Group # 7: Open Source Software

Group # 7
Open Source Software
LOG
O
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

 Definition
 History
 Market Size
 Importance to Managers
 Technical Components
2 Interviews
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 well-
publicized 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 The rights attached to a program must not depend on the
specific to a product program’s being part of a particular software distribution
License must not restrict Must not insist all other programs distributed on the same
other software medium must be open-source software
License must be No provision of the license may be predicated on any individual
technology-neutral technology or style of interface
Source: http://opensource.org/docs/definition.php; viewed 4/13/09

6
Contents

 Definition
 History
 Market Size
2 Interviews
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
9
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”
10
 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 11
 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
12
Source: http://en.wikipedia.org/wiki/Linus_Torvalds Viewed April 10, 2009
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)
13
Source: http://en.wikipedia.org/wiki/Linus_Torvalds Viewed April 10, 2009
Contents

 Definition
 History
 Market Size
2 Interviews
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
17
Contents

 Definition
 History
 Market Size
2 Interviews
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
N = 119 Governmental Agencies in North America & Europe 20

N = 95 participants, large enterprises

Source: http://asay.blogspot.com/2005/11/forrester-open-source-rising-heres.html
21
21
Contents

 Definition
 History
 Market Size
2 Interviews
22
Technical Components
Technology What it is… Why it matters…

TCP/IP Communications Allows remote systems to communicate
protocol
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 Open machine Allows functional outsourcing
Services interaction
Linux Operating system Open link between hardware and
software
23
23
Contents
2 Interviews
 Company Background
 Uses of OSS
 Reasons for Choosing OSS
 Risks & Challenges
 Future Plans for Open Source
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

 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
 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
 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
31
 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
2 Interviews
 Uses of OSS
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
 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%
35
36
 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
 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
2 Interviews
 Uses of OSS
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 X
Ease of Use 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.
 Lower cost 41
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
2 Interviews
 Uses of OSS
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
2 Interviews
 Uses of OSS
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
2 Interviews
 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 No strong support exists for open source
code (1)(2) 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

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

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

Primary reason Cost Vendor Lock-in Control
for adopting OS
Key driver for Return on investment Create local Create gov’t
investment in OS software industry software industry
Dual Licensing Widely accepted Not true open No strong opinion
Model source
Software Sales Direct VAR and SI SI
Model
OS Business Product based, up-sell Support and Products and/or
Model from open source service subscription support
Expectations Some code available All code available Lack of
around OS under OS, under OS, community
products Commercial product Community participation
management governance model
Source: Larry Augustin's Weblog, ‘Commercial Open Source in Europe Versus the US.’ 1
53
Source: Guangnan Ni, Accessed April 20, 2009, http://tech.it168.com/zt/open2009/ppt/1.ppt 2
Contents
2 Interviews

 Cost
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
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
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
2 Interviews

 Cost
58
Proprietary Vendors’ Strategy Changes
History of Open Source: Financial fortune is dependent on Does not perceive as a threat or
software license business opportunity (2008)
Shift in thinking about Open Sponsors the Apache Foundation; Brad Contributes to OS Initiatives
Source: Smith key note speaker at the OS (Apache Foundation); Oracle VM –
business conference 3/08 offers clients virtualization option
alternative to VMware
Future: Support/integrate products with open Acquired Sun Microsystems (Java)

source solutions announced 4.20.09
Summation: Customers should not expect them to Provide customers with “end to
embrace OS as Oracle end” software stack using a
combination
Source: Gartner: “Open Source at Microsoft, 2008” 3 April 2008

Source: Gartner: “Open Source at Oracle, 2008”; 27 March 2008
59
59
Contents
2 Interviews
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: 2

 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 61
Source: Gartner: “When to use Custom, Proprietary, open Source of Community Source Software” (16 Feb 2007) 2
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
62
Source: https://eduforge.org/docman/view.php/7/414/Owais_Ahmed_TTMthesis.pdf
Contents
2 Interviews
5 Summary
63
Contents
2 Interviews
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. http://opensource.org/docs/definition.php; viewed 4/13/09

