Comments
Richard Davies wrote: The UK has a good crop of technology pioneers in cloud computing - for example ElasticHosts, FlexiScale, Flexiant, OnApp - and also some strong government initiatives such as G-Cloud. We will have to see whether this kind of technical leadership converts into swift mass-market adoption or not.
Cloud Computing
Conference & Expo
November 2-4, 2009 NYC
Register Today and SAVE !..

2008 West
DIAMOND SPONSOR:
Data Direct
SOA, WOA and Cloud Computing: The New Frontier for Data Services
PLATINUM SPONSORS:
Red Hat
The Opening of Virtualization
GOLD SPONSORS:
Appsense
User Environment Management – The Third Layer of the Desktop
Cordys
Cloud Computing for Business Agility
EMC
CMIS: A Multi-Vendor Proposal for a Service-Based Content Management Interoperability Standard
Freedom OSS
Practical SOA” Max Yankelevich
Intel
Architecting an Enterprise Service Router (ESR) – A Cost-Effective Way to Scale SOA Across the Enterprise
Sensedia
Return on Assests: Bringing Visibility to your SOA Strategy
Symantec
Managing Hybrid Endpoint Environments
VMWare
Game-Changing Technology for Enterprise Clouds and Applications
Click For 2008 West
Event Webcasts

2008 West
PLATINUM SPONSORS:
Appcelerator
Get ‘Rich’ Quick: Rapid Prototyping for RIA with ZERO Server Code
Keynote Systems
Designing for and Managing Performance in the New Frontier of Rich Internet Applications
GOLD SPONSORS:
ICEsoft
How Can AJAX Improve Homeland Security?
Isomorphic
Beyond Widgets: What a RIA Platform Should Offer
Oracle
REAs: Rich Enterprise Applications
Click For 2008 Event Webcasts
In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
SYS-CON.TV
Microsoft Titanic, Meet Mr Open Source Iceberg
Hope You Brought Your Life Raft

So it's begun. Microsoft is admitting in its financial filings that Linux and open source are eating into its revenues. Worse for them, they say, is that what they're seeing is the tip of the iceberg.

Hello, Microsoft Titanic? Meet Mr. Open Source iceberg. Hope you brought your life raft.

And like the Titanic - that unsinkable wonder - they are beginning to spring leaks.

To be honest, they warned us about it a long time ago. But no one really thought it would amount to much. And, to be honest, it really hasn't - yet.

But the panic in the voice of their financial filings this quarter was impossible to miss. Just listen: "Our direct competitors include firms adopting alternative business models to the commercial software model. Firms adopting the noncommercial software model typically provide customers with open source software at nominal cost and earn revenue on complementary services and products, without having to bear the full costs of research and development for the open source software."

More directly, they expressed, "the popularization of the noncommercial software model continues to pose a significant challenge to our business model, including recent efforts by proponents of open-source software to convince governments worldwide to mandate the use of open-source software in their purchase and deployment of software products."

Hmm. Microsoft complaining about large organizations standardizing software products? Hasn't Microsoft just spent 20 years talking the corporate world into doing just that? (I guess it's different when people standardize on products that aren't yours.)

But before I'm accused of bashing Microsoft too harshly, let's take a step back.

The truth is, if Microsoft is being impacted by Linux and open source, it's just a reflection of how exposed they are. They essentially sell commodity applications to a very large market. They've also been able to maintain very high margins because in many ways they've had a lock on their markets. These factors mean they're a big target. They have so much to lose primarily because they've accomplished so much.

But Linux and open source are having the same impact across the entire IT industry. Anywhere "commodity"-type applications exist, there are open source developers working as I write this to create "Free" alternatives.

Does this mean that all software companies are at risk of having their lunches eaten by small and loosely organized groups of open source developers from around the world? Hardly.

What we're seeing is similar to what's been happening in the field of mathematics for centuries. Math is essentially an open source phenomenon. Everyone publishes their results for others to see and build on. In fact, math may have been the original open source technology. But just because everyone gets to use algebra, geometry, and calculus for free doesn't mean we're running out of new math problems to solve. In fact, just the opposite is true.

By making the fundamental math "technologies" free for everyone to use and share, it's actually enabled more innovation and new ideas than ever would have been available otherwise. Imagine what would've happened had Sir Isaac Newton tried to charge license fees for anyone wanting to use calculus - the overall innovation rate in math would've been a fraction of what it's been.

There's no reason to think that Linux and open source won't have the same effect. By making so many core, base technologies free to use and share, the overall innovation rate should accelerate. In fact, it should make the overall innovation rate accelerate dramatically.

