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Open Source Adoption by Corporations? 28

shakuni asks: "I work for a large network equipment vendor in the operations software business unit. One of the questions that I have been asking all my customers (large telecom service providers) is their position on adoption of open source software in their operations environment. The customers that I have interviewed don't comprise a a large enough sample to make sweeping statements. However, most large service providers (who have probably more than 80% of $1 trillion telecom market worldwide) seem very wary of open source, even though the high cost commercial software is hitting on them hard. How is open source adoption being encouraged amongst the financial and telecom behemoths, who are averse to taking risks with their IT systems? Are there specific organizations out there that actively address the IT manager and CTOs concerns about open source software? In other words, is there an enterprise Open Source initiative that pro-actively helps companies move in this direction?"
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Open Source Adoption by Corporations?

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  • by Anonymous Coward
    Bill Gates, with his Windows operating systems, is the best salesman for open-source software that there is.

    Windows is to worms/trojans like a bug-zapper is to bugs (if the bug zapper has a broken zapper and can't kill them: just attract them).
  • by Anonymous Coward on Wednesday March 10, 2004 @05:24PM (#8525215)
    Hi. I'm Troy McClure. You might remember me from such pro-OSS propaganda films as "Open Source, Open for Business", "Boardroom Penguins IV: Electric Boogaloo", "Explorer Madness" and "The Triumph of the Gnu"
  • Lower risks (Score:4, Insightful)

    by doconnor ( 134648 ) on Wednesday March 10, 2004 @05:31PM (#8525286) Homepage
    Those large companies are in many ways in the best position to take advantage of open source software. They can afford to spend the money on in-house programmers to do support, add features and fix bugs in open source software instead of paying Mircosoft and others large amounts of money for bad support, useless features and more bugs.

    The risks are much higher when buying closed source software because you never know if the company you are buying from will add the features you want, fix your bugs or even stay in business. Open source software allows you to be in full control.
  • You left out one very important followup question:

    Why are they leary of OSS?

    Without knowing this, the discussion seems somewhat pointless.

    • by Anonymous Coward
      They go to economics and learn one thing first: TANSTAAFL, There Ain't No Such Thing As A Free Lunch.

      OSS seems to go against that to them. (although OSS doesn't necessarily mean something is gratis, most examples of successfull OSS are.)

      Most of them will be very cautious around anything that claims to be free, no matter which type of free is meant...
    • OK, so I've only worked at three of them, but all of the Fortune 500 companies I've worked at feel the same way about Open Source Software: There's no contract with the supplier, so there's nobody to sue if it doesn't work out.

      Mind you, they never sue anybody when things don't work out. At best they switch vendors. What's worse, they figure they've already sunk $X into this stupid product so they have to make it work (because they don't have any money left to buy something else). And worst of all, they often pay the vendor even more money to fix whatever's wrong with the product they bought!

      Bottom line, they just don't grok OSS. OSS won't take hold in corporate America until the people using OSS anyway eventually rise through the ranks to become the CTOs. Unfortunately, breaking corporate policy by running OSS anyway isn't a good way to rise through the ranks.

  • by Strange Ranger ( 454494 ) on Wednesday March 10, 2004 @05:39PM (#8525365)
    At least at the large financial corp. I work for what matters first (even before functionality sometimes!) is the contract, i.e. who has liability for what, followed by cost and vendor reputation.

    I'm not talking desktop OS here as obviously most niche vendors with desktop products for $FinanceBusinessFunction require the desktop to run Windows.

    But with regard to encouraging Open Source in server, backoffice, data center, mid range, etc etc etc, the decision makers don't really care if the code can be looked at by anyone, as long as it's as secure as possible and the contract is drawn up in such a way that the vendor shoulders as much liability as the collective lawyers can agree on.

    So from where I sit the question of encouraging Open Source is sort of like asking what's being done to encourage more yellow and red colors on the company intranet... Who cares as long as the job is getting done and the price and $Lawyer-Stuff is right.

