Bailing Out Your Business with Open Source

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Presentation to IT executives at the Open Source Forum in London on June 16, 2009, by Matt Asay of Alfresco.

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  • Bailing Out Your Business with Open Source

    1. 1. Bailing Out Your Business with Open Source Open Source Forum 2009 Matt Asay VP, Business Development Alfresco www.alfresco.com
    2. 2. First, the Bad News
    3. 3. Times are tough <ul><li>Moats to clean...
    4. 4. Duck houses to be maintained...
    5. 5. Horse manure to buy...
    6. 6. Helipad hedges to cut...
    7. 7. Dogs to feed...
    8. 8. Christmas trees to trim...
    9. 9. Second home payments to make...
    10. 10. And more.... </li></ul>
    11. 11. 2008 was bad; 2009 may be worse Getting worse (Gartner 2009) <ul><li>46% of CIOs chopped their Q1 budgets </li><ul><li>90% of these cut by at least 7%
    12. 12. Mostly head-count reductions and vendor renegotiations to achieve cost targets </li></ul><li>Server sales dropped 25% in Q1 2009 </li></ul>
    13. 13. But all is not as it seems...
    14. 14. The economy’s silver lining
    15. 15. Open source interest is growing 69% maintaining or increasing open source investments.
    16. 16. Less money (means more open source) Source: Gartner Number of respondents = 274; Mean summary: Three responses allowed. Survey Question: Select your organization’s top three most important reasons for using open-source software.
    17. 17. Why? Because open source works as advertised 87% 92% 86% 82% 84% 82% 91%
    18. 18. But Isn’t Open Source a Fad?
    19. 19. Open source is now a question of how , not whether The question is: What will you do with it? Whether measured in terms of lines of code added or new projects, open-source growth is phenomenal Source: Dirk Riehle, SAP
    20. 20. Open source is mainstream Source: Gartner 2008 Number of respondents = 274; Multiple responses allowed. Survey Question: Do you use, or plan to use in the next budget year, an open-source project or product as an alternative to commercial software? Across product segments, 100% of enterprises will use open source by 2010.
    21. 21. Better quality, more innovative software at a much lower price <ul><li>“ Open source software solutions will directly compete with closed-source products in all …markets.” </li></ul><ul><ul><li>85% of enterprises currently use OSS (The rest are lying)
    22. 22. 45% use OSS for mission-critical applications (Continues to grow) </li></ul></ul><ul><li>Why? </li></ul><ul><ul><li>65% say open source has sparked innovation inside their companies
    23. 23. 67% … for lowered costs </li><ul><li>“ Lower TCO and flexibility to launch and develop cost-prohibitive projects continue to be top reasons for using OSS” </li></ul><li>81% … for better quality software </li></ul></ul>Sources: Gartner (2008), CIO Insight (2006), IDC (2006)‏ “ Open source produces better software.”
    24. 24. Open source handles the important workloads Open source is becoming the heart of enterprise computing
    25. 25. This Is Open Source's Market
    26. 26. Open-source business models are right for 2009 <ul><li>Global support (24/7/365) </li></ul><ul><ul><li>We handle serious mission-critical applications and scale </li></ul></ul><ul><li>We respect customers' time </li></ul><ul><ul><li>Only ECM experts in support </li></ul></ul><ul><li>We respect customers' money </li></ul><ul><ul><li>We deliver value or you don’t pay </li><ul><li>1/10 th the cost of Documentum;
    27. 27. 1/3 rd the cost of SharePoint </li></ul><li>Simple per-CPU pricing </li></ul></ul><ul><li>We fairly allocate risk </li></ul><ul><ul><li>Subscription model
    28. 28. Try before you buy
    29. 29. Benefits of open source without the obligations </li></ul></ul>
    30. 30. The open-source model lowers risk <ul><li>Most IT projects fail
    31. 31. Open source de-risks software acquisition: </li><ul><li>Try before you buy
    32. 32. Stop your subscription if the vendor stops providing value
    33. 33. Dramatically lower cost </li></ul><li>Worst case: </li><ul><li>Project dies and you’re out $xx,xxx or $xxx,xxx, not $x,xxx,xxx </li></ul><li>IT project failure becomes less probabilistic and less painful </li></ul>
    34. 34. This isn't to say you're on your own <ul><li>Time </li><ul><li>Who has time to write (lots of) free software?
    35. 35. Answer: Those that are employed to do so </li></ul><li>Interest </li><ul><li>Who will take out the trash? </li></ul><li>Aptitude </li><ul><li>The higher up the stack you go, the fewer the developers </li></ul><li>Familiarity with project </li><ul><li>Poor documentation makes it hard to understand a project
    36. 36. Monolithic code base takes time to learn (M o st won’t bother) </li></ul></ul>
    37. 37. So what will this do to your proprietary vendors?
    38. 39. Their response? L ess choice IBM acquires FileNet Oracle acquires Stellent Sun aquires MySQL (…only to be acquired by Oracle) Autonomy acquires Interwoven
    39. 40. email | matt.asay@alfresco.com twitter | twitter.com/mjasay blog | cnet.com/openroad

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