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Economic Crisis Will Eliminate Open Source

An anonymous reader writes "The economic crisis will ultimately eliminate open source projects and the 'Web 2.0 free economy,' says Andrew Keen, author of The Cult of the Amateur. Along with the economic downturn and record job loss, he says, we will see the elimination of projects including Wikipedia, CNN's iReport, and much of the blogosphere. Instead of users offering their services 'for free,' he says, we're about to see a 'sharp cultural shift in our attitude toward the economic value of our labor' and a rise of online media businesses that reward their contributors with cash. Companies that will survive, he says, include Hulu, iTunes, and Mahalo. 'The hungry and cold unemployed masses aren't going to continue giving away their intellectual labor on the Internet in the speculative hope that they might get some "back end" revenue,' says Keen."

46 of 753 comments (clear)

  1. Yeah right. by Emb3rz · · Score: 5, Insightful

    Advertising + Blogs = continuance of our current model.

    1. Re:Yeah right. by dotancohen · · Score: 5, Insightful

      Advertising + Blogs = continuance of our current model.

      He just doesn't get that some people do things not for the money.

      --
      It is dangerous to be right when the government is wrong.
    2. Re:Yeah right. by 0100010001010011 · · Score: 4, Insightful

      Some men can't be bought, bullied, reasoned or negotiated with. Some men just want to watch the world burn.

    3. Re:Yeah right. by Hatta · · Score: 4, Insightful

      I don't think that's the main thing wrong with his reasoning. Fact is, a lot of the hard work in OSS is paid for. Most of it is not done for free.

      The main thing wrong with his reasoning is that in rough economic times, companies are going to be looking for a better value. OSS is a better value. Even if you have to pay for developers to get what you need, that's a one time cost and you get to keep the source code.

      Another point worth making is that if unemployment goes up, that just means there's a lot more developers out there with free time, and motivation to put something new on their resumes.

      --
      Give me Classic Slashdot or give me death!
    4. Re:Yeah right. by thedonger · · Score: 3, Insightful

      So we are assuming that everyone working on open source projects is not otherwise employed? How many people do it in their free time, all the while gainfully employed?

      --
      Help fight poverty: Punch a poor person.
    5. Re:Yeah right. by theaveng · · Score: 4, Insightful

      No. I'm assuming they ARE employed, and about to get laid-off due to the recession. Therefore they might not be able to pay their bills, and their priority will be survival, not opensource programming.

      --
      FOX NEWS.com should be BANNED from television and internet. Have the Congress take it over and give us Truespeak.
    6. Re:Yeah right. by jedidiah · · Score: 3, Insightful

      You are of course falling for the common fallacy that any
      free time that a person has can be magically converted
      into gold as if they had some sort of Philosophers stone.
      That isn't necessarily the case. Infact, it will probably
      be MORE likely rather than less likely that people have
      free time on their hands in the near future.

      Whether or not they continue to have the resources to
      contribute to Free Software projects is another matter.
      This has more to do with whether or not they have the
      money to keep the power on rather than if they are
      working at some mythical job which incidentally will
      be the same sort of mythical job that all of her
      neighbors will also be competing for in a severe
      recession.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    7. Re:Yeah right. by mattcasters · · Score: 5, Insightful

      An economic crisis is not the same as a total collapse of society. Developers and community members come and go, live and die and even end up in jail all the time and yet the open source movement continues to thrive.
      The article is FUD, a troll. Nothing to see here, move along.

      --
      News about the Kettle Open Source project: on my blog
    8. Re:Yeah right. by 1u3hr · · Score: 4, Insightful
      Therefore they might not be able to pay their bills, and their priority will be survival, not opensource programming.

      "Survival"? Over-dramatising, I think. It's an economic downturn, not Armageddon, plague, pestilence and firestorms.

      And even during the worst disasters and wars, people still create art, literature, do maths, compose poetry. Writing software? Why not? It's a lot cheaper way to spend your evenings than going out to a bar. (Not that bars are in any danger either.)

