[svlug] a course on managing open source...

Karsten M. Self kmself at ix.netcom.com
Sat Jul 16 19:39:19 PDT 2005


on Thu, Jul 14, 2005 at 05:00:01PM -0700, Karsten M. Self (kmself at ix.netcom.com) wrote:
> on Wed, Jul 13, 2005 at 07:05:48PM -0700, Sameer Verma (sverma at sfsu.edu) wrote:
> > Dear SVLUG members,
> 
> > I will be teaching a course titled "Managing Open Source" at San
> > Francisco State University. This course is being offered as a
> > graduate/undergraduate cross-listed course by the Information Systems
> > department in the College of Business. As the title suggests, the
> > focus of the course will be business-oriented for most part. A
> > proposed course outline is listed at the end of this e-mail.

<...>

[Business models]

>   - Selling software (free or otherwise) is getting harder.  Don't go
>     there if you don't have to.  There've been several news articles in
>     the past few months on how the question among ISV's is becoming if
>     the customer *will* pay, not how much.  For myself, faced with a $7k
>     annual licensing fee or free alternatives (for a development tool
>     set), I went with the free stuff.  All segments of the market are
>     trying to move to recurring licensing or service fees, and trying to
>     balance the need for low-cost availability in developing markets and
>     among potential technical skill bases, while capturing sufficient
>     revenues to continue operations from those users who can pay.  Joel
>     Spolsky has some interesting observations on software pricing:
>     
>        http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html
>        http://discuss.fogcreek.com/newyork/default.asp?cmd=show&ixPost=1389

Add another, as of this week:

    http://economist.com/business/displayStory.cfm?story_id=4173652
    Business's digital black cloud
    Jul 14th 2005 | LOS ANGELES
    From The Economist print edition

    New, faster computer chips are challenging the traditional structure
    of the huge business-software industry

    FOR the past 40 years, companies around the world have grown
    accustomed to a doubling in computing power every 18 months to two
    yearsfulfilling a remarkable forecast made in 1965 by Gordon Moore,
    one of the founders of Intel, a semiconductor powerhouse based in
    Silicon Valley. As their businesses have expanded, managers have
    been able to sleep easy in the knowledge that next year's computers
    would be more than able to keep pace with their needs and probably
    cost no more than last year's models. Alternatively, slowpokes with
    steady workloads have been able to replace ageing computers with
    flashier models costing half as much. The declining real cost of
    computing has been an economic boon.

    <...>

    The real losers in the pending upheaval could well be software
    suppliers. Firms such as Oracle, SAP and IBM, whose
    industrial-strength programs are the bedrock of business, could be
    badly bruised in the process. But inevitably, end-userscompanies big
    and small that depend on enterprise software to do their various
    business transactionsare going to be feeling pressure as well. Over
    the coming year, they will have to keep their wits about them if
    they are to prevent their licensing costs from escalating out of
    control.


I still swear I recall seeing a pricing article at CNET but can't dig it
up.

Some near hits (and vaguely apropos):

    http://news.com.com/Seeing+double+in+software+licensing/2100-1014_3-5348977.html

    http://news.com.com/A+clause+for+alarm/2009-1017_3-943258.html


...still not the article I'd had in mind.

Peace.

-- 
Karsten M. Self <kmself at ix.netcom.com>        http://kmself.home.netcom.com/
 What Part of "Gestalt" don't you understand?
    Have you got a 27B/6?
    - "Brazil"
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