Open Source Software The Business Case for Open Source Software What is Open

							The Business Case for Open
     Source Software
 What is Open Source Software?
 The term open source in common usage refers to any
  software with publicly available source code.
 Open source software is required to have its source code
  freely available; end-users have the right to modify and
  redistribute the software, as well as the right to package
  and sell the software
 Software with source code in the public domain meets the
  criteria. Open-Source licences may have additional
  restrictions, such as a requirement to preserve the author’s
  names and copyright statement in the code.
What is Open Source Software?
 Open Source can be either systems
  software (Linux) or application software
  (Mozilla, OpenOffice)
 Growing in popularity
  – Linux now has 23% market share
  – Second only to Microsoft
    Open Source Vs Proprietary
 The “source” in “open source” refers to the
  program code or instructions on which software is
  based.
 This is freely available for inspection unlike
  proprietary software e.g. MS Windows which is
  compiled into an executable form which runs on a
  computer.
 Once the source is freely available, the software
  becomes free to the end user, since anyone can
  install it, compile it and then use it.
      Open Source Organisation
 The basic idea behind open source is very simple
   – When programmers can read, redistribute, and modify the source
     code for a piece of software, the software evolves.
   – People improve it, people adapt it, people fix bugs.
   – And this can happen at a speed that, if one is used to the slowpace
     of conventional software development, seems astonishing.
 The open source community believes that this rapid
  evolutionary process produces better software than the
  traditional closed model, in which only a few programmers
  can see the source and everybody else must blindly use an
  opaque bloc of bits
                  Linux
 Developed by Linus Torvalds
 Posted code on the internet and invited
  other developers to improve it.
 Tens of thousands of developers have
  worked on it (Open Source Community).
 Has been adopted by end-users and by
  established hardware vendors such as IBM
  and HP which supply it as an option with
  their computers.
       Open Source Projects
 Collaborative developments between
  software writers
 Worldwide workforce of enthusiasts
 Surprisingly, the software developed is
  stable enough to be used by commercial
  organisations
              Case: OSS in Munich
  May 2003 - the city of Munich decided to oust Microsoft
   Windows from the 14,000 computers used by local-
   government employees in favour of Linux, an open-
   source operating system.
  Although the contract was worth a modest $35m,
   Microsoft's chief executive, Steve Ballmer, interrupted
   his holiday in Switzerland to visit Munich and lobby the
   mayor.
  Microsoft even dropped its prices to match Linux
      – a remarkable feat since Linux is essentially free and users
        merely purchase support services alongside it.
  Microsoft still lost
      – The city did not wish to place the functioning of government in
        the hands of a commercial vendor with proprietary standards
        which is accountable to shareholders rather than to citizens.


http://www.economist.com/business/displayStory.cfm?story_id=2054746
         Case: OSS in Munich
 Modern governments generate a vast number of
  digital files.
   – From birth certificates and tax returns to criminal DNA
     records, the documents must be retrievable.
 So governments are reluctant to store official
  records in the proprietary formats of commercial-
  software vendors. This concern will only
  increase as e-government services, such as
  filing a tax return or applying for a driving licence
  online, gain momentum.
 In Microsoft's case, security flaws in its software,
  such as those exploited by Blaster and SoBig
  viruses, are also a cause of increasing concern.
        Case: OSS in Munich
 Government purchases of software totalled
  almost $17 billion globally in 2002, and the
  figure is expected to grow by about 9% a year
  for the next five years.
 Microsoft controls a relatively small part of this
  market, with sales to governments estimated at
  around $2.8 billion.
 It is a crucial market, because when a
  government opts for a particular technology, the
  citizens and businesses that deal with it often
  have to fall into line.
           Case: Ernie Ball
 Guitar String manufacturer
 In 2000, the Business Software Alliance
  conducted a raid and audit on the firm
  – Found a few dozen unlicensed copies of
    programs
  – Settled for $65K + $35k in legal fees
  – BSA “named and shamed” the firm on the
    evening news and newspaper ads
               Case: Ernie Ball
 Ball told his IT department he wanted Microsoft
  products out of his business within six months
  – “I don't care if we have to buy 10,000 abacuses. We
    won't do business with someone who treats us
    poorly."
 Ball's IT crew settled on open-source software
  –   Red Hat's version of Linux
  –   the OpenOffice office suite
  –   Mozilla's Web browser
  –   plus a few proprietary applications that couldn't be
      duplicated by open source.
Interview available at http://news.com.com/2008-
  1082_3-5065859.html?tag=lh
     Advantages: Proprietary
            Software
 Indemnification
 Maintenance and support;
 Licensee doesn’t have to have open source savvy
  staff;
 Licensees’ rights if:
  – media is defective;
  – software contains viruses, backdoors, etc.;
  – product fails to meet written technical/business
    specifications.
   Disadvantages: Proprietary
           Software
 COST!
  – License fee
  – Product bundling—example: Microsoft office.
 Licensee cannot modify or enhance the code;
 Often not built to open standards, leading to
  interoperability problems;
 Shut off from continuing development and
  information sharing in open source community;
 Some proprietary code is not as good as its open
  source counterparts.
   Advantages of Open Source
 Effectively free to purchase (but cost of
  migration from existing systems may be
  high)
 Lower cost of maintenance since software
  upgrades are free
 Increased flexibility
   Arguments against Open Source
 Has less functionality than commercial software
  (but commercial software has a lot of functionality
  that is not used by end-users e.g. Office Assistant)
 More likely to contain bugs since it is not tested
  commercially
  – Evidence suggests this is not the case
 Poor quality of support
  – Although IBM, RedHat etc. do support Linux for a fee