    9. Re:Yeah right. by Peter+La+Casse · · Score: 5, Insightful

      One of the problems with human beings is that we extrapolate from our own circumstances to make conclusions that we think apply to everyone. "I'm doing great, so lots of people are doing great" is as invalid as "I'm doing poorly, so lots of people are doing poorly". The simple truth is that the plural of "anecdote" is not "data".

  2. I think we should be able to by wud · · Score: 5, Insightful

    Can someone please mod this story as flame bait?

    --
    wud
    1. Re: I think we should be able to by JustKidding · · Score: 5, Insightful

      Indeed, why are some people just completely unable to comprehend that not *everyone* is a greedy bastard?

      Some people do things, like programming, you know, for fun! Contributing to OSS is not about "back-end revenue" for most people, it's about contributing to a community, about pride, and about intellectual challenges.

      I feel sort of sad for him that *his* whole life seems to revolve around money.

    2. Re: I think we should be able to by MyLongNickName · · Score: 5, Insightful

      And why can't people comprehend that folks write this stuff to sell books and make money? And why can't folks comprehend that Slashdot posts it in order to get page views and make money?

      --
      See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
    3. Re: I think we should be able to by garett_spencley · · Score: 4, Insightful

      I'm not saying I disagree, and in true /. spirit I only read the summary ... however it sounds like his whole point is that when people are having a hard time coming across basic necessities they stop caring about 'fun', 'community', 'pride' and 'intellectual challenges' and start caring about how to get food.

      The real question is: is it going to get that bad ? Was the great depression even "that bad" or are the stories of stock traders jumping out of windows greatly exaggerated ?

      Also, being someone who works in internet advertising and runs "free web-sites" that happen to feed my children it's pretty clear that he doesn't understand Internet economics. The Internet, like television, doesn't care about goods and services in exchange for currency (though I'm not saying that model isn't implemented online, just that there's other models that are more popular and work just as well, if not better). I guess next he's going to claim that television networks are going to stop free programming with commercials and instead switch to a strict pay-per-view model :rollseyes:

    4. Re: I think we should be able to by chrispycreeme · · Score: 3, Insightful

      Unlike most /.ers I am not a big open source fanboy (I am not opposed to it , Im just agnostic). But even I can see that this guy is a moron. These large open source projects are not going away. A bunch of people out of work and living on unemployment are going to be looking for something to do.. if anything the bad economy is going to increase participation in these open source projects. What an idiot.

    5. Re: I think we should be able to by tjstork · · Score: 5, Insightful

      Some people do things, like programming, you know, for fun! Contributing to OSS is not about "back-end revenue" for most people, it's about contributing to a community, about pride, and about intellectual challenges

      I think his point is, that, in a recession, and suddenly, programmers aren't working any more with day jobs, that little blog that gets 50000 hits or that little pile of code they've built suddenly looks like it might be something to help , you know, make a mortgage payment with.

      I mean, sure, if you are independently wealthy, go ahead and give your time away. But if you've got a family to feed and a house to pay for, you probably might want to have some money coming in.

      --
      This is my sig.
    6. Re: I think we should be able to by cowscows · · Score: 5, Insightful

      Your point about OSS is certainly valid, and while I certainly don't think Linux is going to die or anything like that, there will likely be a slow-down in development for certain pieces of software, and specific aspects of the software.

      While there are many people who enjoy the fun and challenge of writing software, it's important that not all steps in the process are the same. The adage that the last 10% of the project is 90% of the work is somewhat true, in that making a really well polished product inevitably requires some grind work at the end. In the software world, that might manifest itself as bug squashing, or user testing, or interface tweaking, etc.

      It's important work, but it's often time consuming, monotonous, and not fun, and it's hard to get people to volunteer to do it. That's a part of the OSS process that can really benefit by having paid labor to help make sure that it gets the attention it deserves (although there's no doubt that even proprietary companies often skip out on this part).

