Red Hat CEO Says Economic Crisis Favors Open Source
arashtamere writes "Red Hat president and CEO Jim Whitehurst predicts the enterprise open source software business will emerge from the economic crisis stronger than the proprietary market. 'I've had a couple of conversations with CIOs who said, "We're a Microsoft shop and we don't use any open source whatsoever, but we're already getting pressure to reduce our operating costs and we need you to help put together a plan for us to... use open source to reduce our costs." And we've had other customers literally looking at ripping and replacing WebLogic or WebSphere for JBoss ... I think we'll know in about six to nine months but there is no question that open source will come out of this in relatively better shape than our proprietary competitors,' he told Computerworld."
I feel as if thousands of MCSE's cried out in pain and were silenced.
Do not look at laser with remaining good eye.
There's also Apache ODE.
as an engineer, with 10+ yrs in the industry, it still boggles the mind that closed source, proprietary software has such a stranglehold on the way businesses percieve 'value'.
all too often, you see a business with a couple of it 'support' staff, maybe developers too, and someone has a day at the golf course and comes back with 'great news, we've managed to secure a long term contract with IBM...'
i still loath cognos reportnet some 4 years after that guy came back from the golf course... whats that ? ibm bought cognos? greeeeeaaat!
Were they using the Billy Mays awesome auger to run cat5 near gas lines?
It seems he is implying open source solutions win on cost.
Has that ever been definitively proven (as much as such things can be)?
"The government grants you rights, not the other way around."-- beav007. Yes, these people really exist...
Has anybody checked the price of a Red Hat subscription lately? It ain't cheap. In fact, it's cheaper to get M$ bundled with a server than it is to get a one year Red Hat subscription, given that you need to renew (read= pay more $$$) each year, and Linux engineers can command more salary simply because there are fewer of them than there are Windows engineers (oxymoron, I know.).
So yes, open-source as a "whole" (Articles of Confederation-type whole) will do well in tough economic times. If Red Hat wants in on this, they'll need to either lower their prices, or perhaps rethink they're "software as a service" model.
Anybody want my mod points?
Why is it that every story evaluating open source as a replacement for proprietary software starts with, "We want something cheaper." It's encouraging that people are comfortable with the reliability and features of OSS that they are comfortable putting businesses on it. But I would be concerned as an employee at these shops that management had fully evaluated the the needs of the company with respect to these packages. I've seen it a few times already at places where I've worked where a manager says, "This is cheaper, lets get this." and then doesn't realize that he needed someone who actually knew how to configure and manage things like the Linux box it was going to go on, etc.
If you could just go ahead and convert all of those windows servers containing all of our business value into linux, that'd be great, mmmmk?
Wouldn't it be cheaper for them to just stop upgrading to the latest and greatest and stick with what they've already got?
(I am a linux fan and don't even run windows, it just seems like it'd be more money and less cost effective to start switching over just leaving things alone).
The year of the Linux desktop is finally to come.
...again.
I had a customer who needed to start from scratch with a new business. They could allocate about $5k for the whole database server. I priced out an NT+SQL Server (what they requested), and then priced out a Redhat ($50 at the time) box where we spent the same $ on hardware that we would have spent on software... so they got a kick butt system with $4950 worth of hardware versus a piece of crap machine with $3000 worth of software. That company is now worth something in the 8 digits range. (Wish I had an equity stake now!) That server also served their needs for 5 of the 8 years until a hardware failure, and all we did was move Mysql/Apache and the source to an externally hosted platform.
meh
Red Hat CEO Says Economic Crisis Favors Open Source
No! Really? I'm shocked!!! Who would have thunkit????
Free Martian Whores!
And that's the problem. When the economy is in a downturn, people are going to cover their own asses and pick the "safe" option.
I can't help but be a little peeved at this guy. Here is a situation where potentially thousands of people in the industry are going to be laid off because of this economic downturn, and all he can mention is how great it's going to be for OSS. I mean, I see his point and it may be a valid one, but he could be a little less gung-ho about it.
Dislike the Electoral College? Lobby your state to join the National Popular Vote Interstate Compact.
And we aren't talking about slacker machines, either.