    That's not my answer but that is the Corporate Answer.
  • by ctr2sprt ( 574731 ) on Wednesday March 10, 2004 @05:39PM (#8525367)
    There's this tendency on Slashdot to think there's an OSS solution for every problem, but that's not true. Yes, advertising OSS is an important part of getting it to be adopted, but some of these companies may actually have good reasons for not going with OSS. Maybe they don't get the level or quality of support they need; maybe the OSS alternatives don't have the features or reliability they need; there are all sorts of possibilities.

    So I would change your question a little. What groups are out there discovering companies' needs, then communicating those needs to OSS developers? We shouldn't fall into the trap so many companies do: writing software for the developer and not the customer. This is especially dangerous for OSS developers, because their own needs are usually the reason the software gets written in the first place.

  • Not Strategic, Yet (Score:4, Interesting)

    by 4of12 ( 97621 ) on Wednesday March 10, 2004 @05:46PM (#8525438) Homepage Journal

    I can't speak for telecoms.

    But what I've seen is open source deployment at the grass-roots level. Acceptance is a gradual, building thing with exposure working its way slowly upon the organizational hierarchy.

    Smaller company CIO's and smaller organizational subunits in large corporations are willing to take gradually increasing potential risks by utilizing open source.

    The irony is stealth deployment cuts both ways.

    One of the reasons it's easier to take that risk with open source is that deployment doesn't require visible commitment of dollars. That Samba or Apache server just cranks away, no invoices come in, no need to count licenses to be compliant, etc. And it sure doesn't hurt that many open source applications are as reliable as death and taxes; they don't drop service causing the CIO to fume about not being able to get service.

    But by the same token, those open source deployments are largely invisible to people higher up; those people are less familiar with the successes and failures and are therefore not yet ready to jump in the water headfirst.

  • by HeroicAutobot ( 171588 ) * on Wednesday March 10, 2004 @05:51PM (#8525508) Homepage
    The company I work for, which has an IT shop of about 400 people, is very leery about adopting open source software at the enterprise level (except for Apache). Some of us are working to change this, but we have a lot of FUD to overcome.

    However, nearly every developer here uses open source tools daily. JUnit and Ant are everywhere, as well as NUnit, NDoc, and NAnt for the .NET folks. Eclipse is gaining ground, and Emacs use is pretty common.

    For one project, the dev team created a post-project list of all the software used during development. Out of about 30 programs (including DB, OS, etc), 2/3rds were open source.

  • For my telecom.... (Score:4, Interesting)

    by Sevn ( 12012 ) on Wednesday March 10, 2004 @05:56PM (#8525588) Homepage Journal
    It was simply common sense. We had three independant firms calculate the cost out over the next 5 years. It basically panned out like this:

    Microsoft: 15 million
    Sun: 10 million
    Redhat ES 3.0 on DL380's: 2 million

    We had briefly toyed with the idea (seriously though) of using Debian instead of Red Hat, but some of our proprietary hardware was only supported by Red Hat. I can safely say that the level of technical acumen and common sense here made SCO's hilarious blatherings have exactly zero impact in any of our decision making.
  • I think what you're looking for is Red Hat.

    They may not be the owners of the software, but last I remember they'll enter consultancy contracts with anyone and they'll make it better if something's wrong.
    • IBM


      A much more comforting name for corporate mangement. They know what IBM are, and they know they can take on liabilities if things go wrong.

  • As a network administrator for a medium-sized medical office, I have recently been migrating users of Microsoft Office 2000 to OpenOffice.org 1.1.0, and MSSQL to MySQL. So far adoption of OpenOffice.org has been going better than I had expected.
  • by Brandybuck ( 704397 ) on Wednesday March 10, 2004 @08:09PM (#8526985) Homepage Journal
    Remember your history. Remember how long it look for Windows to get accepted by the large corporations. Heck, even the desktop PC was a "courageous" decision by some one.

