Is open source a bubble ready to burst?

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...every one of them is an experiment," said Andy Astor, chief executive of EnterpriseDB, a database software maker that recently received funding. "A support-only [revenue model] like JBoss has is a risky model."

Instead of charging an annual support service fee on a free product as many companies do, EnterpriseDB uses a "plain old software licence", Astor said. The only difference with closed-source providers is that the EnterpriseDB database is based on PostgreSQL, an open source product.

And exposing source code introduces an "inherent risk in the business model", said Bill Schnoor, partner at law firm Goodwin Procter, which represents technology companies.

Despite these risks, open source products, notably Linux, are already mainstays in corporate data centres. Now customers are using other products, including databases, middleware and packaged applications.

Information services company Informa, for example, decided to use an open source content management system from Alfresco Software, a company founded by document management industry veterans. The software itself uses a number of open source components, such as the MySQL database and development products Hibernate and Spring.

The Alfresco system serves most of the company's needs, providing the "identical stack" as existing products at a cost that is three orders of magnitude lower, said Bob Hecht, vice-president of content strategies at Informa. "It got so that [the choice] was a no-brainer," he said.

Echoing those sentiments, Ron Rose, the chief information officer of Priceline.com, said that the company has become "predisposed" to buying open source products because they of the "economic benefits". A vibrant community behind a product also ensures a long-term road map, he added.

Goodwin Procter's Schnoor puts the spike in interest in open source software in the context of big technology shifts that have already occurred, such as the Web. The attractiveness of the open source model is likely to create a surplus of open source suppliers, Schnoor said, and he expects many more companies to be launched. But that's typical of all major changes in the software industry, he said.

"Are there a lot of spears that will get broken along the way? Absolutely. It happens every time," Schnoor said.

Talkback

These are not right. Let the minds free.
Microsoft is supporting and instigate ZD.Net and other to open minds. Microsoft and others are all against the technology and humanity. They just suck our bloods and so our money.
If open-source code project develop very well(it seems as it) the IT technology will go further.
Microsoft INTEL AMD and the all others are against the technology, they are just thinking about the money. while doing this they exploit the open mind and smart people in are of poor countries such as turkey, indian, china .

Open your mind & Open your source

via Facebook 8 November, 2005 07:18
Reply

Recai, try to take it easy right!
Open source is still confusing... Who is supporting? Who is back of it? Tell me about this. Microsoft is still the giant of software and/or op.systems. They do their best. I think you should get all info, and forward your opinions here last...

via Facebook 21 November, 2005 09:20
Reply

Yeah! They do their best to suck your money from your beatiful country.

Microsoft is a micro soft.

Nothing is better than open sources. Never will be.

via Facebook 21 November, 2005 14:49
Reply

this is childish!!

microsoft is a company that has made huge sucess out of the computing world, such huge profits boil down to one thing the correct organisation and planning ,

Sucess is made at the work desk not at at high street shops or the like but if you have got sucess at the desk you'll have outcome of sucessful profit

microsoft have not thing agains't the use of Opensource software or so I belive..

futhermore on the note of questions being posed about opensource software.

who is in control?

everyone and anyone, instead of companies it is the public that write the programs, it the public who manage the opensource nework.
it the public people like you or me, it the public fix the bugs and write the fixs.

Opensource is movement for free software.
not free in the sense of cost but bing able to modify and expand the programs to your needs.

via Facebook 2 March, 2006 16:46
Reply

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