Slacker machines work pretty well once you get beyond the piercings, tattoos, and the skate shoes.
I would like to believe that Linux would be positively promoted due to the economy. However, re-tooling an enterprise or SMB from MS and proprietary software to Open Source is costly and time consuming. There is an up front cost to be considered. The selling points of Linux and OSS are not necessarily bound with cost (although it helps) but with flexibility, stability and security. These three items, if working properly, should be transparent to the end user (and upper management). Thus the argument would be, "See, nothing is happening - isn't that great!"
What is often not offered by OSS is ease of use. That is in front of the user and the under trained IT guy supporting them.
As an employee for a non-profit, OSS has been a lifesaver but it will be difficult to find a replacement who will be familiar with the OSS applications and Linux.
One ring to bind them - should probably have more fiber and less rings in their diet.
A lot of businesses may become increasingly unwilling to take risks, such as radically switching their technology.
It's easy to take risks when business is good and there is plenty of cash sloshing around, but changing mission critical systems during bad economic periods will be seen as a bit too radical for many businesses.
Having said that, I think smart businesses will be willing to make the change in many cases, especially when there is an OSS drop-in replacement, or where they are implementing a greenfield system.
Paul
Paul Leader
...It's still a not-so-great idea for home desktop machines.
Since servers tend to require a lot less in terms of end-user experience, you can get by with a lot more command-line operations to get the server to work correctly in the first place. That's why you see IBM being perhaps the world's largest distributor of "big iron" minis and mainframes that run modified versions of various commercial Linux distributions, since it wasn't that hard to port Linux to them.
But a home user desktop machine is a completely different thing altogether. For home computers, not only you do need full software driver support for various hardware out there, but also make it relatively easy for end users to update their operating system to support any new added hardware. While Linux is getting better at this it's still behind both Windows and MacOS X in terms to full-function support for hardware out there. I mean, does the Linux driver for the Creative Sound Blaster X-Fi series of sound cards offer the same full functionality as the Windows XP/Vista driver?
I agree that there are cases where PostgreSQL or will not do. But they are not "many cases". In many cases, Oracle is an expensive overkill. In many cases Oracle introduces more overhead supporting the database than it is worth.
--Coder
First we were afraid
we were petrified
Kept thinking we could never live
with Windows on our drives
But then we spent so many nights
hacking Linux all night long
And it grew strong
And we learned to carry on
but now you're back
your battle lost
I just logged on to read about you
urged by your bosses to save costs
we should have told Novell to wait
We should have raised our service fees
If we had known for just one second
you'd be begging on your knees
Do not trust this signature.
No doubt. Red Hat is the only company that I know of that will support other vendors apps to the point of fixing it themselves, or even having one of their kernel devs patch Linux. If fact, Red Hat is the only company that I know of that can really claim that they can get fixes for customers directly in to both the mainline Linux kernel and Samba. My understanding is they'll also support any of the products created by the thousands of vendors that are part of the Red Hat Exchange. Microsoft just can't offer that, even if they wanted to.
If I mod you up, it doesn't necessarily mean I agree with what you've said, sorry.
Maybe because FOSS supporters have done such a good job with the "it's free" argument.
Shai Schticks:"You don't make peace with friends, you make peace with enemies"
I think everyone understands that it would be impossible to just wake up one day and *pop* everything runs Linux. It's just not possible.
The only way Linux will come to the desktop is in a slow march. All this article is describing is another step, another foothold that free software has on the desktop. The 'year of the desktop' isn't 'coming'; it's here. Just not everywhere.
That works if you have the staff that understands the app and the systems it runs on/needs to run. Unfortunately, a lot of managers see "free" software and dive on that not understanding that they need people to maintain/support that.
And why wouldn't they think that? To me, there is still a whole lot of confusion revolving around "free software" and "open source". To me, they have always been synonymous. If I can go download it and use it legally for free, then it's free. You call call it open source, open wide, whatever you want, if I can downloaded it and use it legally for free, I don't care.
Now I'm learning that maybe it really isn't supposed to be free, it's a teaser, like 0% interest rates on credit cards. Sure, we give you this freeeeee software, but really what we are hoping is that you buy a service subscription from us. Well if I'm going to pay for the software, now I'm back to shopping around for the best commercial deal again.