2. http://www.gnu.org/gnu/initial-announcement.htm
3. http://www.gnu.org/gnu/initial-announcement.html
4. http://www.youtube.com/watch?v=zPbFtlMtzj8
5. http://www.gnu.org/gnu/gnu-history.html
6. http://news.netcraft.com/ Viewed April 16, 2009
7. Gartner: “Government Survey Dispels Five Myths About Open-Source Software”; 1 February 2008
8. Source: Tapscott, Don and Williams A “Wikinomics: How Mass Collaboration changes everything,”
Portfolio, Penguin Group, New York, 2007 Chapter 1 pg 18
9. 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 13,2009
12. Source: Gartner: “Findings: yes, you can save money with open source software” 30 Jan 2009
13. 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 Database
16. Source: http://www.computereconomics.com/article.cfm?id=1043; Viewed 4.22.09
17. 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, 2008
19. Source: http://www.infoworld.com/print/71928 Viewed on April 23, 2009
20. Source: Gartner: “Open Source at Oracle, 2008”; 27 March 2008
67
Citations
21. Source: http://www.oracle.com/us/corporate/press/018363 Viewed on April 24, 2009

22. Source: MIT Sloan management Review “The Oh-So-Practical Magic of Open Source Innovation”;
Fall 2008
23. Source: MIT Sloan Management Review “What makes a virtual organization work”?; volume 42;
Number 1 – Fall 2008
24. Interview: Mike Gustafson, Director of Technical Services of Panera, LLC, interviewed in person by
Janice Hovis, March 5, 2009
25. 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,
2009
27. 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 database
29. Source: Adenekan, Dedeke (2009) “Is Linux Better than Windows Software”, IEEE Software, 26(3),
104, 103; Retrieved April 30, 2009 from ABI/INFORM Global Database
30. 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 Database
31. 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 Database
32. 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
68
68
LOG
O

Group # 7: Open Source Software

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Group # 7: Open Source Software

Uploaded by

Copyright:

Available Formats

Group # 7

Open Source Software

1 Background of Open Source

3 Open Source vs. Proprietary Software

4 Lessons Learned & Best Practices

1 Background of Open Source

3 Open Source vs. Proprietary Software

“OSS is licensed software in which the source code is made available to

 No one has exclusive control over the term “open source”

Source: http://opensource.org/docs/definition.php; viewed 4/13/09

1 Background of Open Source

3 Open Source vs. Proprietary Software

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

 The word “free” in “free software” pertains to freedom,

Hello everybody out there using minix -

1 Background of Open Source

3 Open Source vs. Proprietary Software

Market Share for Top Servers Across All Domains

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

Popularity of Linux (Google Searches)

 Open Source Database management revenues (support and

 By 2012, more than 90% of enterprises will use open source in

 By 2011, at least one open source DBMS (MySQL or Postgres

1 Background of Open Source

3 Open Source vs. Proprietary Software

Open source provides options to Managers by allowing

Four Business Principles of Wikinomics:

N = 119 Governmental Agencies in North America & Europe 20

N = 95 participants, large enterprises

1 Background of Open Source

3 Open Source vs. Proprietary Software

Technology What it is… Why it matters…

1 Background of Open Source

3 Open Source vs. Proprietary Software

 Company background – IT Department

 Online investment broker

 Provide BSS(Business Support System) and OSS(Operation

 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

 What’s the largest expense of the IT budget?

 Does AmDocs contribute to the code when discovering

1 Background of Open Source

3 Open Source vs. Proprietary Software

Open Source Adoption Panera Scottrade amdocs

 Current OSS used at Panera Bread:

 Open Source Software at Scottrade

1 Background of Open Source

3 Open Source vs. Proprietary Software

Panera Scottrade AmDocs

N = 95 participants, large enterprises

1 Background of Open Source

3 Open Source vs. Proprietary Software

Company Risks / Challenges Faced

Scottrade •Difficulty getting managerial buy-in

AmDocs •Less robust features than commercial software

1 Background of Open Source

3 Open Source vs. Proprietary Software

Company Future Plans

Scottrade • More servers

AmDocs Use open source software in Business Process Management

1 Background of Open Source

3 Open Source vs. Proprietary Software