22surf seeks the best route to syndicated commerce and DRM across existing CMS.
An Open Source solution to DRM will be important to artists, musicians, and creators, to the Open Source community, and to DRM. If only proprietary methods for DRM are developed, then corporations will be granted more power over creators, and too, it will be difficult to realize universal, robust standards, as hackers around the world won't be allowed under the hood to improve the system. Furthermore, an Open Source solution to DRM will provide countless business opportunities and jobs for Open Source programmers with record labels, stock photography archives, and movie studios, all of whom will save money.
An Open Source solution to DRM and syndicable media markets is a natural destination for the Open Source movement. DRM and syndication are based on methods and algorithms that must be transparent in order for DRM and syndication to be trusted, secure, and universally accepted.
The internet favors the direct connection of the creator and consumer. In the emerging webscape defined by the Open Source CMS renaissance, creators will be able to define the rights determining how their content is used, and consumers will be able to support their favorite artists and musicians without large corporations taking a cut.
Open Source is granting the creator the power to create their own media markets. Oscommerce is fully capable of handling pay-per-download models alongside physical media sales, bypassing the often greater than 50% cut into an artist's profits that older models centered about large, proprietary online markets claimed. Open Source CMS also allows the creator to maximize their own brand rather than building amazon.com's or barnesandnoble.com's. Future 22surf models are explored, including scenarios wherein open DRM protocols such as openipmp and Media-S are married to Open Source CMS such as xoops, postnuke, tiki, gallery, and oscommerce to provide content marketplaces connecting creators directly to consumers.
22surf encourages artist-hackers to download the 22surf business plan for building profitable archives and marketplaces with Open Source CMS, change and build on it, and join in the following revenue streams: 1) sell keyword advertising throughout free OSCMS hosting services (blogs, galleries, etc.), 2) sell advanced hosting options/extra disk space, 3) charge 5% on content marketplace transactions, 4) charge 5% on Open Source Arts freelance services marketplace transactions, 5) manage/host media assets of large businesses (record labels/movie studios/etc.) with openipmp or Media-S for DRM 6) sell printing services (or partner with businesses) for hard-copy books, prints, CDs, DVDs, etc. 7) create a syndicable friendster/FOAF (friend-of-a-friend) network.
All of the abov
Old way of business = profit. New way of business = ???
Seriously that doesn't make sense. Surely Red Hat's profitability indicates that they have a handle on the new way of doing business.
Ah, this definitely was the year of desktop Linux and the death of *BSD, the year in which I welcome Linus, our new KDE-loving overlord... Imagine a beowulf cluster of KDE-loving Linuses!
Join the anonymous, help develop the network: http://www.i2p2.de
I am going to FUCK each and every one of you IN THE ASS.
The market is still dubious about open source and for good reason. The big players, the ones pushing around 400 billion dollars, still control the legal avenues and we've seen that the legal avenues are being used in many ways to hedge out the OSS players. If $400 million in VC was invested in OSS startups then it really was venture capital in the truest sense of the term.
I'm happy to see OSS getting a foot in the door but I'm not going to break out the champagne and glasses until we see some real reform on both the business and political fronts.
fast as fast can be. you'll never catch me.
IBM learned long ago that ongoing support generates a constant revenue stream.
That lesson was not lost on Novell, Redhat and I believe Ubuntu is following the same path
I think that we will see the application services and support companies running up the revenue stream. However, it takes talented people to seed this activity; one with a proven track record. I have been told that a VC looks briefly at the business plan, just to see it is thorough, knowing full well that as soon as the business opens it's doors, that plan will change as the prime movers identify the hot market needs.
So the quality of the people in the enterprise, and their successes is what gathers the most attention from the VC. It is the people that will make or break the business.
This is progress?
Has the shift in corporate america really occurred or are activities like the profitability of Red Hat signalling that the CEO's are still holding on to the old way of business?
The reason why open source vendors who act more like "real" companies do well is because corporate IT absolutely demands that they have someone to complain to when everything goes to hell. Imagine you're the CIO of a 25,000 person company who depends on its IT systems to make money. I think you'd be foolish to trust that the crew of experts you hired is going to stick around, and be able to solve any problem that comes up. Sooner or later, something high-profile will die. Who do you call??
