Can the enterprise strategy work?

Can the enterprise strategy work?

Summary: In associating with Red Hat, Ingres grabs a lifeline into the larger enterprise customer space. The release makes this explicit in the headline, noting that the enterprise customers "bet their business on open source."

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Right now a lot of the pain being felt by open source is on the enterprise side.

The recession has been painful for a lot of people. Budgets have been cut to the bone. The great thing about an open source subscription is  you can kill it without a lot of guilt. Beats firing people.

Enterprise open source advocates note that it is, indeed, firing people. Without corporate support to run forges and organize direction, they say, the underlying projects will fail to provide what they promised, and the corporate datacenters they're serving risk withering away.

When times are really toughed this can sound nuanced, no matter how basic it is.

The big test case is Red Hat,. which today announced a partnership with Ingres, and some new customers.

Ingres is more like a canary in this coal mine. Its fate during the downturn is less certain.

In associating with Red Hat, Ingres grabs a lifeline into the larger enterprise customer space. The release makes this explicit in the headline, noting that the enterprise customers "bet their business on open source."

Personally I do believe there is a shakeout underway and I do believe Red Hat will survive it. But it's important to Red Hat's credibility that as many of those firms who have associated with it also survive.

So this deal is a big win for Ingres, even if it appears as agate in tomorrow's news.

Topics: CXO, Data Centers, Data Management, Enterprise Software, Linux, Open Source, Software

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3 comments
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  • Not seeing it personally

    Whilst it may be easy to cut an open source subscription to save people, this is not the problem that many people have.

    Given a $30k open source subscription and a $300k maintenance payment for proprietary software, which would be the best one to cut?

    Many of the people I talk to are taking open source subscriptions because they can lower their spending without running unsupported.
    jimmyed2000
    • That's the pitch

      And in the enterprise market it can work. The
      question is how much is it working, and how many
      enterprise vendors will work it well enough to
      survive the storm.
      DanaBlankenhorn
  • I dont see it

    Red Hat is looking good. The stock is up. Quarterly revenue is up 17.5%. All in a down economy. They're even hiring.
    daengbo