Sure I have to have an IT guy who knows how to install and maintain the apps. This is true no matter who I buy the software from.
A work that expires before its copyright never enters the public domain and thus enjoys eternal copyright protection.
On paper, RHEL is a tough sell against Windows. The pricing just isn't aggressive enough.
For CIO's with more foresight, migrating from Windows to Linux makes future migrations much easier. Since Linux is a very UNIX-y environment, it's relatively painless to move from one Linux flavor to another, or from Linux to another UNIX-y OS.
Migrating to or from Windows is the major point of pain. Once you can get away from Windows, it actually doesn't make a lot of sense to ever go back to it (again, because migrating the other way is so hard).
Linux, on the other hand, will run on every machine at the company. Everything from your cell phones to your desktops, x86 servers, midrange boxen, and mainframes. Your IT department can become far more efficient (read: less head count) managing UNIX and Linux across the enterprise instead of Windows on the desktops & low-end servers, something else on your bigger servers, something else on your phones, etc.
The Red Hat CEO also reported that the latest sun spots are a good reason to switch to Linux...
I hate being bipolar; it's awesome!
Where I work they buy recycled toner cartridges at half the price of new ones. The trouble is, you only get 1/10th as many pages before they peter out, and usually spill toner all over the inside of the printer, necessitating repairs.
I've found that managers aren't very smart.
There is argument about the cost of server software here, and seeing as how it's Red Hat speaking, that makes sense (I have no idea whether RH or MS server software is cheaper to run), but I don't understand why businesses are using Microsoft Office instead of Star Office. Is Star's spreadsheet really that bad? I haven't used it, I have no need for a spreadsheet at home and they use MS at work, but Star's word processor is as good for what I need (at home and work) as MS's.
Nobody ever got fired for buying Microsoft.
Free Martian Whores!
Actually, if you think about it, support is just a money sink for Microsoft... it costs them lots of money and generates no extra business (if you're calling for support, they've already got your money, most likely).
If I mod you up, it doesn't necessarily mean I agree with what you've said, sorry.
'I've had a couple of conversations with CIOs who said, "We're a Microsoft shop and we don't use any open source whatsoever, but we're already getting pressure to reduce our operating costs and we need you to help put together a plan for us to... use open source to reduce our costs."
This makes Jim sound like a complete tool. People who want to save money by switching to open source solutions typically don't go to Redhat. You really want to save money? Switch to CentOS or Debian/Ubuntu. Those are free. In my experience companies usually use free solutions for the majority of their server fleet. For systems that require commercial support (Oracle, Weblogic, etc) they will use RHEL.
And we've had other customers literally looking at ripping and replacing WebLogic or WebSphere for JBoss ...
On a personal note.....DONT DO IT! JBoss blows chunks compared to Weblogic 10. If you want a cheaper J2EE solution, look at Glassfish its getting a lot of attention and having used the last stable version it is actually pretty good.
And you just hit the nail on the head as to why it will be hard for MSFT shops to switch. MCSEs are cheap and plentiful,whereas Linux gurus are the opposite. So while they can run a free Linux server edition and save upfront costs the first time they have a serious breakdown it is going to cost them. And the support contracts for distros like Red Hat(last time I checked,its been a few years) will eat any savings that they had from switching. Hopefully as cheap Nettops and Netbooks get more popular more when learn Linux and go into the field,but ATM Linux Server admins certainly ain't cheap nor plentiful.
Not trying to flame here,just stating what I've run into in the field. While there are some old Windows guys out there like me that love to learn new Operating Systems and all the little ins and outs,I have run into way too many MCSEs that if you took away WinServer would be as helpless as any non technical home user.
ACs don't waste your time replying, your posts are never seen by me.
..of competition. Number of companies that can bid on a change order to your proprietary software: 1. Number of companies that can bid on a change order to your free software: many.
Free market capitalism is just too efficient to ignore. Father Microsoft may have seized the means of production, but the economic pressures of returning to freedom will always be there, and it's going to be a constant effort to keep sweeping back the sea.
i never liked golf...
Ballmer says economic crisis favors Microsoft, and Jobs retorts that economic crisis favors Apple...
