Split Wide Open
Most industry leaders have confirmed that the slowdown has created a wider acceptance for free and open source software
CRN Network
According to IDC, the worldwide open source software market will see revenues of $8.1 billion by 2013. IDC estimates the services from open source software to be nearly six times the figure at about $ 44 billion by 2013. Recent studies also show that organizations in the Asia-Pacific (excluding Japan), looking at reducing their operational expenses, have begun to see open source software as a viable alternative.
Growth factors
The biggest growth factor for open source has been the maturity the business model has achieved over the past few years, and the support major projects have received from global giants. Vendors such as IBM, Sun, HP and Oracle have thrown their weight behind various open source initiatives and built successful franchisee of profit lines surrounding various platforms. They have also been urging their channel partners to build solutions and provide services around open source software.
Customers are increasingly confident about open source software and are no more reluctant to invest in the technologies. Cost savings have so far been the biggest selling point. Increasing security threats also are forcing customers to look at open source software.
In India, the business conditions are ideal—with the right talent pool and customers who look for value for money.
According to IDC, CRM, infrastructure services, messaging and mailing, virtualization and security are some of the areas where open source solutions are sought. Verticals like distribution services (13 per cent), infrastructure services (12.1 per cent) and public sector (11.8 per cent) are planning to deploy open source for CRM applications within the next 18 months. In India, government, banking and SME represent the biggest opportunity.
In addition, several existing SME users of pirated software in the segment are known to be actively considering open source on increased threats of raids by BSA (Business Software Alliance), and open source solution providers are tapping into the opportunity.
| Quick Five |
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» Support from global giants has aided open source
» Cost savings, threats of raids by BSA have been the biggest selling points
» CRM, infrastructure services, messaging virtualization, security are areas for open source
» The biggest challenge for the channel partners is employment and retention of skille
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Channel opportunities
Vendors like Redhat and Novell have been successful in tapping a cross section of resellers who are selling Linux support subscription services. IBM and HP have been selling open source solutions through their enterprise channel teams, mostly bundled along with their servers and storage. There also exists a number of home grown ISVs, working with local resellers to take their solutions closer to the customer base. Since the free software business is services and solutions oriented, the biggest challenge for the channel partners entering the business is employment and retention of skilled manpower.
Future
While open source represents a big opportunity, not all channel partners have warmed up to the idea because of ignorance. However, with more vendors making open source a key part of their strategy, partners will get educated and start pitching in to sell FOSS based solutions.
Another point to note is that over the years, many open source softwares have become stabler, user-friendly and mature due to wider acceptance globally. With several state governments promoting open source, channel partners need to tap into opportunities that are opening up. |