The Emerging 'Open Source' Industry & Mega-Companies

Speaking of new companies and job growth - senior executives, politicians, economist, and investors pay attention. Hundreds of major open source companies have been established and are now succeeding in the 'Open Source' Health, Education, Publishing, and other industries.  Think Alfesco, Red Hat, KitWare, MedSphere, Black Duck, Google, Eucalyptus, Mirth,  Canonical, Pentaho, JasperSoft and many more [not to mention well established companies like IBM and Oracle also playing in this space]. See COSI Open Solutions.  

Open source software has had a revolutionary impact on the software industry. With the success and ubiquity of open source projects, most enterprise and commercial software development teams now mix open source with internal code to shorten software development schedules and save on the development costs.  See BlackDuck Open Source ROI

The latest reports from Gartner, Forrester, Cenatic, and many other news and industry research organizations all point to the continuing growth of the open source marketplace. In fact, Red Hat recently became the first open source software company to generate more than $1 billion in annual revenue, a watershed moment for the global open source business community.  See COSI Open Business Studies & Reports.

Open source software has obtained a significant share of several markets, such as web servers, server operating systems, desktop operating systems, web browsers, databases, e-mail and other IT infrastructure solutions. A major driving force behind the adoption and growth of open source solutions in the U.S. has been the emergence and growth of open source software product and service providers with a profitable, sustainable economic model.  See Cenatic Report on International Use of Open Source Software – 2010

It would seem the time is right to start building more 'mega' companies in this space like Red Hat. Companies in the Open Source, especially in the Open Health, Open Education, and Open Publishing space, are ripe for the picking with potential growth as far as the eye can see. What do you think is going to happen?

A recent survey by Gartner, Inc. found that more than half of organizations surveyed have adopted open-source software (OSS) solutions as part of their IT strategy. Nearly one-third of respondents cited benefits of flexibility, increased innovation, shorter development times and faster procurement processes as reasons for adopting OSS solutions.  See Gartner Report

Looking forward to your comments and a 'heads up' about any major movements in this arena.

Open Revolution #6 - The 'Information Age' and the 'Open Way'

We are in the process of transitioning from the Industrial Age of the past century into the Information Age of the 21^st century.  Many acknowledge this but don't really grasped what it means. We are moving from the 'closed' protective systems that worked well in the Industrial Age to the new, more effective 'open' systems approach that is the hallmark of the Information Age. We are moving to a new way of doing things – the 'Open Way'.

The Open Source Way is more than a development model; it defines the characteristics of a culture. The open source way thrives on broad collaboration and shared effort. The open source way is about possibility. Open source presents a new way to solve old problems. To share ideas and effort. The open source way multiplies: Knowledge; Effort; Inspiration; Creativity; and Innovation. The impact is exponential. The open source way opens doors. Open source offers a new perspective. Open, not closed. Collaboration, not isolation. From www.opensource.com/open-source-way

Think about it. The 'Industrial Age' was primarily characterized by organizations that placed a high priority on internal development of proprietary solutions and making sure their products were patented or copyright protected. Sharing ideas, data, information, knowledge,  or resources were not generally accepted practices. The Industrial Age was characterized by hierarchical organizational structures, management styles that were heavily controlling, assembly line production processes, inhouse developed information systems, and many other 'closed' management practices.

The characteristics of the new 'Information Age' are quite different. Look around and what you will see is a growing emphasis by organizations on the 'Open Way' . Every where you look you see people advocating and working on open standards, open communities, open source, open access to data, information, and knowledge. Collaboration, sharing, open solutions, sharing, and more participative 'hands off' management styles.

We're still in the midst of the transition, so many organizations are still operating under the old rules that worked well in the fading Industrial Age.  Many owners, managers, and workers haven't fully grasped or understood the changes taking place all around them. The Tea Part movement is unhappy and fighting to retain a hold on old ways. The Occupy Wall Street movement  is unhappy because the old systems and ways of doing things no longer work in this new Information Age.

Bottom line - the war is over, but many organizations and people don't recognize this. We are leaving the Industrial Age behind and have entered the new Information Age. Unfortunately, we will be going through a somewhat chaotic period over the next decade as the changes being made continue to take hold.  It's time to start acknowledging and thinking about embracing the 'Information Age' and the 'Open Way' that will dominate this 21^st century.

I will continue to blog on the Open Revolution. But let me end on this note. For many centuries, our society has been dominated by three major institutions – Government, Business, and Non-Government Organizations.  New technologies, the increasing  pace of innovation, proliferation of overwhelming global challenges, coupled with the use of new information technologies, social media, and the 'Open Way' by the 99% is leading to a major change in how societies are organized. The 99%, are learning to use the new technologies and approach to create and empower the missing fourth institution that will be at the table from now on – the people.  More to come in my next blog.

Looking for your thoughts and input on the Open Revolution.  Please share your ideas and thoughts.