      If the tech economy turns to crap and there are lots of newly unemployed programmers sitting around, I'd actually expect the amount of OSS activity to increase somewhat. All those geeks aren't going to turn off their computers and never code again. But the effort will go towards the sorts of things that are interesting, not towards the dull (but important) drudgery work. If companies stop paying their developers to work on OSS, there are certain types of work that will fall to the wayside.

      --

      One time I threw a brick at a duck.

  3. Just like... by i+kan+reed · · Score: 4, Insightful

    The end of the dot-com bubble killed linux, stifled production of php sites, and made people stop sending non-commercial email. Those things all went away, right?

    1. Re:Just like... by Just+Some+Guy · · Score: 4, Insightful

      The latest U.S. News & World Report appears to claim this recession is deeper than the post-dot-com recession.

      And that would raise the demand for expensive, uncustomizable software how?

      --
      Dewey, what part of this looks like authorities should be involved?
  4. This is just wrong by Finallyjoined!!! · · Score: 4, Insightful

    hungry and cold unemployed masses

    They aren't the people contributing. The guy is an 1d.10T

    --
    If I had an Ass, I'd call it Fanny Bottom, then I could slap my Ass; Fanny Bottom, on the Arse.
    1. Re:This is just wrong by TubeSteak · · Score: 3, Insightful

      They aren't the people contributing. The guy is an 1d.10T

      Cable tv, internet, and cellphone service are some of the last things that people stop paying for when they're broke.

      It is a psychological thing. They don't really feel poor until they have to cut themselves off from the media intensive aspects of society.

      --
      [Fuck Beta]
      o0t!
  5. Money? by qoncept · · Score: 4, Insightful

    Since when is user delivered content driven by hopes of profit? These people are driven by wanting their voices heard and to some extent wanting to be known. If these sites fail, it will be because the site itself isn't profitable, not because their users, who they could care less about, aren't making money off it.

    --
    Whale
    1. Re:Money? by TubeSteak · · Score: 3, Insightful

      The fact that TFA used "Playboy.com over Voyeurweb.com" as an example shows just how right you are and how out of touch he is.

      Playboy is closing their DVD production arm because of the tightened economy.
      User-driven contributions on porn sites like voyeurweb will never decline.

      --
      [Fuck Beta]
      o0t!
  6. *laughs* by RaigetheFury · · Score: 5, Insightful

    This guy is under the assumption everyone who works on open source technology is after financial gain. Very short sighted

    1. Re:*laughs* by svendsen · · Score: 3, Insightful

      I read it more along the lines of if a person is starving (for example) or facing the possibility of starvation then anything they do will be based on trying to get food. So a person who spends time working on an OSS project might now think I need to do things that will bring me short term value (ie money) so I don't starve and might either work of other things or start demanding money (or food) for their time and effort.

      When a person's basic needs aren't being meet nothing else really matters.

  7. Same wrong assumptions, different century by beldon · · Score: 5, Insightful
    Perhaps it could be said that all the money in FOSS development made developers used to a higher standard of living, but that assumes that getting paid necessarily negates non-monetary rewards. That's a flimsy argument and doesn't bear very close scrutiny. It also assumes traditional scarcity rules have taken over the software industry. If anything, artificial scarcity is even harder to maintain during harder financial times.

    This is nothing but a re-hash of Bill Gates' screed against the Homebrew Computer Club about how good software will never be created without paid programmers. It was wrong in then, and it's still wrong.

  8. Suerly the opposite is true by uchian · · Score: 5, Insightful

    Surely with more people sitting at home, unemployed, with nothing to do other than look for a job, and desperate to make their cv stand out more than everyone else in there situation, the amount of speculative work produced may in fact rise?

  9. Holy hell by Yvan256 · · Score: 3, Insightful

    Does this guy really thinks everyone has a website/blog/whatever only to make money?

    My personal website doesn't have any banner, I have to pay for hosting from my own pockets (and I haven't updated the damn thing in months either).

