Group # 7
Open Source Software
LOGO
Group # 7 – Open Source Software
Andrew Benz
Shuang Gao
Xianjin Jiang
Janice Hovis
Jacob Steingrubey
2
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software
4
Lessons Learned & Best Practices
5
Summary
3
Contents
1
Background of Open Source





Definition
History
Market Size
Importance to Managers
Technical Components
2
Interviews
3
Open Source vs. Proprietary Software
4
Open Source Software - Definition
“OSS is licensed software in which the source code is made available to
users to enable them to modify it for their own purposes and
(within certain restrictions) redistribute original and derived works
as they see fit.”



No one has exclusive control over the term “open source”
Not an enforceable copyrighted term or trademark
Open Source Initiative (OSI) www.opensource.org – was
founded in 1998 & has unofficial power over the core concepts
Source: Gartner: “Learn the Basic Principles of Open-Source Software”, 16-Nov 2006 ID # G00144771
5
Open Source Software – Definition
Free redistribution
“License shall not require a royalty or other fee for such sale”
Source code
Must include source code & allow distribution (or a wellpublicized means of obtaining the source code)
Derived works
Must allow modifications & allow them to be distributed
Integrity of author’s source License must permit distribution of software built from modified
code
source code
No discrimination against
Persons, groups or fields of endeavor (e.g. genetic research)
Distribution of license
Rights to program must apply to all without the need for
execution of additional license
License must not be
specific to a product
The rights attached to a program must not depend on the
program’s being part of a particular software distribution
License must not restrict
other software
Must not insist all other programs distributed on the same
medium must be open-source software
License must be
technology-neutral
No provision of the license may be predicated on any individual
technology or style of interface
Source: http://opensource.org/docs/definition.php; viewed 4/13/09
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Contents
1
Background of Open Source




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Definition
History
Market Size
Importance to Managers
Technical Components
2
Interviews
3
Open Source vs. Proprietary Software
7
Open Source Software – History
 Richard Stallman
 American Software Freedom Activist, Hacker, and
Software Developer
 Noticed a change in software licensing while studying
at MIT
 Announced the “GNU Project” in September 1983
 Founded the Free Software Foundation in October
1985
Source: http://en.wikipedia.org/wiki/Richard_Stallman Viewed April 10, 2009
8
Open Source Software – History
Source: http://www.gnu.org/gnu/initial-announcement.html Viewed April 10, 2009
9
Open Source Software – History
 GNU Project
 Mass collaboration project of software developers
 Founding Goal: “I will develop a sufficient body of free
software so that I will be able to get along without any
software that is not free”
 First project was to replicate the Unix operating
system
 Recursive acronym meaning “Gnu’s Not Unix”
Source: http://www.gnu.org/gnu/initial-announcement.html Viewed April 10, 2009
10
Open Source Software – History
 The word “free” in “free software” pertains to freedom,
not price
 Think of “free” as in “free speech,” not as in “free beer”
http://www.youtube.com/watch?v=uJi2rkHiNqg
Source: http://www.gnu.org/gnu/initial-announcement.html Viewed April 10, 2009
11
Open Source Software – History
 Linux
 By 1990, the GNU Project had created all of the major
O/S components except for the kernel
 Linus Torvalds, from Finland, decided to develop a
free Unix/Minix-based operating system
 http://www.youtube.com/watch?v=zPbFtlMtzj8
Source: http://en.wikipedia.org/wiki/Linus_Torvalds Viewed April 10, 2009
12
Open Source Software – History
Hello everybody out there using minix I'm doing a (free) operating system (just a hobby, won't be
big and professional like gnu) for 386(486) AT clones.
This has been brewing since april, and is starting to get
ready. I'd like any feedback on things people like/dislike in
minix, as my OS resembles it somewhat (same physical
layout of the file-system (due to practical reasons) among
other things).
I've currently ported bash(1.08) and gcc(1.40), and things
seem to work. This implies that I'll get something practical
within a few months, and I'd like to know what features
most people would want. Any suggestions are welcome, but
I won't promise I'll implement them :-)
Linus (torvalds@kruuna.helsinki.fi)
Source: http://en.wikipedia.org/wiki/Linus_Torvalds Viewed April 10, 2009
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Contents
1
Background of Open Source





