Linux and Open Source

Steven J. Vaughan-Nichols & Paula Rooney

Open source needs to change enterprise buying patterns

By | July 5, 2010, 5:38am PDT

Summary: For open source to push further into enterprises, enterprises need to change their procurement policies.

Let’s start the second half of the baseball season with an important statement.

For open source to push further into enterprises, enterprises need to change their procurement policies.

Mulesoft CEO Greg Schott (right, from Mulesoft) chatted with me about this over the weekend, and he’s got an excellent point.

“Companies are interested in open source but when they try to consume it with the same model as commercial software things break down,” he explained.

“They’re looking for busloads of consultants and engineers to download the product, install it, go through Requests for Proposals (RFPs) and open source companies are not set up to do that. We’re set up for companies to do that on the front end and benefit on the back end.”

This is important. A lot of enterprises think services like that are “free” because no bill comes, and if another vendor is chosen nothing is paid for them. But they do cost. They are folded into your cost when you sign on the line which is dotted.

By contrast, Schott notes, open source may cost time (i.e. money) to set up and evaluate, but you save that on the back-end, on lower subscription costs and no initial license cost. You have to sell yourself, in other words, but you save big.

Schott, a former top manager at Agile who now has open source fire after a stint at Springsource, has developed his thoughts into a series of bullet points companies might want to think about when comparing open source with commercial software:

1.Establish open source centers of excellence. You need someone internally who’s advocating open source.
2.Understand the different evaluation process. You don’t invite IBM, Oracle and an open source vendor through the same process.
3.Establish your own selection criteria. Instead of having an analyst’s checklist of 50 items and making sure everything’s there, ask what you need.
4.Recognize and reward where open source is being used. If you have people doing the work to get open source running, reward those people.
5.Enterprise license agreements (ELAs). Get ELAs itemized so you can pull components out. That will keep big vendors honest over time.

It’s a sign of confidence on the part of open source executives like Schott that they are now willing to admit you can’t compare open source to commercial offerings, apples-to-apples. That’s not a bug, it’s a feature. Taking pride in it, and having prospects adapt to you, is a good clue.

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Topics

Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983.

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years.

At the present moment I run only a personal blog in addition to my ZDNet open source blog.

DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air.

My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

Talkback Most Recent of 5 Talkback(s)

  • Real risk and perceived benefit
    I can't help but fixate on the fact that two of the five points (1 and 4) in the post are asking enterprise buyers to somehow give extra merit to open source software just for the fact that it's open source. I don't see (smart) enterprise buyers doing this, just for the fact that they exist to serve their company, not a software idealogy. I don't readily buy the idea that we should be giving any special "recognition or reward" to anyone just because Open Source is being used. Saving the company money - yes. Completing a successful implementation - yes. Providing the company some kind of competitive advantage or streamlining a business process - yes. And I agree that Open Source can do all of these, but Open Source should be the means, not the ends.

    In the selection process itself, the one place where this is understandably a hard-sell for businesses IS the perceived "freebie" that consultants and vendors of commercial software are willing to offer in the selection process vs. the "evaluate for yourself" selection process that Schott is advocating. Without someone able to quantify the back-end benefits of using Open Source software, I don't see many businesses who aren't already "in the know" spending resources downloading, installing, and trying to work with this software themselves to evaluate it. They are too busy trying to run a business, not play with computer programs.

    As much as people "hate" salesmen, we still need people who know the product inside and out to demonstrate that the product will work. And yes, we don't expect to pay for a demo of a product that will not work for us, so we don't want to spend the time and money evaluating a number of products that may or may not work (and we don't know, because nobody is there to tell us). Yes, I know that the time taken to respond to an RFP and learn both my business and understand the software takes time and money, and I will pay that up front when I make my selection - but I will *ONLY* pay that to the one vendor that I agree to sign with, and even then, much of that work will already have been done with a vendor or consultant that already works with a specific software package, because they will already understand that software.

    The real problem with the open-source method of software selection that Schott seems to be advocating is that part where I take the up-front cost of evaluating even a small handful of packages. Not only do I need to make sure my staff does a good job of learning my business outside of their own department, I also need them to learn a handful of software packages in order to determine if any of them will fit these needs. That's a skill-set that is extremely rare. The risk associated with this kind of evaluation process can make the "back end benefits" (which by themselves are hard to quantify, even by the Open Source vendors themselves) less than enough to justify taking this approach.
    ZDNet Gravatar
    daftkey
    5th Jul 2010
  • RE: Open source needs to change enterprise buying patterns
    There is some misunderstanding about my points. I agree with you - open source should not be given any special merit based on an ideology. It is unrealistic to expect this and unnecessary since open source often delivers superior overall results vs. commercial alternatives.