While there will be some big losers (like potentially Microsoft), there will be some big winners too. The winners will be all of us who get to "stand on the shoulders" of all those who are dedicating their time to creating open source applications.

About Kevin Bedell
Kevin Bedell, one of the founding editors of Linux.SYS-CON.com, writes and speaks frequently on Linux and open source. He is the director of consulting and training for Black Duck Software.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1

Truly enjoyed your article. Nice to hear intelligent comments for a change instead of "Flying Monkey Ease" (a.k.a. Microsoft Propaganda).

I have been in the industry over 20 years and would best liken Microsoft and it's grip on John and Jane Q. Public to a communist state.

Headed by a "Polit Bureau" of Lawyers and Business Managers in Redmond, this is about as far removed from an innovation as you can get.

They bought DOS AFTER telling IBM that they had developed it themselves. Microsoft Stole Windows from Xerox and Apple, and virtually every other "innovation" was extorted or borrowed as well.

In addition, open source could show that they are actually guilty of intellectual property theft. Wonder what their IP stack code looks like.....makes you kind of wonder, doesn't it? Even Internet Explorer was a "make over" of Mosaic.
"Me thinks they doth protest too much".

I can picture Mr. Gates and/or Mr. Ballmer Shouting "We will bury you!!!!!" beating their shoes on the table and announcing a new "tired" strategy of how to better bilk the masses out of their money. Microsoft is a bank that happens to sell software.

Like the latest "ante up $99 for an XP upgrade or your data will not be secure. Selling software based on fear, Doubt, and uncertainty of the technologically illiterate.

Capitalism? Hardly....that is more a communist type of trick.

Paraphrasing President Ronald Wilson Reagan

"Mr. Gates....Tear down that wall!"

Best Regards,

J. W.

It's obvious to me that the biggest gap between Linux and Windows today lies in end-user application software. Linux as an OS is better and there is little doubt about it. Linux in the server market (in the data centers) is doing great and there is no lack of great business software for Linux. Oracle, IBM, SAP etc all run on Linux. Most of the biggest enterprise software like Oracle Applications and SAP run through a web browser, rendering the OS irrelevant to the end-user.

It is in the desktop software market where Linux still have a lot of catch-up to do. The Web is making the OS on the client side less relevant, but there is a lot of useful
desktop software that is not yet available on Linux.

But the idea of open-source really is very complicated. I don't like Microsoft but I'm not sure if open-source is good for the software industry in the long run. It probably is better for the consumers of software. But the cost of developing open-source software ultimately comes from somebody. It's not clear to me who that is. When an open source developer writes software for free but still needs to feed his family, he makes money somewhere else.

[read my full commentary in response to article here:]
http://humbleblogger.blogspot.com/

"Microsoft could start from scratch to build a new OS that doesn't have all the problems found in the Windows architecture. Otherwise Linux will just keep getting better and MS will just be slapping band aides on Windows in the meantime."

"The ancient notion of restricted user-mode vs. privileged kernel-mode is not an adequate concept for promoting security and stability. Native instruction code execution is too dangerous to permit in user-written software."

"They need to make it clear to the marketplace that they're going to deal once and for all with being known for having a shoddy OS that's dangerous to business."

Microsoft doesn't have to worry as long as linux doesn't provide the types of program that many windows user use.
For example I do Heat transferrs to Tee shirt and I use the printshop programs. There is nothing in linux that I have found that provides the utility of PS. I do many video from my video to DVD my old beta recorder is an example. No program exist like Nero 6. For fun I play casino slot games.
If Linux is to be for the average Window user it need some programs.

I love the simple way Linspire loaded to my machine. Did not have to use the motherboard main disk. Many of the application available for free or very low price were great.
A accounting program for my business was unbelievable.
But my comments above stand.

This was the best article I've read on the real value of Open Source software. Equating Linux to mathematics was sheer genius.

Pete Perry

The Titanic and 'the iceberg' - what a great analogy.

As Microsoft has shown by its pig-headed refusal to change its monopolistic ways (despite the proof shown during the US Government vs Microsoft court case), neither will it change course before it hits the iceberg. Microsoft's arrogance will be the cause of its downfall.


