Enterprises saving $26 million per project with open source

A Black Duck analysis shows the average enterprise software project is 22% open source, saving an average of $26 million on each project.

The estimate was created using the Constructive Cost Model (COCOMO), first released in 1981.

Black Duck, which originally developed its database of code to help companies comply with software licenses, is increasingly turning to it as a research tool, a sort of Framingham Heart Study of software.

In the last few months, for instance, it has documented the rising use of Javascript and PHP, the return of the software M&A market, and the increased use of strong encryption in open source, using its data.

"We're trying to package up the information around open source projects and serve it in a way that's productive," acknowledged Peter Vescuso, (above, right) executive director of business marketing.

Increased interest in and use of open source by enterprises has helped drive excellent growth for the company over the last year, said CEO Tim Yeaton (left). "When the recession started, even conservative organizations have moved to open source." Studies like this one are a way of giving back.

While three of five developers are still .Net centric, Yeaton added. "What we're seeing is a wave of pragmatism in terms of building solutions. The religion is out of the equation. Once people figure it out it's going to be a better way to build" they use it.

"Vendors serving customers at the application development level are figuring out how to respond more effectively. Our message seems to resonate. It's about the pragmatism of taking advantage of what's out there, and making good choices at the application level.

"Choose what's right for the job." It's not about values, it's about value.

UPDATE: Mr. Vescuso made some great points in our talkback thread I think should be in the main story.

it may not be clear this analysis is based on a sample of Black Duck customers and does not represent all enterprise or commercial applications. Our description is at: http://www.blackducksoftware.com/news/releases/2009-11-10

These were all large code bases. The 22% of the application/product code represents over a half million lines of finished code. If you use COCOMO and BLS wage estimates, you get $26 million. This is the same model and approach the Linux Foundation used to estimate what it would cost to develop Linux. Whatever method you use, a half millions lines of finished code -- written, tested -- is significant.