Survey: 56% expect that more than half of all software spend over next 5 years will be open source

Survey: 56% expect that more than half of all software spend over next 5 years will be open source

Summary: More than half of all software purchases made over the next five years will be open source, according to half of all respondents in a venture capital firm's survey released today. Open source is now mainstream and is in high growth, propelled by SaaS, cloud, mobile and big data trends, according to the Future of Open Source 011 survey, which was co-produced by the 451Group

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More than half of all software purchases made over the next five years will be open source, according to half of all respondents in a significant survey released today.

Although 95 percent of the same survey’s 450 respondents believe that the “turbulent “ economy is good for open source software, avoiding vendor lock-in has supplanted lowered software cost as the chief reason for open source adoption.

These findings, included in the fifth annual Future of Open Source survey, conducted by North Bridge Venture Partners (NBVP) and 451Group, were made public today at the Open Source Business Conference.  The venture capital firm invests in many open source firms including Acquia, which is highlighted in the report and at the conference.

The overall finding: open source has gone mainstream and is in high growth mode.

Lower software costs are still important (No.  2 on the list)  but customers increasingly value open source because it protects them from traditional vendor lock-in (Oracle, for example) as well as emerging proprietary cloud providers such as Amazon, Google and Microsoft Azure.

Makes sense. Emerging technology segments such as Software-as-a-Service (SaaS), private cloud, public cloud, big data and mobile are driving much of the growth in open source,” according to the authors of the report.

Michael Skok, managing partner of the venture capital firm, says the survey results demonstrate that open source is now fully mainstream in the enterprise. He noted that roughly 60 percent of this year’s respondents were end users and c-level execs in the enterprise and that open source has now penetrated about one third of all enterprises.

“Open source in [respondents’ surveys] show it reaching 30 per penetration in the enterprise and Red Hat is showing unbelievable growth,” said Skok, in a recent interview. “Open source has gone mainstream and is in very high growth, first in mobile and in database. “

“Where is the growth? The top driver is mobile [and] … the success of Android," said Skok. "Open source projects have doubled in each of the last three years in mobile.”

Interestingly, IP litigation and security worries don’t merit among the top three concerns of respondents.

In 2011, open source consumers "are now more focused on maturing technology issues, including improved operational excellence around areas such as support, product management, feature functionality and return on investment. This is in contrast to earlier years where the survey had pointed to things such as the legal implications of licensing and conforming to internal policies."

Topics: Open Source, Cloud, Software

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  • Where the heck is

    Loverock when the cause needs him? ;-)
    Economister
    • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

      @Economister haha!!!!
      apetti
    • Why? Open source can be proprietary.

      @Economister
      Open source is different then FOSS - You can purchase open source software with the idea that it's yours to modify but you can't give it away or resell any of it.
      Will Pharaoh
    • LOOK EVERYONE!!@! HE MENTIONS ME!!@!!@!

      @Economister
      Thanks for the mention!
      LoverockDavidson
    • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

      @Economister

      Always a problem when you think OSS somehow means Linux. The majority of OSS is Windows based.
      tonymcs@...
  • But it's free

    is still not an argument that holds much water. Vendor lock-in does. Open source software has matured in the last few years and this makes perfect sense.

    Does it make the open source fanboys right in saying Microsoft is dead for the last 10 years? Nope. But it does show that the competition is here to stay.
    LiquidLearner
    • Open Source has vendor lock in, just like commercial.

      @LiquidLearner <br>Vendor lock-in applies to Open Source just like it does commercial. Imagine spending a bundle installing open source and someone says, hey, lets change vendors! It's open source, so no vendor lock-in!<br><br>Well, tell that to the budget committee that has to approve costs of installing NEW software from another Open Source vendor.<br><br>The vendor lock in argument is one of the most moronic, stupid, idiotic arguments anyone can make. Change costs money and it doesn't matter if it's Oracle or Open Source. Change costs.
      Cynical99
  • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

    So 252 people out of 450 is an accurate representation of the purchasing departments of hundreds of thousands of companies?<br><br>How much did both of these venture firms pay you, shill.
    I mean two venture capital fund companies asked 450 (which by itself should shame you) people at an OPEN SOURCE convention about the future of open source. This is like AP adding 26 points to Obama's poll just because they WANT the number to be higher.

    I also think its amusing that 44% didn't agree. If someone had posted this about Microsoft there'd be a 100 (cause ZDNET is so not read anymore) comments lambasting "shills" and "Micro$oft Zealots" and "How much did you get paid". I thought I'd throw it back in your face.

    P.S. Where's Steven? Did he finally enter the land of false realities for good?
    kyleoster
    • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

      @kyleoster - The findings were presented at an Open Source convention, it doesn't state the survey was conducted there... If these were 450 CIO's then that represents a large business representation and depending on the size of these companies this could represent a significant amount of spending.
      Aussie_linux_user
      • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

        @Aussie_linux_user That's irrelevant. 450 people is nowhere near a big enough sample size to get an accurate picture of anything. This is akin to the Linux idiots professing for the last 10 years that Linux would slay Windows. Yet here were are, and Linux still can't even manage a 1.5% market share.

        The funny thing is, this article was written with Linux in mind, yet the vast majority of open source software is Windows based.
        JoeHTH
  • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

    Making a grandiose statement like this based on 450 respondents is plain ridiculous especially when we don't know how bigger hitters those respondents are. I mean they could be colossal multinationals or just 450 grocery stores with a single PC each.

    How about a link to the full detailed survey data please?
    AndyPagin
  • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

    LOL! I've got to hand it to the Linux sycophants. Their delusions of grandeur are a sight to see. They insistence that Linux will dominate is downright desperation.

    Yes, I know that the vast majority of open source software is Windows based. But I also know what Paula Rooney and Stephen want it to mean. Never change guys. You're always good for a laugh.
    JoeHTH
  • not very compelling stats

    56% is not a 'high' percentage, no matter what size the sample group.

    "Software spend" ?? over the next 5 years ?

    or is that just an indication that open source costs are increasing ?

    it must be, because the ratio of "spend" on open source will increase in the next five years.

    Everyone, all the time 'increases spend' especially if that item is more expensive.

    (prices rise with time, spend rises with prices and costs).

    So the statement just tells me that 56% of CEO's or whoever was asked expect their open source costs to increase over the next five years.

    Umm,, that is not a 'good' thing !!!!!!!...
    I mean,
    Aussie_Troll
  • RE: Survey: 56% expect that more than half of all software spend over next 5 years will be open source

    So the TCO of Open Source software will exceed the TCO of NON-OSS within the next five years!

    Most allready know that as the case now.
    Aussie_Troll