Even though using open source can be generating significant savings, the fact that the software license is free is only one element of the return on investment - and decision makers are well aware of this. The stakes of open source adoption by a growing number of organizations involve considerable investments by vendors, especially for the enhancement of their solutions. This does not corrupt the community-based development effort, but covers a legitimate demand for quality from enterprise users.

Confronted with this demand, and its cash-related requirements, several business models have been thought out by open source vendors: subscription-based model, dual-licensing model, services model, sponsoring, etc.

The “freeness” of open source software carries another key advantage that is less often mentioned, but which I think is as important as this “freeness”: it can be quickly appropriated by systems integrators. With free and unrestricted access to the software (unlike proprietary solutions), these SIs can develop services offerings, the diversity of which generates a healthy competition for users. Open source then creates a strong alternative to the proprietary world: around lower-TCO solutions, users benefit from a real choice for services. The ROI of the solution is thus accelerated. And because open source is also very present in the educational system, available expertise grows very quickly.

I am not saying proprietary models will be dying soon. I do think however that they need to evolve. For the greater benefit of users!

Bertrand

Nothing can - or will - slow down the growth of open source software. According to IDC, open source alone generated $1.8b in revenue in 2006.  The projected growth, fueled by a fast adoption curve by enterprises and government agencies, should bring this number to $5.8b in 2011, which translates into an annual growth of 26%.  I know some proprietary vendors who would be thrilled with this kind of market growth rate…

We all know that open source software is already widely used in IT infrastructure: security (firewall, proxy, antivirus, antispam, etc.), operating systems (servers, desktops, workstations, appliances, etc.), application and Web servers, databases, Web browsers, etc.  However open source software is no longer restricted to the “lower” layers of the information system.  It is also deployed in the business application and middleware layers - such as Talend Open Studio.  I can for example mention SugarCRM or CentricCRM in the Customer Relationship Management space; OpenBravo or Compiere in the Enterprise Resource Planning space; JasperSoft or SpagoBI in the Business Intelligence space.  A number of these players are key partners for Talend, and some of them are co-founders, with Talend, of the Open Solutions Alliance - built to promote the interoperability of open solutions in the enterprise.

This growth of open source software in enterprises illustrates well the maturity of our offerings: a few years back, only a few early adopters would even consider open source solutions.  Today, organizations select solutions that bring them a key competitive advantage and are proven: the feedback of initial adopters highlights several advantages, which prove to be key for the final choice.

Among these advantages, I will mention: an unrestricted access to source code which facilitates customization and provides independence from the vendor; the compliance with industry standards and interoperability; the quality of the code which is guaranteed by code reviews and tests by the community; the reactivity in interactions between users and developers; the high level of associated services (knowledge transfer, consulting, etc.); the cost savings; etc.

The future looks even more promising.  The solidity of open source software grows as the users’ community increases - clearly today’s trend.

I am quite proud for Talend be part of this great evolution, along with our partners and users.

Bertrand