How to lose, make money with open source

26.08.2005
Von Walter Norris

In South Africa, open-source (OS) software is gaining in acceptance and credibility every day.

Now that government has thrown its weight behind the OS movement, many public sector companies have adopted it as their platform of choice.

Even quasi-government organizations -- such as Telkom Business -- are migrating to OS, in the belief that licensing costs will be reduced, along with maintenance and support.

What is more, companies such as IBM, Sun, and Novell have announced their commitment to OS, giving the movement more credibility.

Losing money

It does seem that OS is part of the future wave of computing, and that it is a "bankable" technology for software dealers and resellers who are concerned.

In theory, the choice between a "free" OS and a proprietary software solution -- which could cost many hundreds of thousands of rand to purchase -- is clear-cut. While this is partially true, there are many pitfalls associated with the sale, support and use of OS software.

Make no mistake, it is possible to lose money on OS. The dark side of OS is closely linked to the licensing issue.

The fact that there are no licence fees associated with OS software does not mean that the discovery, research, customization and implementation phases of a new project are free.

Neither will the updates and on-going support be without cost.

However, in the mind of the end-user, accepting charges for OS software and operating systems is anathema. OS is clearly positioned in the mind of the consumer as "free."

Dealers and resellers will have to work hard to change this perception, otherwise all the work and effort they put into propagating OS will be for nothing.

There has to be a profit element associated with OS, or the end-user will bear the brunt of the problems surrounding failed systems and lost data in future. The OS developers and support personnel will have gone on to greener pastures.

In short, potential OS users must accept that on-going research, development and technical support are important issues which must be addressed up front.

From the customers" perspective, the adoption of OS can present installation, application and support problems, particularly if they are dealing with OS "fly-by-nights."

These so-called "software experts" often lay claim to have designed, developed and implemented a significant number of OS systems, but do not have the reference sites to back up their claims.

Making money

Staying with the end-user, the key to an efficient, profitable OS solution is to choose the OS supplier wisely. The decision will have long-term consequences.

In this case -- as in any other business transaction -- it is best to follow tried and tested business guidelines and make use of reputable vendors whose validity can be verified.

The big benefit for end-users is there is no vendor lock-in as there is with proprietary software, so they are always free to shop around for the best deal.

Dealers and resellers who want to climb aboard the OS bandwagon have to come to terms with the fact that they need to spend time and effort on researching OS solutions and weighing them up from a number of perspectives.

These include their "fit" within certain industry sectors, companies or groups of companies.

They need to build knowledge of the technical aspects surrounding OS issues and gain an in-depth understanding of the businesses to which they will be applied.

OS specialists can make money if they are "plugged in" to global OS resources and the latest information concerning developments in the software industry -- both OS and proprietary.

Profitability is also centered on the dealer"s ability to perform local research and development and be able to share this knowledge with others in the OS arena. This also requires a fundamental change in mindset, as knowledge has always represented power in the proprietary world.

Conclusion

It is clear that the OS world is challenging for both end-user and dealer/ reseller communities. There are opportunities to reduce costs and make profits if strict guidelines are followed.

These are mainly associated with gaining knowledge and information about the OS environment and the first-class solutions that it is constantly spawning.But OS has the potential to bite the unwary, the unprepared and the ignorant. Be warned.

-- Walter Norris, a solution architect at Singularity -- an open-source software and business solutions provider.