{"id":207,"date":"2007-02-12T16:58:23","date_gmt":"2007-02-13T00:58:23","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=207"},"modified":"2007-02-12T16:58:23","modified_gmt":"2007-02-13T00:58:23","slug":"open-sourcesaas-software-delivery-models-20","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/open-sourcesaas-software-delivery-models-20\/","title":{"rendered":"Open Source\/SaaS: Software Delivery Models 2.0"},"content":{"rendered":"

Last week Ray Lane<\/a>, former Oracle<\/a> President and now Open-Source<\/a> proponent at Kleiner Perkins Caufield & Byers<\/a>,\u00a0eulogized the shrink-wrap box delivery model.\u00a0 Lane said<\/a> that the software business is at a “crossroads, with an economic model no longer sustainable”.<\/p>\n

Lane\u00a0is a founder of SpikeSource<\/a>, a provider\u00a0of ‘business-ready’ Open Source products\u00a0for enterprise users.\u00a0 The SpikeSource business model\u00a0is to take top-tier Open Source project software, build and certify software ‘stacks’ consisting of different combinations of Open Source components, and to then provide product support and updates for the stacks.\u00a0\u00a0Lane’s comments are\u00a0a little ironic\u00a0since SpikeSource monetizes Open Source by layering a per-user pricing support model on top of the Open Source components.<\/p>\n

The Open Source and SaaS movements certainly have the attention of traditional software vendors, but software revenues are still heavily weighted towards traditional delivery model incumbants.\u00a0 Microsoft, Oracle and SAP alone account for 75% of software revenues.\u00a0 2006 sales for Microsoft were $54.9 billion, $18.6 billion for Oracle, and $13.6 billion for SAP.<\/p>\n

But what is telling is the growth rates\u00a0of these companies.\u00a0 In 2006, Microsoft sales were up 11.5% from the year before, Oracle’s were up 9.5%, and SAP’s were up 10.3%.\u00a0 Not bad.\u00a0 But some Open Source company growth patterns have been stellar.<\/p>\n

JBoss\u00a0saw<\/a> revenue growth of 150% in 2005 and 350% in 2006.\u00a0 MySQL revenues are doubling, and companies like JasperSoft and SugarCRM are seeing revenues double quarter over quarter.\u00a0 But then the best Open Source performers are in the millions of dollars, not billions.<\/p>\n

Enterprises have become much more accepting of the Open Source model.\u00a0 In a February 2007 Gartner report<\/a>, a survey of 800 IT professionals found that 87% of the respondents already use Open Source.\u00a0 The study also found a trend that as companies deploy more Open Source products, the more likely those companies are to take on vendor support contracts for those products.<\/p>\n

Lane sees the change of the software delivery model as positive, giving companies more options, ranging from Open Source, SaaS, and cheap outsourcing from China and India.\u00a0 He envisions a new paradigm emerging that he calls the “Personal Enterprise”:\u00a0 software with enterprise capabilities that are powered by collaborative Web2.0 capabilities\u00a0modeled after the success of\u00a0consumer applications.<\/p>\n

\"Digg<\/a><\/div>
\"Reddit<\/a><\/div>
\"Stumble<\/a><\/div>
\"Buzz<\/a><\/div>
\"Vote<\/a><\/div>
\"Share<\/a><\/div>
\"Bookmark<\/a><\/div>
\"Kick<\/a><\/div>
\"Shout<\/a><\/div>
\"Share<\/a><\/div>
\"Bookmark<\/a><\/div>
\"Post<\/a><\/div>
\"Google<\/a><\/div><\/div>","protected":false},"excerpt":{"rendered":"

Last week Ray Lane, former Oracle President and now Open-Source proponent at Kleiner Perkins Caufield & Byers,\u00a0eulogized the shrink-wrap box delivery model.\u00a0 Lane said that the software business is at a “crossroads, with an economic model no longer sustainable”. Lane\u00a0is…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,29,37],"tags":[],"class_list":["post-207","post","type-post","status-publish","format-standard","hentry","category-open-source","category-saas","category-web-20"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=207"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/207\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}