Version: 2008

Comments on: CTOs vote for open source, but buy proprietary software

A recent conversation with enterprise CTOs suggests that fears of proprietary software may be overblown.

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by jkunz001 November 12, 2008 9:05 AM PST
Matt,

Your experience mirrors the feedback we have been receiving from our clients, partners, and prospects. One reality of the enterprise is that they are not oriented towards a sharing of technology approach to software development and use. This is not to say that they can't or won't contribute to an open source project. In most cases they don't know how and lack a strategic vision that places any value on doing so. I don't know that it is fair to place an expectation of contribution at the feet of enterprise IT. What is very interesting to us is the finding that many organizations want to adopt an internal version of the open source ecosystem and project ethos. Imagine a far flung and highly disparate global organization that has multiple development centers and lines of business. Now overlay the idea of open projects, communities, etc. Some very progressive enterprises are starting to realize some very large ROI as they adopt these "open source" tactics to their proprietary development environments. A very interesting development indeed.

Jeff Kunz
Director of Business Development
Olliance Group
The leader in open source business and strategy planning and implementation
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by jbarmash November 13, 2008 8:06 AM PST
> I talk with a lot of enterprises in the course of my business, and open source is always a primary reason for why they purchase my company's product.

I don't believe it. They buy it because it's good software at a reasonable price. If "open source was the primary reason", then there would be much fewer customers.

IT Managers are interested in solving problems - if open source can do that faster / better or cheaper, all the better.
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by daftkey November 13, 2008 8:57 AM PST
>I talk with a lot of enterprises in the course of my business, and open source is always a primary reason for why they purchase my company's product, even if they don't intend to view or modify source code.

How many people do you talk to that have decided to purchase a competing product? Do you have a good insight on why your competitors might win business that you were seeking? I know it's easier to get the answer for why you were the chosen, but it might be harder to find out why you were not. However, the latter can give you a lot more insight, and may make the rest of the conversation less of a surprise.

>When I asked about concern over vendor lock-in, this didn't seem to be a major concern.

When you asked about why it's not a major concern, what was the answer?

>Don't expect code contributions back from enterprise IT, but instead make it easy to financially justify giving open-source communities and companies money, with proprietary add-ons or extensions being the primary mechanism for accomplishing this.

Or to summarize further - Enterprise IT is about strategic business advantage, which requires software solutions which are valueable and hard to reproduce. Contributing code related to an IT initiative destroys the "hard to reproduce" part of this equation, and as such it removes the strategic advatage.
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by rtddtr November 14, 2008 12:18 AM PST
Ok, but regardless of whether its proprietary or open source, when management has their budgets, they need to make it appear that that budget is necessary or risk have it shrink the following year, so purchaing whatever software you can afford will do the trick. Now, my view may be slightly skewed, as my experience is mostly in not- for-profits, primarily government funded where you almost always loose what you don't use, and rarely ever rewarded for fiscal efficiencies.
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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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