It’s not a shock to state that cloud computing will disrupt the business
model of commercial software. But how it will affect the open source
The rise of open source is clearly linked to the rise of the web. Buy a
commodity piece of hardware, download source code of any of the thousands of
open source projects and start to “scratch your own itch”. My Linux box
will communicate with your Linux box as long as we stick to some minimal set
of protocols. The web is loosely coupled and software can be developed
independently in a bazaar style.
It’s not quite as straightforward in the cloud. Clouds are also composed of
thousands of commodity PCs, but the cloud operator manages the overall
architecture and deployment – power supply, cooling, hypervisors, security,
networks and so on. We don’t rely on minimal set of protocols in the cloud.
On the contrary the clo... (more)
SaaS Journal on Ulitzer
Back in the old good days of enterprise software, we did not need to worry
about our customers. We delivered bits on DVDs – it was up to the customers
to struggle with installation, integration, management, customization and
other aspects of software operations. We collected all the cash upfront, took
another 25% in annual maintenance. Throwing software over the wall …
that’s how we did it. Sometimes almost literally…
I now live in the SaaS world. My customers only pay us if we deliver a
service level consistent with our SLAs. We are responsible for deploym... (more)
BI on Ulitzer
Peter Yared wrote recently a BusinessWeek guest blog post called “Failure
of Commercial Open Source Software.”
Not surprisingly his post caused a lot of angry replies from people who work
for COSS companies. “The emperor is not naked” they argued.
I believe that the COSS emperor is openly naked. And the discussion
shouldn’t be whether COSS is a complete or a partial failure just because
there are few successful exits that Peter neglected to mention. At the end of
the day Peter’s comment that “selling software is miserable” is true.
Every sales rep involved in selling ... (more)
Business Intelligence projects are famous for low success rates, high costs
and time overruns. The economics of BI are visibly broken, and have been for
years. Yet BI remains the #1 technology priority according to Gartner. We
could paraphrase Lee Iacocca and say: People want economical Business
Intelligence solutions and they will pay ANY price to get it.
Nobody argues with the need for more Business Intelligence; BI is one of the
few remaining IT initiatives that can make companies more competitive. But
only the largest companies can live with the costs or the high failure rates... (more)
GoodData Session at Cloud Expo
September 24, 2009 - Terry Pratchett once wrote that “Gravity is a habit
that is hard to shake off”.
We could make a similar comment about the financials of SaaS BI companies. As
much as startups in this field would like to shake off their bad economics,
reality always catches up.
We’re seeing one after another SaaS BI startup to go out of business. Back
in June it was LucidEra and earlier this week Blink Logic ceased operations.
But anybody who only briefly looked at Blink Logic’s finances (it was a
public company) shouldn’t be surprised by this ev... (more)