Definition
History
Market Size
Importance to Managers
Technical Components
2
Interviews
3
Open Source vs. Proprietary Software
14
Market Size
Market Share for Top Servers Across All Domains
August 1995 - March 2009
Source: http://news.netcraft.com/ Viewed April 16, 2009
N = 231,510,169 Websites
15
Market Size
Popularity of Linux (Google Searches)
Source: http://farm4.static.flickr.com/3100/2780600959_5e8e7bef99_o.jpg
Source: http://farm4.static.flickr.com/3168/2780600817_aa8c88d847_o.jpg
16
Market Size
 Open Source Database management revenues (support and
professional services) will continue to grow during the next five
years (2008-2012) by 40%, exceeding $1 billion in 2012 2
 By 2012, more than 90% of enterprises will use open source in
direct or embedded forms 1
 By 2011, at least one open source DBMS (MySQL or Postgres
Plus) will become one of the more widely used DBMS engines in
production 2
Source: Gartner Survey “State of Open Source” (2008, April) 1
Source: Gartner Survey “Open Source in Database Management Systems (2008, April)
2
17
Contents
1
Background of Open Source





Definition
History
Market Size
Importance to Managers
Technical Components
2
Interviews
3
Open Source vs. Proprietary Software
18
Importance to Managers
Open source provides options to Managers by allowing
collaboration, which result in lower transaction costs.
Four Business Principles of Wikinomics:




Openness
Peering
Sharing
Acting Globally
Examples of Collaboration:



Proctor & Gamble
Goldcorp
Progressive Insurance
Source: Tapscott, Don and Williams A “Wikinomics: How Mass Collaboration changes everything,” Portfolio, Penguin Group,
New York, 2007 Chapter 1 page # 20
19
Importance to Managers
N = 119 Governmental Agencies in North America & Europe
20
Importance to Managers
N = 95 participants, large enterprises
Source: http://asay.blogspot.com/2005/11/forrester-open-source-rising-heres.html
21
21
Contents
1
Background of Open Source





Definition
History
Market Size
Importance to Managers
Technical Components
2
Interviews
3
Open Source vs. Proprietary Software
22
Technical Components
Technology
What it is…
Why it matters…
TCP/IP
Communications
protocol
Allows remote systems to
communicate
HTML
Presentation language
Consistent means of viewing
information
XML
Data language
Human-readable method of storing and
transmitting data
Java
Programming language Creates software that can run
anywhere
Web
Services
Open machine
interaction
Allows functional outsourcing
Linux
Operating system
Open link between hardware and
software
23
23
Contents
1
Background of Open Source
2
Interviews





3
Company Background
Uses of OSS
Reasons for Choosing OSS
Risks & Challenges
Future Plans for Open Source
Open Source vs. Proprietary Software
24
Company Background – Panera Bread
 Company background –




Operates & franchises retail bakery cafes
Mission Statement: “A loaf of bread in every arm”
1,268 locations in 41 states and Canada; over 23,000 employees
$2.5 billion system-wide annual revenue ($1.3 billion company revenue);
$67 million profit
25
Company Background – Panera Bread
 Company background – IT Department

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


IT headcount = 95
IT annual $ budget = $7.2 million
Panera provides free WiFi to customers
Organization structure: CIO reports to COO
Interviewed: Mike Gustafson, Director of Technical Services (reports to CIO)
• B.S. Systems Science & Mathematics from Washington University
• Prior to Panera, Mike was a consultant for IBM & Ernst & Young
26
Company Background – Scottrade
 Online investment broker
 Started in 1980 by Rodger Riney
 Revenue
 Annual revenue of over $1 billion
 Over 2,000 new accounts per day
 Over 200,000 trades per day
 Size
 Over 400 branches
 Over 2,000 employees
27
Company Background – Scottrade
 Scottrade Bank




