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July 9, 2009 2:23 PM PDT

Open source rising as the economy continues to fall

by Matt Asay
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The market is clearly racing toward a bottom when we start looking to Monty Python for business advice and the most lucid (if profane) analysis of Google's announced open-source operating system, Chrome OS, comes from Fake Steve Jobs.

However fast we may be "racing," however, we're not there yet.

At least, not according to a survey of 200 IT executives by Computer Economics, which finds:

  • About 49 percent of the IT executives surveyed plan to make further budget cuts in 2009.
  • Almost 50 percent will spend less than what is allocated in their IT operational budget.

Not good, right? Well, it gets worse...

Forrester and Gartner are duking it out to see who can be gloomiest in their assessment of 2009 IT spending, as Baseline reports. Gartner sees global IT spending dropping 6 percent from 2008, while Forrester one-ups Gartner with a projected 10.6 percent decline. (Forrester had earlier projected a 3 percent dip for 2009.)

Actually, the economy being as rotten as it is, some companies are going against the economic grain by offering compelling open-source alternatives to traditional, proprietary software, as reported Wednesday. And it's intriguing to watch companies like Lockheed Martin get into open source as a way to shift costs and improve development of their software.

Yes, there are still open-source holdouts like Orange UK which has allegedly banned Firefox and anything more modern than Internet Explorer 6 from its call centers. The company is still accepting smoke signals as a form of communication, so we're trying to get the message through that open source can drive down costs and improve productivity.

That's OK. According to Forrester analyst Jeffrey Hammond, open source is "infiltrating the enterprise" on a grand scale now. What starts out as an interest in penny pinching turns into something much more, he says.

So, while I'm not cheering for ever-gloomier forecasts of IT spending, I will admit that I like the result: more open-source adoption.


Follow me on Twitter @mjasay.

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 vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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by jessiethe3rd July 9, 2009 4:11 PM PDT
Open source free to download and install / costly to support and maintain.
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by Vegaman_Dan July 9, 2009 5:37 PM PDT
On the very same page as this headline appears citing doom and gloom, another is displayed:

"VCs more confident about recovery"

So which is it? The economy is taking or recovering? You can't have both.

Are we in global warming or is another ice age coming? Depends which blog you want to read at the time.
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by Mr. Dee July 9, 2009 8:46 PM PDT
You are cheering Open Source Matt because its more business for you.
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by M_Cohen July 10, 2009 12:49 PM PDT
@jessiethe3rd: I suppose it comes down to a bit of wise curation and having the right people to manage the technology once it's in place. Wouldn't hurt to be intricately involved in the development process either. How about some crowdsourced tech support?

@Vegaman_Dan: I believe it's called hedging your bets. Nice spot.

Along similar lines, thought this project being undertaken by Nokia in Finland was worth mentioning, as we could all use a bit more innovation and inspiration.

http://www.psfk.com/2009/05/nokia-technopolis-innovation-mill-making-inspiration-free.html
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About The Open Road

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 general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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