Why didn't AOL open-source its IM client?
AOL is getting a lot of credit for "opening" its ubiquitous AIM instant-messaging software "to open source." However, like Microsoft did recently by revealing documentation to its APIs and protocols, all AOL has done here is open access to OSCAR protocols necessary to create open-source implementations.
This is great, but consider just how much more AOL could have done--and for its benefit--such as open-sourcing its instant-messaging server and client software.
Think about it. What revenue does AOL protect by keeping its IM software closed? Sure, there's advertising revenue from the obnoxious ads it sprays around the client, but that is thinking far too small.
The real money is in abundance. Or in "adoption-led markets," to borrow Sun Microsystems' nomenclature.
Let's imagine that AIM were the default messaging platform for enterprises and consumers. Open source makes that much more likely because it would likely lead to a more widely distributed and used collaboration platform. It would get embedded into all sorts of applications.
A platform used by everyone is much more valuable than a platform used by many people. AOL would almost certainly continue to guide the platform because it would attract more developers to grok the code. It would therefore still have the opportunity to provide advertising, support (in the enterprise), and other services around the core platform.
An open-source AIM could be the instant-messaging collaboration platform. Not just first among equals or one of many.
But AOL didn't do this. It simply made it easier to read up on how AIM works. That's great, but it's a poor shadow of what AOL should have done.
Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is chief operating officer at Canonical, the company behind the Ubuntu Linux operating system. Prior to Canonical, Matt was general manager of the Americas division and vice president of business development at Alfresco, an open-source applications company. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay. 





- by daftkey March 6, 2008 9:58 AM PST
- I'm not sure you've connected all the dots here, Matt. <br /><br />You are saying AOL would benefit by making AIM open-source because it would become the dominant player (a pretty bold claim already given the "success" rate of other open-source IMs and MSN's ubiquity and dominance currently; but for the sake of argument, I'll just humor you and say yes, AOL will become the powerhouse IM player if they open-source AIM.) <br /><br />Assuming that this is true and developers are enticed to "grok the code", what makes you think that any open source developer is going to leave intact AOL's advertising routines in their own IM software? I'm pretty sure, given the implementations already in place with Trillian and iChat, that this simply wouldn't happen. So to get your daily dose of ads as a user, you would have to download AOL's own IM software (which, as it turns out, is exactly the code used right now - completely closed and proprietary). Of course, as a user, I don't much care about ads, and most others don't either, so I use Trillian. I think the majority of users out there share my viewpoint. I think given a real alternative, AOL's ad revenue would pretty much disappear. <br /><br />As far as enterprise consulting for IM services goes - AOL could provide this now. So could MS (ahem, dominant market player, developer of an enterprise server exactly for this purpose, completely closed technology). They don't. There's probably a good reason for this.<br /><br />Of course, making AIM the dominant IM client WOULD make traffic to AOL's IM servers go up. But, you know, bandwidth and server hardware and maintenance are all negligible costs when compared to the value of being the leader in market share, right?<br /><br />I mean, at least that's what they thought in the late 90's when all those really really successful online businesses like Pets.com and kozmo.com were running, right?
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