ERP Insights >> Magazine  >> June - 2015 issue

The Door to 'Open'

Author : Pankaj Kundwani
Monday, June 15, 2015

Pankaj Kundwani

For a long time, many professed 'Open Source' as a play area for freelancers and hobby developers. No one would think that Open Source could one day evolve and solidify its position as the default base for software development. But in 2012, Red Hat stunned the tech world and became the first open source technology company to collect more than $1 billion in revenue. Today, more than 90 percent of Fortune 500 companies rely on Red Hat, and there are many such success stories in the Open Source technology area.

The Open Source works on a philosophy that every innovation is an alteration or extension of a past breakthrough. Every new idea comes from connecting ideas that came before. Every solution comes from sharing a problem. And thus, it is infiltrating in nearly every feature of the modern enterprise. Many companies in the Open Source domain even claim to outperform proprietary packages on quality, cost, customization and security.

Many on the other hand, argue that Open Source is one the best options for SMEs that often face affordability barriers. Yet the trends show that large organizations too are now looking up to Open Source as a viable option. For instance, Wal-Mart Stores Inc. recently embraced open source for @WalmartLabs, the retailer's e-commerce group, to move more quickly, avoid vendor lock-ins, and give programmers more flexibility to customize applications.

Confirming the inclination of enterprises towards Open Source, North Bridge, a seed-to-growth venture capital firm, has recently announced the results of '2015 Future of Open Source Survey' and stated that around 78 percent of respondents participated run part or all of their operations on OSS (Open Source Solutions), and 66 percent said their company creates software for customers built on open source. This statistic has nearly doubled since 2010, when 42 percent of respondents affirmed that they used open source in running their business or IT environments.

We at ERP Insights realize this change in market perceptions, and bring to you the list of '20 Most Promising Open Source Solutions and Services Providers' in the current issue. This issue also features SOD Technologies: An Emerging Leader in the Open Source ADempiere ERP Space, as the cover story. I hope our efforts will show you the door to Open Source.
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