Recently opened
Currently used for “bank sweeps”
Will become “full-service”
Size
• 6th largest bank in Missouri
• Holds about $5 Billion in assets
• Over 5 employees
28
Company Background – Scottrade
 IT Organization
 400+ IT staff, increasing to 600
 CIO Reports to Rodger Riney, President and CEO of Scottrade
 Facilities
 Primary data center over 10,000 square feet
 Over 2,000 “blade” servers
 Mainframe computer system
29
Company Background – amdocs
 Provide BSS(Business Support System) and OSS(Operation
support System) software and service to telecommunication
industry.
 Revenue in fiscal year 2008 is $3.16 billion
 The market leader in customer experience systems
 Has more than 17,000 employees and serves customers in more
than 50 countries around the world.
30
34
Company Background – amdocs
31
Company Background – amdocs
 What’s the largest expense of the IT budget?
 Salary
 Software licenses & Hardware
 Does AmDocs contribute to the code when discovering issues?
 Yes.
32
Contents
1
Background of Open Source
2
Interviews





3
Company Background
Uses of OSS
Reasons for Choosing OSS
Risks & Challenges
Future Plans for Open Source
Open Source vs. Proprietary Software
33
Uses of Open Source Software
Open Source Adoption
Panera
Scottrade
amdocs
Server Operating Systems
X
X
X
Database Management Systems
X
X
Security
X
Application Integration/Middleware
X
X
Application Development
X
X
Content, Communication & Collaboration
Business Process Management
X
Business Intelligence
Customer Relationship Management
Enterprise Resource Planning
Client/Desktop OS
Office Suite
Other
X
X
34
Uses of Open Source Software

Current OSS used at Panera Bread:
1.
2.
3.
Linux
•
Server Operating system
•
Use Red hat for support
Grinder
•
Simulates loads in a new environment
•
Pushed load to 400% and it did not “break”
Nagios
•
•
Monitors server and hardware (1,250 T1 lines)
Used proprietary initially, but costs increased 300%
35
Uses of Open Source Software
36
Uses of Open Source Software
 Open Source Software at Scottrade
 Currently about 10% of total server population is OSS (about
200 Linux servers)
 Been in use for 2-3 years
 Ticker Plant
 Communication with Market Makers
 Communication with mainframe
37
Uses of Open Source Software
 Amdocs OS strategy
 Use both proprietary and open source software.
 In IT company, staff prefer to use Open Source Software
 Special team is responsible for developing OS strategy
for the company.
 Evaluation
• Product Evaluation Group
– Mainly responsible for evaluate and identify useful open
source software.
38
Contents
1
Background of Open Source
2
Interviews





3
Company Background
Uses of OSS
Reasons for Choosing OSS
Risks & Challenges
Future Plans for Open Source
Open Source vs. Proprietary Software
39
Reasons for Choosing OSS
Panera
Scottrade
AmDocs
Cost Savings
X
X
X
Stability
X
X
X
Industry Standard
X
X
Lower Administrator/Server Ratio
X
Flexibility
X
Ease of Use
X
X
X
40
Reasons for Choosing OSS
Advantages



Panera
 Lower Cost
• “free” operating system compared to UNIX: $30-40K to purchase + $20K per year for
support
 Stability
• Linux is technically solid; no issues running missing critical applications
 Easy to Maintain
• UNIX requires very specific training and additional costs
Scottrade
 Freedom
• Not “tied down” to strictly using Microsoft products
 Lower Cost
• Microsoft cost estimates are $400-$500 / seat for O/S
 Fewer Problems
• Less downtime, lower administrator / server ratio (200 servers, 6 admins)
 Updates
• Can use the latest version of the software for free, instead of paying for the upgrade
 More security
• Using multiple O/S environments creates a better security portfolio
AmDocs
 Flexibility
• Potentially broader community for ideas exchange and problem solving.
• Extend the function by own.
 Code availability
• Code availability for debugging and enhancement.
41
 Lower cost
Secondary Research - Adoption of Open
Source Software
N = 95 participants, large enterprises
Source: http://asay.blogspot.com/2005/11/forrester-open-source-rising-heres.html
42
42
Secondary Research - Adoption of Open
Source Software
43
43
Contents
1
Background of Open Source
2
Interviews





