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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."

39 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 cgenman · · Score: 5, Funny

      Isn't it great how he posts this analysis on a site that gives it away for free?

      It's a good thing, too. I was just about install Linux on my laptop. Whew! Now that I know that Linux and other bits of Open Source software can't weather an economic downturn like private companies, I'm switching to BeOS.

      Ass.

    3. Re:Yeah right. by orclevegam · · Score: 5, Funny

      Segmentation Fault (Core Dumped)
      [ Google Ads: Great deals on Microsoft Debugger! ]
      -bash-3.00$ _

      --
      Curiosity was framed, Ignorance killed the cat.
    4. Re:Yeah right. by cp.tar · · Score: 5, Informative

      Wasn't it just the other day that Red Hat announced they were feeling just fine and dandy in this economic crisis, as many companies are looking to lower their expenses by going open source?

      --
      Ignore this signature. By order.
    5. Re:Yeah right. by MrMista_B · · Score: 5, Funny

      Some men are women.:)

    6. Re:Yeah right. by Chris+Burke · · Score: 5, Funny

      No, that never happened, and you must now report to the Ministry of Corporate Truth to correct your obvious insanity.

      --

      The enemies of Democracy are
    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 Captain+Splendid · · Score: 5, Funny

      Am I the only one that wants to see a Batman / Austin Powers crossover?

      Hell yes. Even furries think that's weird.

      --
      Linux, you magnificent bastard, I read the fucking manual!
    9. Re:Yeah right. by TypoNAM · · Score: 5, Interesting

      If that is the case then how did the open source projects come to exist in the first place? Matter of observation I saw a boom in open source projects after the dotcom bubble burst and even open source projects that existed before the collapse even got even more contributions after that. I certainly saw better progress from kernel development to KDE maturity.

      Yeah I know... I know... You were just showing the other side of the ever fake coin. ;)

      --
      This space is not for rent.
    10. Re:Yeah right. by polar+red · · Score: 5, Funny

      FOX ?

      --
      Yes, I'm left. You have a problem with that?
    11. 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".

    12. Re:Yeah right. by nuttycom · · Score: 5, Informative

      I use open source code exclusively for all of of the projects I'm involved in at work. When the code doesn't do what I want it to do, I patch it and contribute the patch. In a few cases, I've contributed enough that I've been made a committer on the relevant projects.

      This is how open-source software works; we're all using it out of self-interest, and contributing our changes in the interest that they be merged with the mainline codebase so that we don't have to maintain a fork. And so the mainline code gets better.

      Everyone has different use cases, so everyone contributes to whatever part of the system they personally need. When those use cases overlap, the code in the intersection gets polished by all the interested parties.

  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 Fast+Thick+Pants · · Score: 5, Funny

      I agree. I just read some of this tripe and I'd like to punch this guy right in his arrogant face.

      What, for free? That's valuable labor!

    2. 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.

    3. Re: I think we should be able to by megamerican · · Score: 5, Funny

      What, for free? That's valuable labor!

      I'll count it as 1 hour of community service off of my sentence!

      --
      If you have something that you dont want anyone to know, maybe you shouldnt be doing it in the first place -Eric Schmidt
    4. 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
    5. Re: I think we should be able to by JustKidding · · Score: 5, Interesting

      Ok, you have a point. It's just that I hear this sort of thing all the time.

      "Why would you do all that work and then give it away?"

      For me, as soon as money enters the picture, the fun is (mostly) gone; with money comes responsibility, whoever is providing the money buys the right to demand answers and project deadlines. It's no longer "because I enjoy doing it", but "because he tells me to".

      I think he either just doesn't understand this concept, or he ignores it, because frankly, it makes *him* completely irrelevant. It must be very frustrating, being an economist, and people suddenly start doing stuff that's not about money.

      He conveniently forgets that a lot of people who contribute to OSS aren't professional programmers during working hours, he is completely ignorant to the fact that there are people who know how to write computer software *outside of the US* (gosh!).

      Besides, WTF does Myspace have to do with OSS?

    6. 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.
    7. 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.

    8. Re: I think we should be able to by truthsearch · · Score: 5, Funny

      So, what's the economic case for sex? What market good does it do?

      Child labor. Everything is done for economic value, so when I have kids they're going to run big hamster wheels in my basement to power the house. And when they get tired they can sit and make products that I'll sell over the internet.

  3. Shakeout more likely by Anonymous Coward · · Score: 5, Interesting

    All you may see is a shakeout of commercial Web 2.0 ventures that were going nowhere and were only being made a fuss of "because it's web 2.0". The same hype that drove the original dotcom bubble. A shakeout of dodgy commercial ventures, yes, Opensource on the other hand is likely to get stronger in this climate.

