Innovate or Die
I had a Eureka! moment about why companies choose open source. They choose it because they must innovate or die. There will always be people who choose open source because it is bleeding edge and I am not talking about those people. I am talking about companies that choose open source because of a compelling business reason.
Innovation comes because of two problems: costs and features.
Most people will quickly site costs as a reason to choose open source. This belittles many of the other reasons to choose open source, but cost is a valid point. Many companies cannot pay for existing software. Just look at some of the “enterprise” type of programs and the costs are astronomical. So what is the company suppose to do, just roll over dead because it can’t buy software. NO! The company can choose open source because the initial licensing fees are now gone. Sure the company will have to support the software themselves with more sweat equity, but small companies are full of sweat equity and little cash. So these companies innovated by taking on their software responsibilities themselves.
The second way to innovate is through new features. Tons of companies differentiate themselves by the features on their websites. Do you think that these fancy features came right out of the box? NO! Many of these companies started with an existing open source project and then added new features to it. Instead of buying a proprietary system that they could not extend, these types of companies chose open source where they have full access to all the code allowing them to add features out the wazoo.
I think it is easy for small companies to fit into the innovate or die category. So selling open source to these types of companies is rather easy. Open source in larger companies is harder. With the budget to buy enterprise class software and a track record of out sourcing major projects, convincing a company to bring development in-house and use open source is a tough sell. I think if the desire to innovate is in the company, it would be easy to make the switch. If that innovation desire does not exist, put your flack jacket on because you have a long hard fight ahead of you.
But there is good news. Board rooms of larger companies are starting to feel the breeze of the open source change. They see how open source has benefited other companies and are starting to ask, “can we use open source?” And that my friend, seems like the beginning of a desire to innovate.