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May 23, 2005

Only 30% !

Bruce Perens in a very thought provoking essay :

Whether or not we will admit it, most of us are very impressed   with Microsoft's wealth and arrogance, and when we think of   producing software, we automatically think of Microsoft and the   way they do it. But it   turns out that the Microsoft model accounts for only a   minority of the software   that is made and used in business today. Around 30% of the   software that is written is sold as software[2]. Most software is not sold at all.   It is developed directly for its customer, by the customer's own   employees or by consultants who bill for the service of software creation rather   than for the end product. It's important to look at why that is   the case, in order to understand the economics of Open   Source.

This is a great way to set the context for all the debates around "open source is a communist agenda which will kill software capitalism" !  Capitalism will be alive and kicking, what needs to change is the business model around software business.

Will be revisiting this essay, digesting complete essay will require spare cycles.

May 23, 2005 in Open source | Permalink


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