  4. Red Hat begs to differ by dhalgren99 · · Score: 5, Informative

    Wait...I thought the Economic Crisis was GOOD for open source?

    http://linux.slashdot.org/article.pl?sid=08/10/21/0116221

  5. *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

  6. 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.

  7. 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?

  8. 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.
  9. Re:Odd ... by rugatero · · Score: 5, Funny

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

    --
    This comment is for entertainment purposes only. Any similarity to real insight or information is purely coincidental.
  10. Re:Just like... by jeffmeden · · Score: 5, Funny

    You should have SEEN what Linux and PHP were planning for the next release, right before the bubble burst. Let me just say two words: Flying Cars.

  11. Re:Holy hell by gowen · · Score: 5, Funny

    But check out Wikipedia:

    Keen's Silicon Valley career began in 1995, with the founding of audiocafe.com, which received funding from Intel and SAP. The firm folded in January 2000. After the demise of audiocafe.com, Keen worked at Pulse 3D, SLO Media, Santa Cruz Networks, Jazziz Digital, Pure Depth and AfterTV, which he founded in 2005.

    Let's face it -- he's no amateur on this score. The guy knows something about failed Internet based industry, as he's founded at least two, and worked at four or five more.

    --
    Athletic Scholarships to universities make as much sense as academic scholarships to sports teams.
  12. Re:Just like... by dotancohen · · Score: 5, Funny

    If you want page numbers, I can dig them up when I get home.

    Wrong site, silly willy. On /. we mod, not dig.

    --
    It is dangerous to be right when the government is wrong.
  13. 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
  14. 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.
  15. Student paper quota by matt+me · · Score: 5, Interesting
    Front page article on Cambridge institutions and their assets in the credit crunch. To quote: Cambridge Union [debating society] President Adam Bott said:

    The two services we offer are drinking and arguing, both always in demand in tough times. Broadly speaking our current strategy is to spend our way through the recession. Economist friends tell me this is akin to smoking your way through a heart attack, but if there's one thing we ought to have learned, it's that economists can't be trusted.

  16. *BSD is Dying by Anonymous Coward · · Score: 5, Funny

    It is official. Netcraft now confirms: *BSD is dying

    One more crippling bombshell hit the already beleaguered *BSD community when IDC confirmed that *BSD market share has dropped yet again, now down to less than a fraction of 1 percent of all servers. Coming on the heels of a recent Netcraft survey which plainly states that *BSD has lost more market share, this news serves to reinforce what we've known all along. *BSD is collapsing in complete disarray, as fittingly exemplified by failing dead last [samag.com] in the recent Sys Admin comprehensive networking test.
     
      You don't need to be the Amazing Kreskin [amazingkreskin.com] to predict *BSD's future. The hand writing is on the wall: *BSD faces a bleak future. In fact there won't be any future at all for *BSD because
    *BSD is dying. Things are looking very bad for *BSD. As many of us are already aware, *BSD continues to lose market share. Red ink flows like a river of blood.
     
      FreeBSD is the most endangered of them all, having lost 93% of its core developers. The sudden and unpleasant departures of long time FreeBSD developers Jordan Hubbard and Mike Smith only serve to underscore the point more clearly. There can no longer be any doubt: FreeBSD is dying.
     
      Let's keep to the facts and look at the numbers.
     
      OpenBSD leader Theo states that there are 7000 users of OpenBSD. How many users of NetBSD are there? Let's see. The number of OpenBSD versus NetBSD posts on Usenet is roughly in ratio of 5 to 1. Therefore there are about 7000/5 = 1400 NetBSD users. BSD/OS posts on Usenet are about half of the volume of NetBSD posts. Therefore there are about 700 users of BSD/OS. A recent article put FreeBSD at about 80 percent of the *BSD market. Therefore there are (7000+1400+700)*4 = 36400 FreeBSD users. This is consistent with the number of FreeBSD Usenet posts.
     
      Due to the troubles of Walnut Creek, abysmal sales and so on, FreeBSD went out of business and was taken over by BSDI who sell another troubled OS. Now BSDI is also dead, its corpse turned over to yet another charnel house.
     
      All major surveys show that *BSD has steadily declined in market share. *BSD is very sick and its
    long term survival prospects are very dim. If *BSD is to survive at all it will be among OS dilettante dabblers. *BSD continues to decay. Nothing short of a miracle could save it at this point in time. For all practical purposes, *BSD is dead.
     
      Fact: *BSD is dying

  17. 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.

  18. Re:Blogs != News by Compuser · · Score: 5, Funny

    I think they were aiming for a dupe and accidentally came out fair and balanced.

  19. 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.........