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A Cynic Rips Open Source
AlexGr writes to tell us that Howard Anderson chaired an interesting meeting the other day with senior executives from Cisco, Agilent Technologies and Novell. The discussion took a look at whether or not enterprise users really want open source. "Naturally, I disagreed -- partially because I am a naturally disagreeable person. Any idiot can make friends -- but can you make some really serious enemies? I disagreed, however, because allegiance to open source depends on who you are. Let me give you an example. If you are No. 1 or No. 2 in your industry, you hate open source. You make your money by selling proprietary solutions: Microsoft and Cisco. If you are No. 3 to No. 10, you look at open source as a way to get back to those serious RSEUs, because they are where you make money."
I first read this article on an Australian site (http://www.computerworld.com.au/index.php/id;8103 29453/) last week and it has been syndicated and is doing the rounds. This guy, Howard whoever he is, clearly has done zero research and has no facts to back up his comments - especially the finale.
At the end of last year the EU Commission released one of the most comprehensive reports on the impact, spread and use of Open Source, around the world. They found that, in actual fact, only around 10% of those who contribute to Open Source projects (the software engineers) are employed by proprietary vendors - the overwhelming majority are employed by the enterprises Howard so cynically believes are using FLOSS purely to beat down the cost of proprietary systems.
You can download the entire report from the EU itself here: http://flossimpact.eu/
There are many other reports from major research organisations that are concluding similar things. Forrester research has recently found that over 50% of large enterprises are using FLOSS in mission critical applications and this is growing.
A quick Google would lead Howard to many of these findings.
Alanhttp://www.theopensourcerer.com/
"He is also founder of The Yankee Group.."
Surely you all remember miss Didio and her corperate horse whispering.
The GP stated that the _marginal_ cost is 0, not that the entire cost or even the amortized cost is zero. The marginal cost is the additional cost of producing one extra unit. Your development costs are the same whether you sell 1 license or 1000 licenses; therefore the additional cost of those extra 999 licenses is zero. Thus the GP is exactly right, and software itself breaks the current economic model.