    I think this is only a counter-strike against this.

  10. yeah right by ignatus · · Score: 5, Insightful
    "The hungry and cold unemployed masses aren't going to continue giving away their intellectual labor on the Internet in the speculative hope that they might get some 'back end' revenue," says Keen."

    No, the hungry and cold unemployed IT guys will invest their time into open source projects, because it 's a good way to keep their curriculum in shape. And the hungry and cold unemployed will keep using linkedin and facebook to extend their network inorde to find a job. And ofcourse, businesses in difficulties will stop throwing money away for overrated software when they can get a free and open equivalent.

    I think a crisis will definately have a positive impact on open source and web 2.0

    --
    - Never underestimate the power of human stupidity.
  11. My approach to such idiots is... by JamesP · · Score: 4, Insightful

    LET THEM BE

    Every time an idiot says something that is not going to affect you directly, let it be!

    Trust me, do you really wanna do business with people who believe this?? Do you want to be an employee who believe these things?

    But guess what, you're right and they're wrong!

    If my employer has a stupid idea, I either recommend against (and they usually listen) or I quit or I shut up.

    If my competitor has a stupid idea, I just say "GREAT!!! GO AHEAD!!"

    --
    how long until /. fixes commenting on Chrome?
  12. Economic Down Turns always spawn innovation by olddotter · · Score: 4, Insightful

    Most economic down turns spawn innovation. People no longer have nice cushy jobs soaking up their days. These people no longer have anything to lose (their job) by trying that great idea to build a better mouse trap. Some of them invent things really cool and successful.

    Linux exists because Linus couldn't afford a real unix server, for example.

    If the downturn turns into a depression, then no one will have money to pay anyone for services anyway. So the huddled masses will probably be bartering their services and still contribute to open source, because its the cheapest way for them to get the tools they need.

    Take some money and buy a clue.

  13. Hungry and Cold Unemployed Masses? by JayAitch · · Score: 3, Insightful

    The hungry and cold unemployed masses aren't going to continue giving away their intellectual labor on the Internet in the speculative hope that they might get some 'back end' revenue," says Keen.

    Cash strapped consumers aren't going to want to pay for services they don't need.

  14. A more likely target by MikeRT · · Score: 4, Insightful

    It'll be harder to argue for expensive new Oracle, SAP and similar licenses. Oh sure, that database that's just a large bit bucket will cost your business a few hundred thousand dollars to implement! Just lay off a worker or two to fit it into your budget.

    Bullshit.

    If anything, it'll be easier now to justify using OSS because the ridiculous cost of most enterprise software will become more apparent to the customers. I predict that if this continues, you'll see more companies forced to use OSS out of necessity simply because they cannot justify buying the extremely expensive licenses for proprietary software.

    On a related note, Keen is one of those guys who laments the loss of our "high culture." The dude is a day late and a dollar short in his whole analysis. Western high culture started taking a nose dive 100 years ago with the rise of political populism. If anything will help to bring it back, it'll be putting better, cheaper tools into the hands of content producers so that they can do more work with less effort.

  15. Re:Odd ... by russlar · · Score: 4, Insightful

    It seems we're getting dupes from a parallel SlashDot.

    If that were true, this story would have a goatee.

    --
    Anybody want my mod points?
  16. Surviving the Downturn by bokmann · · Score: 3, Insightful

    I'm sure this will be said to death by the time this post closes for comments, and while this analysis might have merit when done from the viewpoint of someone 'valuing their own labor', the same way donations to charity dry up during hard economic times, that analysis does not apply for several reasons:

    1) Something that has been open sourced is perpetually in the open source marketplace. Often called the 'viral nature of the GPL', an economic downturn cannot take away, say, MySQL or JBoss. Both are here, and are here to stay. His argument could be taken to mean innovation may stop temporarily, and I'd entertain that notion.