3
Company Background
Uses of OSS
Reasons for Choosing OSS
Risks & Challenges
Future Plans for Open Source
Open Source vs. Proprietary Software
44
Risks & Challenges
Company
Risks / Challenges Faced
Panera
• Maintaining a stable environment amidst many changes and
rapid growth
• Security – what is embedded in source code? (Panera uses 3
anti-virus engines that secure us from this issue)
Scottrade
•Difficulty getting managerial buy-in
•“If it’s free, it can’t be good”
•No technical support
•Compatibility issues
AmDocs
•Less robust features than commercial software
• No guarantee of quality or fitness
• Considering system functional compatibilities, some proprietary
software should be used.
45
Contents
1
Background of Open Source
2
Interviews





3
Company Background
Uses of OSS
Reasons for Choosing OSS
Risks & Challenges
Future Plans for Open Source
Open Source vs. Proprietary Software
46
Future Plans for OSS
Company
Future Plans
Panera
• Enterprise Database – for non-mission critical applications
(oracle “lookalike”)
• Trouble tickets
Scottrade
• More servers
• Virtualized desktops (thin clients)
• Virtual servers (possible shift away from VM Ware)
AmDocs
Use open source software in Business Process Management
JBMP-------JAVA based open source software
47
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software



Advantages & Disadvantages
Cost
Proprietary Vendors’ Strategy Changes
48
Advantages & Disadvantages of OSS
Open Source Software Pros
Open Source Software Cons
Financial Saving (1)
No guarantee of quality or fitness (1)
View, change and redistribute source
code (1)(2)
No strong support exists for open source
software(1)
Easy integration and interaction(1)(2)
Difficult for companies to choose (2)
Rapid debugging, rapid further
development(1)
Avoiding lock-in to one supplier(1)(2)
Source: http://www.redpill-linpro.com/About-Open-Source/Advantages-of-Open-Source-software (1)
Source: Paul, Kavanagh,. Open source software implementation and management. Amsterdam: Elsevier Digital P, 2004. (2)
49
Advantages & Disadvantages of Proprietary
Proprietary Software Pros
Proprietary Software Cons
Vendor professional services
No access to code for potentially quick
problem solve
Easier to adopt in organization
Unable to extend the functionality by own
Automated updates
Cost more
Better product functionality
Code quality
Source: http://news.cnet.com/8301-13505_3-9789275-16.html Date Viewed April 18,2009
50
Advantages & Disadvantages of OSS
Source: http://news.cnet.com/8301-13505_3-9789275-16.html Date Viewed April 13,2009
N =228 Enterprise
51
Advantages & Disadvantages of OSS
www.ComputerEconomics.com
Individual Survey
52
Source: http://www.computereconomics.com/article.cfm?id=1043 Date Viewed April 13,2009
N=50,000
World Views on Commercial OS
United States1
Europe1
China2
Cost
Vendor Lock-in
Control
Return on investment
Create local
software industry
Create gov’t
software industry
Dual Licensing
Model
Widely accepted
Not true open
source
No strong opinion
Software Sales
Model
Direct
VAR and SI
SI
OS Business
Model
Product based, up-sell
from open source
Support and
service subscription
Products and/or
support
Expectations
around OS
products
Some code available
under OS,
Commercial product
management
All code available
under OS,
Community
governance model
Lack of
community
participation
Primary reason
for adopting OS
Key driver for
investment in OS
Source: Larry Augustin's Weblog, ‘Commercial Open Source in Europe Versus the US.’1
Source: Guangnan Ni, Accessed April 20, 2009, http://tech.it168.com/zt/open2009/ppt/1.ppt2
53
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software



