Open source: The newest competitive tool

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Open source bubbles up again.

As you recall, the lesson of the tock market bubble was, a company cannot stay in business when it gives away its main product.

Here's an example of the problem:

Integrated Computer Solutions Chief Executive Peter Winston said he decided to make Project.net software be open-source to expand the customer base. Though having the software available for free download cuts license revenue, the company will make it back in support contracts, he said.

"By lowering the average price, we get more people, smaller companies, and more companies outside the United States," he said. "We build a bigger user base and build the business on the bigger base." He plans to release source code in March or April using a variation of the Mozilla Public License to govern the software.

I appreciate "lowering the average price". The highest price is $0, which does lower the average.

But he does have a plan.

He will open branch offices outside the US to provide services.
He will gain all the "people" who want project management software in order to have a high tech job jar.
He will get all the "smaller companies" with an IT staff large enough to massage project management code. Or at least solve all the problems themselves. Because if the company were to buy services, the cost would probably be similar to the amount paid when the purchase cost includes a software line item.

Yes, his best hope is that people will not realize that a $10,000 total is the same whether services cost $10,000 or $5,000 with another $5,000 for the software.
This is the "one born every minute" approach.

But it's all he has.


But open source does have a poster child, "...
Sun Microsystems President Jonathan Schwartz, who is overseeing a major conversion of that company's software to open source."

That's the company that gave away $100 million from Solaris and all the revenue from software from a group of companies Sun bought not so long ago.

And in return, Sun receives the gratitude of those who are now certain they don't have to purchase Sun hardware in order to run Solaris.


But I do agree there are business opportunities in open source. They do not come from producing software, of course.

Quoting:

Palamida can check whether a company's internally developed software inappropriately uses third-party software, including open-source components.

and

Palamida competitor Black Duck Software announced its Enhanced Due Diligence program, a service that pairs its Web-based protexIP/OnDemand with experienced intellectual property attorneys from law firms. The service is intended to scrutinize software involved in mergers, acquisitions or investments.

Yes, avoiding IP problems in open source is a golden opportunity. For lawyers.

So send your child to law school, and be sure he doesn't become interested in computers. Well, maybe, but only if he really wants to work for Microsoft.

Posted by: Anton Philidor   Posted on: 02/13/06 You are currently: a Guest | Members login | Terms of Use

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