Open-source software firms are flourishing, but are also becoming less distinctive
MANY technology firms are floundering amid the recession. But many of the ones that offer services tied to open-source software—free programs written by volunteers who collaborate online—are boasting double-digit growth. Sales at Red Hat, the world’s biggest independent open-source firm with annual revenues of $653m, grew by 18% year-on-year in the first quarter. More and more firms, particularly in Europe, seem prepared to embrace open source (see chart). “Budgets are tight and we think that is good for open source,” said Jim Whitehurst, Red Hat’s boss, when announcing the results.
Indeed, open source is so widely accepted that traditional software firms are beginning to dabble in it, while some open-source firms are starting to sell proprietary add-ons to open-source programs instead of charging to provide support to firms using open-source software. If current trends hold, traditional software firms and their open-source rivals will soon be hard to tell apart. “A new pragmatism is rising,” says Matt Asay, an open-source advocate and an executive at Alfresco, which makes open-source software that helps firms manage digital content.
Source :- The Economist print edition
Comments on this entry are closed.