    Windows "trickled" up from the home into the small business, and from there to the medium and large corporations. Don't worry about the big buys.
  • by Anonymous Coward on Wednesday March 10, 2004 @09:28PM (#8527667)
    When discussing these kinds of questions, one needs to realize that the "average" slashdot reader differs significantly from the "average" senior corporate IT manager (yes, I realize there's a Gaussian distribution centered on both of these averages and therefore it will always be possible to find some number of exceptions to any statement based on averages).
    Again, speaking in general terms, the geeks focus on the nuts and bolts of the software while the senior IT people (and the average non-technical computing user) see software as a *means to an end* not an end in and of itself.
    In this context, what's important is Total Cost of Ownership and user productivity. There have been several studies that categorize the components of TCO and the majority of them agree on the following:
    * The single largest component of TCO (>60%) is day-to-day administration, maintenance, etc.
    * The second largest component (~25%) is the cost of downtime.
    * Software and hardware purchase cost *combined* are 10% of TCO.
    What are the implications of this data?
    1. Unless you're a Dick Stallman on a personal jihad to destroy the Evil Empire in Redmond et al, free software *in and of itself* isn't going to have a significant impact on the market, the world, etc. (with one possible exception discussed below). Yes, the geeks will love it, and more power to 'em, but geeks are a tiny percentage of all software buyers and users.
    2. The Big Bang in software will come from designing software systems that minimize administration overhead, minimize downtime, and maximize productivity (anyone who doesn't realize that there are significant advances yet to be made on these fronts is on serious crack). These terms in the value functions of software buyers and users far outweigh the terms for either purchase cost or making some religious/altruistic statement about "freedom".
    Now for the exception to point 1: One of the larger driving factors behind the presence of OSS in corporate America (and the world) is that OSS is being used by some corporations to put pressure on the single most dominant player in software (billg and company). Commoditizing the OS and the two highest revenue-generating apps (word processing and spreadsheets), causes the most damage to the company with the largest market share. If you're a competitor to billg you like this. If you're a buyer of software you like it too because it increases competition. In other words, no small percentage of the people/corporations supporting OSS are doing it not because they believe in freedom but because it is to their economic advantage (in turn not because of zero-purchase-cost but because it impairs a monopolist).
    Note that I'm not faulting them for doing this, it's a rational thing to do even if they're not doing it for the betterment of all mankind.
    I like that open source exists because it provides a mechanism for anyone to learn and later improve the inner workings of important software systems that otherwise would not be accessible. If the OSS movement does nothing more than this I deem it a success.
    Unlike some of the OSS jihadis, rather than talk about what I want to destroy, I'd much rather talk about what I want to create.
  • I work at a fortune 150ish company and it's been interesting
    to see how the adoption of OSS has progressed in the years
    I've been employed.

    Depending on the department, running Linux or BSD on your
    personal computer was tolerated to various degrees (for a
    while I had to dual boot in order to use MS Project for
    staff meetings, but that requirement was quietly dropped
    during a reorg). Recently, however, there has been growing
    infrastructure support for running non-Windows operating
    systems on desktops and a slow migr
  • Well first problem could be the system administrators.
    Generally system administrator don't like dealing with different types of platforms, Linux mixed with Unix mixed with Windows Mixed with novel. Having a the mixture creates a lot of problems and switching cold turkey to OSS is risky and irresponsible because it means a major problems in dealing with business until things are completed. 12 buisness hours of downtime could mean a million of dollars in loss sales. compared to play 3,000 a year for a licen
  • Define "corporations". My wife is incorporated. So is the company I work for, which currently employs over 50,000 people.

    I believe the key factor is simply that it costs too much to retool in any short timeframe. My company, for example, owns something like 65,000 end-user desktop machines (actually, probably more; I doubt even the accountants have an exact count). Imagine the nightmare of trying to change operating systems while ensuring that everyone's work is reasonably uninterrupted and that everyone h
  • They are already using open source, but many probably don't know it. Case in point, TCL/Expect and Perl are very popular in telecoms, both for testing and production scripting. I had written a 10k-line TCL/TK/Expect script for automating production maintenance activities back in 1999, and it ran on an 8-CPU system running Linux. Similarly, Cisco provided TCL scripts for many production maintenance activities (which we ran from the big Linux machine). However, most managers and execs only see the web-bas

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