CIGNEX Datamatics-Open-Source-Whitepaper

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Whitepaper highlighting OSS v/s Proprietary Solutions. Read more to know more about how OSS - Open Source Solutions is evolving through time and serving at enterprise level

Whitepaper highlighting OSS v/s Proprietary Solutions. Read more to know more about how OSS - Open Source Solutions is evolving through time and serving at enterprise level

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  • 1. White Paper on Open Source Software for The Enterprise CIGNEX Datamatics, Inc. 2350 Mission College Boulevard, Suite 490, Santa Clara, CA 95054 Contact: +1 408 327 9900 2nd Floor, President Plaza Thaltej Cross Roads, S G Highway Ahmedabad - 380 054 Gujarat, India Contact: +91 9372899091 / +91 9890236454© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 2. Contents Executive Summary............................................................................................................. 02 Open Source – Definitions and Economic Model..................................................................03 Evolution of Open Source................................................................................................... 04 Community vs. Commercial Open Source Software............................................................. 04 Impact on the Enterprise..................................................................................................... 05 Open Source Adoption Strategy.......................................................................................... 06 Open Source Options......................................................................................................... 06 Case Studies.......................................................................................................................07 Way forward.......................................................................................................................08 Conclusion......................................................................................................................... 09 References..........................................................................................................................09 1© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 3. Executive Summary Executive Summary The Open Source Software (OSS) vs. Proprietary Software (PS) competitive landscape is constantly changing. This white paper provides an overview of Open Source Software, looks at its implications for the enterprise and benefits associated with OSS and concludes with considerations when adopting OSS. 2© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 4. Open Source – Definitions and Economic Model Definitions and Economic Model Open Source has developed into one of the transformational IT trends. The market has significantly expanded with a growing user base and revolutionized development methodologies, business models, etc. across the globe. Definition: The most basic definition of Open Source Software (OSS) is a program for which the source code is available. The advent of OSS has not only resulted in lower total cost of software ownership (TCO) for adopters, but has also created a major disruption in the traditional software space. OSS is software that is distributed under a license that provides the buyer the user a perpetual use license without cost, including the ability to modify and use the software freely. The opposite of OSS is proprietary software, which is distributed under a license that restricts to a much greater extent what the buyer can do with it.[1] The traditional proprietary software model is currently in the midst of a paradigm shift. Open Source software, which until recently was considered only for academia or research or development projects has become the change agent. Enterprise-ready Commercial Open Source products are changing the way the enterprise adopts new solutions with low or no license fees; installation occur in days not weeks, minimal annual maintenance fees and most importantly, ownership of the source code. Apart from better performance, reliability, scalability, security, support, a clearly defined upgrade path and indemnification, Open Source reduces the lifetime cost of the application by 50% – 70% (across hardware, implementation, upgrades, administration & support) over proprietary technologies. Another remarkable factor supporting the growing OSS adoption is the ability to integrate easily with external systems compared to proprietary technologies. Other benefits include faster turn-around time in gathering business requirements, adaptable to business changes, better risk mitigation, and freedom from vendor lock-in & licensing and flexibility. Open Source Software can be categorized as Community and Commercial Open Source Software Community OSS Community Open Source is software that a community develops and maintains. Rather than a single corporate entity owning the software, a broad community of volunteers determines the important decisions regarding the software like future roadmap, contributions to be accepted into the source code, as in the case of the Apache Web server (http://httpd.apache.org/) Commercial OSS Commercial Open Source is software that a “for-profit” entity owns and develops. The entity maintains the copyright and determines what is accepted into the software code base and the decisions regarding the same as in the case of MySQL and its MySQL database (www.mysql.com).