In a report entitled, "Going Open -- Software Vendors in Transition," found that open-source software is increasingly placing pressure on business models of proprietary software vendors. These companies now are looking to open source as a way to grow distribution, improve customer participation, and respond to competition.

The trend of proprietary vendors going "open" has had companies either shifting away from licensing fees as a basis for customer usage or releasing some code via an open-source license.

Open source is changing the relationship between software vendors and customers, The 451 Group said. Smaller vendors and startups can more effectively compete for enterprise customers by providing code and a community for ensured long-term viability.

While services are often considered the most likely path for software vendors looking to generate revenues from open source, almost half of 31 vendors interacted with for the study indicated the greatest revenue opportunity was in commercial licensing.

Meanwhile, , in its just-released 2007 Emerging Markets Development Survey, found that developers worldwide are increasingly using open-source code.