He's the CEO of a company with a somewhat untried venture trying to influence migration during an economic crisis! These people depend on investors not to jump off the train.
I believe an economic crisis will cause much more conservatism in the way companies run their IT. That may mean more sticking to Solaris or AIX for their servers and Microsoft Windows for their workstations, probably just not upgrading. Chances are they will cost cut by getting rid of jobs and not licensing NEW products instead of migrating their systems to a brand new platform. I would argue that a rise in fiscal conservatism (not the Bush kind) would be a boon to those outside of the OSS market who are not dependent on angel investor capital to make major innovations.
Open source is a product of a very experimental market that's just rolling with impossible amounts of investor capital, granting companies the kind of time to fiddle with it. As far as I know, most open source ventures and start ups are in the market of getting bought up by an actually profitable company like Google or IBM or Sun- and if they're conservative and the investors are strapped, then I would say there will be less innovation in enterprise class OSS and more in hobbyist OSS (eg gentoo).
Alternatively, with a lot of people out of work, there may be a surge in productivity in the more gooey and fun products like Ubuntu and compiz and Haiku with so many people bored and out of work. We shall see what happens with that in the future- that is, when the credit crunch finally comes for our jobs.
in the real world, the OS is mattering not as much as it once did. what is driving is the 'solution', or what are your mainline apps? an example is a shop that runs autoCAD, this is a MS only app the costs big bucks.
and for the server world, its the same you have companys with these huge investments in internal and external control apps, and starting over is not something they will do with out very long and carful considerations.
and even in shops, that are mixed and have heavy Unix presense there are issues becuase SUN and Novel support sucks. tho redhat is pretty good but; going with a full readhat solution is big bucks...
so, and you have to consider what apps you going to need. and writing everything over is not a good answer as some shops could have 20 apps....
Wait, so there's no like... LCSE? Why the Hell not, considering Linux is used on so many servers and is the backbone of a LOT of important hardware. Like servers for Steam games. (Okay, important to ME. d:)
Random Thoughts From A Diseased Mind (Not For Dummies)
Is that really so bad? I've got my mom using Ubuntu and she's by no means a computer expert. If someone with a MSCE can't adapt to Linux, then I don't think they were worth holding onto anyway.
It just doesn't favor paying for it when you can run it for free. I think if recession really kicks in, RHAT will be much more fucked than MSFT, because CTO's will drop those support contracts for a year or two hoping nothing will blow up too dramatically.
There is, actually but it's not as well-known:
http://www.lpi.org/
I'm sorta slowly pursuing these. I think my favorite concept is that LPI does offer an Ubuntu-specific exam on top of the regular certifications you can get.
You're doing it wrong. The next time you need an HP Proliant server, ask your HP rep to bundle a 3-year Red Hat subscription/license with it. It will only add a few hundred dollars onto the cost of the server, far less than a Windows Server 2003/2008 license, and you'll get real support (1st and 2nd tier at HP, 3rd tier at Red Hat). Most servers are decommissioned after 3 years anyway.
The myth that Red Hat support is more expensive than Microsoft is just that, a Myth. With HP servers, I can get support for a few hundred dollars for 3 years. For Microsoft, several hundred dollars just pays for the software license. Support costs $300 an incident after that.
"When the president does it, that means it's not illegal." - Richard M. Nixon
Therein is the problem as most real Windows admins know. Most MCSE's are useless as tits on a bull. and going OSS will show that in a glaring light.
If you go linux you dont need 12 MCSE morons around just 2 good admins. Yes you cant pay those admins the $12.20 an hour you gotta pay them a real wage, this irks the managers but it's a fact of life.
There's no way bad economics favor Teh FOSS. Who's going to keep that armada of highly paid consultants fed when there's no money to go around?
When people tighten their belts, they go with the most discreet of all options. Any company who knows what they are doing already has Windows support people... so that heavily favors adding more Windows-based solutions. It requires no highly paid consultants, no outside people, no goofy and uber-expensive hardware, and no crazy modifications to the network.
I feel a great disturbance in Teh FOSS, as if hundreds of Lunix zealots cried out in terror, and were suddenly silenced.
