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Open Source Software trends
           and the impact of the current
           economic environment

           Werner Knoblich,
           Vice President - General Manager EMEA,
           Red Hat
05/19/09                      Go Open 2009          1
危机
05/19/09   Go Open 2009   2
Unprecedented environment




          Budget cuts/staff cuts                        Increased demand for IT-based business
                                                          services
          Customers contracting
                                                         Preserve key initiatives
          Credit restructuring
                                                         Protect existing and capture
          Entire ecosystem strained                      new revenue opportunities



       The risk is in doing nothing. However...
       Unprecedented environment enables unprecedented opportunity.


05/19/09                               Go Open 2009                                           3
“The perfect storm”




05/19/09         Go Open 2009    4
Facts!
          All the latest reports from Gartner, Forrester, and IDC show that
           open source adoption is continuing to grow.
          Approximately 96% of respondents feel the economy's turbulence is
           quot;goodquot; for open source software, up from 81 percent in 2008. 2)
          53% of respondents are planning to increase adoption of Linux on
           the server and
           48% are planning to increase adoption of Linux on the client as a
           direct result of the economic climate. 3)
          The longer companies use Open Source
           the less important   cost savings on licensing and
           the more important   quality, open standards and
                                avoidance of vendor locking become 1)

      Source:
           - 1) Heise, 02/09, Trendstudie Open Source: http://www.heise.de/open/Trendstudie-Open-Source--/artikel/126682/0
           - 2) North Bridge Venture Partners, Future of Open Source survey released on OSBC conf, March 26, 2009
           - 3) IDC White Paper, Linux Adoption in a global recession, March 2009




05/19/09                                                         Go Open 2009                                                5
Evidence of lock-in ...




05/19/09                Go Open 2009   6
Facts!
          90% of surveyed persons consider Open Source applications to
           have a good or very good degree of maturity. 1).
          84% of the user state that Open Source meets their expectation. 1)
          Almost 80% of respondents believe that open source software will
           make up greater than 25% of the software purchased in their
           organization within 5 years value wise. 2)
          Significant increase in adoptions in all areas e.g. DB, OS, BI, WCM,
           Web/Internet, Webserver, Systems Mgmt, Development, Security, Desktop, Virtualization, Apps
           Server, GroupWare, SOA, ERP/CRM 1), 2)

          Significant increase in adoption in new industries
           like public sector


      Source:
           - 1) Heise, 02/09, Trendstudie Open Source: http://www.heise.de/open/Trendstudie-Open-Source--/artikel/126682/0
           - 2) North Bridge Venture Partners, Future of Open Source survey released on OSBC conf, March 26, 2009
           - 3) IDC White Paper, Linux Adoption in a global recession, March 2009




05/19/09                                                         Go Open 2009                                                7
New Industries – Governments ...
      UK Open Source, Open Standards and Re–Use: Government Action Plan




                     1. The Government will actively and                 4. Where there is no significant overall
                    fairly consider open source solutions                   cost difference between open and
                    alongside proprietary ones in making                     non-open source products, open
                            procurement decisions,                       source will be selected on the basis of
                                                                              its additional inherent flexibility.

                                                          5. The Government will, wherever possible,
                                                            avoid becoming locked in to proprietary
                                     7. The Government will use open particular itin take exit, rebid
                                                          software. In standards will
                                       its procurement specifications and require into account in
                                                               and rebuild costs
                                     solutions to comply procurement decisions and will require those
                                                         with open standards. The
                                      Government will support the development of
                                                           proposing proprietary software to specify
                                           open standards and specifications.
                                                                  how exit would be achieved.
           Source: http://www.cabinetoffice.gov.uk/cio/transformational_government/open_source/policy.aspx


05/19/09                                            Go Open 2009                                             8
05/19/09   Go Open 2009   11
Werner Knoblich: Open Source Software trends and the impact of the current economic environment
Werner Knoblich: Open Source Software trends and the impact of the current economic environment
Werner Knoblich: Open Source Software trends and the impact of the current economic environment

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Werner Knoblich: Open Source Software trends and the impact of the current economic environment

  • 1. Open Source Software trends and the impact of the current economic environment Werner Knoblich, Vice President - General Manager EMEA, Red Hat 05/19/09 Go Open 2009 1
  • 2. 危机 05/19/09 Go Open 2009 2
  • 3. Unprecedented environment  Budget cuts/staff cuts  Increased demand for IT-based business services  Customers contracting  Preserve key initiatives  Credit restructuring  Protect existing and capture  Entire ecosystem strained new revenue opportunities The risk is in doing nothing. However... Unprecedented environment enables unprecedented opportunity. 05/19/09 Go Open 2009 3
  • 5. Facts!  All the latest reports from Gartner, Forrester, and IDC show that open source adoption is continuing to grow.  Approximately 96% of respondents feel the economy's turbulence is quot;goodquot; for open source software, up from 81 percent in 2008. 2)  53% of respondents are planning to increase adoption of Linux on the server and 48% are planning to increase adoption of Linux on the client as a direct result of the economic climate. 3)  The longer companies use Open Source the less important cost savings on licensing and the more important quality, open standards and avoidance of vendor locking become 1) Source: - 1) Heise, 02/09, Trendstudie Open Source: http://www.heise.de/open/Trendstudie-Open-Source--/artikel/126682/0 - 2) North Bridge Venture Partners, Future of Open Source survey released on OSBC conf, March 26, 2009 - 3) IDC White Paper, Linux Adoption in a global recession, March 2009 05/19/09 Go Open 2009 5
  • 6. Evidence of lock-in ... 05/19/09 Go Open 2009 6
  • 7. Facts!  90% of surveyed persons consider Open Source applications to have a good or very good degree of maturity. 1).  84% of the user state that Open Source meets their expectation. 1)  Almost 80% of respondents believe that open source software will make up greater than 25% of the software purchased in their organization within 5 years value wise. 2)  Significant increase in adoptions in all areas e.g. DB, OS, BI, WCM, Web/Internet, Webserver, Systems Mgmt, Development, Security, Desktop, Virtualization, Apps Server, GroupWare, SOA, ERP/CRM 1), 2)  Significant increase in adoption in new industries like public sector Source: - 1) Heise, 02/09, Trendstudie Open Source: http://www.heise.de/open/Trendstudie-Open-Source--/artikel/126682/0 - 2) North Bridge Venture Partners, Future of Open Source survey released on OSBC conf, March 26, 2009 - 3) IDC White Paper, Linux Adoption in a global recession, March 2009 05/19/09 Go Open 2009 7
  • 8. New Industries – Governments ... UK Open Source, Open Standards and Re–Use: Government Action Plan 1. The Government will actively and 4. Where there is no significant overall fairly consider open source solutions cost difference between open and alongside proprietary ones in making non-open source products, open procurement decisions, source will be selected on the basis of its additional inherent flexibility. 5. The Government will, wherever possible, avoid becoming locked in to proprietary 7. The Government will use open particular itin take exit, rebid software. In standards will its procurement specifications and require into account in and rebuild costs solutions to comply procurement decisions and will require those with open standards. The Government will support the development of proposing proprietary software to specify open standards and specifications. how exit would be achieved. Source: http://www.cabinetoffice.gov.uk/cio/transformational_government/open_source/policy.aspx 05/19/09 Go Open 2009 8
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