    My point about rewarding people and teams for selecting open source assumes that the project delivers high value, on time. By using open source, teams often save the company money, create leaner, more maintainable infrastructures and reduce vendor lock-in. They should be recognized for the up-front effort required to deliver these benefits - for putting the company first, not just hitting the speed dial number for their incumbent big vendor.

    The crux of the point I?m making is embedded in your second paragraph. Virtually every large organization runs open source somewhere. They were all ?busy trying to run a business? when they chose open source, but some smart developers and architects invested the extra effort to evaluate open source alternatives. Relying only on the consultants and vendors of commercial software for ?free? advice leads to obvious outcomes. I agree that the skill-sets required to evaluate open source packages are rare in some organizations, which is why I advocate forming open source centers of excellence, which can range from just a few part-time individuals in smaller organizations to dedicated teams in larger organizations.
    ZDNet Gravatar
    greg_schott
    8th Jul 2010
  • RE: Open source needs to change enterprise buying patterns
    While I agree with everything you said, I noticed one thing missing that I would like to see covered. At first it sounds disconnected, but IMO it is not, in reality. And that's the attack that must take place on "Rush to Market". I see that as the largest downfall for many stressed companies these days. They got the program for free; it "almost" does everything they need. How long will it take to make it into a useful, profitable product?
    8 months? That's too long! Let's put out a piece of it, the offer upgrades as we finish the rest of the code we need in it! Gee gosh we can change anything we want to!
    Marketing wll step in and myopically release the inital production version downloaded just last week and will start to hype it! NOW what do they do?
    I'm afraid they'll blame open source; the game is backwards to their way of thinking. The last thing you might hear is "But it looked so easy ... "
    ZDNet Gravatar
    twaynesdomain
    6th Jul 2010
  • RE: Open source needs to change enterprise buying patterns
    Another good post, Dana. Paul Schott makes excellent points that can help guide an enterprise as it considers adopting open source. There?s only one thing missing: most enterprises are already using open source in one form or another, so in many ways that barn door is wide open. From Black Duck?s perspective, enterprise IT managers need to go one step further than Paul Schott suggests: they need to behave as though open source is already in use, and make sure they, and their developers, are playing by the rules. We would add a few points to Mr. Schott?s list:

    1. Have a written OSS strategy and policy - develop a disciplined OSS policy and set of practices. Consider automating the use of OSS through the use of tools (like the Black Duck Suite) that identify OSS code and alert you to any license dependencies.
    2. Integrate with other systems, especially build and change management tools -Integrating with your build system is a natural place to scan for third-party and OSS code and identify conflicts.
    3. Check all possible sources for incoming OSS - Code can come from many sources - OSS forges, community projects, third-party developers/outsourcers. Your developers, external developers and contractors are part of your software supply chain. Create a best practice that describes how to manage inbound code, an institutionalized policy for managing third-party and OSS code, and a documented process that the entire organization can understand and support.
    4. Drive efficiency by identifying and standardizing on OSS components- A lack of control in the development process can create duplication of effort. Standardize on an approved set of OSS components (e.g., Tomcat, log4j, zlib, etc.) by establishing a process and system for bringing in and evaluating components eliminates the need to test and get approval for the same components over and over.
    5. Contribute back to avoid forking code - A big part of the OSS experience is giving back to the community. Some licenses explicitly state how code must be returned to the community. If your development plans include using OSS, it?s a good idea to think from the start about contributing code back including bug fixes. Not only will this help your organization eliminate the need to maintain your code as a separate fork, it?s a good example of cooperative development - and you?ll maintain a good working relationship with the community.
    ZDNet Gravatar
    pvescuso
    7th Jul 2010
  • RE: Open source needs to change enterprise buying patterns
    There is another problem to selling open source to managers: Their budget.

    In any bureaucracy the size of a manager's budget is a major indicator of how important he is. By and large, even if you save millions of dollars by adopting open source, the manager who did it gets an attaboy, and then looses the budget he had for all the proprietary stuff, which in turn makes him look less important to the enterprise.
    ZDNet Gravatar
    CodeCurmudgeon
    7th Jul 2010

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