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April 1st, 2008

Gartner report forecasts bad news, good news for open source

Posted by Paula Rooney @ 8:41 am

Categories: 2008 Preview, Applications, Distributions, Enterprise Policy, FOSS, GPL, General, Linux, Software Licensing, Software as a Service, Strategy, business models, middleware

Tags: Software, Gartner Inc., Open Source, Tools & Techniques, Management, Paula Rooney

The Gartner Group has released a preview of a forthcoming report, The State Of Open Source 2008, that contains both good news and bad news for open source. The report is expected to be released next month.

First, the bad news:

1. “By 2013, a majority of Linux deployments will have no real software total cost of ownership (TCO) advantage over other operating systems. “

Here’s key excerpt from the report that explains that rationale:

“The costs to implement high-performance, mission-critical infrastructure around the OS will create counterbalancing
costs to the savings in the subscription support costs on commodity hardware and associated open-source software.
For example, much of the availability, management and DBMS licensing costs will remain proprietary, licensed software,”
the report states. “In addition, IT architects will confront the same issues of workload management, service levels,
premium support, test and certification that characterize other OS environments. Moreover, version control and incompatibilities
will continue to plague open-source OSs and associated middleware.”

2. “By 2012, software as a service (SaaS) will eclipse open source as the preferred IT cost-cutting method.”

“To an enterprise, embracing software as a service (SaaS) amounts to embracing services in place of software.
Both open source and SaaS are priced by subscription and operate on low profit margins,” the forecast claims.
“Both are an answer to reducing enterprise costs of IT, but the SaaS proposition additionally reduces the requirements
for IT technical skills, while open source tends to increase this requirement.”

Now, the good news:

3. “By 2012, more than 90% of enterprises will use open source in direct or embedded forms,” the report states.

“Most successful vendors will find ways to leverage open source in technical synergy — focusing
their core engineering efforts on true value-added features and functionality above the
commoditized layer of open-source software,” the report states. “These vendors will integrate with open-source
solutions, embed open-source technology as a foundational building block and compete directly
with open source only as a last resort.”

4. “By 2011, open source will dominate software infrastructure for cloud-based providers, according to another of the report’s predictions.

“Only by radically reducing their infrastructure costs can cloud-
based providers offer the pricing models (based on radically lower profit margins) necessary to
disrupt the incumbent packaged software.”

Paula RooneyPaula Rooney is a Boston-based writer who has followed the tech industry for almost two decades. See her full profile and disclosure of her industry affiliations.

Email Paula Rooney

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  • Talkback
  • Most Recent of 7 Talkback(s)
No end user licences for supported software
Well said Peter. The software stack will reduce significantly simplifying the software build bringing customised build with agility. This new breed of People-centric business software will likely remo... (Read the rest)
Posted by: David Chassels Posted on: 04/03/08 You are currently: a Guest | | Terms of Use
In summary .....  mr ubiquity | 04/01/08
RE: Gartner report forecasts bad news, good news for open source  socialism=nowhere | 04/01/08
RE: Gartner report forecasts bad news, good news for open source  a_chameleon | 04/01/08
1 billion people use SaaS google search, 600 million use Saas eMail  stevey_d | 04/01/08
RE: Gartner report forecasts bad news, good news for open source  Ivan21 | 04/02/08
I don't think Gartner understands the benefits  peter_erskine@... | 04/02/08
No end user licences for supported software  David Chassels | 04/03/08

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