Corporates have an appetite for open source software, says Deloitte

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Large companies are increasingly using open source software to conduct pilots, according to Deloitte consultant Mark Lillie.

I met up with Mark today, who is a consultant in Deloitte's technology group. We were talking about the IT market in general and some trends.

One trend he mentioned is that Deloitte clients, which are large corporates, are increasingly demanding open source software to use on pilot projects. It reduces the cost of running pilots because open source is free. "Creating something at low cost," he says.

If IT departments use open source to try things out they do not have to ask for any budget. They can then go get the funds when they have a version of whatever it is they are trying to build.

Why don't these big companies use open source for the finished products you may ask.

Well this is because these companies have commercial agreements with major suppliers and remember nobody ever got sacked for buying IBM.

There is also the strange problem of senior executives thinking that if the software is free it can't be any good.

 

 

 

 

 

 

6 Comments

This is good news, although it's also true that many of these corporates have probably been using free/open source software for years, it's just that nobody outside the IT department realised e.g. for the standard Java enterprise web application development stack i.e. Java/J2EE (free but not open source), Tomcat/Jetty/JBoss app servers (free, open source), Apache web server (free, open source), Spring/Hibernate (free, open source), Linux for server operating systems (free, open source), and even free open source databases like MySQL/PostgreSQL in some cases. What might be new is that the corporates and their consultancy advisers will now be consciously looking at FOSS as a way to cut initial costs and long term licencing overheads.

I think eventually corporates who apply opensource will be the one's to transition faster towards the cloud, primarily because of the evolutionist nature of OpenSource technologies resonating the underlying nature of cloud services. I've also written an article detailing leaner business through IT (http://www.articlesbase.com/organizational-articles/leaner-business-through-it-2847109.html)

Actually, I suspect one reason that cloud computing might be encouraging more interest in open source is that it is often easier to supply and scale up cloud-based services using open-source software, because you don't have to worry about exceeding the scope of your licencing. You can deploy as many Linux VMs or MySQL/PostgreSQL DB instances as you want, it won't cost you a penny more in licence fees.

Yes that's right many corporate firms keep on looking for open source software to increase their productivity with out investing much.

For a business of the size of Mr. Robert's, cost is a crucial determinant in all major business decisions. By outsourcing to India he would save around 50 - 60 % of his marketing expenditure. Since he would be outsourcing work in bulk he would always be at an edge in negotiating prices with Indian vendors.

Yes, I am totally agree with you . In this corporate world all are gain more and more profit, so open-source software is way to increase productivity .

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This page contains a single entry by Karl Flinders published on August 2, 2010 4:00 PM.

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