Companies like Red Hat enforce standards in an open source world that really doesn't have very many. They sell RHEL with the promise that you'll get tech support as long as you use their packages and software. That's a compelling argument. One thing I've been impressed with is commercial vendors' ability to call in massive amounts of help when a real emergency occurs. Red Hat, Novell, etc. are capable of that. Even if you have a support agreement with the makers of fooPackage, which happens to be the crucial link in your business process, can they guarantee that they'll work with you as long as it takes to solve a problem. Worse yet, let's say it's a multi-level problem between fooPackage, barPackage and blahPackage. Now you've got "dualing vendors" on your hands all saying "it's not our problem." Not that that doesn't happen in the commercial world, but a commercial OS vendor (Sun, Microsoft, IBM, etc.) is helpful in mediating those fights.
The Red Hats and the Novells are going to be the ones who finally get a Linux desktop on the market. That's because they'll pick one office suite, tweak the hell out of it, and make it a standard akin to MS Office. Companies want to know that their training dollars aren't going to be wasted. Most users learn one software package to do their jobs, memorize the commands, and will not readily learn anything new. That's what the Linux desktop is up against.
samzenpus managed to put together words:
"Corporate America" "profitability" "way of business" "influx of cash"
with
"Open Source"
Wow! I've never seen them together before. Nice touch!
Its a pain that I cannot recommend Linux as an operating system into many of our customers corporate environments simply because the vendor support is still not there. Here is a classic example of issues that I have faced with Linux over the last year. Recommending a customer to go with Linux would have required them to use GFS to keep it supported by Redhat, however there is no Veritas or Legato backup agent for GFS at this point in time which means they would have had issues backing up the file systems or having a system that would have been completely un supported. So we ended up recommending Solaris 10 with Veritas Cluster Server which we knew we could backup using the Legato or Veritas backup software and remain fully supported. The real issue is not that we cant support the product in house but its who does management call when things break which from my experience does not happen too often in a well designed and implemented solution. For linux to really be accepted on a broad scale enterprise offering it must have
- Fully supported file systems with fully supported backup agents for each system.
- Vender interoperability. Redhat Enterprise Linux 3 and Enterprise Linux 4. Some commercial applications will not work properly on 4 but will on 3 because of the compiler/libraries they had used to build the code.
As an open source advocate and someone who believes in the principals of open source things have come a very long way over the last year, but the real linch pins still remain and will remain for some time.
But what about new stuff? Will someone with a really innovative idea open source it from the beginning? And even worse: will we notice?
I do admit that open source projects have features that commercial projects never bothered to implement (image dumps from video files in VideoLan comes to mind) but I struggle to find something completely new.
One of the greatest events around open source in 2005 was for me the penguin-hack of a microsoft lobbyevent in the parliament of berlin. very funny and with lots of pictures: Microsoft in Parliament.
I belive that it always has been the goal of a corporation to make a profit. That did change during the dot-com-boom, but we see where that lead us!
let's see what MS has to say about this !>!
i live on an alternate planet
I think open source did very well. We've seen some enhancements to KDE and Gnome, and even VI. I think UNIX as a whole has surpassed all obsticles that we couldn't have foreseen coming and I only hope things will get better. I have converted many over from the dark side to Linux/UNIX operating systems. I am also doing my part by contributing to a few open source programs in my free time. The movement is only growing stronger and will eventually overcome corporations producing closed source software because we as a community do not have to answer to shareholders. We do not have to meet unreasonable deadlines, we are developing for other users and we tend to get it right the first time. I look forward to contributing more code to various open source projects in 2006. If fact, it is one of my New Year resolutions :)
Ubuntu.
Rich And Stupid is not so bad as Working For Rich And Stupid.
Open source doesn't mean squat if the software is not Free. Where would so called "open source" software be today if everyone was not Free to use it how they see fit. The vast majority of Slashdot users love and use Free software, but everyone refers to it as "open source". Acknowledge your freedom before it gets taken away from you. Free sofware is available to everyone. "open source" is a development model and is increasingly becoming big business.