Advantages & Disadvantages
Cost
Proprietary Vendors’ Strategy Changes
54
Total Cost of Ownership
 Open Source
 Free Redistribution
 Support is fee-based and at a fraction of proprietary systems
 Training – depends on ease of use
 Proprietary
 Pay for license (high up front fees)
 Phasing out free tech support & less manuals with product (support is
close to becoming similar to open source)
 Training – depends on ease of use
Source: Feldman, David (2006, February) “Understanding open source: Part 1” KM World 15(2) 8-10
55
Total Cost of Ownership
How much does “free” software really cost?
1. Price of software is relatively low compared to TCO (total cost of
ownership) 2
2. The significant costs =
Staffing needed (for any platform of software)
Training, maintenance, support, administrative
50-70% of a software system’s TCO over it’s useful life 2
3. Analyzing TCO is not simple – it depends on the different ways people
use the software. 1
Source: http://www.computereconomics.com/article.cfm?id=1043; Viewed 4.22.09 1
Source: MacCormack, Alan (2003, August) “The True Costs of Software”; Computerworld (37,33; pg 44)
2
56
Total Cost of Ownership
How much does “free” software really cost?
Summation:
Open source software key advantage is not always low cost of ownership
1
• Administrative and support costs overshadow initial software license
cost and annual maintenance fees (costs that are minimized by open
source) 2
• Whether open source software is less costly to administer than
proprietary software depends on a ready pool of resources trained
on the system 1
• Situation varies from application to application
2
Source: http://www.computereconomics.com/article.cfm?id=1043; Viewed 4.22.09 1
Source: MacCormack, Alan (2003, August) “The True Costs of Software”; Computerworld (37,33; pg 44)
57
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software