    2) Companies seeking ways to control their costs will EMBRACE open source, so its use will INCREASE. If a CEO is facing a choice between his cushy salary or a license for WebLogic or Oracle, He will choose his salary and tell his IT department to find alternatives. they will, n JBoss and MySql.

    3) Training budgets will shrink. So if you can learn everything you need to know to write Rails apps from sources like http://www.railscasts.com/ you are going to build your next app in Rails, as opposed to ColdFusion (and if you have never heard of Cold Fusion, that proves my point - PHP and Java pretty much killed it during the dot-bomb ays).

    4) Tech jobs will dry up - and the cream of the crop will need to distinguish themselves. I have heard Dave Thomas (PragDave) say on several occasions that our industry would be better off if we fired the bottom half of developers. This economic downturn may see that happen, and the top half will need to distinguish themselves. the currency of this kingdom is knowledge, and the way we demonstrate this knowledge is by sharing it with others... So I expect to see an INCREASE in blogs, contributions to open source as resume building, etc.

    I could go on and on - for instance, people seeking free training will go to more user group meetings... people seeking to network for job opportunities will go to more user group meetings - people seeking to distinguish themselves will want to PRESENT at said user group meetings.

    As I said in a post a few months ago, I am seeing an INCREASE in the aount of work I'm doing... why? I develop and I train on open source technologies and agile development methodologies... it is all about doing more with less.

    Don't just survive - THRIVE during this downturn. I'll see the best of you on the other side of this downturn, still here reading slashdot, still climbing the skills mountain.

  17. after reading this guy's book.... by giblfiz · · Score: 4, Insightful

    I can say for sure that he doesn't "get it". While he does make several good points about the advantages of payed work, it seems that he is ignorant about the advantages of free contribution, and the way OSS uses a blend paid and unpaid work to advance projects.

    He also doesn't seem to understand that the large companies that are supporting OSS are not doing it out of the goodness of their hearts, they are doing it to try to disrupt other businesses.

    In short, the man is not a troll, but he has no idea what he is talking about. Move along.

  18. some choice quotes from Benkler by griffjon · · Score: 5, Insightful

    "For all of us, there comes a time on any given day, week, and month,every year and in different degrees over our lifetimes, when we choose to act in some way that is oriented toward fulfilling our social and
    psychological needs, not our market-exchangeable needs. It is that part of our lives and our motivational structure that social production taps, and on which it thrives. There is nothing mysterious about this. It is evident to any of us who rush home to our family or to a restaurant or bar with friends at the end of a workday, rather than staying on for another hour of overtime or to increase our billable hours; or at least
    regret it when we cannot." --Benkler, _Wealth of Networks_

    "Human beings are, and always have been, diversely motivated beings. We act instrumentally, but also noninstrumentally. We act for material gain, but also for psychological well-being and gratification, and for social connectedness. There is nothing new or earth-shattering about this, except perhaps to some economists. " -- Benkler, _Wealth of Networks_

    --
    Returned Peace Corps IT Volunteer
  19. What's the point of giving this fool attention? by John+Hasler · · Score: 3, Insightful

    n/t

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  20. Except by The+Cisco+Kid · · Score: 3, Insightful

    The unskilled Joe-Sixpacks are the ones that will be cold, hungry and unemployed.

    I suspect that most of the people that work on projects like Wikipedia, or write Free Software, or that blog, probably aren't having any economic crisis, or at least not so much of one as the average masses.

    I for one, am enjoying the huge drop in gas prices. I'm not worried about home values becuase I have no intention of selling mine for quite a long time. I'm also quite secure in my employment.

  21. Re:Not Quite. by MindKata · · Score: 5, Insightful

    "Blogs shift power from broadcasters to individuals"... yes thats good, but advertisers are also using misinformation on blogs, to create so called Flogs. So how many popular blogs are really Flogs? ... However many it is, they are definately trying to game the system, to get popular blogs which are really just flogs.