It's a bad time to be pedalling radical and barely functional solutions right now. Dark times ahead for Teh FOSS, good times for solid and reliable companies.
You're right, but it's in times like these when that shift happens, Linux and OSS in general will be in higher demand, employees will consider more getting training or experience with it all, that's how the market works, supply plays catch-up with demand.
Promote true freedom - support standards and interoperability.
There is, and I guess it would be correct to say LPI because it's a multiple choice test that any dolt can usually pass. The RHCE on the other hand is completely hands on and you have to have a little bit of a working Linux knowledge to pass it.
"If you plant ice, you're gonna harvest wind."
Nah, they just hire Linux weenies. Kids are cheap. And it's not like there aren't a zillion of them.
http://rocknerd.co.uk
I don't know about that.
It only takes one service at a time to get used to it - cumulative.
What the problem will be is interoperability with MS products that the business people know and love. I guess that's why RedHat has Novell.
That anyone in IT gets laid off during economic downturn just goes to show how fundamentally broken the IT industry in the US really is.
Information technology is a radically efficient time and labor saving device.
Yet instead of being used to automate and streamline the millions of worthless repetitive shite jobs in the information economy, IT is most often used to automate and streamline the jobs of IT workers themselves.
Instead of finding out what Suzy the secretary or Tim the accountant actually do all day (besides surfing the net), and using information technology to do their jobs more efficiently or to make them obsolete, Ishmael the IT guy instead sits in his cubicle working on outsourcing his own job to people and companies who quite frankly can't do it nearly as well as he could.
It's a fundamentally broken industry. And the reason it's broken has more to do with the current economic downturn than anyone will admit.
The Federal Reserve, the captain of the US economy, has a legal mandate to maintain "maximum employment". This does not mean maximum productivity. It doesn't mean maximum economic output. It means that one of the (three?) guiding principles of the institution that sets interest rates and prints money is to have the most number of asses* sitting in the most number of chairs every day from 9-5.
For this reason, the market leaders in any software category (Windows and it's ilk) are specifically designed around the average person, sitting in front of a computer and clicking on things, providing input, and guiding information processing. What this fails to account for is that the average person is a complete idiot, that driving the average person to work every day in order to sit in front of a computer is a waste of resources, and that (for the most part) using people for information processing just adds errors and complexity with no actual gain in either accuracy or efficiency.
So what we end up with is the few productive members of society, continuously bailing out the 90% of Americans whose jobs constitute little more than Fed-sponsored baby-sitting exercises, through a ridiculously "progressive" tax scheme and (when that isn't enough) direct bail-outs to the bankers whose misguided economic theories distort and pervert the prosperity offered by a truly free-market bolstered by a representative government.
Wash, rinse, repeat in almost any other industry and you will see the same pattern. Productive, revolutionary, labor-saving technologies are eschewed in favor of the latest ergonomic widget that will increase workers' output another 5%, "grow" the company and bring in more investment from the intellectually (and now factually) bankrupt morons at the Fed.
The information economy, nay the entire concept of economic prosperity itself, is simply no longer compatible with the depression-era ideal of full employment.
*not necessarily Americans' asses
"I assumed blithely that there were no elves out there in the darkness"
While I agree that desktop use of Ubuntu is very easy, your statement is pretty misleading. Most basic computer users can use a windows machine for basic things which is a good thing with basic Ubuntu users but we aren't talking about email and browsing users. Administering a computer is very different from merely using one. I doubt any low level computer user will know what to do if something were to go catastrophically wrong, which can happen on both an Ubuntu and XP machine. Would your mother know how to set up a NIS or Active Directory Domain server for multiple users to connect to? How well can she set up a file server and have users automatically connect to it based on centralized login credentials?
It's not all about merely having a MCSE know how to use a Linux system but rather having them comfortable enough to know how to solve a problem as well as build upon current Linux infrastructure.
Linux weenies probably know how to do a few things here and there but I doubt many of them know how to correctly deploy advanced systems in a corporate setting. In fact with the trend of everyone and their mothers using Linux (not a bad thing) there are plenty of "Kids" that know how to install deb packages and even a few more that can fiddle around with modules but I doubt many of them will know how to install and maintain a properly functioning squid proxy, much less a NAS on demand.
