Commercial & Open Source SoftwareErick WatsonUS Business & Marketing OrganizationMicrosoft Corporation
Separate Competition from the DiscussionDevelopment Business Licensing Open Models Models Models Standards Role of IP, Economics, Public Policy… Product Competition, Consumer Choice VS.
Software Production Academia Community Commercial (traditional) Governments Hobbyists Competition Freeware Industry Open Source (Non-Software) Functionality IT Development Public Domain Software Shareware Vendors Intellectual Property There is no “correct” way to produce software Interaction of multiple models has produced best results Development model has little impact on production use
Commercial and Non-Commercial Software Non- Commercial Commercial Open Commercial Software Free Commercial Public OSS Tech Transfer >60K software companies producing >180K products Millions of apps custom developed by orgs for in-house use Tech transfer of R&D has been critical to software industry
OSS and Commercial Use IBM Customer Red Hat Apple Benefit CollabNet SUN VA Systems SAP Ximian Software SuSE * Oracle Business Sendmail Microsoft Model MySQL RealNetworks Sleepycat OSS is positive influence for most major software companies Increased product and services competition benefits customers OSS vendors are directly commercializing their solutions Customer demand for value is still primary driver * Recently acquired by Novell
Competitive LandscapeIBM Linux ($ + heads + OSDL + LSB = Control) Apache – Board of Directors, contribution, inclusion, leverage Eclipse – SUN compete, Java community strategic play, Websphere support ISVs – second “big bet” Hardware & Services – revitalize PPC, SUN compete, strengthen services contractsRed Hat “Winner” of Linux market consolidation Heavy commercialization – negative for community, positive for customers Not invested in OSDL or LSB – putting R&D into distro testing and ISV integrationNovell OSS-O-Matic – acquired SuSE & Ximian Big question mark is execution and corporate culture integration Microsoft is their key target – not SUN
Competitive Landscape cont ...SUN Desktop is focus - $ & heads in desktop and OpenOffice OSS putting extreme pressure on any commercial Java strategy Linux is a SUN server business threatIntel Drive x86 success…and repeat – OSDL (carrier grade Linux focus) Tools to support ISV communityHP OSS project office - >200 projects in process Hardware – largest Linux hardware distributor, printers Legacy – migration path for HPUX communitySAP SAPDB – drive commodity into database market OSS investment minimal - $ + heads into My SQL and Eclipse onlyOracle Linux – commodity pressure in OS space drives down TCO for their solution Appearance of community involvement rather than heavy investment
Who/What To Watch MySQL – innovative business model, disruptive for Oracle & MS JBOSS – disruptive for IBM, BEA & MS MONO - .NET on Linux SAMBA – NT4 implications Eclipse – OSS IDE, commodity pressure in tools space OSDL – Linus lives there, core Linux direction Black Duck (and similar) – not OSS, but implication for litigious environment