451 CAOS Theory 
A blog for the enterprise open source community
Expertise
451 analysts have produced more than 1,500 reports over the past five years that have analyzed open source technology providers, their business models and their competitive positioning at various levels. Recent and ongoing coverage includes analysis of the market opportunity for companies that are building or investing in open source technology, or are using it in the software they deliver to enterprise organizations. As an independent observer and thought leader on open source, The 451 Group actively advises key players within the open source community and provides analysis of open source developments to a broad base of audiences.
Enterprise Open Source Research
Published 451 Commercial Adoption of Open Source (CAOS) Research Service Reports include:
451 CAOS Report Four: Managing in the Open (July 2007): As open source software continues to ‘move up the stack’ and proliferate in the enterprise, software segments that have traditionally been dominated by proprietary software vendors face disruption. End-user organizations that have seen benefits from open source software at the lower level of the infrastructure stack are now looking at opportunities for open source software in new software segments. Systems management is one key area that is poised for disruption by open source. Due to an increased need to manage open source software components and the desire by enterprises to reduce overall systems costs, a new wave of open source software vendors focused on the challenges of systems management has arisen to threaten the established players. This report examines the future of open source systems management and the impact on traditional software vendors and end users.
451 CAOS Report Three: Going Open (February 2007): The success of open source software has been placing pressure on the business models of proprietary software vendors. Software vendors are increasingly looking at open source as an opportunity to grow distribution, improve customer participation and retention, and possibly respond to competitive pressure. This report focuses on the emerging trend of proprietary software vendors transitioning to an open source business model – including the elimination of software licensing fees as an entry requirement, public source code availability and a greater reliance on services as the revenue engine. It covers the impact on proprietary software vendors and end users alike, and includes a primer on ‘going open’ and best practices from a number of software vendors that have already made the transition.
451 CAOS Report Two: Cost Conscious (November 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.
451 CAOS Report One: Open Source Stack Providers (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 support 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?”
Upcoming 451 CAOS Research Service reports include:
- 451 CAOS Report Five: The SMB Market Opportunity (September 2007)
Published 451 Special Reports include:
- 451 Special Report: Cashing in on Open Source Software (December 2005)
Media Coverage
Media outlets that turn to 451 analysts as thought leaders range from leading business/financial publications and major daily newspapers to key enterprise IT industry news organizations. Coverage has included:
- The Wall Street Journal
- Barron’s
- The New York Times
- BusinessWeek
- San Jose Mercury News
- Optimize
- Enterprise Open Source Journal
- Enterprise Linux Today
- InformationWeek
- InfoWorld
- SearchOpenSource.com
Thought Leadership on Enterprise Open Source
451 analysts have presented their insight and expertise to a number of organizations at many open-source-related events. Recent activities include:
- Produced the Industry Summit on the Commercial Adoption of Open Source Software in October 2005 (Palo Alto)
- Sponsored OSBC Fall 2005 and OSBC Spring 2006 (Boston and San Francisco)
- Led multiple enterprise open source panels at OSBC Spring in February 2006 (San Francisco)
- Presenter at LinuxWorld in April 2006 (Boston)
- Presenter at OSCON Convention in July 2006 (Portland)



