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January 03, 2005

Tough choices for IBM

Bill Burham on tough choices ahead for  IBM:

but it is clear that thanks to deals like Oracle/Peoplesoft and trends like open source, the software world is changing and the status quo won’t survive over the long term.

Couldn't agree more to this software-world- is- changing stand.  Margin squeeze and open source will change this business forever.  This is not your father's software business anymore.  Status quo won't survive over the long term - here long term could mean year 2005.  All the software  industry adjustment we expected during 2002 will happen in year 2005.  Expect major vendor alignment/realignment  and more discussion on : what is a software business anyways ?

Sweet  thing is to  finally  see open source becoming a standard item on the strategy map ! You have to answer three things when pitched against open source:

how to sell into the open source market
how to cut cost using open source  software
how to protect your business from open source phenomena

Every software company on this planet has to ask those three questions in order to survive.

January 3, 2005 in Economics of IT | Permalink


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