Your Feedback
J.W. wrote: Truly enjoyed your article. Nice to hear intelligent comments for a change instead of "Flying Monkey Ease" (a.k.a. Microsoft Propaganda). I have been in the industry over 20 years and would best liken Microsoft and it's grip on John and Jane Q. Public to a communist state. Headed by a "Polit Bureau" of Lawyers and Business Managers in Redmond, this is about as far removed from an innovation as you can get. They bought DOS AFTER telling IBM that they had developed it themselves. Microsoft Stole Windows from Xerox and Apple, and virtually every other "innovation" was extorted or borrowed as well. In addition, open source could show that they are actually guilty of intellectual property theft. Wonder what their IP stack code looks like.....makes you kind of wonder, doesn't it? Even Internet Explorer was a "make over" of Mosaic. "Me thinks they doth protest too much"....
Raymond wrote: It's obvious to me that the biggest gap between Linux and Windows today lies in end-user application software. Linux as an OS is better and there is little doubt about it. Linux in the server market (in the data centers) is doing great and there is no lack of great business software for Linux. Oracle, IBM, SAP etc all run on Linux. Most of the biggest enterprise software like Oracle Applications and SAP run through a web browser, rendering the OS irrelevant to the end-user. It is in the desktop software market where Linux still have a lot of catch-up to do. The Web is making the OS on the client side less relevant, but there is a lot of useful desktop software that is not yet available on Linux. But the idea of open-source really is very complicated. I don't like Microsoft but I'm not sure if open-source is good for the software industry in the long run. It probably is bet...
rogerv wrote: [read my full commentary in response to article here:] http://humbleblogger.blogspot.com/ "Microsoft could start from scratch to build a new OS that doesn't have all the problems found in the Windows architecture. Otherwise Linux will just keep getting better and MS will just be slapping band aides on Windows in the meantime." "The ancient notion of restricted user-mode vs. privileged kernel-mode is not an adequate concept for promoting security and stability. Native instruction code execution is too dangerous to permit in user-written software." "They need to make it clear to the marketplace that they're going to deal once and for all with being known for having a shoddy OS that's dangerous to business."
alton d sunday wrote: Microsoft doesn't have to worry as long as linux doesn't provide the types of program that many windows user use. For example I do Heat transferrs to Tee shirt and I use the printshop programs. There is nothing in linux that I have found that provides the utility of PS. I do many video from my video to DVD my old beta recorder is an example. No program exist like Nero 6. For fun I play casino slot games. If Linux is to be for the average Window user it need some programs. I love the simple way Linspire loaded to my machine. Did not have to use the motherboard main disk. Many of the application available for free or very low price were great. A accounting program for my business was unbelievable. But my comments above stand.
Edward D. Perry wrote: This was the best article I've read on the real value of Open Source software. Equating Linux to mathematics was sheer genius. Pete Perry
Frank Daley wrote: The Titanic and 'the iceberg' - what a great analogy. As Microsoft has shown by its pig-headed refusal to change its monopolistic ways (despite the proof shown during the US Government vs Microsoft court case), neither will it change course before it hits the iceberg. Microsoft's arrogance will be the cause of its downfall.
SOA World Latest Stories
Yahoo’s critical negotiations with Alibaba to sell part of its stake in Alibaba back to the Chinese company have collapsed according to All Things Digital, a report later confirmed by CNBC. Apparently the collapse includes Yahoo’s parallel and intertwined negotiations with Softbank t...
Can you bring services from the cloud to your customers faster and have them adopt it with ease of use or bring the power of bundled services to the fingertips of your clients without creating new rigid ‘apps stove pipes'? Do you want to prevent your business running away to public and...
The Internet highway may start looking like a proverbial New York traffic jam at rush hour soon. Feel free to substitute any town you like because Cisco says there’s going to be a faster-than-expected 18x surge in worldwide mobile data traffic between 2011 and 2016. That’s when mob...
OCZ Technology Group, a provider of high-performance solid-state drives (SSDs) for computing devices and systems, on Tuesday announced the Z-Drive R4 CloudServ PCI Express (PCIe) flash storage solution, designed to accelerate cloud computing applications and reduce operating expenses i...
Many organizations have embraced, or are considering, the benefits of cloud computing – speed, flexibility, increased expertise, shared workload, reduced costs, etc. The benefits are many – but so are the risks. What are the threats to cloud security? Which parties assume responsibilit...
SoftLayer Technologies on Tuesday announced the immediate worldwide availability of SoftLayer Object Storage, a redundant and highly scalable cloud storage service that allows users to easily store, search and retrieve data across the Internet, with optional CDN connectivity, or across...
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
Click to Add our RSS Feeds to the Service of Your Choice:
Google Reader or Homepage Add to My Yahoo! Subscribe with Bloglines Subscribe in NewsGator Online
myFeedster Add to My AOL Subscribe in Rojo Add 'Hugg' to Newsburst from CNET News.com Kinja Digest View Additional SYS-CON Feeds
Publish Your Article! Please send it to editorial(at)sys-con.com!

Advertise on this site! Contact advertising(at)sys-con.com! 201 802-3021


SYS-CON Featured Whitepapers
ADS BY GOOGLE