Comments on: IT spending to plummet--just what we need?
A recessed environment can be good for all parties. Here's why. The best vendors grow more competitive, and IT becomes a people issue.
A recessed environment can be good for all parties. Here's why. The best vendors grow more competitive, and IT becomes a people issue.
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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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However, it's really quite silly to think that any of these types of organizations ultimately would place more value in on the "creativity of the IT administrator working with the software", rather than the clearly more tangible value of "her ability to negotiate a 20 percent discount on costly, cumbersome software 'solutions' from Proprietary Vendor X." **Of course** the organization is going to place more value on the latter! Why would a business manager *want* an IT administrator to increase their level of proprietary knowledge -- knowledge that would cost a fortune to replace?
For the business world, OSS is not about cheaper software, "openness", or holier-than-thou RMS-isms; it's about flexibility and spreading risk.
This is why OSS gets the reputation for being annoying (in a manner similar to Apple); it's not the concept of the product itself that people find irritating, but rather the pie-in-the-sky irrationality of it's most vocal proponents.
No wonder American businesses are sucking the air out of the planet.
Big non-IT companies are outsourcing their IT support at a record pace, and the big IT service providers are now off-shoring at a record pace. The economic downturn has in fact caused both outsourcing and offshoring to rapidly increase, and that means more and more IT workers are getting axe every day.
Any IT function that is not abstract or arcane enough (i.e., usually skilled / original programming) is subject to automation, and that has been true since day one (I'm an automation specialist, I should know), but do you know what's cheaper than automation? Trained monkeys. Apparently. Hence the rush to offshore formerly American jobs.
Younger workers in "developing markets" with much lower standards of living and much lower average wages are apparently cheaper (on paper at least, and only in the short run I'm sure) even though you typically need a half dozen of these generally inexperienced, low-skill foriegners to do the same work as one or two skilled Americans.
On a personal note, I hope and pray every day that the big chiefs that are slashing jobs in this country get discovered for the lying anti-American scumbags that they really are. There's no competitive advantage in shifting jobs offshore -- competitive advantage can only occur by raising the value proposition ... i.e., either reduce the cost to the customer, or increase the (percieved) value of the service/product sold ... and in no way, shape, or form is either of those things occuring with any of major players that are currently offshoring every job they can (*cough* IBM *cough*). Nobody is lowering prices, and nobody is providing more/better services/products for the price paid. It is all a sham, an internal marketing ploy ... lies generated by the executives to disguise their shameless greed and brutal disregard for their employees and our nation in general.
The offshorer saves some cash in the short term while at the same time directly and immediately harms the American economy by eliminating much needed money (fluidity) from the national economy. Americans without jobs are Americans that don't buy serivces and products ... it's a whole food-chain type situation but the so-called leaders of the big companies are focused (as usual) solely on short-term profits by reducing short term expenses, while at the same time they are blithely planting the seeds for long term loss of business.
Oh, and if it wasn't already obvious, yes I despise IBM. :-)
- by sanjayb April 2, 2009 1:23 PM PDT
- Usually when money is tight, our company isn't looking at being creative and using OSS. We usually flip into a maintenance and support mode where we just fix and maintain our current systems. This results in very dull projects for the IT staff. So I don't think in our case a reduction in IT is any blessing in disguise.
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- by pentest April 2, 2009 6:51 PM PDT
- You can use this time to be creative and upgrade systems for little or no cost.
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- by kksing April 3, 2009 1:03 AM PDT
- It is a fallacy that a switch to OSS is magically cost-free. Sure, there is no license cost, but there is still a very real cost in terms of migration, implementation and integration.
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- by pentest April 4, 2009 1:50 PM PDT
- I know lots of companies with tight budgets who need to upgrade now, or very soon.
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(9 Comments)Then, when things turn around your company can keep saving money.
You think going back to throwing more money at the same problems is going to keep your company afloat when it starts righting itself?
While I definitely agree that there may be cost savings in the future, the reality of a tight IT budget with little or no capex room makes such a move difficult and in some cases, impossible.
OSS is VERY attractive to them right now. Once established, they will likely not be able to justify getting back on the expensive, proprietary treadmill.