2009 North Bridge Future of Open Source Study

The Future of Open Source

Dries Buytaert, Founder & CTO Acquia

Ron Hovsepian, CEO Novell

John Lilly,CEO Mozilla

Mårten Mickos, SVP Sun Microsystems

John Roberts, CEO SugarCRM

our panelists

Moderated by Michael Skok, General Partner, North Bridge

Who Responded?

Who Responded?

435 2009

Respondents

Who Responded?

Describe your organization’s use of Open Source software?

We use open source software exclusively

We are investigating using open source

We use some open source software

We sell SaaS open source solutions

We build custom OS solutions for clients

We use open source software a great deal

We develop and sell open source software

43

47

52

59

121

143

200

Live Voting Question #1

Is the Economy’s turbulence Good or Bad for Open Source software?

Good Text osbc1 to 66937

Bad Text osbc2 to 66937

Is the Economy’s Turbulence Good or Bad for Open Source

software?

Good

Bad

2008

Good

Bad

2009

81%

96%

Open Source software decision criteria is evolving

2008 2009

Lower acquisition & maintenance costs Lower acquisition & maintenance costs

Access to code libraries Superior security

Freedom from vendor lock-in Freedom from vendor lock-in

Rapid pace of innovation Better quality software

Freedom of DIY Access to code libraries

Community support Rapid pace of innovation

Superior security Freedom of DIY

Live Voting Question #2

Please choose the most important factor that makes Open Source

software attractive?

Better quality software Text osbc6 to 66937

Lower Acquisition & Maintenance Costs Text osbc7 to 66937

Superior Security Text osbc8 to 66937

Freedom from vendor lock-in Text osbc9 to 66937

What are the barriers to open source software selection?

Application deployment complexity

Total Cost of Ownership concerns

Security concerns

Legal concerns about licensing

Stringent  IT operations policies

Lack of formal commercial vendor support

Lack of internal technical skills

Unfamiliarity with open source solutions

Which sector is MOST susceptible to disruption by Open Source within the next 5 years?

database (52%)

operating systems (36%)

business intelligence (28%)

WCM (22%)

Which sector is LEAST susceptible to disruption by Open Source within the next 5 years?

office productivity

security tools

ERP / CRM

Who are the up and coming Open Source software companies?

Who are the up and coming Open Source software companies?

Who are the up and coming Open Source software companies?

Live Voting Question #3

How is the growing use of Open Source components impacting application

complexity?

More complex Text osbc3 to 66937

No more or less complex Text osbc4 to 66937

Less Complex Text osbc5 to 66937

How is the growing use of Open Source components impacting application

complexity?

experience

What impact is Open Source having on IT operations?

Strategies likely to create the most value for open source vendors:-

Advertising or sponsorships

Dual licensing

Proprietary add-ons

Premium electronic services

Professional services & consulting

Subscription-based technical support

5%

9%

9%

9%

31%

38%

Live Voting Question # 4

Which business strategies will create the most value for Open Source vendors over the next

two years?

Subscription-based technical support

Text osbc10 to 66937

Professional services and consulting

Text osbc11 to 66937

Premium versions of add-ons Text osbc12 to 66937

Dual licensing to OEM and corporate customers

Text osbc13 to 66937

Which will have the greatest impact on Open Source

vendors?

Cloud Computing

Virtualized Infrastructure

SaaS

0% 20% 40% 60%

2009 2008

Live Voting Question #5

In 5 years, what % of software purchases will be Open Source (vs. Proprietary)?

0 - 25% Text osbc14 to 66937

26 - 50% Text osbc15 to 66937

51 - 75% Text osbc16 to 66937

76 - 100% Text osbc17 to 66937

In 5 years, what % of software purchases will be Open Source?

28%

56%

15%2%

2007

29%

57%

13%1%

2008

0 - 25% 26 - 50% 51 - 75% 76 - 100%

21%

53%

22%

4%

2009

28%

56%

15%

2%

2007

29%

57%

13%

1%

2008

21%

53%

22%

2009

79%

71%

72%

In 5 years, what % of software purchases will be Open Source?

2008

2009

~80% believe

In 5 years:

>25% of software purchases will be Open Source

futurecost

quality

barriers<opportunity>

would like to thank…