    Advertising + Blogs + advertisers_with_no_ethics = Flogs
    http://adage.com/smallagency/post?article_id=113945
    e.g. "Sony and agency Zipatoni have come under fire for one of their marketing tactics for the Sony PSP. Sony has added its name to a growing list of flogs [fake blogs] including McDonald's, WalMart and Lonely Girl 15, that are being called out by consumers. This isn't the first time Sony has been caught and questioned about the ethics of its marketing practices."

    --
    There are 10 kinds of people in the world... those who understand binary and those who don't.
  22. More likely, advertising will be worth less by Animats · · Score: 3, Insightful

    The big squeeze is already underway, and it's in marginal ad-supported businesses. Nobody has made real money with banners in years. It's becoming clear that while ads associated with search results have value, all those vaguely relevant ads that Google puts on the web sites of others don't really generate many sales.

    Likely outcomes for the next few years:

    • Any social networking site that doesn't have positive cash flow right now is toast.
    • Wikipedia will do fine, because it's cheap to run. Wikia, though, might not make it.
    • If you're dependent on "cloud computing" on someone else's cloud, be very afraid.
    • Be prepared to migrate your web sites to another hosting service on short notice, in case your provider tanks. (If you haven't done so already, make absolutely certain that you have full control of your domains, and that they're not in any way controlled by your hosting company.)
    • Corporate migration to Vista will just about stop. The people who need it have already converted, and nobody else needs to spend the money, especially if a hardware upgrade is required. Microsoft will cave on XP life extension until Windows 7 works.
    • PCs and laptops will get cheaper, holding steady at about current levels of capability. We're not going to see huge numbers of cores on very many desktops.
    • Linux will continue to grow in the server space. Probably not on the desktop, though.
    • More MySQL, less Oracle.
    • Expect supply chain problems. Look up your key suppliers in Dun and Bradstreet. When D&B says they're in trouble, get ready.
    • Companies that do something Really Useful will do OK. We're already seeing growth in previously boring areas, like railroading. "Bling" is so over.
    • The 2008 holiday season is going to really suck in retail. "Use it up, wear it out, make it do, or do without" - U.S. Government National Recovery Administration, 1933.
    • On-line sales of routine items may grow, as more brick-and-mortar retail chains tank.
    • When the dust settles, the financial-services sector will be about half the size it was in the mid-2008.
  23. Comment removed by account_deleted · · Score: 3, Insightful

    Comment removed based on user account deletion

  24. Contribution to OSS isn't always altruistic by Dahlgil · · Score: 3, Insightful

    While I hate to admit it, pretty much all of my past contributions to OSS projects have not been to benefit some altruistic "community" as much as to benefit myself. I use OSS quite often to do things that I want or need, and if the software is missing something that I want or need and I'm capable of adding it, I often do. I then make sure to contribute my changes to the project so that future updates include my changes. This pattern of behavior has nothing to do with economics and is unlikely to change due to economic conditions.

  25. Normal news outlets = News! ? by Gription · · Score: 3, Insightful

    Yeah! The mainstream media is an incredibly good way to get clear, concise, and unbiased information...

    Gaaaak!

  26. Re:Blogs != News by Bourbonium · · Score: 5, Insightful

    Well, give /. some credit for attempting to be "fair and balanced." FUD or not, I read this headline as a response to yesterday's article promoting exactly the opposite prediction from Red Hat's CEO http://linux.slashdot.org/article.pl?sid=08/10/21/0116221 that the financial crisis will be a major boon for open source software. You may recall that Keen is the same fellow who was pimping his book on The Colbert Report a few months ago claiming that anything given away as free is worth absolutely nothing and that the internet will collapse from all the amateurs who are creating content. Check out his biography and you'll learn that, as an entrepreneur at the turn of the last century, he was a victim of the collapse of the tech bubble in 2000. I taste some very bitter grapes in his opinions about the web.

  27. Re:Blogs != News by cayenne8 · · Score: 5, Insightful
    "It's all anecdotal, partisan, and un-researched crap."

    That statement also describes the CBS Evening News...

    :)

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........