Open Source Solutions

Open Source has gone a long way and is one of the most influential trends in modern information technology. It’s one of the fastest growing segments and the adoption rate in large and small enterprises is breath taking. Open Source is everywhere be it in commercial products, appliances, software-as-a-service offerings or web 2.0 solutions. This presentation will illustrate the developing open source eco systems and position the wide range of players contributing, profiting and influencing the further development. Using open source adoption and an overall maturity assessment it will be explained why and how open source is used, what can be expected from it over the next years and what role IT services play in this scenario.

The (r)evolutionary elements of Open Source and their impact on the IT industry The nature of Open Source Low cost scalable software distribution Collaborative software engineering Non monopolistic transparent technology access Impact on software industry.

  • Massive pressure on price levels.
  • New players can enter the market very quickly at lowest cost.
  • Value of local sales force decreases.
  • Open Source projects are able to enhance functionality and quality faster thanks to the massive forces of the community
  • Rapid adaptations to local needs (e.g. language support) possible.
  • Low cost development approach also open to commercial vendors.
  • Support/maintenance becomes a competitive environment.
  • Need for quality and fairness along many different aspects.
  • Fast development of new solutions based on components available to anybody.
  • The cost advantage of open source based software companies is huge … License Revenues Service Revenues Cost of Revenues Income from operation Research& Development Sales & Marketing G&A, Facilities, and Open Source software is progressing very quickly in terms of richness and quality Functionality/ Quality/Stability Time 2001 2003 2005 2007 Traditional commercial software Open Source software Gap Baseline user needs.
  • Open Source is growing fast and outpacing traditional software vendor growth Source: Gartner Open Source Summit 2006: "The Economics of Open Source - Measuring Market Influences" (Laurie Wurster) Traditional Software Vendors Internal OSS Development. External OSS Providers Entire Software Market.
  • Average value per project is very small, market is very fragmented.
  • More and more use of Open Source in the enterprise.
  • More and more use of Open Source for strategic and mission critical projects.
  • Growing market creates the ground for a substantial services business (at approximately 2-5 times of software value this would result in a services market of more than 20 to 40 billion USD

For more information concerning our Human Open Source Solutions Services, Contact a Representative of PROEX Consultancy.

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