[2] 3© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 5. Evolution of Open Source Evolution of Open Source Birth of "Commercial 2005 - Open Source" to Stability achieved differentiate with free Onwards on Linux. Evolutions software Widespread of this include (community) Redhat, SUSE, Adoption Birth of Linux Kernel Mandrake, Debian, in Finland. Linux Slackware,... Evolution of Kernel with GNU Geneva 2005: Apache, Perl, applications covered POLICIES OF Mozilla, etc. by GPL UNITED NATIONS Inception of GNU Project & Free SYSTEM Software Foundation ORGANIZATIONS Public acceptance on East Coast to TOWARDS THE gained by Linux & develop a new free BSD USE OF OPEN OS SOURCE SOFTWARE (OSS) Collaborative FOR work in 1960s led to birth of DEVELOPMENT Report : Internet www.unjiu.org/data/repo rts/2005/en2005_7.pdf 1960s 1970s Early 1990’s Mid 1990’s Late 1990’s 2000’s Birth of the Efforts at UC, Freed BSD Unix Stability on The term "Open Internet Berkley - BSD from copyrighted 386BSD. Evolutions Source" coined. Unix AT&T Licenses - roll include NetBSD, out of 386 BSD FreeBSD, Open BSD Community vs. Commercial Open Source Software Parameters Open Source Software (OSS) Commercial Open Source S/W (COSS) Also Referred to as Community Edition (CE) Enterprise Edition (EE) Cost to Customer Free License/Subscription/Support Fee based Licensed by No license. Freeware. Software Vendor Developed by Community Community + Product Team Roadmap decided by Community Product Team, Customer requirements, Community Supported by Community Software Vendor Characteristics Community is responsible for Software Vendor ensures Performance, Quality & Security enterprise-class Performance, Scalability, related features High Availability, Quality & Security requirements Service Levels None Clearly defined Support, Bug fixes, Indemnification, Certifying Stacks, Release Intervals, etc. Miscellaneous Some Software vendors have the EE as a superset of features available in CE Table 1: Comparison of Open Source versus Commercial Open Source Though the adoption of OSS has been slow relative to other technologies seen in the past, in recent times, Open Source Software (OSS) adoption has been experiencing a very robust growth globally — with OSS revenues that was expected to reach $5.8 billion in 2011. Gartner predicts that by 2016, almost all software makers will have some 4© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 6. Impact on the Enterprise | Open Source Adoption Strategy Open Source applications or code within their Proprietary software generally provides a per user or products and, 99% of the Global 2000 will be using per server price scheme. In addition to the software some form of Open Source software, as well, Gartner costs, organizations need to consider the total lifetime predicts that organizations outside of the software and cost, i.e. the operating cost that includes the expense for technical vertical will leverage OSS as a core maintenance and support of the software. component of their business strategy to gain a competitive advantage. By Comparison, the Commercial Open Source application providers only change for the ongoing maintenance annually via an annual subscription fee Impact on the Enterprise without any up front software fees. Disruptive Change It is disputable whether Open Source has been a Evaluate Commercial and Open Source Software disruptive technology, but no one can dispute that it Options Using a Multiyear Cost Profile.[4] has created a change for the better. It has changed the rules of the game forcing the proprietary software Example of a simple three-year formula for annualized vendors to follow. Evidence of this is seen in the new total cost of ownership (TCO). offer from proprietary software makers to trial or obtain a hand on demo instance of the software. Capital Expenses + 3 x (Operational Expenses) TCO = In addition to the software, Open Source as a 3 collective has also spawned a new approaches to Capital Expenses = Hardware acquisition + software license acquisition development that are now best practices that are being adopted worldwide. Operation Expenses = maintenance + power + labour + indirect costs Enterprise Ready Integration Tools The savings are significant and worth a close look while A survey conducted by Open Source data integration contemplating a new solution. For example, the 5 year providers Talend found that 31.2% of organizations cost for adopting a commercially backed version of use Open Source tools with commercial application Drupal is 2-5% of the total cost of a proprietary WCM for Data Integration. Ease of use, Performance, No application.[5] As well; a comparative study by Alfresco Vendor Lock-in and licensing costs were understood to signifies that in the first year alone Alfresco saves up to be the key drivers for using Open Source Tools. [3] 96% in costs compared to other major players![6] The above survey can be related with the reception of Big Data technologies like Hadoop, MongoDB etc in Open Source Adoption Strategy organizational technology environment. Open Source Demand for Open Source has gained considerable integration tools are finding their space as they are momentum since the economic meltdown in 2008. increasingly adopted, these technology are expected Organizations now consider an Open Source adoption to revolutionize the data management systems in the strategy which would minimize risk and ensure business next 10-15 years. continuity with benefits of reduced TCO, control over software assets. CIGNEX Datamatics recommends an Open Source Adoption Model (OSAM) drawing from Lower TCO over 200 implementations globally since 2000. Total Cost of Ownership is one of the key reasons why organizations consider Open Source. More importantly, Proprietary Software Licensing has 2 components. 