Open-Source Chief Executives Make 2008 Predictions

Mon Jan 7, 2008 7:00am EST

* Reuters is not responsible for the content in this press release.

Open Solutions Alliance finds that changes in the economy will open the door
for new deployments of open source in business

SAN FRANCISCO, Jan. 7 /PRNewswire/ -- The Open Solutions Alliance (OSA), a
nonprofit, vendor-neutral consortium dedicated to driving interoperability and
adoption of comprehensive open solutions, today announced the findings of its
2008 Predictions Survey, which polled open-source CEOs on their forecasts for
the coming year.
    "Our member CEOs have given us important insights into what they expect
for the coming new year," said OSA President Dominic Sartorio. "The OSA is
home to some of today's most successful commercial open source companies,
which allows us to spot trends and their impact early."
    The OSA survey revealed that CEOs agree that commercial open source will
become more mainstream and continue to be a worldwide growth story in 2008.
Moreover, growing economic uncertainties could further expand the opportunity
for open source in the enterprise.
    "Demand for Linux and open-source applications, infrastructure and
services will increase substantially in 2008, driven partially by an economic
slowdown in the United States," predicted Doug Levin, CEO of Black Duck
Software, an open-source code management  company. "These open-source
solutions will be active in more corporations and SMBs in 2008 than ever
before."
    "During '08, the pressures CIOs will face to drive greater business
innovation with a fixed (or low growth) IT budget will conspire to challenge
every possible traditional software license," said Brian Gentile, CEO of
JasperSoft, an open-source business intelligence application. "Open-source
software can be a significant catalyst in liberating more of this maintenance
budget, freeing it for use in driving new business and improved
profitability."
Michael Grove, CEO of OpenIT Works, an open-source CIO collaboration
group, pointed out that the collaborative nature of open source makes it
cost-effective for development. "Our challenge is to demonstrate that
collabsourcing (collaborative outsourcing) will generate two to three times
the savings that typical outsourcing approaches provide."
    Other key predictions from OSA member company CEOs for 2008 include:

    * A confluence of open-source and software-as-a-service (SaaS) models.

    "These are the two most powerful trends in software today, and while
they've traditionally been seen as separate, parallel developments, they are
rapidly combining to create the new business model for enterprise software,"
said William A. Soward, CEO of Adaptive Planning, an open-source budgeting,
forecasting and reporting software company.
    * No one region will lead the charge in terms of adoptions of open-source
software, but each will have its area of strength.
    "There are certain markets that have always been historically more
embracing of the notion of open source, such as public sector bodies in
Europe, compared to the U.S. where open source is more prolific in private
organizations," said David Richards, CEO of Concursive Corp., an open-source
customer relationship management company. "But implementation in Asia will be
much more rapid than in the U.S."
    * A shake-out among open-source business models.
    "We've seen a lot of open-source entrants into a number of categories of
software," said Javier Soltero, CEO of Hyperic, an open-source systems
management software company. "Most of these companies will be transitioning
from 'advocacy and awareness' mode into 'make money' mode and it's in that
latter phase that we'll see whose models work and whose don't."
    * Consolidation.
    "Watch for consolidation among open source organizations as a way to
strengthen their offerings and development efforts as well as acquisitions of
open source market leaders by large commercial vendors who have a desire to
expand their market reach and revenue stream," said Mark Tolliver, CEO of
Palamida, an open-source IP management company.
    * License issues are becoming less of a factor in decision making by
commercial customers.
    "Customers continue to get educated about the code they use and about open
source licensing in general, so FUD will have less of a factor than in the
past," said Kim Polese, CEO of SpikeSource, an open-source application
integration platform.
    * Interoperability between open source and closed source solutions.
    "As enterprise open source solutions become more prevalent and more
mission critical in the information system, they will need to interoperate
with all systems," says Bertrand Diard, CEO of Talend, an open-source data
integration software company. "Most information systems are heterogeneous and
rely on multiple technologies, open source and closed source, that all need to
interoperate. This will be the main challenge faced by most open source
vendors in 2008".
    The full text of the CEO predictions is available on the OSA website,
http://www.opensolutionsalliance.org.
    The OSA is focused this year on improving the interoperability among the
point solutions developed by its member companies to better position
commercial open-source solutions to compete with those from proprietary
software vendors such as Microsoft and Oracle.
    About the Open Solutions Alliance
    The Open Solutions Alliance (OSA) is a nonprofit, vendor neutral
consortium dedicated to driving the interoperability and adoption of
comprehensive open solutions. Founded in 2007, it is supported by leading
companies from around the world who are dedicated to improving
interoperability among software products, resulting in integrated and rapidly
deployable solutions for business users. Through cooperative action and
advocacy, the OSA helps facilitate interoperability, reduce barriers to
adoption and raise the awareness of open solutions in business. For more
information, please visit http://www.OpenSolutionsAlliance.org.
SOURCE  Open Solutions Alliance

Christina Williams of Page One PR, +1-503-206-7775, christina@pageonepr.com
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