The core aspect of the 451 CAOS Research Service are the reports – six comprehensive ‘big-idea’ reports per year. As we are already more than halfway through 2006, we plan to release three CAOS Reports this year, but intend to release six reports per year in 2007 and beyond. The first report, ‘Stack and Deliver’, was released this week, and I am now working on the second report regarding open source cost savings, which is scheduled for release in October. The third and final report of 2006 will cover the growing trend of proprietary software vendors ‘going open’, that is to say moving to an open source business model. This report is scheduled to be released in December 2006. I am including summaries of the first three reports below:

Report One: Stack and deliver (August 2006)
The 451 Group believes the open source stack provider space is strongly tied to the larger overall topic of open source support models. While stacks are not just about support, evidence clearly points to this being the most significant aspect of them. Because of this, stack providers end up competing with other segments of the open source economy that have a support component. This report explores the open source stack provider market and examines its relative value. It also explores the relationships that exist between stack providers, open source software vendors, systems integrators and end users, answering the question, “Is there truly a demand for a ‘single throat to choke’ in the market?” In addition, this report contains information for vendors on how to sell and what end users want to buy.

Report Two: The true cost of open source (October 2006)
Like any technology decision – and especially given the continued cost pressures placed on IT budgets – the adoption of open source requires a business justification, with cost playing an important role in this decision. Whether you are an end user with a custom application, a systems integrator considering an open source offering or an independent software vendor looking at embedding open source in your software, calculating the financial benefits of open source can help determine whether to pursue the project, discover how much it may cost to generate anticipated benefits, or prepare for potential risks that are involved. This report serves as a practical guide for understanding and calculating the financial benefits of open source. It will introduce development executives to the basics of financial analysis – concepts, processes and elements – and provide a tool to help identify and capture the costs (and potential benefits) for adopting an open source project.

Report Three: Going ‘open’- A guide for software vendors (December 2006)
The success of open source software has been placing pressure on the business models of proprietary software vendors. In response, many software vendors have shifted from a paid-for license model to an open source business model. This report will explore the emerging trend of proprietary software vendors transitioning to an open source business model – the elimination of software licensing fees, source code transparency and a reliance on services as the revenue engine. It will cover the impact to software vendors and end users alike, and will include best practices from a number of companies that have already made the transition, including failed attempts.

As for the 2007 report schedule, it is likely that the six reports will be released on the even months (February, April, June, August, October, and December). The topics have not yet been finalized, and I am actively seeking input from the community. If you have any feedback, please feel free to add your comments to this post or send me an email, raven.zachary@the451group.com.