Friday, November 23, 2007

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Research Gartner on Open Source Trends

This article has been published by the IT electronic journal.

Open Source, SaaS and outsourcing

Gartner predicts fall in software licensing prices
According
Gartner, open source would be one of the main reasons for the long term, a sharp drop in prices for software licenses.
few items of business have resulted in companies as lucrative as the software industry.

While it may be expensive to develop a computer program, once it is finished the cost of producing new copies is minimal. Companies that make it through the magic border that revenues exceed costs, can quickly collect huge profits.


without clutch, this lucrative business model is threatened on several fronts. Open source software as service (SaaS) and outsourcing are three trends that motivate the consultant as a fall in prices.

Historically, the purchase and sale of software licenses have been made under the premises of the vendors. Buyers had the choice between different suppliers of software, but although usage licenses can be different, its substance is the same, and software producers have been interested in discussing licensing terms.

"Until now, the software segment has been in a unique position, where buyers have had very little negotiating power after purchasing software licenses. We believe this situation will change radically over the next 5 to 10 years, "said William Snyder, director of Gartner, in an analysis.

Open source is presented as the main alternative. Gartner ruled that open source can displace large proprietary solutions for software companies, but believes it will create a healthy pressure on prices. The firm emphasizes in particular the areas of operating systems, development tools, database technology as areas that open source will become a real and attractive alternative, and thus a factor that would facilitate the reduction of prices.

Gartner also highlights the outsourcing of services to low-cost countries as an important argument for the reduction of software prices. Insofar as this market matures lessen the need to develop the software internally.

The same is the case with the software as a service. If computing tasks can be performed safely with an external provider, the company does not need to purchase and maintain their own software. Gartner's forecast indicates that in 2011 one quarter of all business program will be distributed this way.

Source: Gartner.

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