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In times of economic crises, it is wiser to adopt open source software than to spend hundreds and thousands on buying proprietary business applications. Moreover, open source software leaves a lot of room for you to customise according to your needs.
Adopt Open Source Software To Beat Tight Budgets
>> Key BenefITs KnowhowFOSSisdifferentfromfreeware AdoptFOSStoscaleupyourITinfrastructure
withinalowerbudget,andenhanceproductivity
CheckoutinterestingcasestudieswhereFOSShelpedcutITspending
criteria. Yet often, successful
evaluation doesn’t get converted into
procurement due to limited funds.
Whether the economy
is booming or going bust,
uncontrolled IT expenses can burn a
hole in a company’s pocket. During
an economic downturn, IT budgets
are often slashed to cut costs.
According to a survey by Forrester
Research, more than 40 per cent
of large businesses had already
cut their IT budgets in 2008 due to
the global economic slowdown. In
Technology selection doesn’t
work the same way for an
individual evaluator as it
does for an organisation. Individual
evaluators burn the midnight oil
to find the best technology to solve
the problems that organisations
encounter. On the other hand,
technology selection from an
organisation’s standpoint involves a
comprehensive 360 degree selection
BenefIT / March 2009 / 23
ManageIT
such a scenario, it becomes hard
to meet different operational
challenges within limited
budgets, while keeping the
company abreast in technology.
But technology adoption would
look more attractive during
sluggish conditions if the desired
technology were available
at 10-20 per cent of the cost.
Discounts are always welcome in
this competitive world but FOSS
(Free and Open Source Software)
could be treated as an even
better option. FOSS is different
from freeware.
While the latter is proprietary
software that’s made available
free of cost, it’s usually not
available for study or source code
modification and subsequent
redistribution. But FOSS gives
you the liberty to study, modify
the source code and freely
redistribute the modified version,
which makes the software
available at very little or no cost.
According to the OSI (Open
Source Initiative):
“The basic idea behind open
source is very simple. When
programmers on the Internet can
read, redistribute and modify the
source for a piece of software,
it evolves. People improve it,
people adapt it, people fix bugs.
And this can happen at a speed
that, if one is used to the slow
pace of conventional software
development, seems astonishing.
We in the open source
community have learned that
this rapid evolutionary process
produces better software than
the traditional closed model,
in which only a very few
programmers can see the source
and everybody else must blindly
use an opaque block of bits.”
Open source gains popularity
Many companies across the
globe have already saved huge
amounts of money by adopting
open source software. Gartner, an
information technology advisory
firm, predicts that by 2012 more
than 90 per cent of enterprises
worldwide will deploy open source
software in one form or another.
Another study from Forrester
Research has shown that CIOs
regard its low cost as the main
driver for open source software.
Former president of India Dr.
A. P. J. Abdul Kalam supported
open source software a long time
back. In one of his speeches on a
visit to IIIT (International Institute
of Information Technology),
Pune, he said “Further spread of
IT, which is influencing the daily
life of individuals, would have a
devastating effect on the lives of
society due to any small shift in the
business practice involving these
proprietary solutions. It is precisely
for these reasons that open source
software needs to be built, which
would be cost-effective for the
entire society. In India, open
source code software will have to
come and stay in a big way for the
benefit of our billion people.”
Maintain efficiency and productivity at lower budgets
Adopting FOSS can help
an organisation in enhancing
productivity within a much
lower budget. The last economic
downturn in 2001 forced E*Trade
(an online stock trading company)
to reduce its IT spending by a third.
The company’s chief technology
officer adopted open source
technology and the decision
helped the company in saving $13
million a year. In January 2009,
a Silicon Valley-based company,
Marketcetera, announced the
release of an open source
automated trading platform for
traders, hedge fund managers and
brokers that offer new features that
include robust yet complex event
processing (CEP) capabilities and
enhanced strategy development
for faster testing and deployment
of algorithms. Such software
would surely be advantageous for
financial institutions looking for
technology driven business at a
much reduced cost.
The Electronics Corporation of
Tamil Nadu Limited (ELCOT) took
an initiative sometime back in 2007
to adopt Linux and saved around $5
million in the process. Desktops for
schools in villages that used to run
proprietary software earlier were
replaced with SUSELinux and other
open source applications. Along
with this, servers to host government
applications were also migrated to
open source software. Apart from
the savings on software licences,
the hardware investments with this
initiative was brought down by 25
per cent. Other central government
organisations like CDAC and NIC
also use open source software to
accomplish many projects. The
Malaysian government also adopted
Dr A P J Abdul Kalam
“In India, open source code software will have
to come and stay in a big way for the benefit of our billion people.”
24 / March 2009 / BenefIT
ManageIT
open source software last year
and saved $12 million.
The InterContinental Hotels
Group has adopted Linux – the
JBoss application server and
Mysql/PostgreSQL open source
database servers, to reduce its
IT spending. To consolidate the
data of its 4000 hotels, the group
decided to adopt SugarCRM,
an open source customer
relationship management
application. Forrester database
analyst Noel Yuhanna said that
open source databases can
now meet about 80 per cent of
existing business application
needs. “Some customers
are running mission-critical
transactional deployments with
over 3 TB of data on open source
databases, while others are
running very large workloads that
support hundreds and thousands
of concurrent users,” he wrote.
Forrester Research also released
a report stating that companies
can save around 25 per cent of
their database costs by adopting
the open source database
system and can further reduce
another 25 per cent by deploying
the software on commodity
hardware.
Many more companies
around us are already saving
millions by utilising the power
of open source software to enjoy
more freedom in customisation,
security, reliability and efficiency.
The Central Bank, HPCL, Central
Railways, Air India, Rolta India,
Virgin Mobile, VSNL, Reliance
ADA, Bharti Telesoft, Luftansa,
Omax, Parsavnath, FM Travel,
Godfrey Philips, Jindal Steels, JK
Technosoft, etc, are just a few
names from a long list of open
source users.
Go for FOSSSo the next time you think of
putting up a hefty amount to buy
commercial licenses, you must
prefix the term “open source” to
the solution you require before
doing a quick Google search.
Keywords like “open source
operating system”, “open source
database server”, “open source
network monitoring system”,
“open source chat server”, “open
source mail server”, “open source
PBX”, “open source IDS”, “open
source Photoshop”, etc, can help
you find open source alternatives
to fit your technical and business
requirements.
Before adopting FOSS,
organisations need to be aware of
licensing, support, distribution,
acquisition and other aspects of
FOSS governance. FOSSBazaar.
org serves this purpose and
provides plenty of information
on the subject. Finding the right
skill-set to deploy and support
open source software is no longer
a nightmare; you can either
directly approach the open source
software company, its channel
partners, or find an open source
consulting company in your area
to help you with the deployment
and the on-going maintenance of
the software.
Dhruv Soi The author is the founder and principal consult-
ant, Torrid Networks, and chair, OWASP India. He can be reached at: [email protected]
FOSS gives you the liberty to study or
modify the source code and freely redistribute the modified version,
which makes the software available at very little or no cost.
BenefIT / March 2009 / 25
ManageIT