1. Software Fees to purchase the software itself and obtain a proper use license 2. Ongoing Support/Maintenance - Annual payments that provides customer access to upgrades, patches and other releases by the vendor 5© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 7. Open Source Options CIGNEX Datamatics Open Source Adoption Model External Web Retail Sites Core Banking, Target Audience Confidence Social Media Pilot, Internet Banking in Product / CMS Test Drive, Manufacturing Open Websites Migrate Process Source Static Websites Automation,... / Extranet Portals Information Oriented Transactional/ Nature of Application (Non-critical) Mission-critical Doc. & Rights BI Cloud Management Candidate Expand CRM for Workflow based Open Applications IMS (Invoice Management System) Immediate Source Migration Corp. Social Network Adoption CLMS (Contract Intranet Portals Lifecycle Mgmt. System) Internal Open Source Options For just about every available proprietary technology, there is an Open Source alternative. The maturity of the OSS alternative depends on the application platform and community base of the vendor. The table below provides a simple representation of how OSS has proliferated the traditional solutions space. Proprietary Software* Open Source Software* Operating System Unix, IBM, AIX, Windows Linux Database Oracle, DB2, SQL-Server, Sybase MySQL, Ingres, PostGreSQL Middleware,Application Server Oracle, BEA, Microsoft, IBM JBOSS, Tomcat Dev Tools Oracle, Jbuilder, IBM, Microsoft Eclipse Visualstudio Infrastructure IBM, VMware, Oracle Redhat, ZenSource EAI, SOA TIBCO, SAP Microsoft, IBM , FuseSource, Mule Source DW & BI Oracle, BQ, SAP Cognos, IBM, MicroStr, , Pentaho MS WCM Fatwire, Ektron, MB Drupal, Alfresco, Liferay, Plone ECM Documentum, IBM Filenet, OpenText, Alfresco Oracle, Microsoft ERP & CRM Oracle, SAP IBM , Compiere,OpenBravo, Adempiere Portals BEA, IBM, BV, SAP Oracle, Vignette , Liferay, JBoss, eXo and many more Social Collaboration Jive, IBM, Microsoft Sharepoint Drupal, Liferay, Yammer, Facebook, Twitter, OpenText etc. Mobile SMS MS, Wap2Go, IBM, Oracle Drupal, Liferay BPM IBM, Oracle, SAP Intalio. JBPM E-Commerce ATG, IBM, Click Com, Sterling Com, Magento Demandware Identity Management MS, Oracle, IBM, CA Technologies OpenLDAP CAS, OpenIAM , Scanner, Fax, Device Integration Kofax, eCopy, EMC, Xerox, IBM Ephesoft Email Integration Microsoft, IBM, Lotus Notes Alfresco, Opsera Table 2: Proprietary Solutions vs Open Source Alternatives *All other trademarks are the property of their respective owners 6© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 8. Case Studies Case Studies Grupo Posadas Reduces Website Cost of Ownership by 40% Rise of popular internet-based travel sites and growing competition raised varied challenges on Grupo Posadas. Low RevPAR (Revenue per Available Room), challenges in online promotion for customers and partners and lack of emotional connection among the guests and its brands Posadas needed to build a stronger online presence for customers and drift from the existing decentralized legacy Web strategy which made it difficult to respond to evolving business practices. The existing Proprietary Legacy Solution based websites were cumbersome to manage, lacked appropriate workflows and made updating content a complex process. Data redundancy across multiple sites returned inaccurate search results and drastically brought down the performance. In order to provide a richer online experience, the company needed an integrated web strategy based on open standards that would provide flexible and cost effective internet architecture for years to come Posadas selected CIGNEX Datamatics, a global leader in Enterprise Open Source Solutions and Platinum Partner to both Alfresco and Liferay, to build and implement an Integrated Content Management Portal (ICMP) leveraging the strengths of Alfresco enterprise content management (ECM) and Liferay 6, an open source portal and social collaboration solution. Within six months, CIGNEX Datamatics successfully implemented Phase One of the Alfresco and Liferay ICMP which can now support over 2,000 content users and 750 concurrent content users within organization. With the open, flexible architecture, CIGNEX Datamatics can customize the company portals to fit its evolving business needs. CIGNEX Datamatics also included robust security in each portal with data encryption, audit/compliance reporting and advanced access controls with secure access to legacy systems. CIGNEX Datamatics implemented Liferay & Alfresco Implementation for eight hotel brands. The new portals provide a personalized experience for potential guests and have been well received by online users. For the Posadas marketing and web team, it was easier to manage and publish content in multiple languages and to pass through a defined publishing workflow in the matter of minutes. Since the launch of the new portals, the company has seen its revenue per room rates increase. In addition to improving the companys brand recognition, the new portal is extremely cost effective. . Posadas has experienced a 40% reduction in total cost of ownership with the new Alfresco and Liferay based implementation over its previous legacy solution. UBMi consolidated web portal using Open Source UBMi had multiple website technology platforms including Webvision, Contribute, Miramedia, Emojo, ASP etc. across their 100+ web brands. This resulted in shortage of resources for these technologies & associated tools and therefore inability in accommodating changes to web content timely. Multiple platforms contributed to exponential increase in costs in the form of licensing, maintenance and support model. Heavy dependency on vendors without access to source code put UBMi in huge business risk. They had to inherit the limitations of their platform provider hence content sharing across channels was restrictive, time-consuming and heavily expensive. 7© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 9. Way Forward UBMi conducted extensive evaluation and compared various technology platforms including Liferay, Episerver, Sitecore, Miramedia, Squizz and ASP Liferay 5.2 was chosen as the preferred Portal and Web Content Management . for developing next generation websites and CIGNEX Datamatics as the system integration partner. During a 20 month time frame, UBMi rolled out over 70 websites across multiple business units using Liferay. Enhanced CMS functionality in segregating web content, communities, document/image libraries, SEO friendly pages, content tagging using RSS generators, multiple image uploading, Flash display, FCK Editor and Filterable Google like search were some key features of the solution. Through Liferay Portal and CMS Solution, UBMi significantly reduced time to roll out new websites. Collaboration across sharing of content, onsite management of information, ability to track changes reduced time to make updates and modifications. Cost reduction was another benefit since UBMi no longer had to maintain the budget outlay for licenses, maintenance and support. Way Forward Define a policy framework Policies will play a crucial role in guiding decision makers on the adoption of Open Source Software. These Frameworks should include guidelines pertaining to intellectual property, regulations governing contributions to external projects, and an approved vendor/project list. Select the right partner Open Source is a tremendous technological feat that nurtures innovation. There are more than 200,000 Open Source Software options for an organization to choose from but only the right partner helps the organization to minimize risk and reduce adoption time by suggesting the ideal enterprise-ready Open Source Software. Enterprises can also save time and money by reusing the code/features created by the partner. The ideal partner should be able to Educate the Enterprise on the Benefits of OSS adoption, costs and contributions & how the pitfalls in the legacy system can be addressed. Advise the Enterprise regarding the Partial and Complete Adoption Practices, OSS tools, best practices, development methodology to be adopted, etc. Manage the transition in an efficient manner with adherence to business objectives, quality & timelines; integrate with existing legacy applications; ensure the achievement of projected benefits, provide post-implementation support. Advise Adoption Benefits of Transition Partial Open Source Integration Complete Educate Manage 8© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com
  • 10. Conclusion | References Points to ponder • “Open Source is free like free speech, not as in Free Beer”[6] • Open Source development models vary in comparison to traditional • Before selecting Open Source, a CIO should thoroughly understand the licensing model and should make sure it is in line with their business • Adoption of any technology may require retooling of people and certainly learning and change management Conclusion • Open Source Software has progressed very rapidly in feature richness, scalability, security and quality. Late adopters of IT solutions across all verticals are moving to OSS, resulting in elevation of the open source option as standard and inclusive in comparative application cycles. • Open Source business applications are becoming an integral part of IT strategy, across the board. • Open Source offers potential to IT organizations to dramatically lower costs and improve business competitiveness. References [1] Open Source Shows Promise for Business Apps - http://www.computereconomics.com/article.cfm?id=1397 accessed on 25th June, 2011 [2] The Economic Motivation of Open Source Software: Stakeholder Perspectives by Dirk Riehle, SAP Research accessed on: 25th June, 2011 [3] Open Source Integration Tools are Enterprise Ready http://www.infoworld.com/t/platforms/open-source-integration-tools-are-enterprise-ready-209 accessed on 5th Mar,2012 [4] February 2009 “Best Practices: Improve Development Effectiveness through Strategic Adoption Of Open Source” by Jeffrey S. Hammond [5] TCO for Open Source Social Publishing: Going Beyond Social Business Software by Acquia Drupal [6] Total Cost of Ownership for Enterprise Content Management by Alfresco [7] GNU Operating System: Open Source Definition http://www.gnu.org/philosophy/free-sw.html About CIGNEX Datamatics, Inc. (www.cignex.com): CIGNEX Datamatics (subsidiary of Datamatics Global Services Ltd.) is the global leader in Commercial Open Source & SAP Connect solutions. For over 10 years, CIGNEX Datamatics has provided Open Source solutions addressing enterprise requirements across Content Management, Portals & Social Collaboration, e-Commerce, Document Management, Records Management, Digital Asset Management, Business Process Management, Business Intelligence & Analytics, ERP CRM, Enterprise Mobility and SOA. The company has expertise in , applications and tools such as Alfresco, Liferay, SAP Magento, Sybase, Adobe, Pentaho, Compiere, Drupal, , Intalio, JBoss, Mulesource, etc. CIGNEX Datamatics focuses on addressing key challenges faced by CIOs today including: • integrating Open Source solutions with existing line of business solutions • managing the contradictory demands of reducing IT spend while rolling out new solutions Over the years, CIGNEX Datamatics has helped in improving client profitability by delivering solutions to over 200 global customers using Onsite, Offsite and Offshore delivery models. Headquartered in Santa Clara, CA, CIGNEX Datamatics has offices in Colorado, Michigan, Massachusetts, New Jersey, Texas, United Kingdom, Germany, Switzerland, Bosnia, India, Singapore and Australia. 9© CIGNEX Datamatics For information e-mail us at marketing@cignex.com www.cignex.com