Open Source software is costing vendors $60 billion .. - Linux

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  1. Open Source software is costing vendors $60 billion ..

    "Open Source software is raising havoc throughout the software market.
    It is the ultimate in disruptive technology, and while to it is only
    6% of estimated trillion dollars IT budgeted annually, it represents a
    real loss of $60 billion in annual revenues to software companies,"
    said Jim Johnson, Chairman, The Standish Group International, Boston,
    MA"

    http://www.cnet.com/8301-13846_1-9920202-62.html

  2. Re: Open Source software is costing vendors $60 billion ..

    On Apr 21, 7:45 am, Doug Mentohl wrote:
    > "Open Source software is raising havoc throughout the software market.
    > It is the ultimate in disruptive technology, and while to it is only
    > 6% of estimated trillion dollars IT budgeted annually, it represents a
    > real loss of $60 billion in annual revenues to software companies,"
    > said Jim Johnson, Chairman, The Standish Group International, Boston,
    > MA"
    >
    > http://www.cnet.com/8301-13846_1-9920202-62.html


    Linux is costing Microsoft revenue. That's one software company. Off
    hand I don't see any others that are really losing much because of
    open source. In practical terms GIMP isn't taking much away from
    Adobe, although that could change.

    In an ideal world (one without monopoly lock-in), as OSS takes over
    commodity services (desktop, browsers, email, office etc) proprietary
    software could shift to specialty markets and products not easily
    duplicated in FOSS. It would be better for everyone (except
    monopolists), and there's plenty of business out there.

  3. Re: Open Source software is costing vendors $60 billion ..

    ____/ nessuno@wigner.berkeley.edu on Monday 21 April 2008 18:15 : \____

    > On Apr 21, 7:45 am, Doug Mentohl wrote:
    >> "Open Source software is raising havoc throughout the software market.
    >> It is the ultimate in disruptive technology, and while to it is only
    >> 6% of estimated trillion dollars IT budgeted annually, it represents a
    >> real loss of $60 billion in annual revenues to software companies,"
    >> said Jim Johnson, Chairman, The Standish Group International, Boston,
    >> MA"
    >>
    >> http://www.cnet.com/8301-13846_1-9920202-62.html

    >
    > Linux is costing Microsoft revenue. That's one software company. Off
    > hand I don't see any others that are really losing much because of
    > open source. In practical terms GIMP isn't taking much away from
    > Adobe, although that could change.
    >
    > In an ideal world (one without monopoly lock-in), as OSS takes over
    > commodity services (desktop, browsers, email, office etc) proprietary
    > software could shift to specialty markets and products not easily
    > duplicated in FOSS. It would be better for everyone (except
    > monopolists), and there's plenty of business out there.


    The Luddites portray cost-savings as a disaster. You ought to see the scarthing
    piece (of s*) that MOG wrote about this.

    You sometimes have to wonder what makes people so darn oppressive.

    --
    ~~ Best of wishes

    Roy S. Schestowitz | "Somebody, give this politician a wedgie"
    http://Schestowitz.com | GNU is Not UNIX | PGP-Key: 0x74572E8E
    http://iuron.com - proposing a non-profit search engine

  4. Re: Open Source software is costing vendors $60 billion ..

    nessuno@wigner.berkeley.edu wrote:
    > On Apr 21, 7:45 am, Doug Mentohl wrote:
    >> "Open Source software is raising havoc throughout the software market.
    >> It is the ultimate in disruptive technology, and while to it is only
    >> 6% of estimated trillion dollars IT budgeted annually, it represents a
    >> real loss of $60 billion in annual revenues to software companies,"
    >> said Jim Johnson, Chairman, The Standish Group International, Boston,
    >> MA"
    >>
    >> http://www.cnet.com/8301-13846_1-9920202-62.html

    >
    > Linux is costing Microsoft revenue.



    The naive way to look at it is to say that they lose about 1% of
    revenues because Linux usage is near 1%. But they are having to drop
    their prices to keep Linux share that low, so they are losing much more
    than 1%.

    Also consider the Eee and similar cheap laptops. They can't make
    anything on such a low-cost system, so they have to practically give XP
    away. They would much rather be selling Vista on full-featured laptops.
    If ten million Eee-like machines are sold this year, that preempts the
    sale of say five million Vista/Office laptops. At an average loss of
    $150 each, this situation might cost them two billion dollars in the
    next two years.


    > In an ideal world (one without monopoly lock-in), as OSS takes over
    > commodity services (desktop, browsers, email, office etc) proprietary
    > software could shift to specialty markets and products not easily
    > duplicated in FOSS. It would be better for everyone (except
    > monopolists), and there's plenty of business out there.



