With open source software, the source code is made available for use or modification as users or other developers see fit. While such software still comes with a licence that details the conditions of use, it is usually developed as a public collaboration and made freely available.
Open source is becoming a serious alternative to proprietary software through significant reductions of license and operating costs. According to the findings of Swiss consultancy Soreon, big companies can save big, while smaller companies will make more marginal savings.
Soreon says that in $1 million (€870,000) budget, OpenOffice (an open source product from Sun) saves 20% compared with MS Office.
The largest absolute cost saving potentials result from workstation systems with Office applications. Soreon estimates that over a three year period, large enterprises with 2000 workstations using open source can save €525,000 through office products, €57,000 through servers, €32,000 through content management systems and €21.000 with open source databases.
The firm predicts that open source software will spread massively in companies and public services over the next five years. Further, it says that vendors of proprietary software will come under strong pricing pressure which will drive many software vendors to open their business model to open source to gain new sources of revenue.
Finally, Soreon recommends that proprietary software vendors should consider opening their source code to customers and the public to benefit from lower development costs, more efficient marketing and new revenue streams through services.
Gartner research has also been investigating the change to open source.
Robert Simpson, research director for Gartner, commented:
“Worldwide sentiment surrounding attitudes regarding Microsoft vary widely, especially by geography. Governments and businesses, especially outside the United States, are increasingly interested in pursuing strategies that insulate them from Microsoft's growing influence on the IT industry, even if alternate solutions aren't exactly a perfect fit."
But he went on to warn businesses considering open source integration over Microsoft solutions that they "will need new processes in the overall development, deployment, maintenance and support of their IT infrastructures".
He concluded:
"A disciplined and carefully considered best-practices process is essential to delivering maximum returns and benefits," without which a business could find that its investments lead "to higher, unanticipated costs."