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What does it take to sell open source software?

Johannesburg, 13 Jan 2005

The very nature of open source software, with its freely available source code, seems to preclude it from becoming a viable commercial option for leading software vendors.

However, market trends seem to paint a different picture. Inus Gouws, a senior information management (IM) consultant at Computer Associates Africa, tells us why.

While open source software has matured almost to the point where it is set to challenge Microsoft`s dominance in a number of areas, paradoxically, the open source model seems at odds with this reality.

The open source community`s philosophy of free sharing of software source code - and complementary knowledge - for the good of all like-minded people, seems to preclude the viability of a marketing/ sales/ distribution channel.

Nevertheless, the open source movement is endorsed by many key industry players, including Sun, HP and Computer Associates (CA), who would not do so unless there was a valid commercial reason.

These organisations seem to have come to terms with the fact that the traditional order is about to change. Have they seen the pot of gold at the end of the rainbow?

They seem to have accepted what many hard-nosed business people have not: that knowledge - which represents power - no longer has a high commercial value.

This open-minded position is difficult to understand because the business community is still anchored in the proprietary world. It is reliant on non-open legacy systems that run, manage and control a sizable percentage of all business transactions today.

Linux community

The Linux community - acknowledged by many of its open source colleagues as a "different breed" - has taken this "free-thinking" concept one step further.

It has challenged traditional business thinkers and begun a wholesale shake-up of the established order - and the distribution channel.

The Linux mantra is "software for the people, by the people". The community supports the free availability of software for all.

It also supports the free distribution of patches, upgrades, even complete tailor-made systems that are designed and written by "open source buddies" who are often a continent or more away from their end-users.

More significantly, in the Linux community, "deals" are often concluded simply on receipt of a request via the Internet.

What does this mean for today`s resellers and solution providers?

The business case

The business case for open source software centres on one key area: support.

While the Linux community claims - and there is no reason to disbelieve this - that 24x7 online support is available from a variety of sources to help address user needs, very few of the top Linux "gurus" are highly visible in the marketplace.

Linux insiders say that when a problem is identified by a Linux user, within hours there could be as many as 40 000 experts from user groups around the world addressing it - without reward!

As impressive as this might be, from a business perspective there are risks associated with this unstructured situation. For example, what happens when a Linux system, running a critical business process, goes down? There are very few "Linux toll-free" support lines to call.

Linux specialists, in common with the A-Team, have to be found before they can come to your rescue. Getting support requires membership of the "club".

Making money

Astute industry watchers are realising that support presents a key opportunity to distributors and resellers. It needs to be formalised and commercialised.

Thankfully, as the open source crusade gains momentum it will also amass business sense. Many traditional business structures will be - are being - put into place around Linux and other open source software.

The open source revolutionaries are becoming respectable. Perhaps not to the point to where they will don suits and ties, but surely they are putting another face on their fierce independence and they`re coming to terms with the realities of business.

Just as the flower children of the 70s became business leaders and innovators of the 90s, so Linux visionaries are re-evaluating their position, based on the rewards of commercialism.

Performance

While "support" might make the business case for open source software, the deciding factor in the minds of business decision-makers will be "performance".

Because of its inherent low demand on system resources and overhead, Linux software performance is often superior to proprietary offerings running on similar environments.

The management of open source infrastructures is easier as a result, and many specialised software developers are throwing their weight behind the movement and assisting with base-lining for new software systems. CA, Sun, IBM and HP are major contributors in this regard.

In SA, on the back of government endorsement, we can expect Linux technologies to assist in job creation and training programmes targeted at previously disadvantaged individuals.

Benefits will accrue because there will be less spending on overseas-sourced software and the average business will save on implementation costs - particularly as legacy hardware can more readily be used with Linux than any other operating system.

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Editorial contacts

Inus Gouws
Computer Associates Africa
(011) 236 9111
Inus.gouws@ca.com