Keep smiling knuckle heads. For if the community does not recognize that Freedom is the most successful tool for so called "open source" software. It will not last and will become just another business.
Mod parent underrated because +5, Flamebait would be really funny!!
What the hell does this mean? Are you saying the "new" way of doing business means not achieving profitability?
I think it was a very good year for Open Source software.
In 2005, my work projects benefited highly from open source libraries. My testing software would have been very time-consuming to write without open source software. In general, it has saved me quite a bit of time and aggravation.
In addition, each time I proposed open source as a means of supplying something I needed to use, I didn't need to justify it to the project management types - they understand the power and the value now...
Perhaps a sea change is occurring that makes it a little more understandable (to corporate types) that the volunteer work of a few benefits the many.
A big thanks to those who have burned the midnight oil just to provide software for the rest of the world!
A Passionate Independent Musician
Red Hat perhaps shows that you can make money from Opensource software. IBM already knows this. You give the software away for free. Then charge them their first born for support. Business never changes. Buy cheap sell dear. Nothing is cheaper then opensource, and nothing is more expensive then IBM tech support. Well MS support if you think downtime expenses should be charged to support costs.
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
Ghostbusters! <cue music>
I'm suing you because you stole my ... template idea
Not if I can show prior art.
I submitted the same link yesterday. Got rejected. Again. Sigh. Mod me down. Whatever. IS THERE NO JUSTICE? OH, THE HUMANITY OF IT ALL!!!
"Let us raise a standard to which the wise and honest can repair" - George Washington
Parent is not flamebait. Go back and keep sucking on your crack rocks, moderator.
No year without a new release of Nethack can be considered a good year for Open Source.
If the geiger counter does not click, the coffee, she is not thick.
Assuming a salary cost of $50k, we're talking about eight thousand open source programmers. OK, a chunk of this money is going to overheads. Say 5,000 open source programmers.
That is not a lot in the global IT business, but when you consider that in order to be paid to develop open source you usually need to be a *lot* better than an average programmer, and when you consider that such programmers are significantly more productive (10 times or more) than average programmers, we're talking about a large slice of the best of software development.
The open source model is seriously more efficient than the closed source one, also as regards the internal costs of developing technology. Compare the size and cost of the Firefox team to the Microsoft MSIE team (when it was in serious development).
I know, because my business has done both, and it's always been the open source that comes out best and cheapest.
We also found our first main corporate sponsor for large-scale (for us) open source development at the end of 2004, and in my experience, there are real and viable open source business models, mainly based on the fact that most closed-source products and vendors are really quite mediocre. Provide a comparable product, and better service, which is easier to do if the product is open source, and you can earn decent money.
Well, you can come back to my comment in six months' time when we release the product we're being paid to build, and when we start to build a business out of supporting it!
My blog
Color me surprised. I had no idea. This is a prime example of why I read this site. Sometimes it seems like it's not difficulty finding information -- it's a matter of even knowing to look for it. Can't know what you don't know sort of thing.
The real value of Teh Intarweb.
Why worry about 2005 when 2006 is clearly going to be:
"The Year of the Linux Desktop" !!!
(If not, then definitely 2007...)
I agree. I think that the biggest advance in open source software was the streamlining of Debian into Ubuntu. Its simplicity, ease of use, and the fact that it just works out of the box makes it a winner. Any idiot, including myself or my company's IT staff could install it.
"in 2005, the software movement finally gained traction in Corporate America and saw a new influx of VC cash."
It seems like I read very similar claims made in 2004.
It saw Microsoft's bloated slothful SBS replaced in it's thousands by swift lean *nix and bsd boxen, which are easy to administer, and easy to update.
Not one of our clients are going to "upgrade" to another Microsoft server platform. Not one. After years of exploits, lock in, and "useless feature which leads to a format", even the most dedicated Microsoft fans are jaded.
It saw USB support on all major distro's, plaug in a camera, and be greeted by an import photo wizard.
Plug in an external drive, and start filling it up. Plug in almost anything USB and just start using it. Thanks kernal gurus, you just made the garden variety user want to use Linux.
Happy new year to Apache, QMail, Sendmail, Bind, DJBDNS, Xorg, Firefox, and Bram Cohen.
All the best for the next year!!