Turn based strategy game that runs over XMPP. Phalanx
So why exactly don't these business edge linux into schools? Or the schools do the responsible thing and do that?
Imagine being a highschool where all your students could come out with enough linux knowledge to get a Red Hat cert if they wanted to, and the school subsidised because red hat was sponsoring or something, in exchange you work for Red Hat latter on, or they do exlusivity contracts or something. Well, even though you'll only get small groups of 5-10 people interested and actually do it, what's stopping somebody who might have a light interest from doing the program and getting a job as a redhat-certed admin? Or like an apprentice/assistant sort of position?
Talk about lucrative. I hear you guys make 100k+ easily. Imagine showing up first day of university with a corvette and money to burn. Of course when a lot of schools do it the overall wages will have to go down, or at least there will be lower pay levels (and that's not a bad thing, because you longbearded ones will be working for big tech companies you founded, and the newkids will be working the jobs at schools and stuff).
now Open Source simply looks like the shitty cheaper alternative to what they'd prefer to use. This isn't some much a victory, more so an eye opener for those who would dismiss Open Source applications simply because of a stigma. Anyhow, I'm just glad more people will see Open Source as a path to choose (not the only path - the right tool for the right job!) and expand our ever growing popularity!
http://www.gibby.net.au
12 MSCEs * $12.20/hr. / 2 competent admins = $73.20/hour.
Is that normal? I need to move into administration ASAP.
My next project is to make a linux bootable flashdrive
ANd here we see another way that OS will benefit: lesser known Linux Gurus will get the chance to have dream jobs for slightly less than their counterparts. Hell yeah. A new job market comes out of an economic crisis.
I think this article's hitting upon part of WHY Windows VISTA sales have been so poor: At least in part!
(Not only that VISTA is a heavier in memory usage OS, & slower (slightly only after SP #1 for it + hotfixes) OS than XP/Server 2003 are, as to why its sales have been poor by way of comparison to expectations for it in the market by analysts etc.)
Face it - times aren't that great economically, especially in the United States of America, where people are losing jobs etc. et al left & right!
( ... & that means less "disposable income" is out there for those poor folks, & those that have their jobs are probably "saving for that rainy day", in case they too, lose their livelyhood).
Things like computer OS', having the "latest/greatest" is not of import, by way of comparison to having to pay the rent & buy the daily meal, by far.
Why not run Plan 9? *ducks* Seriously, from userspace, it aint that hard.
I know tobacco is bad for you, so I smoke weed with crack.
Linux got me into the business and I'm going to stick with it. I agree there are a lot of weenies out there, but there are just as many on the Windows side. Every time I want to recruit to my team, I get dozens and dozens of CVs (after the initial HR weeding process) of obvious fresh-out-of-high school applicants who've got a couple of Diplomas (largely MS/Visual Studio based) but no real interest in IT of any sort - they see it as a stepping stone to Management (invariably the m-word is one of the courses they've done) and only shoved Linux on the CV because it was in the advert and they're chancers.
The very, very few that I employ are people who've tried stuff at home (doesn't have to be Linux, just something that shows curiosity, drive and a broader mindset - eg hacking their Xbox or deploying a media network) and are really enthusiastic to learn and progress their skills in the field. Even if some of these people are only partially aware of FOSS I can easily see their interest piqued once it's fully explained to them. Getting them to see the bigger picture in terms of enterprise integration is a matter of nurturing that as their experience grows.
The management-wannabees sometimes slip through when they're really sly but we have this thing called a probation period for a reason ;-)
Oh, and just to brag, my personal record for setting up a Samba domain with LDAP and an authenticated Squid proxy with an IMAP mail server (LDAP auth) stands at 2 hours and 40 minutes (it was an offshore business and I had little time before my flight home after installing all the boxes in a rack and setting up the 5 workstations and 3 printers). Much caffeine was consumed - but I guess that's a given!
-- Sig Sig Sputnik
Some MCSEs will learn linux in about6 to 8 mo.
It requires 1 person for 10 servers with Windows, and 1 for 35 servers when it is Linux / Unix. So there is a large benefit to switching.