Friday, April 3, 2009

Open Source growth by SaaS adoption

Richard Stallman Interview about Utility computing

This is the best quote of the interview:

"It's stupidity. It's worse than stupidity, it's a marketing hype campaign, Somebody is saying this is inevitable – and whenever you hear somebody saying that, it's very likely to be a set of businesses campaigning to make it true."

While I agree that nothing is inevitable, Utility computing will be revolutionary. As vendors compete in the Utility computing space, they will be forced to lower overhead. Open source is great way to do that and with the economy of scale offered by Utility computing open source will grow.

Utility computing works because someone can build a large bank of resources and charge out for small bits of it. Not everyone can build an environment that fast and resilient without a serious draw on their margins. The same argument was made of open source engineers. They are costly. However with a few large companies employing those engineers, they can again build an excellent coding environment and sell small pieces to a lot of customers for a large profit margin. Smaller companies will use those engineers as well to build vertical specific applications on top of Utility computing environments. Again, with many players in the game, lower overhead is a must and therefore open source is a must.

In short, without an 800 pound gorilla in the room, it's up to the fastest, most marketed, and cheapest players to rule

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