    Yep.

    The smaller or newer, exploratory niches are taken over by FOSS only
    after the commodity niches are won. So we can expect to see people
    selling applications to run on top of Linux and alongside FOSS apps as
    long as new software niches are arising.

    Even if some proprietary application-software company is crooked or
    abusive, they can't do much harm when the OS is FOSS.

  5. Re: Open Source software is costing vendors $60 billion ..

    On Apr 21, 7:07 pm, Matt wrote:
    > ness...@wigner.berkeley.edu wrote:
    > > On Apr 21, 7:45 am, Doug Mentohl wrote:
    > >> "Open Source software is raising havoc throughout the software market.
    > >> It is the ultimate in disruptive technology, and while to it is only
    > >> 6% of estimated trillion dollars IT budgeted annually, it represents a
    > >> real loss of $60 billion in annual revenues to software companies,"
    > >> said Jim Johnson, Chairman, The Standish Group International, Boston,
    > >> MA"

    >
    > >>http://www.cnet.com/8301-13846_1-9920202-62.html

    >
    > > Linux is costing Microsoft revenue.

    >
    > The naive way to look at it is to say that they lose about 1% of
    > revenues because Linux usage is near 1%. But they are having to drop
    > their prices to keep Linux share that low, so they are losing much more
    > than 1%.
    >
    > Also consider the Eee and similar cheap laptops. They can't make
    > anything on such a low-cost system, so they have to practically give XP
    > away. They would much rather be selling Vista on full-featured laptops.
    > If ten million Eee-like machines are sold this year, that preempts the
    > sale of say five million Vista/Office laptops. At an average loss of
    > $150 each, this situation might cost them two billion dollars in the
    > next two years.


    This is the kind of thing I meant, not just the 1% current Linux
    market share on the desktop. Plus the Linux share of servers. And if
    not for Linux, what would Google do? They have alternatives, but none
    so attractive a Linux, and in a world without Linux Google would be
    less competitive against MS. Also, FOSS is used by Apple, who is
    making real inroads into Microsoft profits. Roughlydrafted says that
    although Apple has only 6% of the desktop compared to Microsoft's 90%,
    they make 50% as much profit as MS. That includes their hardware
    sales, but it shows the loss of revenue that can result from capturing
    the high end of the market. Also, I've read that Linux played a role
    Microsoft's decision not to drop support for Win98 and earlier
    editions as soon as they would have liked. Finally, there is just the
    simple matter of the attention devoted to (or against) Linux at
    Microsoft. Ballmer spends time worrying about Linux that Jobs
    doesn't. The EEPC etc are frosting on the cake.

  6. Re: Open Source software is costing vendors $60 billion ..

    Matt writes:

    > nessuno@wigner.berkeley.edu wrote:
    >> On Apr 21, 7:45 am, Doug Mentohl wrote:
    >>> "Open Source software is raising havoc throughout the software market.
    >>> It is the ultimate in disruptive technology, and while to it is only
    >>> 6% of estimated trillion dollars IT budgeted annually, it represents a
    >>> real loss of $60 billion in annual revenues to software companies,"
    >>> said Jim Johnson, Chairman, The Standish Group International, Boston,
    >>> MA"
    >>>
    >>> http://www.cnet.com/8301-13846_1-9920202-62.html

    >>
    >> Linux is costing Microsoft revenue.

    >
    >
    > The naive way to look at it is to say that they lose about 1% of
    > revenues because Linux usage is near 1%. But they are having to drop
    > their prices to keep Linux share that low, so they are losing much
    > more than 1%.


    Actually a lot less. As its a well known fact that most Linux users
    would never buy anything anyway. The great majority of Linux desktop
    users are techy hobbyists and they rarely if ever buy things like office
    suites and cad/cam etc - like that nymming liar Paul Hovnian admitted
    under pressure "they develop their own".

    Also see "The Games That Linux People Play"

    http://www.lokigames.com/

    Maybe - but little chance of them paying for it though. As you found
    out.


  7. Re: Open Source software is costing vendors $60 billion ..

    On Apr 22, 10:41 am, Hadron wrote:
    > ...

    The anonymous "Hadron Quark" is a lying propagandist for Microsoft.

    > As its a well known fact that most Linux users
    > would never buy anything anyway. The great majority of Linux desktop
    > users are techy hobbyists and they rarely if ever buy things like office
    > suites and cad/cam etc


    That is a Microsoft lie designed to discourage manufacturers from
    supporting Linux. Linux users buy plenty of things -- hardware, to
    start with. I've bought editor, development, and game software,
    and quite a few Linux box sets.


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