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Group # 7 Open Source Software

Group # 7 – Open Source Software

Andrew Benz

Shuang Gao

Xianjin Jiang

Janice Hovis

Jacob Steingrubey

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Contents

Background of Open Source1

Interviews2

Open Source vs. Proprietary Software3

Lessons Learned & Best Practices4

Summary5

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Interviews2


Definition History Market Size Importance to Managers Technical Components

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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

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Open Source Software – Definition

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Free redistribution “License shall not require a royalty or other fee for such sale”

Source code Must include source code & allow distribution (or a well-publicized means of obtaining the source code)

Derived works Must allow modifications & allow them to be distributed

Integrity of author’s source code

License must permit distribution of software built from modified 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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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

8Source: http://en.wikipedia.org/wiki/Richard_Stallman Viewed April 10, 2009

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Source: http://www.gnu.org/gnu/initial-announcement.html Viewed April 10, 2009

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”

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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

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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

12Source: http://en.wikipedia.org/wiki/Linus_Torvalds Viewed April 10, 2009


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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 ([email protected])

Source: http://en.wikipedia.org/wiki/Linus_Torvalds Viewed April 10, 2009

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Market Size

15Source: http://news.netcraft.com/ Viewed April 16, 2009 N = 231,510,169 Websites

Market Share for Top Servers Across All Domains August 1995 - March 2009

Market Size

16Source: http://farm4.static.flickr.com/3168/2780600817_aa8c88d847_o.jpg

Popularity of Linux (Google Searches)

Source: http://farm4.static.flickr.com/3100/2780600959_5e8e7bef99_o.jpg

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

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Market Size

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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

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Source: Tapscott, Don and Williams A “Wikinomics: How Mass Collaboration changes everything,” Portfolio, Penguin Group,

New York, 2007 Chapter 1 page # 20

20N = 119 Governmental Agencies in North America & Europe



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N = 95 participants, large enterprisesSource: http://asay.blogspot.com/2005/11/forrester-open-source-rising-heres.html

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Technical Components

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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

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Company Background Uses of OSS Reasons for Choosing OSS Risks & Challenges Future Plans for Open Source

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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

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Company Background – Panera Bread

Company background – IT Department 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

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

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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

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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

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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.

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Company Background – amdocs

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What’s the largest expense of the IT budget? Salary Software licenses & Hardware

Does AmDocs contribute to the code when discovering issues? Yes.

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Uses of Open Source Software

Open Source Adoption Panera Scottrade amdocsServer 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 X34


Current OSS used at Panera Bread:1. Linux

• Server Operating system

• Use Red hat for support

2. Grinder

• Simulates loads in a new environment

• Pushed load to 400% and it did not “break”

3. Nagios• Monitors server and hardware (1,250 T1 lines)• Used proprietary initially, but costs increased 300%

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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

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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.

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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 X

Ease of Use X X

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Reasons for Choosing OSS

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.

Lower cost 41

Advantages

Secondary Research - Adoption of Open Source Software

42N = 95 participants, large enterprisesSource: http://asay.blogspot.com/2005/11/forrester-open-source-rising-heres.html 42

Secondary Research - Adoption of Open Source Software

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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.

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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

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Advantages & Disadvantages Cost Proprietary Vendors’ Strategy Changes

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Advantages & Disadvantages of OSS

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)

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)

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Advantages & Disadvantages of Proprietary

Source: http://news.cnet.com/8301-13505_3-9789275-16.html Date Viewed April 18,2009

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

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Source: http://news.cnet.com/8301-13505_3-9789275-16.html Date Viewed April 13,2009 N =228 Enterprise 51


Source: http://www.computereconomics.com/article.cfm?id=1043 Date Viewed April 13,2009 N=50,000

www.ComputerEconomics.comIndividual Survey

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United States1 Europe1 China2

Primary reason for adopting OS

Cost Vendor Lock-in Control

Key driver for investment in OS

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

World Views on Commercial OS

53Source: 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

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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

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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, administrative50-70% 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

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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)

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History of Open Source: Financial fortune is dependent on software license

Does not perceive as a threat or business opportunity (2008)

Shift in thinking about Open Source:

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

Proprietary Vendors’ Strategy Changes

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Source: Gartner: “Open Source at Microsoft, 2008” 3 April 2008Source: Gartner: “Open Source at Oracle, 2008”; 27 March 2008

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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: 2

