A blog for the enterprise open source community
ASPs have it both waysMartin Schneider, April 4, 2006 @ 9:22 am ET
After an interesting talk with RightNow’s Greg Gianforte, I realized just how good hosted app vendors can have it.
Greg has been a big evangelist for open source, and his company uses a lot of open source components in their operations, The cost savings are obvious and the ability to cost-effectively scale (a key need for hosted application delivery infrastructures) is another huge benefit. So, basically RightNow gets to demand closed-source prices for a product that relies heavily on open source for its delivery. Its cost model versus Salesforce.com, which uses Oracle databases and other proprietary tools is much more profit friendly.
But all this made me wonder how much traditional, on-premise closed source vendors are using Linux and other open source products in house. We might be surprised by the statistics.
Another point to ponder: How much do closed-source vendors lose muscle when it comes to light that they are relying on open source?
Sure, open source has crept into nearly every facet of the tech universe. But for the closed-source stalwarts, can they leverage Linux without conceding that LAMP-based versions of their products are on equal footing? Will the ‘Fud Factor’ inevitably disappear?
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