In his recent post on ReadWrite Enterprise entitled "Study: Open-Source Making Significant Traction in the Enterprise" Alex Williams reports on a survey conducted by Accenture that revealed more than two-thirds of the enterprises surveyed indicating plans to increase their investment in enterprise-capable open-source software in the coming year. Nearly 40% of respondents reported plans to migrate mission-critical software to open source within the coming year, Williams writes.
This rate of adoption, Williams suggests, explains why revenues for Red Hat are up by 20% year over year, with growth in all sectors of the business but the greatest rate of growth in middleware. Red Hat is reported by Datamation to have renewed all of its top 25 deals during the quarter at the rate of 120% of their original value, he continues.
To come up with these figures, Accenture surveyed some 300 blue-chip organizations in both the public and private sector to learn that 50% of the respondents are fully committed to open source, which validates Red Hat's own findings that that 88% of all companies using open source plan to increase their investments in 2010, according to Williams' post.
Detailed survey results show the financial services sector as out in front of the movement to open source while the public sector appears to be dragging its feet, Williams writes.
The survey also revealed that companies in both the United States and the United Kingdom are being persuaded by quality and improved reliability as the key benefits in the shift to open source programs. Some 70% cited improved reliability, and 69% said better security and bug fixes are the deciding factors for them.
Another factor in the shift is cost, Williams reports. Seventy-one percent of the respondents said they believed they could save in software maintenance costs, noting savings in both total cost of ownership and development costs.
One cause for concern that Williams notes is a reluctance by more than two-thirds of the respondents to share their own open source projects. Given the benefit to open source solutions from community contributions, he writes, a reluctance to share impedes the development rate of solutions in general.
Further impediments to open source adoption that the survey identified, according to Williams, are the reluctance of senior management to approve the migration; a lack of training, a sentiment reported by half the public sector respondents (but only 22% in financial services); yet another impediment is the relatively small number of open-source alternatives compared to the offerings by proprietary vendors.
Still, Williams predicts, "Open-source software is at an inflection point in the enterprise ...." One of the chief beneficiaries so far at least is Red Hat, he concludes.
More Information
Oracle and Open Source, Open Standards
Considerations for Organizations Looking Toward Open Source
New Coalition to Bring Open Source Communities and U.S. Government Together
[...read more...]
Other articles in the Free and Open Source S/W section of Volume 149, Issue 2:
Open-Source Solutions Make Inroads in the Enterprise
(this article)
See all archived articles in the Free and Open Source S/W section.
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