Number of users organizations – Peculiarity of Operating System Platform Product Market Maturity Sourcing Attitude Available Skills

Lessons Learned & Best Practices

Source: Gartner: “Findings: yes, you can save money with open source software” 30 Jan 2009 1Source: Gartner: “When to use Custom, Proprietary, open Source of Community Source Software” (16 Feb 2007) 2


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

62Source: https://eduforge.org/docman/view.php/7/414/Owais_Ahmed_TTMthesis.pdf

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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


Reasons vary between individual & corporation adopting

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Summary

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Citations

1. http://opensource.org/docs/definition.php; viewed 4/13/092. http://www.gnu.org/gnu/initial-announcement.htm3. http://www.gnu.org/gnu/initial-announcement.html4. http://www.youtube.com/watch?v=zPbFtlMtzj85. http://www.gnu.org/gnu/gnu-history.html6. http://news.netcraft.com/ Viewed April 16, 20097. Gartner: “Government Survey Dispels Five Myths About Open-Source Software”; 1 February 20088. Source: Tapscott, Don and Williams A “Wikinomics: How Mass Collaboration changes everything,” Portfolio,

Penguin Group, New York, 2007 Chapter 1 pg 189. Source: Gartner Survey “State of Open Source” (2008, April)10. Source: Gartner Survey “Open Source in Database Management Systems (2008, April)11. http://www.computereconomics.com/article.cfm?id=1043 Date Viewed April 13,200912. Source: Gartner: “Findings: yes, you can save money with open source software” 30 Jan 200913. Source: Gartner: “When to use Custom, Proprietary, open Source of Community Source Software” (16 Feb 2007)14. Source: Larry Augustin's Weblog, ‘Commercial Open Source in Europe Versus the US.’15. Source: Feldman, David (2006, February) “Understanding open source: Part 1” KM World 15(2) 8-10 Retrieved

April 7, 2009 from ABI/INFORM Global Database16. Source: http://www.computereconomics.com/article.cfm?id=1043; Viewed 4.22.0917. Source: MacCormack, Alan (2003, August) “The True Costs of Software”; Computerworld (37,33; pg 44).

Retrieved April 7, 2009 from ABI/INFORM Global Database.18. Source: Gartner: “Open Source at Microsoft, 2008” 3 April, 200819. Source: http://www.infoworld.com/print/71928 Viewed on April 23, 200920. Source: Gartner: “Open Source at Oracle, 2008”; 27 March 2008

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Citations

21. Source: http://www.oracle.com/us/corporate/press/018363 Viewed on April 24, 200922. Source: MIT Sloan management Review “The Oh-So-Practical Magic of Open Source Innovation”; Fall 200823. Source: MIT Sloan Management Review “What makes a virtual organization work”?; volume 42; Number 1 –

Fall 200824. Interview: Mike Gustafson, Director of Technical Services of Panera, LLC, interviewed in person by Janice

Hovis, March 5, 200925. Interview: Michael Fang, Solution Architect of AmDocs, interviewed in person by Shuang Gao, March 15,2009 26. Interview: James Cammaratta, IT of Scottrade, interviewed in person by Jacob Steingrubey, April 7, 200927. Paul, Kavanagh,. Open source software implementation and management. Amsterdam: Elsevier Digital P, 2004. 28. Source: Castelluccio, Michael (2008) “Enterprise Open Source Adoption” Strategic Finance, 90(5) 57-58

Retrieved April 30, 2009 from ABI/INFORM Global database29. Source: Adenekan, Dedeke (2009) “Is Linux Better than Windows Software”, IEEE Software, 26(3), 104, 103;

Retrieved April 30, 2009 from ABI/INFORM Global Database30. Source: Babcock, Charles (2009, February) “Why Windows Must go Open Source”, Information Week (1219),

22-24, 26,28. Retrieved April 30, 2009 from ABI/INFORM Global Database31. Source: Montalbano, Elizabeth (2008, December); “Microsoft Reverses Course, Becomes More Open to Open

Source Community”; Computerworld, 42(49)10. Retrieved April 30, 2009 from ABI/INFORM Global Database32. Source: Watson, Wynn, Boudreau (2005, September) “JBOSS: The evolution of Professional Open Source

Software”; MIS Quarterly Executive Vol 4 No 3. 33. Source: Murray, Gwyn (2009, January) “Categorization of Open Source Licenses: More than Just Semantics”;

The Computer & Internet Lawyer Vol 26 No 1

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