Advantages & Disadvantages
Cost
Proprietary Vendors’ Strategy Changes
58
Proprietary Vendors’ Strategy Changes
Financial fortune is dependent on software
license
Does not perceive as a threat or
business opportunity (2008)
Sponsors the Apache Foundation; Brad
Smith key note speaker at the OS
business conference 3/08
Contributes to OS Initiatives
(Apache Foundation); Oracle VM –
offers clients virtualization option
alternative to VMware
Future:
Support/integrate products with open
source solutions
Acquired Sun Microsystems (Java)
announced 4.20.09
Summation:
Customers should not expect them to
embrace OS as Oracle
Provide customers with “end to end”
software stack using a combination
History of Open Source:
Shift in thinking about Open
Source:
Source: Gartner: “Open Source at Microsoft, 2008” 3 April 2008
Source: Gartner: “Open Source at Oracle, 2008”; 27 March 2008
59
59
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software
4
Lessons Learned & Best Practices
60
Lessons Learned & Best Practices
Due to the current global down economy, we have seen interest in open
source software spike among mainstream and conservative enterprises
alike in recent months. 1
 Over 10 years of Gartner studying open source software dynamics, there are
many examples where enterprises successfully leveraged open source for
significant cost savings over closed source.
 Gartner also found where adopters were unable to clearly demonstrate
sustained cost savings over time.
 Key Factors to optimizing software costs:
– Focus on project maturity
– Understand that project governance dictates both quality and risk (IP concerns)
– Identify specific technology risk profile 1
Understand early in the process which alternatives are more viable:
 Number of users organizations –
 Peculiarity of Operating System Platform
 Product Market Maturity
 Sourcing Attitude
 Available Skills
Source: Gartner: “Findings: yes, you can save money with open source software” 30 Jan 2009 1
Source: Gartner: “When to use Custom, Proprietary, open Source of Community Source Software” (16 Feb 2007) 2
2
61
Lessons Learned & Best Practices
 Involvement, positioning and decision-making levels of management affect the
success of migration projects
 While migration to open source offers cost savings in the long run, deploying the
new technology may involve considerable expenses
 Cost reduction is an important motive for organizations to migrate from proprietary
to open source software
 Well timed and sustainable training contributes to the success of migration project
 Developing a clear process for migration and involving a qualified project team
contributes to the success of migration project
 The migration from old to new technology requires shifting the mindsets of users
towards the new technology
 Support available from multiple vendors reduces the risk associated with vendor
lock-in
 Business-IT partnerships are required to facilitate the implementation of new
technology
 Migration from proprietary to open source software involves overcoming internal
resistance to deploy new technology within an organization
Source: https://eduforge.org/docman/view.php/7/414/Owais_Ahmed_TTMthesis.pdf
62
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software
4
Lessons Learned & Best Practices
5
Summary
63
Contents
1
Background of Open Source
2
Interviews
3
Open Source vs. Proprietary Software
4
Lessons Learned & Best Practices
5
Summary
64
Summary
 Background
 Linux, GNU are examples of mass collaboration
 Does not equate to “free of charge”
 Interview
 More companies use combination strategy – both use OSS and Proprietary
 Many advantages; but most companies slow to adopt
 Open Source vs. Proprietary
 Proprietary software companies change strategy
 Lessons Learned & Best Practices
 Reasons vary between individual & corporation adopting
65
Summary
66
Citations
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
http://opensource.org/docs/definition.php; viewed 4/13/09
http://www.gnu.org/gnu/initial-announcement.htm
http://www.gnu.org/gnu/initial-announcement.html
http://www.youtube.com/watch?v=zPbFtlMtzj8
http://www.gnu.org/gnu/gnu-history.html
http://news.netcraft.com/ Viewed April 16, 2009
Gartner: “Government Survey Dispels Five Myths About Open-Source Software”; 1 February 2008
Source: Tapscott, Don and Williams A “Wikinomics: How Mass Collaboration changes everything,”
Portfolio, Penguin Group, New York, 2007 Chapter 1 pg 18
Source: Gartner Survey “State of Open Source” (2008, April)
Source: Gartner Survey “Open Source in Database Management Systems (2008, April)
http://www.computereconomics.com/article.cfm?id=1043 Date Viewed April 13,2009
Source: Gartner: “Findings: yes, you can save money with open source software” 30 Jan 2009
Source: Gartner: “When to use Custom, Proprietary, open Source of Community Source Software” (16
Feb 2007)
Source: Larry Augustin's Weblog, ‘Commercial Open Source in Europe Versus the US.’
Source: Feldman, David (2006, February) “Understanding open source: Part 1” KM World 15(2) 8-10
Retrieved April 7, 2009 from ABI/INFORM Global Database
Source: http://www.computereconomics.com/article.cfm?id=1043; Viewed 4.22.09
Source: MacCormack, Alan (2003, August) “The True Costs of Software”; Computerworld (37,33; pg
44). Retrieved April 7, 2009 from ABI/INFORM Global Database.
Source: Gartner: “Open Source at Microsoft, 2008” 3 April, 2008
Source: http://www.infoworld.com/print/71928 Viewed on April 23, 2009
Source: Gartner: “Open Source at Oracle, 2008”; 27 March 2008
67
Citations
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
Source: http://www.oracle.com/us/corporate/press/018363 Viewed on April 24, 2009
Source: MIT Sloan management Review “The Oh-So-Practical Magic of Open Source Innovation”; Fall
2008
Source: MIT Sloan Management Review “What makes a virtual organization work”?; volume 42;
Number 1 – Fall 2008
Interview: Mike Gustafson, Director of Technical Services of Panera, LLC, interviewed in person by
Janice Hovis, March 5, 2009
Interview: Michael Fang, Solution Architect of AmDocs, interviewed in person by Shuang Gao, March
15,2009
Interview: James Cammaratta, IT of Scottrade, interviewed in person by Jacob Steingrubey, April 7,
2009
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